Wheat planting began at a record pace and began a campaign that promises a production of more than 20 million tons

In this way, the Buenos Aires Grain Exchange (BdeC) reported that in just one week, 14% of the 6.5 million hectares to be implemented have already been coveredprogress that is “within historical maximums”, due to the fact that NOA producers took advantage of the good soil moisture conditions.

In this region, 70% of the stipulated surface has already been planted, while in the NEA 15% has already been covered. In the north of Córdoba, work also accelerated, reaching 42% coverage.

On the other hand, in the south of the agricultural areawheat region par excellence, the sowing barely had a 3% progress and a retraction is expected in the area to be planted with wheat in favor of barley.

Although the reduction in surface area in the current campaign will only be 3% compared to the last cycle, it is estimated that the drop in production will be much greater.

According to BdeC projections, there would be 21.3 million tonswhich, if completed, would be the best third harvest in history, the truth is that it would be more than 23% below what was obtained in the previous cycle, when 28 million tons were harvested, an extraordinary and unimaginable record for the sector.

However, they are not yet definitive numbers, since the recent reduction in withholdings on wheat and barley of two percentage points starting in June announced by President Javier Milei on Thursday of the week (they will go from paying taxes from 7.5% to 5.5%), added to an increase in the international price of cereal and a decline in urea values, could lead producers to adjust upwards their planting intentions.

In fact, that was what the Rosario Stock Exchange (BCR) detected in its last survey in the core zone.

The Rosario entity reduced the estimated cut for the region, which went from retraction from 17% to 12% compared to the previous cycle. That is, instead of registering a drop of 300,000 hectares, it is now expected to be 220,000 hectares.

“The recent decline in fertilizer pricewith values ​​that went from US$ 1,000 to US$ 830, began to modify the wheat scenario,” they indicated from the BCR and added: “in a campaign in which conditions would be very favorable for cereals, they continue to think about what to do. On the one hand, the sector sees a historic opportunity: at least since the beginning of the decade, sowing has not been reached like this with the profiles so loaded and with a “Niño” that is projected to be at least moderate and starting in spring.”

This way, The core region would plant 1.6 million hectares of wheat, the fourth highest in the last 17 years.