Argentine 45 day precip
© StormX

The USDA kept a low production estimate for Argentina wheat on the June Supply-Demand report. Drought is preventing growers from planting, driving the crop area to the lowest level in 30 years. Production may be only 11 million metric tons and 30-35% below average. If poor wheat growing weather continues with drought, it would be the second year in a row of low production and exports.

Argentina's largest wheat province Buenos Aires has received 2.5-3.5 inches of rainfall in recent weeks, allowing planting to proceed but other wheat provinces are dry. Drought is severe in Cordoba and Santa Fe, and moderate in La Pampa.

Low production for 2 straight years would restrict exports in 2010. Last year, Argentina exported only 4.5 million metric tons of wheat compared with 10-11 million metric tons normally.
Argentine wheat 2009
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