Drought in Argentina shifts global wheat trade
Drought in Argentina will likely change the global wheat trade picture in 2023.
Joana Colussi, a post-doctoral research associate at the University of Illinois who is originally from Brazil, tells Brownfield the drought has caused the poorest wheat production in Argentina in seven years.
“Wheat production in Argentina this year was 45% smaller than last year.” She says there is also an estimated 40% drop in yields compared to last season.
Colussi says this does not bode well for global wheat supplies, already taking a hit from the war in Ukraine, and will have buyers looking to other countries.
“While Brazil typically relies on Argentina wheat as a main source of imports, this year Brazil may need to import larger amounts of wheat from suppliers such as Canada and the United States.”
Because of the war in Ukraine, Brazil expanded their wheat acreage by 12% this season leading to a record crop, but Colussi says the country will likely need more to fulfill domestic demand.
Brownfield interviewed Colussi at the 2023 Illinois Farm Economics Summit in Mt. Vernon.