Argentina: drought and frost will prevent a record wheat harvest

Drought, combined with frost, could reduce wheat yields in parts of Argentina, according to a report from the Buenos Aires Grain Exchange. "Current conditions are unfavorable for growth and development." According to the Grain On-Line agency with a link to the Bolsa de Cereales de Buenos Aires website.

The impact of the drought that began in March is now exacerbated by “frequent and severe” frosts. Wheat crops in the north, which are in the yield-determining stages of development, can reduce productivity by 50%. The damage in the southern regions, known as Argentina's breadbasket, is less so far. But there, plants need rain to recover from stunted growth.

Argentina was previously expected to harvest a record wheat harvest after the government did not raise duties on its exports.