September 18th- Drought in Argentina

September 18th 2022

Drought in Argentina

National Holidays:Friday, Friday, October 07th and Monday October 10th

Grains and Markets:

The wheat harvest that is due to start coming in as from November is being seriously affected by the lack of rain over it’s whole growth period. It is still early days to make an accurate estimate of the damage to quality and the fall in tonnage.
At this moment sales of the 2022/2023 crop are progressing more slowly than last year with 5.25 million tons sold. This is 18 per cent less than 2021/2023.
Soyabeans are actively being traded with an accumulated total of 6,790,600 tons being sold by farmers during September. This is the result of a new “adjusted” exchange rate being applied by the Government.

Drought in Argentina:

According to figures issued by the National Meteorological Service last week, Argentina is now going through an even drier winter that last year (2021).
The map/graph below shows the water accumulated in the ground comparatively from September 2021 to September 2022.

The “La Niña” climatological phenomena is now moving into it’s third year. Some reports talk of it persisting, with negative effects, into December.
The lack of rainfall affects the harvests but also the level of water in the River Parana.

Petronas, YPF and the projected LNG plant:

The projected Petronas/YPF project to install an LNG plant in Southern Argentina is being formally announced.
The intended annual volume of LNG installation is 5,000,000 tons, or 100 vessels.
Once the final location is agreed construction work is to begin by the end of 2023.
The locations being discussed at the moment are between Bahia Blanca and San Antonio Oeste.
Either location will require the construction of a gas pipeline to feed gas from Vaca Muerta area to the LNG plant and berth.

Weather the rest of the week. Bunker deliveries at Zona Comun:

Strong wind gusts over short periods at Zona Comun tonight and Friday.
As always, the STS operation is up to the discretion of the Master’s of the vessels involved.

Will keep you posted.
Best regards,
Antares Servicios Maritimos S.A.

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