Argentina 2008-09 soy output forecast lower at 42.5 million tonnes

Argentina's soy production projection for 2008-09 has been lowered to 42.5 million tonnes due to smaller harvested area and an expected decline in overall yield due to severe drought situation, reports the US Department of Agriculture.

The country's soy exports are reduced to 10 million tonnes due to tighter supply and soy crush forecast are also lowered to 34 million tonnes on lower production and decreased imports.

USDA has also lowered its sunflower harvest area to 1.925 million hectares due to severe dry spell during growing season. Production is also reduced to 3.08 million tonnes with an average expected yield of 1.6 tonnes per hectare; sunflowerseed crush may also fall to 4 million tonnes due to lower production.

For more of the USDA report, please click here