Argentina 2009-10 soy harvest seen lower

Plentiful rain and perspectives for high yields mean Argentina's 2009-10 soy harvest should come in at a record 52 million tonnes, Buenos Aires Grains Exchange said on Thursday (Feb 4).

Argentina is the world's top supplier of soyoil and soymeal, but soy production sank to 32 million tonnes last season due to a devastating drought that battered yields and forced farmers to scrap their sowing plans.

The exchange said farmers had finished planting a record 19 million hectares and that most young crops were in a good or very good condition.

"However, longer-term weather forecasts point to the possibility of above-average rainfall in the autumn, which could cause harvesting problems or affect yields in late-planted crops," the exchange said.

Earlier, the exchange put its first soy harvest forecast at 51 million tonnes.

Meanwhile, the improved climate conditions also have raised expectations for corn production, which the exchange expects to come in at 18.4 million tonnes.

However, it warned that the warm and humid weather could increase the likelihood of diseases and attacks by insects.