March 4, 2011

Argentine grains exchange holds soy harvest outlook

Argentina's 2010-11 soy harvest is seen stable at 48.8 million tonnes, with crops in good shape despite drier weather over the last week, the Buenos Aires Grains Exchange said on Thursday (Mar 3).

Argentina, the world's third-biggest soy supplier, was affected by dry weather earlier this season, but heavy rains from mid-January onward have brightened the outlook for the harvest of the oilseed.

"The lack of rain since our previous report hasn't had a significant impact on the state of the crop," the exchange said, adding that some areas need more showers to guarantee healthy crop development.

It said yields were expected to be close to the historical average in most areas.

Corn crops were harder hit by the dryness linked to La Nina, but the exchange also maintained its production estimate at 19.5 million tonnes as early harvesting picks up.

The South American country is the world's No.2 corn supplier after the US.

By Thursday (Mar 3), farmers had gathered 3% of harvestable lands, advancing 0.7 percentage points from the previous week and matching last season's harvesting pace.

Argentine farmers are also bringing in 2010-11 sunseeds, with production expected to come in at 3.1 million tonnes. So far, they have gathered 25.8% of harvestable lands, the grains exchange said in its weekly crop progress report.