March 9, 2012

The Buenos Aires Cereals Exchange said in its weekly crop report Thursday (Mar 8) that Argentina's 2011/12 corn crop was slightly worse than expected due to damage brought by drought and production prospects for the crop are now just 20.8 million tonnes.

Last week, the exchange had forecast 21.3 million tonnes. Early in the season, analysts had expected corn production of up to 30 million tonnes, but hot, dry weather in December and January baked many of the fields.

The drought hit the early-planted corn hard, but relatively wet conditions since the end of January have given the late-planted corn a boost, according to the exchange.

The corn harvest is just getting started and will continue through June. Argentina is the world's second largest corn exporter.