April 23, 2009
Argentina's soy, corn forecasts lowered again on drought
The Buenos Aires Cereals exchange again lowered its forecast for Argentina's 2008-09 soy and corn production on Wednesday (Apr 22).
The exchange has dropped its soy estimate by 800,000 tonnes to 36.2 million tonnes.
Last week, the exchange slashed its soy forecast by 2.4 million tonnes as the extent of severe drought damage became clearer.
A brutal drought this season has seen production prospects plunge despite a record area planted. Total soy production is expected to be the lowest in five years.
Pests have also done considerable damage to the crop, weakened by hot, dry weather.
With 61.7 percent of the crop harvested to date, final yields are expected to be a dismal 2.13 tonnes per hectare, the exchange said in its weekly report.
The exchange also slashed its forecast for 2008-09 corn production by 500,000 tonnes to 13 million tonnes due to the drought damage.
To date, farmers have harvested over 70 percent of the corn area, according to the exchange.
Yields are so poor in many areas that farmers are just turning the fields over to pasture, the exchange said.
