Heavy rains in Argentina threaten soy crop

Argentina's soy harvest, with a forecast of 52.5 million tonnes for 2009-10 production, has suffered some setbacks due to heavy rains and faces a weekend frost.

"Significant progress on harvesting has been disrupted by rains in the last few days," the Buenos Aires Grain exchange said.

The figure, while well clear of the 48.8 million-tonne record set three years ago, is at the lower end of the previous forecast range of 51 -55 million tonnes, according to the country's farm ministry.

It is also below from the forecasts of analysts such as Informa Economics, which has pegged the crop at 55 million tonnes, and that of the USDA, which has a forecast production of 54 million tonnes.

USDA officials have warned that their forecasts were still subject to revision, saying that rainfall this month and into early May could affect harvesting activities and yields.

Some soy areas are also expecting frost on Friday (Apr 23), although there is some dispute among observers about the likely severity of the freeze, and the potential of damaging a mature crop.