May 7, 2008

Argentina soy yield to fall below forecast

Argentina's soy crop may be significantly below previous forecasts due to uncooperative weather, Hamburg-based oilseeds analysts Oil World said Tuesday.

The analyst said that later planted soy has not developed well, particularly those planted after wheat.

Furthermore, yields of the later-maturing soy have been cut by too dry conditions as well as by frost.

More than half of Argentina's soy harvest has now been gathered and yields in the past two weeks have fallen slightly from earlier results.

Some market observers said that the 2008 crop could turn out at only 45 to 46 million tonnes compared with previous estimates of around 48 million tonnes.

Oil World forecasts Argentina's soy crop at 47.90 million tonnes, down from 48.70 million tonnes last year.