Argentina 2010 soy crop seen at 48 million tonnes

German oilseeds analysts Oil World said on Tuesday (Nov 17) it has cut its forecast of Argentina's soy crop in early 2010 to 48 million tonnes from 50 million tonnes in its previous forecast on November 3 due to dry weather.

In late October, Oil World had estimated the country's crop in early 2010 at 52 million tonnes.

But the lower forecast would still be an increase on the drought-reduced 32.0 million tonnes Argentina harvested in early 2009.

Dry weather continues to cause serious concern about Argentina's crop in early 2010, it said.

The analyst said that the next few weeks will show whether this downward revision has been premature or whether further downward adjustments will become necessary.

The global soy and soy products market had been expecting improved South American supplies in early 2010 and in turn falling prices, it said.

It said the smaller the production increase in South America will be, the less downward pressure on prices can be expected.

Argentina has received some beneficial rainfall in past days but at least 7 million hectares of the intended soy area are still suffering from drought, it said.