January 4, 2012

Adding to concern that 2011/12 corn and soy crops will be lowered due to lack of rain, Argentina will remain dry on Tuesday (Jan 3) and the days to come, local weather forecasters said.

The National Meteorology Service issued a forecast for Tuesday (Jan 3) that called for no substantial rains in any of the South American country's soy- or corn-growing areas during the day, although some scattered showers were possible in the south eastern part of La Pampa province.

Prices of both crops in the Chicago forwards market have risen on supply concerns related to dry weather in grains exporting powerhouse Argentina, which has been hit by dryness related to the La Nina phenomenon.

"The weather will be hot and dry until Sunday and maybe even until Tuesday of next week," said Eduardo Sierra, climatologist at the Buenos Aires Grains Exchange. "If it rains it will be after January 11 or 12."

Argentina's 2011/12 corn started being planted in September while soy started in October. Due to the growth cycles of both crops, corn is more vulnerable to the current dry spell because soy willhave time to benefit from rains that may.