February 26, 2010

Argentina corn forecast takes an upturn

The Buenos Aires Cereals Exchange increased its forecast for Argentina's 2009-10 corn crop Thursday (Feb 25), pegging output at 20.2 million tonnes compared to the 19.3 million tonnes it forecast last week.

Steady showers over the past week helped improve conditions. In addition, sunny skies forecast for the next few days will help speed up drying of the grains and prepare the early corn for harvest, the exchange said. To date, 1.6% of the crop has been harvested.

The exchange left its forecast for 2009-10 soy production unchanged at 52 million tonnes, but said that the crop has the potential to be even bigger.

A let up in rainfall over the following days will give farmers a chance to get into the fields to treat the crops and "if a dry period comes at the end of March or early April, there is a possibility of seeing even more soy than currently estimated," the exchange said.

Some analysts see Argentina producing more than 55 million tonnes of soy this season, up 72% from the drought-battered crop last season and over 13% higher than the previous record for soy output.