February 28, 2013

Argentina corn and soy productions affected by hot weather

Argentina's corn and soy production have suffered irreversible damage from hot weather conditions, a setback for the country's harvest prospects.

Recent rainfall brought some relief to extreme dry areas, Argentina's crops are still expected to fall short of expectations. Smaller harvests in Argentina, the world's second-biggest corn exporter behind the US, "places increased pressure on already-tight global supplies," Rabobank said in a report.

Rabobank analysts cut their forecast for Argentina's corn crop to 20 million tonnes, down 11% from a previous estimate of 22.5 million tonnes. Last year, Argentina harvested 22.8 million tonnes, according to the USDA.

March corn futures fell to US$6.44 a bushel, down 2% on the week. March soy futures fell to US$13.98 a bushel.

Analysts also lowered their outlook for Argentina's soy crop, estimating the harvest at 48 million tonnes, down 7.7% from a previous forecast. Argentina harvested 50.5 million tonnes in 2010.