April 9, 2012

Argentina's 2012 soy production forecast down to 43 million tonnes

As the extent of drought damage becomes clearer especially in Northern provinces, Argentina's biggest grains exchange slashed its 2012 forecast for soy production to 43.1 million tonnes as compared to its earlier forecast of 44.5 million tonnes.

The drought across the South American grain-belt curbed supplies in Brazil and Argentina, which led to shrunk in soy crop to an estimated 65.2 million tonnes, down nearly two million tonnes from the March forecast of 67.1 million tonnes.

Meanwhile, the Agriculture Ministry said that Argentine soy crushing activity rose 11% in February from the same month last year to 2.30 million tonnes.

Argentina is the world's top supplier of soyoil and soymeal and crushing activity has increased in recent years due to investment in plants, most of them near the port city of Rosario.

The crushers produced 435,824 tonnes of soyoil in February 2012 while soymeal output also rose 11% in February 2012 to 1.7 million tonnes.

In February 2012, Argentine processing plants crushed 4.8 million tonnes of soy. Growers are currently harvesting 2011/12 soy and drought damage is lowering expectations for production.