October 22, 2012

Argentina's 2012/13 soy production is likely to reach a record high of between 55 million-58 million tonnes if weather conditions remain favourable.

Farmers are just beginning to seed soy in Argentina, the world's No. three soy supplier and its top soyoil and soymeal exporter. The government has not yet released an official soy production estimate for the 2012-13 crop year.

"If climate conditions go our way, we will be between 55 and 58 million tonnes," Agriculture Secretary Lorenzo Basso told Reuters on Friday (Oct.19), adding that at this very early stage he expects the harvest to have a floor of 50 million tonnes.

Heavy rains since August have replenished soil moisture in much of the soy belt after a December-January drought slashed last season's crop yields. Many analysts are optimistic about soy's prospects in the upcoming campaign.

Basso warned, however, that the high humidity could cause disease and fungus problems for the crop. The USDA forecasts Argentina's 2012-13 soy production at 55 million tonnes, up from 41 million tonnes last season.

According to the local Agriculture Ministry, farmers grew 40.1 million tonnes of soy in the last crop year.