Argentine drought deemed over
The drought testing Argentina's developing soybeans is over and prospects are looking brighter for the crop, Rosario Grain Exchange said Wednesday.
A series of storms over the past two weeks have soaked virtually all the fields in the central farm belt, the exchange said.
"The prospects for the soy crop have significantly improved," the exchange said.
However, analysts warn that the crop has already suffered some damage and that more rain will be needed through February.
Analysts are predicting 2011-12 soybean production of between 45 million and 49.5 million metric tons--well short of the record 54.5 million tons harvested in the 2009-10 season.
Argentina leads soyoil and soymeal exports and ranks third in global soybean exports. Worries over the crop has helped buoy global soybean prices in recent weeks.
Argentina is also the world's second-largest corn exporter. The corn crop has already suffered major losses with potential production down by over a third. Early in the season, many had expected production to top 30 million tons. Now, the Buenos Aires Cereals Exchange is predicting corn output of just 22 million tons.
Estimates for Argentina's 2011-12 crop production in million of hectares (HA) or millions of metric tons (MT) (One hectare equals 2.47 acres):
Wheat Soy Corn Sunseed B.A. Cereals Exch 14MT 46.2MT 22MT 3.5MT Ag Ministry 13.4MT 48.9MT 23MT 1.8HA USDA 14.5MT 50.5MT 26MT 3.2MT Rosario Grain Exch 13.7MT 49.5MT 21.4MT -- Agritrend -- 46MT 21MT 3.3MT Granar -- 47.8-49MT 18.5-20.2MT 3.5MT Panagricola -- 45MT 21MT -- Agripac -- 49MT 27MT -- Lartirigoyen -- 45.5MT 18.5MT 3.4MT
Argentina's historical production in millions of metric tons, according to the USDA:
Wheat Soy Corn Sunseed 2010-11 15 49 22.5 3.6 2009-10 9.6 54.5 22.5 2.3 2008-09 10.1 32 15 2.9 2007-08 18.6 46.2 22 4.65 2006-07 16.3 48.8 22.5 --
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; email@example.com
(END) Dow Jones Newswires
February 08, 2012 11:23 ET (16:23 GMT)