Argentina's dought-hit 2011 soyabean crop could fall to or below 46 million tonnes from 54.5 million tonnes in 2010 unless much more rain falls, Hamburg-based oilseeds analysts Oil World said on Tuesday. The Buenos Aires Grains Exchange had estimated the crop in the world's third largest producing country at 47 million tonnes on January 13 because of continued drought in Argentina.
Concern Argentine production could fall has helped lift US soyabean futures in past days but rains have brought some relief this week. "Unless conditions improve soon, it is getting more likely that this year's Argentine soyabean crop will plunge to or below 46 million tonnes," Oil World said.
Recent Argentine weather forecasts were for more rain but Oil World warned that very heavy rain levels were now needed by parched crops and this was still regarded as unlikely. About 3 million hectares of Argentine soyabeans are in a critical condition and as of January 13 some 1.5 million hectares of the intended soyabean area had not been planted, it said. "It is questionable whether planting intentions can be carried out," Oil World said.
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