La Nina dryness batters Argentina's soya belt

Dryness caused by the La Nina weather phenomenon persisted in Argentine soya-growing regions last week, slowing plantings and preventing soya crops from developing normally, the government said in a report. Argentina is the world's No 3 soyabean exporter and the government has forecast 2010/11 area at 18.7 million hectares (46.20 million acres), slightly above last season despite some farmers favoring corn over soya. The two crops fight for acreage in Argentina.
La Nina has brought dry conditions to the South American nation's farming belt since October, meaning sowing has been progressing slowly and prompting analysts to lower their soya production forecasts for the country. "Over the past week the oilseed grew at a slower pace in Bragado (in north-central Buenos Aires province), due chiefly to the lack of soil moisture," the Agriculture Ministry said in its weekly crop report, released on Friday.
Buenos Aires is the top soya-growing region in the country. By Thursday, farmers had planted 77 percent of the estimated 2010/11 soya area, up 5 percentage points from the previous week but lagging 5 points behind last season's pace. Agriculture Minister Julian Dominguez has forecast 2010/11 soya production at 52 million tonnes, as does the US Department of Agriculture (USDA). This would mark a slight decrease from last season's record 52.7 million tonnes.
However, the Buenos Aires Grains Exchange last week lowered its soya area forecast slightly, saying dry conditions were prompting farmers to plant less soya than expected. Dry weather has also affected the 2010/11 corn campaign in Argentina. Although crops are generally in good condition, the report said corn plants will likely suffer if it does not rain soon because they are entering the key flowering stage.
By Thursday, corn farmers had seeded 85 percent of the 4.04 million hectares estimated for planting, matching last season's tempo. Argentina, the world's No 2 corn supplier after the United States, gathered 22.7 million tonnes last season and the government foresees a record 26 million tonnes this crop year. The USDA forecasts Argentine corn output at 25 million tonnes in 2010/11.