Argentina's biggest grains exchange cuts its forecasts for 2010/11 soya and corn output on Wednesday, adjusting earlier estimates to reflect yield damage caused by dry weather. Rosario grains exchange lowered its estimate for the soya harvest by 1 million tonnes to 48.5 million tonnes and slashed its corn outlook by 7.5 percent to 19.7 million tonnes.
The South American country is the world's No 3 soyabean exporter and the second-biggest corn supplier but severe dryness from November to mid-January has prompted analysts to lower forecasts for this season's harvest. Recent showers have brought relief, boosting soya crops in the country's top growing regions, although they arrived too late to reverse productivity losses in many corn crops.
"Early planted crops suffered from dryness that was partly offset by rains in late January," the exchange said, adding that late-planted crops should have good yields. The US Department of Agriculture (USDA) sees soya production at 50.5 million tonnes, although most analysts now expect a harvest of less than 50 million tonnes.
Dry weather battered corn crops in Argentina just as many plants were passing through the crucial pollination stage, when final yields are largely determined. The exchange said farmers took preventive measures such as sowing late in anticipation of dryness caused by the La Nina weather phenomenon, preventing further damage to corn.
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