Oilseeds analyst Oil World has cut its forecast of 2012 soyabean crops in Argentina and Brazil by a combined 4.0 million tonnes following drought in the two countries, it said on Tuesday. Hamburg-based Oil World said it has cut its forecast of Argentina's 2012 soyabean crop to 46.5 million tonnes from 48.5 million tonnes forecast on January 24 and 52.0 million tonnes forecast in December.
This would be down on the 49.2 million tonnes harvested in 2011 in Argentina. Argentina is the world's third-largest soyabean exporter, with the United States the largest and Brazil in second place. Oil World said it has cut its forecast of Brazil's 2012 soyabean crop to 70 million tonnes from 72 million tonnes estimated on January 24 and 72.8 million it forecast in December.
This would be down on the 75.3 million tonnes Brazil harvested in 2011. Droughts in the two South American countries have been a major issue in soyabean markets in past weeks, with Argentina in special focus. "There is increasing concern about this year's South American crops," Oil World said, adding that recent rainfall had not been enough and irreversible crop damage was now being suffered. Forecasts of only scattered South American rainfall in the two weeks to February 12 imply continued crop stress and further soyabean deterioration, it said.