Argentine Drought Over After Series Of Storms Soak Fields

Argentine Drought Over After Series Of Storms Soak Fields

The drought testing Argentina’s developing soybeans is over and prospects are looking brighter for the crop, Rosario Grain Exchange said.

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.