Argentine Farmers Celebrate Soy-Saving Series Of Showers

Argentine Farmers Celebrate Soy-Saving Series Of Showers

A steady series of showers over the past week came just in the nick of time for Argentina’s thirsty soybeans, setting them on course for a relatively healthy crop.

The rain “was a significant relief, that will allow for very good growth of the late soy planted in January,” the Buenos Aires Cereals Exchange said in its weekly crop report.

“In general, the rain helped boost soil moisture levels … helping the late soy the most,” said brokerage Panagricola vice president Ricardo Baccarin.

In the central farm belt, “most of the early-planted soy was also favored by solid rainfall, guaranteeing the water needed for the advanced reproductive phases those crops are currently going through,” the exchange said.

However, analysts warned that the crop has already suffered damage and that more rain will be needed through February.

About 10% of the soybean crop’s potential output has been lost already, said Francisco Mariani, analyst with farm-services company Lartirigoyen.

Analysts forecast 2011-12 soybean production 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 is the world’s second-largest corn exporter, leads soyoil and soymeal exports and ranks third in global soybean exports. Global grain traders have been closely watching weather conditions in both Argentina and Brazil for signs of a snap in the drought which would stem crop losses.

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 exchange predicts corn output of just 22 million tons.

After the severe drought in December, recent showers brought relief to the late-planted corn, but were too late for the fields planted early, the Buenos Aires Exchange said.

Recent showers are a boon, but below-average rainfall is expected to continue in the coming months due to the La Nina weather phenomenon.

La Nina involves the periodic cooling of the equatorial Pacific Ocean that usually brings dry weather to the farm belts of Argentina, Uruguay, Paraguay and the south of Brazil.

La Nina is expected to fade in March or April, but its effects will linger through the southern hemisphere winter with dryness continuing until October or November, according to Eduardo Sierra, chief climatologist for the Buenos Aires Cereals Exchange.