Corn growers in Argentina, the world’s second-largest exporter of the grain, may reap a third less than initially forecast after a drought damaged crops.
Corn farmers may produce as little as 20 million metric tons, compared with estimates of a record 30 million tons in November, Argentine corn farming group Maizar said. Soybean production may be 48 million tons, down from an initial estimate of 52 million tons, said soybean association Acsoja.
The La Nina weather pattern brought excessive heat and dryness to crops in parts of Argentina, Brazil and Mexico over the past two months. Output losses in Argentina include grain planted in October that suffered irreparable damage and corn that may not be sowed if rain levels are insufficient in coming weeks, said Martin Fraguio, executive director of Maizar.
“The situation is disastrous and the loss is enormous,” Fraguio said in a telephone interview from Buenos Aires yesterday. “The most pessimistic estimates are for 20 or 21 million tons” of corn.
Soybean crops are in “intensive care” and rain over the past few weeks wasn’t sufficient in all regions to repair damage, Miguel Calvo, head of soybean association Acsoja, said today in a telephone interview.
‘Abundant’ Rain
Corn for March delivery rose 1.8 percent to $6.04 a bushel on the Chicago Board of Trade at 12:56 p.m, after dropping 1.7 percent yesterday. Soybeans for March increased 1 percent to $11.9525 a bushel.
Rain expected in the next few days and replanting in areas affected by the drought may help diminish the dry weather’s effects, Maizar’s Fraguio said.
Temperatures of 35 degrees Celsius (95 degrees Fahrenheit) and rain are forecast for the main agricultural regions in Argentina through Jan. 26, the Buenos Aires Cereals Exchange said today.
“Abundant” rain will fall in most of northwestern Argentina, while east of Entre Rios province and the eastern corner of Buenos Aires province will get “scarce or no rain,” the exchange said.
Argentina’s corn crop is 91 percent planted and is expected to cover 3.7 million hectares (9.1 million acres), down from a forecast of 3.74 million hectares a week ago, the cereals exchange said today. The soybean crop is 92 percent planted and forecast to cover 18.9 million hectares.
The U.S. is the world’s biggest corn exporter. The U.S. also is the biggest soybean exporter, while Brazil and Argentina are the second- and third-largest soybean exporters, respectively.
Source - http://www.businessweek.com/