Argentina Corn Forecast Increased To 20.2 Mln Tons - Exchange

The Buenos Aires Cereals Exchange increased its forecast for Argentina’s 2009-10 corn crop Thursday, pegging output at 20.2 million metric tons compared to the 19.3 million metric tons it forecast last week.

Steady showers over the past week helped improve conditions. In addition, sunny skies forecast for the next few days will help speed up drying of the grains and prepare the early corn for harvest, the exchange said.

To date, 1.6% of the crop has been harvested.

The exchange left its forecast for 2009-10 soybean production unchanged at 52 million tons, but said that the crop has the potential to be even bigger.

A let up in rainfall over the following days will give farmers a chance to get into the fields to treat the crops and “if a dry period comes at the end of March or early April [then] there is a possibility of seeing even more soybeans than currently estimated,” the exchange said.

Some analysts see Argentina producing more than 55 million metric tons of soybeans this season, up 72% from the drought-battered crop last season and over 13% higher than the previous record for soy output.

The exchange also left its forecast for sunflower seed production unchanged at 2 million tons.

Source: CME Group