Argentina Exchange Ups Soy Forecast To 53.5M Tons

Perfect growing conditions across much of Argentina’s farm belt are boosting the prospects for Argentina’s 2009-10 soy crop, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday.

The exchange increased its forecast for 2009-10 soy production to 53.5 million metric tons, up 1.5 million tons from last week’s estimate. Output is expected to set a new record and be up over 20 million tons from last season’s drought-battered crop.

“Conditions couldn’t be better for the developing crops,” as soaked fields in the central farm belt dried out this week and parched fields up north saw showers, the exchange said.

Farmers had been worrying that excess rainfall through the harvest season may damage the crops, but the exchange said that the latest weather models predicted relatively dry weather through the harvest season.

The first early soy fields were harvested over the past week, according to the exchange.

Argentina is the world’s third largest soybean exporter and leads soymeal and soyoil shipments.

The exchange left its commercial corn forecast unchanged at 20.2 million tons, with 11.5% of the crop harvested to date. Corn yields are expected to be high this season due to excellent conditions through much of the growing season.

Argentina is the world’s third-largest corn exporter.

To date, 40.3% of the forecast 2.1 million ton sunflower seed has been harvested, according to the exchange. Argentina is one of the worlds top sunflower seed oil exporters.

Source: CME Group