Argentina Exchange Ups Soy Forecast On Good Weather

Good weather and prospects for high yields in the northern areas and the central farm belt led the Buenos Aires Cereals Exchange to raise its forecast for soybean production to 54.5 million metric tons, shattering the country's previous soy output record.

Argentina is the world's top soymeal and soyoil exporter, and ranks third for soybean shipments. The country's previous record for soy production was set in 2006-07, when 48.8 million tons were grown.

By raising its forecast by 1 million tons, the exchange brought its estimate closer to the 55 million tons forecast by the Agriculture Ministry.

Recent dry weather has allowed farmers to plow forward with the harvest, with 27.5% of the fields planted with soy harvested to date, according to the exchange.

The corn harvest also progressed well over the last week, with half of the fields harvested to date.

The exchange pegs commercial corn output at 21 million tons, up sharply from the 12.6 million tons grown last season when drought battered the crop.

The sunflower seed crop is 90% harvested, with the exchange forecasting production of 2.1 million tons.

Source: CME Group