MercoPress. South Atlantic News Agency

Climate conditions could reduce Argentina's soybean

Bad weather may reduce Argentina's soybean crop below previous forecasts this year but the precise outlook is still unclear, Hamburg-based oilseeds analysts Oil World said this week.

"The 2008 soybean crop could turn out sizably below expectations," it said. "Later planted soybeans have not developed well, particularly those planted after wheat. Yields of the later-maturing soybeans have been cut by too dry conditions as well as by frost." Over half of Argentina's soybean harvest has now been gathered and yields in the past two weeks have fallen slightly from earlier results. "Some observers indicate that this year's crop could turn out at only 45 to 46 million tons compared with previous estimates of around 48 million tons," it said. Meantime on Wednesday Chicago Board of Trade corn futures rallied to an all-time high of US$6.60 per bushel in the July 2009 contract on worries about US planting delays, traders said. Soybeans followed corn with July soy breaking through its 100-day moving average of US$13.29-3/4, reaching US$13.34. July soy was up 39 cents at US$13.25. July corn 2009 was up 19 cents at US$6.58.