Argentina's soy production will likely reach 56 million tons for the 2018/2019 season, two million tons more than previously estimated, the Rosario grains exchange said on Wednesday, a fillip for the sector that was battered by drought last year.
Argentina, one of the world's biggest grain exporters, has being buoyed by early season rains followed by drier weather, bolstering yields of the country's main cash crop soy as well as other grains such as corn and wheat.
The weather is playing in favor of the harvest, the Rosario exchange said in a statement. Last month's rains were only concentrated in the first half of the month.
Corn production for the season was also seen higher than before, at 48 million tons versus 47.3 million, it added.
A bumper harvest could help bolster Argentina's embattled President Mauricio Macri, who is trying to revive growth in the recession-hit nation and defend the country's peso currency ahead of national elections later this year.