HAMBURG, Germany (Reuters) – Dry weather has prompted German oilseed analyst Oil World to cut its forecast of Argentina’s soybean crop to 50 million tonnes from 52 million tonnes.
This would still be up strongly from the drought-reduced 32 million tonnes harvested in the previous season.
“In Argentina, soybean crop prospects have deteriorated due to unfavourably dry conditions in several parts of the country,” Oil World said.
During Oct. 1-27, average rainfall was only 16 percent of usual levels in Argentina’s La Pampa soybean region, 31 percent of normal in Cordoba and 50 percent in Santa Fe, it said.
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Seeding is delayed and the country has a significant seed shortage following its drought last season, forcing farmers to use low-quality seed.
“This could become a serious problem, reducing yields below potential,” Oil World said, stressing there was still time for the crop to recover if weather improved.
The outlook in Brazil was better following recent rain in the country’s soybean regions and good sowing progress, it said.
Oil World expects Brazil’s 2010 soybean crop to increase to 63 million tonnes from 57.6 million tonnes last season.
