Argentine Corn Forecast Cut by Exchange on Drought Damage

Argentina’s corn harvest forecast was lowered to 21.3 million tons from 22 million as drought conditions damaged crops planted last year, the Buenos Aires Cereals Exchange said.

The exchange reduced its forecast as planting of this year’s crop reached 99 percent completion, it said in a weekly report e-mailed today. Heavy rain this week boosts prospects for recently planted crops, the exchange said.

Farmers in the Pampas will continue to receive moderate rain through Feb. 16 after storms replenished soil humidity in most rural areas, the exchange said in a separately issued weather report today.

The exchange also reiterated a soybean harvest forecast of 46.2 million metric tons.

A drought in Argentina and neighboring Brazil means global stockpiles of the grain and oilseed will be smaller than estimated before the next Northern Hemisphere harvests, the U.S. Department of Agriculture said in a report today. Argentina will harvest 22 million tons of corn, down from 26 million estimated in January, the USDA said.

To contact the reporters on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net; Matt Craze in Santiago at mcraze@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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