South America Calling

Soybean crops promise very good yields across key parts of Argentina's grain belt, local bourses said in reports this week.

Both the Buenos Aires Cereals Exchange and the Rosario Cereals Exchange are pegging the crop as 54.5 million metric tons, up from around 48 mmt last year and higher than initial forecasts of 50 mmt to 53 mmt.

Early soybean yields have been above those recorded last year, and the top-of-the-range yields have been exceptional, said the Rosario exchange.

But with only 1% of the crop harvested, it remains too early to draw firm conclusions. The harvest will begin in earnest in April, as long as rains ease.

While above-average rainfall has been generally beneficial to soybean development, it has also aided the spread of disease and pests. This means it will be difficult for Argentina to produce in excess of 54.5 mmt, said the Buenos Aires exchange.

Flooding in parts of Cordoba and Santa Fe provinces will also affect production, it added.

(AG)

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