Argentine soybean production lowest since 2001
Last week, the Buenos Aires Grains Exchange estimated production of the 2009 Argentine soybean crop at 30 million tonnes, a drop of 2.2 million tonnes, marking its lowest production level since 2001.
May 29, 2009
Last week, the Buenos Aires Grains Exchange reduced its estimate for the 2009 Argentina soybean crop to 30 million metric tons down from 32.2MMT predicted last week. Production of just 32.0MMT would be a 31% reduction from the 46.2MMT crop last year in Argentina and the lowest since 2001, when production was around 30MMT.
The main culprit in the declining soybean prospects is severe drought that has impacted the country during the planting season in late 2008 and early 2009 and again while the soybeans were filling pods from mid-March through the end of April. While the soybean harvest is nearing completion, the potential still exists for further reductions in soybean production estimates.
Argentina is the third largest exporter of soybeans in the world, so declining production expectations will continue to have an affect on the commodity market.
In the full story, the maps of 90- and 45- day precipitation levels in the prime growing regions of Argentina indicate severe drought with roughly 40 to 60 percent of normal precipitation since January 20th, and about 25 to 40 percent of normal since April 30th.
View Full Story: Argentina Soybean Production May Be Lowest Since 2001