Dryness in Argentina threatens further downgrades to hopes for corn and soybean harvests, even after cuts of 1.5m tonnes apiece on Wednesday, US officials said, warning that sowings may fall short of forecasts.
The US Department of Agriculture, in its latest influential Wasde report on global crop supply and demand, cut its estimates for Argentina's soybean crop to 23.5m tonnes and for soybean output to 50.5m tonnes, flagging "persistent dryness during late December and early January".
For soybeans, "periods of unfavourable dryness have compromised yield potential, especially in some of the major producing areas".
And while recent rains had improved prospects, "rainfall has been scattered and quite variable", opening up the prospect of further downgrades.
'Very low moisture'
Some of USDA's lingering the concerns extended to existing crops, which are, for soybeans, already expected to record a 7% fall in yields from last year.
"About 40% of the early-planted crop in danger of potential yield dipping further," the USDA said.
For corn, which is undergoing the sensitive pollination period, "estimates suggest that between 30-35% of the corn crop is seriously affected by the dryness", the department said.
"The soil moisture profile reserves in Argentina's core growing regions are very low."
Seeding plans ditched?
However, the dryness could also depress sowings below current forecasts of a 19% jump to 3.2m hectares in corn area, with soybean plantings estimated unchanged at 18.6m hectares.
"Some of the expected corn area may not be planted this season," the department said.
"Final sown [soybean] area will depend in part on the amount of rainfall received before the planting window closes for the season."
Separately on Wednesday, Oscar Solis, Argentina's deputy agriculture minister, said the country's soybean harvest would likely fall below 50m tonnes.
Agricultural consultancy AgriPac said recently that the crop was unlikely to top 40m tonnes, pegging the corn harvest at, at best, 17.5m tonnes.
