Rain may cut Argentine 2013 soyabean crop: Oil World

Rain may cut Argentine 2013 soyabean crop: Oil World

November 07, 2012: Argentina’s 2013 soyabean crop may be 3-6 million tonnes below earlier forecasts of 55-56 million tonnes as repeated rain is disrupting sowings in the country, Hamburg-based oilseeds analysts Oil World said on Tuesday.

“The situation is rather alarming in Argentina where an estimated 13-16 million hectares of agricultural land is either flooded or excessively wet at the moment,” Oil World said.

The rain means Argentine farmers are having difficulty sowing the crop for harvesting in early 2013 and total soyabean plantings could be “sharply below” original intentions, it said.

“In our opinion there is an increasing risk that the Argentine soyabean crop in early 2013 may turn out 3-6 million tonnes below initial forecasts of 55-56 million tonnes,” it said.

Global soyabean consumers are counting on a bumper South American harvest to relieve current tight global supplies. Oil World in October forecast Argentina’s 2013 soyabean harvest at 56.0 million tonnes, up from 40.50 million tonnes harvested in early 2012.

Soyabean prices hit record highs on September 4 after drought ravaged US crops. But prices have fallen from their peaks on hopes for larger-than expected US production and forecasts for huge increases in South American soya harvests.

“Although farmers will make every effort to sow soyabeans even at a later time and with a reduced yield potential, it is still unclear what they will finally be able to accomplish,” Oil World said.

 

Courtesy: Reuters

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