Argy Soybean Production Slashed

The Argentine Ag Secretariat finally got around to releasing their March crop report yesterday, almost a fortnight after it was due.

They now peg 2009 soybean production at 37-39mmt, effectively confirming recent reports that the early season drought and very dry March have done the crop few favours. Indeed if we hadn't have had heavy February rains we'd potentially be looking at a repeat scenario of the recent wheat harvest which was almost slashed in half.

Early estimates of a record 50mmt of production this year are well & truly out of the window. Indeed, the Ag Sec's estimate is now towards the high end of most peoples ideas for this season, with some saying 35mmt or less.

Crop quality is also poor in early harvested beans, the hot & dry March prompting beans to ripen early whilst still at the pod-filling stage.

It will be interesting to see what the USDA have to say in their next WASDE report as their current estimate is 43mmt.