The USDA forecasts Argentine soybean production for 2008/09 at 49.50 million tons, down 1.0 million or 2 percent from last month. Area is estimated at 18.0 million hectares, a 1 percent decrease from last month’s 18.2 million hectares. Yield is forecast at 2.75 tons per hectare, down 1 percent from last month and below the record high of 2.99 tons per hectare in 2006/07 and the 5-year average of 2.70 tons per hectare.
Hot, dry weather affected much of Argentina’s agricultural areas during December, with many areas receiving only 25 percent or less of average precipitation for the month. Temperatures were generally above 30 degrees Celsius across the soybean growing regions, and temperatures exceeded 35 degrees in northeast Argentina, parts of Corrientes, the major part of Entre Rios, extreme northern Buenos Aires and throughout Santa Fe. Rapid soil moisture evaporation further aggravated the drought situation, which will become critical if significant rains do not arrive by the second half of January. This has been the worst drought in 70 years in the central farming belt. Dryness has delayed planting by about one week compared to last year. Continued planting is questionable due to the lateness of the season, high production costs, low commodity prices, and severe drought. (For more information, contact Denise McWilliams at 202-720-0107.)