Argentina-Drop in soy production.

ARGENTINA.

THREAT TO SOY CROPS.

South America’s soy harvest, is forecast to drop from previous estimates because of drought in Argentina and Paraguay, according to reports in the Oil World magazine this week.

The Argentine soy crop has taken an alarming jump in the hectares sown this year, the hottest summer in 55 years is having an effect on the projected yields per hectare, as the rainfall is unusually low.

Argentina harvested 47 million tons of soy in the season of 2007/9. Paraguay’s crop is expected to drop to 5.5 million tons, from 6.8 million tons for last season.

The drought in Argentina and Paraguay, appears to be heading north which could affect the harvest on the south of Brazil.