Argentinian soybean output forecast cut significantly on February drought: BCR

New Delhi — The Argentinian soybean output forecast for 2020-21 marketing year (April 2021 - March 2022) has been cut significantly on February drought, particularly in the Pampean region, according to the Rosario Grains Exchange, or BCR.

Soybean yield for 2020-21 in the country is now seen at 27.5 quintals/hectare, down 6% on January estimates and 10% lower than last year, BCR said.

The projection for soybean output is cut by 4 million mt on previous estimate to 45 million mt, which is down 11.24% year on year, the report released March 10 said.

The latest cut in Argentinian soybean production forecast is expected to boost Brazilian and US soybean exports, analysts said.

Brazil, the US and Argentina are the world's top soybeans producers and exporters.

The central parts of Argentina, especially the east-central parts, did not receive proper rains in February and the first ten days of March, BCR said. As a result, there are very serious losses in soybean yields and sown area, it said.

The second crop soybeans are the most affected by the drought.

In Argentina, first soybeans are typically planted in October, while the second-crop beans are sown late November, immediately after wheat harvest. The first-crop soybeans were planted in 11.9 million hectares for 2020-21, while the second-crop soybeans were planted in 5.3 million hectares.

"It is estimated that 850,000 hectares of the projected 17.2 million hectares will be lost due to lack of water, which, to a large extent, are second-crop soybean fields," BCR said.

Soybean acreage and yield losses were significant in Santa Fe, Buenos Aires, Entre Ríos and La Pampa, the report said. While Cordoba, NOA, Santiago del Estero and part of the north center of Santa Fe have seen lesser impact of the drought, it said.

According to BCR, if the dry weather persists in coming days, then further cuts are very likely.