Commodity Online BUENOS AIRES: The rainfall early this week in Argentina has provided an ease for the drought stricken soybean growing regions, but the soil is needed to be wet more in order to achieve the output target.
The soybean industry in Argentina was weak in the last few months due to the poor weather in the major soybean crop regions. Argentina is suffering one of its worst droughts on record, with many parts of the farm belt so far this year posting the lowest precipitation in 47 years.
The reduction has been between 40% and 60% as compared with historic averages, according to the Buenos Aires Cereals Exchange. On Tuesday, the Agriculture Secretariat said the soy crop is struggling due to hot, dry weather.
Easiest way to get Futures prices of MCX & NCDEXEarly planted crops are growing at slower-than-average rates and late-planted seeds are failing to sprout in parched soils, while high temperatures are causing rapid soil evaporation in some fields, stunting growth.
On Jan. 21, the Secretariat cut its estimate for the area planted to soybeans to 16.6 million hectares this season from a previous estimate of 17.8 million hectares.
