Rains are expected in the northern part of Argentina's grains belt over the week ahead as temperatures fall, relieving soy and corn crops racked by drought, the Buenos Aires Grains Exchange said on Thursday. Weeks of dryness have toasted grains fields in the world's No 3 soybean- and No 2 corn-exporting country, prompting crop estimate cuts and denting hopes that Argentina could replenish corn supplies depleted by a lacklustre US harvest.
"The weather forecast for January 12-19 starts with winds from the south/south-west, which will provide a brief pause in the heatwave," the exchange said in a statement. Showers on Wednesday provided a bit of relief, but farmers said some of their crop losses are irreversible and clamored for the government to suspend export taxes and provide other aid.
"The storm front that recently brought rains to the south and central part of the grains belt will complete its course, providing showers to the northern part of the belt," the exchange said as government officials held an emergency meeting with farm groups to discuss drought-relief proposals.
The drought threatens to add to government fiscal challenges as Argentina faces fallout from Europe's debt crisis and lower demand from neighbouring Brazil and key commodities client China. So not only farmers but sovereign bondholders as well have been left watching the vast blue Pampas horizon for signs of rain.
The South American country provides about 20 percent of the world's corn exports, 12 percent of global soybean exports and nearly half of the exports of soyoil, used for cooking and in the booming international biofuels sector. US corn and wheat futures plunged more than 6 percent on Thursday in their steepest slide in 3-1/2 months after the US Agricultural Department forecast supplies well above trade expectations. Global stocks were projected to grow, contrary to analyst expectations, as the USDA only modestly trimmed its view of the Argentine crop.
Argentina's main farm area, called the Pampas, includes southern Santa Fe, northern Buenos Aires and southern Cordoba provinces. Growers' organisations say some farms may be driven out of business unless the government establishes an emergency fund to provide help at times of challenging weather.
The National Meteorological Service (www.smn.gov.ar) said that low to moderate winds and lower temperatures were expected for the rest of this week in major agricultural provinces including Santa Fe, Entre Rios, Cordoba and Buenos Aires. The state-run National Institute of Agricultural Technology (INTA), said that Wednesday's showers hit parts of Entre Rios and Santa Fe provinces.
"Most rains were between 5 millimeters (0.19 inches) and 25 millimeters, but in central Santa Fe province, they rose up to 50 millimeters," INTA said. Farmers revelled in the rains after an unforgiving Southern Hemisphere summer sun walloped their corn and soy plants during the preceding weeks, just as the plants were entering their key flowering stage.
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