Argentine raised its 2003/04 corn crop forecast for the second straight month, hiking it to 12.7 million tonnes from the 12.6 million tonnes it forecast in June, the government said on Wednesday.
"With good yields in south-central Santa Fe province, Entre Rios and northern and south-eastern Buenos Aires, we are forecasting 12.7 million tonnes for this campaign," the local agriculture department's monthly crop report stated.
Argentine farmers have nearly completed the corn harvest. The US Department of Agriculture forecasts Argentine corn production of 12.5 million tonnes. In May, the local government put corn output at 12.4 million tonnes.
In the 2002/03 campaign, Argentina produced 15 million tonnes of corn. Production fell this year because of harsh climatic conditions and because farmers opted to plant more-profitable soyabeans rather than corn.
The agriculture department kept its 2003/04 soyabean crop forecast at 32 million tonnes, well below last year's record harvest of 34.8 million tonnes, due mostly to dry conditions throughout the growing season. The USDA puts Argentine soyabean production at 34 million tonnes.
The government cut its forecast for 2004/05 wheat area to 6.3 million hectares from 6.4 million hectares last month. In the prior season, farmers planted 6.0 million hectares with wheat.
Dry weather continues to delay wheat seedings in southern Buenos Aires, the top wheat-producing province, and wheat area could shrink further as a result, the government said.