A dry spell in Argentina is posing a threat to soya production in southern parts of bread-basket province Buenos Aires, climate experts said on Tuesday, warning that the continued dryness expected in this area could interfere with planting. Argentina is striving to increase farm production under President Mauricio Macri, who has implemented a slew of market-friendly reforms since taking office a year ago. But the weather has not been co-operating with farmers in some key growing areas.
"Over the to weeks ahead the rains in Southern Buenos Aires will probably be less than what's normal for this time of year," said Roberto De Ruyver, agro-meteorologist at the government's Weather and Water Institute. "This could lead areas that are already dry to be drier," he said.
Weather concerns could put the brakes on a drop in futures prices at the Chicago Board of Trade, where the actively traded January soyabean contract fell to a three-week low after falling about 3 percent over the past two sessions. More than 66.5 percent of the 19.6 million hectares estimated to be planted with the oilseed this season have been sown so far, according to the Buenos Aires Grains Exchange.