BAGE cuts Argentina crop estimate 3.8% to 38m mt

Argentina’s 2018 crop of soybeans is expected to reach 38 million mt, according to the latest estimate by the Buenos Aires Grain Exchange (BAGE), down 2 million mt on its previous projection and 19.5 million mt, or 34%, on last year’s harvest.

Plagued by dry weather, caused by the La Nina weather phenomenon, soybean yields across the world’s third biggest producer are expected to fall by 24-58% on the previous year, the exchange said Thursday.

"With the harvest at more than 15%, the national average yield is 32.8% below that reported on the same date during the 2016/17 cycle," BAGE said in its weekly update.

Average yields are now 2.4 mt per hectare.

In terms of corn, BAGE left its estimate unchanged at 32 million mt.

Just under 22% of the corn planted has been harvested, the report said.

"The average yield decreased to 73 qq/ha (7.3 mt per hectare) and depending on how cereal harvesting evolves during the next few weeks, the current production projection… could be adjusted," it said.