Argentina's corn output estimates cut to 51 million mt: BAGE

With the sowing of the corn area complete, the Buenos Aires Grains Exchange (BAGE) has cut its projection for corn production in Argentina to 51 million mt on a 7.3 million hectare area, according to an update.

The figure is 6 million mt below the previous forecast and is down 1.5 million mt versus the previous year.

The reduction reflects the results of the harvest of the first early lots from the center of the national agricultural area, in which yields were below initial expectations.

“Rainfall for the remainder of February will be key to sustaining this volume,” BAGE stated in its weekly report.

BAGE rated 28% of the area as good or excellent, unchanged from last week, while normal rated areas were up 3 percentage points at 47%.

Areas rated as average or bad were down to 25%.

Soybeans

BAGE kept 37% of the area rated as good or excellent, while areas rated as normal areas were up 1 percentage point to 46%.

Areas rated as bad decreased 1 percentage point to 17%.

Last week, BAGE reduced Argentina’s soybean estimates to 42 million mt, also due to the ongoing drought.

The country planted 16.3 million hectares, 300,000 hectares less than last year.

According to BAGE, more rain will be necessary to maintain performance expectations.