Majority of Argentinian crop conditions in poor/v poor state

The majority of Argentina’s soybean and corn crops, following weeks of sub-normal precipitation, are in a very poor or poor state, according to the Buenos Aires Grain Exchange, a dynamic that has underpinned a sharp rise in global soymeal prices.

Fifty-six percent of the nation’s soybean crop is in a sub-standard state, with 18.4% in a very poor condition and 37.6% in poor condition. Just 11% was in good condition with zero rates as excellent.

That situation is slightly worse for corn, with 24.3% in very poor condition and 33.3% in poor condition. Just 14.3% was in good condition with zero classed as excellent.

“During the last week, rainfall of varying intensity was recorded in different regions of the country, but they were insufficient to recompose the state of water deficit," BAGE said in its weekly report.

"To date, more than 13,000,000 hectares implanted with soy, corn and sunflower crops maintain a culture condition between regular and bad."

Soybean meal prices have surged 12% in the past two weeks on fears that Argentina – the world’s biggest exporter of soymeal – would cut crush rates on poor yields of soybeans.

BAGE kept its forecast for Argentina’s crop steady at 50 million mt, one of the most bearish in the market.