Argentina's 2008/09 wheat crop will be even smaller than expected due to the impact of a harsh drought, the Buenos Aires Grains Exchange said in its latest weekly crop progress report. The grains exchange cut its estimate for the crop to 10.5 million tonnes from its previous outlook of 11 million tonnes, saying crops in southern parts of the growing area were starting to suffer from dry, hot weather.

 

Argentina was the world's No 4 wheat exporter last year, producing 16.3 million tonnes of the grain, but this season's drought hit yields and forced many farmers to scrap their sowing plans. "The high temperatures and especially the lack of difference between day and night are starting to erode potential yields in on south-eastern and south-western Buenos Aires," said the report, updated to Friday.

 

Buenos Aires province is Argentina's most important wheat region and accounts for about half of total production. Harvesting is under way in northern provinces. By Friday, farmers had gathered 9.2 percent of wheat area. The US Department of Agriculture, or USDA, expects Argentina to gather 11 million tonnes of 2008/09 wheat.

 

Dry weather also started to cause problems for the 2008/09 corn campaign, and the exchange trimmed its forecast for commercial-use corn area to 2.64 million hectares (6.5 million acres) - down from the previous outlook for 2.7 million hectares. It said farmers might end up dedicating even less land to corn when late-planted crops are seeded in December.