The Argentine weather agency says the late-season rains that swamped the soybean harvest have reduced the crop by 9 million tonnes, or 15 percent, said Reuters. Chief analyst Stella Carballo of the Climate and Water Institute says 19 days of rain combined with warm weather created ideal conditions for crop diseases that reduce yields. Reuters said big importers such as China were looking to the United States for oilseeds to offset losses in Argentina, the third-largest soybean grower and exporter in the world after the United States and Brazil.
If the estimates prove true, the losses could be felt worldwide — they would equal 3 percent of USDA’s forecast of soybean production for 2015/16. While Brazil and the United States export vast quantities of soybeans, Argentina processes most of its crop, so it is the world leader in soybean oil and meal exports. Before the rains, Argentina’s soybean crop was estimated at 56 million tonnes. The Buenos Aires Grain Exchange will update the forecast next week.