Monday, January 23, 2012

Drought: scattered rains give patchy relief to corn, more showers expected

Storms were forecast for today across the country after patchy weekend rains failed to revive corn and soy fields baked by a drought that has raised concern about world food supplies.

Dryness afflicting the world's No. 2 corn exporter and No. 3 supplier of soybeans could also strain government finances this year as the country tries to dodge fallout from Europe's debt crisis and the slowing economies of Brazil and China, two key trade partners.

Corn and soy growers had been hoping for showers on Saturday and Sunday that would moisten fields dried out by weeks of unforgiving Southern Hemisphere summer sun. But the rain was patchy, leaving many fields dry while moistening others.

The National Meteorological Service forecast today showers and storms in parts of some top farming provinces, Buenos Aires and Cordoba.

"During the day some of the storms could be locally intense, accompanied by strong wind, abundant rain and occasional hail," the weather service said.

It will be too late for many corn fields, where plants have roasted to nothing, dashing hopes that Argentina might replenish global supplies depleted by a lackluster US harvest. Soy, which is more resistant to drought thanks to its longer flowering, has suffered as well.

"Corn is in intensive care," said one Argentine export company executive, who asked not to be identified. "Soy is just checking into the hospital."

Corn yields will be slashed by 20 to 50 percent due to the dryness, the government said last week after the Rosario grains exchange cut its 2011/12 corn crop forecast by nearly 18 percent to 21.4 million tonnes..

Until this month, farmers were sure that the harvest would beat last season's record 23 million tonnes.