The U.S. ag attache in Argentina has lowered its acreage estimate to 19 million hectares with a crop of 51 million metric tons (MMT), below USDA currently estimate of 53 MMT. Meanwhile, it expects corn area to be up nearly 10% due to rotations and high prices.
The attache adds the lingering La Nina raises concern about hot and dry weather, "so producers could decide at the last minute to plant soy as it is the most stable commodity," says the attache.
The attache also raised its 2010-11 export forecast by 2.2 MMT to 11.5 MMT due to the strong pace during the first half of the year. USDA currently pegs Argentine soybean exports at 8.5 MMT.