Drought conditions are damaging Argentina’s corn crop causing analysts to amend their crop estimates from 32 million tons one month ago, to between 18 and 25 million tons. Reduced estimates for the world’s third largest corn producing country combined with the U.S. Department of Agriculture (USDA) cutting its forecast for U.S. 2013/14 ending corn stocks will likely help support global corn prices. According to Buenos Aires-based expert Eduardo Sierra, corn yields will likely be 10% less than last year with an average yield of 6,600 kilos per hectare. This would result in a harvest of 19.8 million tons as opposed to a December 13th estimate of 32.1 million tons. Argentina’s corn was in its pollination stage when drought hit the heart of the country’s cornbelt affecting 70,000 hectares. The next USDA forecast update for South America will be published on February 10th.
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