Dryness continues in Argentina

Hot weather and dryness continue to threaten corn and soy production in Argentina, where some corn crops are entering a key growth stage, according to a Reuters report.

Corn plants are starting to die in some areas and the soy crop is developing at a slower rate than normal due to parched conditions, which have forced analysts to repeatedly rein in their initial forecasts for record production.

"Corn is developing in a very deficient way and soy is also below normal. The losses could be significant," Jose Luis Aiello, head of the private Applied Climatology Consultancy told Reuters.

He said no rain was forecast for the main farming belt in the coming days, which will hurt the corn crop as it enters the crucial pollination stage in many areas.

"Most corn plants are now in the pollination stage, but it's very difficult to estimate potential yields because the grain is still being planted in many parts of the country," said Maximiliano Zavala, an analyst at the Buenos Aires Grains Exchange.

German-based analysts Oil World warned last week that Argentine soy output could fall to between 43 million and 48 million tonnes due to drought, down from 54.4 million last year.