Rains that were forecast to fall on Argentine farmland over the weekend largely failed to materialise, leaving the region continuing to suffer from dryness.
The expectation of rain had helped halt a rally in soybean futures. While some showers did fall on the key growing belt — a region of about 10 million hectares (25 million acres) known as the 'zona nucleo' — they were unusually spotty, according to the Rosario Board of Trade.
According to Cristian Russo, the board's chief estimate analyst, rains were very isolated and very erratic. There were instances of significant rainfall in one area and a few kilometres away, much less, he noted.
In Intendente Alvear, at the western end of the core zone, reports of rainfall were scarce.
For Julio Reumann, a farmer who planted 1,300 hectares, the picture is complex. He explains that it varies from farm to farm, but clearly the drought is affecting and there are already areas where yield potential is limited.
Even so, any rain bodes well for the coming weeks, which will be crucial for the soybean and maize crops, added Russo.
"It's a good sign, a weak sign, but a sign nonetheless, and we expect the rains to strengthen," he said.
Argentine meteorologist German Heinzenknecht said weather systems indicate that farmers could start receiving widespread rains in the last week of January and the first week of February.
On the other hand, Agrositio said patience is needed, as the situation will change.
by Jonathan Gilbert, Bloomberg
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