Argentine growers are set to plant corn and soya beans under ideal conditions over the next two months thanks to record August rainfall that has raised hopes the country's harvest could bolster global grain stocks depleted by the worst U.S. drought in decades, Reuters reported. The dry spell in the U.S. Midwest and poor crops from the Black Sea bread basket have lifted prices of corn, wheat and soybeans. With fear rising of a food crisis, the world is looking to Southern Hemisphere producers Argentina, Brazil and Australia to replenish shrinking grains reserves. Argentina is the world's second biggest corn exporter after the United States and farm areas there have been lashed by 60 to 160 millimeters of rain in the first 21 days of this month versus an 10 to 15 millimeters a year earlier. A sowing window widened by favorable weather increases yield expectations by giving growers more time to stagger their crops, reducing weather-related risks later in the season. Argentina is also the world's top exporter of soy oil, used in the booming biofuels sector, and of soy meal, used as cattle feed in Europe as well in China, where the expanding middle class in the world's second largest economy is fast acquiring a taste for beefsteak. U.S. soybeans rose on Monday, reaching contract highs on shrinking soy supplies after the worst drought in over a half century will likely slash the American harvest. World corn prices have also risen mightily over the last two months. The U.S. Department of Agriculture predicts Argentina's 2012/13 soy crop will be up 34 percent from the previous season to 55 million tonnes, while the corn harvest is seen up 33 percent to 28 million tonnes. The wet weather does not in itself favor corn over soy. Both go into the ground more easily if tops oils are not dry and hard. But due to its earlier sowing schedule, corn will be first to benefit from this month's intense rainstorms. -- SPA
