02.03.2023 (Nasdaq) - BUENOS AIRES, March 2 (Reuters) - The Buenos Aires grains exchange said on Thursday it plans to cut its estimate for Argentina's soybean crop for the 2022/23 cycle for the fourth time as the country struggles with the ongoing impact of drought and high temperatures.

The exchange did not give further details about the size of the new cut. The soybean crop is currently estimated at 33.5 million tonnes, down from the initial projection of 48 million tonnes.

In its weekly crop report, the exchange said a week of dry, hot weather continued to affect crops as 62.2% of planted areas are in a period critical to their development.

"This scenario will affect our current production estimate," it said.

The current cycle could produce a harvest even worse than during the 2007/2008 cycle, when another drought caused farmers to reap just 32 million tonnes. Last year, Argentina harvested 43.3 million tonnes.

Argentina is the world's leading exporter of processed soybean oil and meal and third-largest exporter of corn.

The exchange said the severe lack of rain was also affecting the development of corn, currently forecast at 41 million tonnes, down from an initial forecast of 50 million tonnes.

It said it may need to cut its forecast for corn if weather patterns do not improve.

Weather forecasts however predict "above-normal" temperatures for the next seven days with irregular and scarce rainfall over Argentina's main farmland, which is most affected by the drought, ending with lower temperatures and possible frosts.

(Reporting by Maximilian Heath; Writing by Carolina Pulice and Sarah Morland; Editing by Brendan O'Boyle, Isabel Woodford and Marguerita Choy)

((Carolina.Pulice@thomsonreuters.com;))

https://www.nasdaq.com/articles/argentina-soy-crop-estimate-to-be-cut-again-says-major-exchange