The global soyabean crop in the 2017/18 season is projected to end up significantly lower than previously expected due to the Argentine harvest falling by one-third.

Many parts of Argentina had suffered from exceptionally high temperatures and drought, which had caused crop forecasts to slide down over the past weeks, said German oilseed and protein plant association UFOP on 19 April.

The current Argentine crop forecast by the US Department of Agriculture was only 40M tonnes, which was down 7M tonnes from projections in March and nearly one-third smaller than expected in early 2018.

But the forecast for Brazil was raised by 2M tonnes to 115M tonnes due to growing conditions that had been nearly optimal, said UFOP.

However, the increase in Brazil could not completely make up for the loss in Argentina, and global stocks were projected to reach 335M tonnes in 2017/18, down 5% from the previous year.

Argentina’s share of the global stock was likely to fall by 4%, going below the 12% level.