BUENOS AIRES (Dow Jones)--Argentine soybean prices jumped again this week on a tailwind from the continued global rally due to worries over South American crop output and strong demand from China.

Spot soybeans sold for 1,520 Argentine pesos ($347) per metric ton at the Rosario exchange Thursday, up from ARS1,490 last Wednesday. Markets were closed on Thursday and Friday for the Easter holiday.

May soy futures changed hands at $340 per ton.

"The oilseed keeps beating records...with less supply and higher demand coming together," the Rosario exchange said.

Prospects for Argentina's 2011-12 soybean crop continue to dim due to an earlier drought, with production unlikely to top 44 million metric tons, the Buenos Aires Cereals Exchange said earlier Thursday.

That is down 1 million tons from the exchange's forecast from last week and represents a drop of 10.5% on the year.

Argentina leads global soyoil and soymeal exports and ranks third in soybean exports. Global soy prices have been buoyed in recent weeks by signs that the soybean crops in both Argentina and Brazil will come in much lower than initial expectations due to the drought blamed on the La Nina weather phenomenon and an early arrival of cold weather.

Meanwhile, spot corn was traded at ARS650 per ton. Argentina is the world's second-largest corn exporter and the harvest is well under way.

July wheat traded for $170 a ton Wednesday, down from $180 a week ago.

Farmers are gearing up to start 2012-13 winter wheat planting and area is expected to drop about 15% on the year as low global prices lead farmers to turn to alternative crops, Agriculture Under-Secretary Oscar Solis said in an interview Wednesday.

Argentina's farmers planted 4.6 million hectares of wheat during the 2011-12 season, and a further drop will highlight the continued shift to other crops by farmers due to tight export limits that drag down local prices.

Argentina has traditionally been a leading global wheat exporter, but has lost ground in recent years as output declined.

In the 2007-08 season, before the government started enforcing tight limits on exports, Argentine farmers planted 5.9 million hectares of the cereal, according to the agriculture ministry.

Argentina produced 13.4 million tons of wheat during the 2011-12 crop, with the bulk of exports going to neighboring Brazil.