BUENOS AIRES (Dow Jones)-- The Buenos Aires Cereals exchange again lowered
its forecast for Argentina's 2008-09 soy production on Wednesday, dropping its
estimate by 800,000 metric tons to 36.2 million tons.

  Last week, the exchange slashed its soy forecast by 2.4 million tons as the
extent of severe drought damage became clearer.

  A brutal drought this season has seen production prospects plunge despite a
record area planted.  Total soy production is expected to be the lowest in five
years.

  Pests have also done considerable damage to the crop, weakened by hot, dry
weather.

  With 61.7% of the crop harvested to date, final yields are expected to be a
dismal 2.13 tons per hectare, the exchange said in its weekly report.

   Corn


  The exchange also slashed its forecast for 2008-09 corn production by 500,000
tons to 13 million tons due to the drought damage.

  To date, farmers have harvested over 70% of the corn area, according to the
exchange.

  Yields are so poor in many areas that farmers are just turning the fields
over to pasture, the exchange said.

   Sunflower Seeds


  The 2008-09 sunflower seed harvest is complete, with production falling
sharply to 2.45 million tons this season due to the drought.


  Estimates for Argentina's 2008-09 crop production in millions of hectares
(HA) or millions of metric tons (MT).

                     Wheat    Soy       Corn        Sunseed
   B.A. Cereals Exch 8.7MT    36.2MT    13MT        2.45MT
   Agriculture Sec't 8.3MT    37-39MT*  12.5-13.8MT 2.45MT
   USDA              8.4MT    39MT      13.5MT      3MT
   Granar S.A.       --       37-39MT   --          --
   AgriPac           --       34MT      --          --
   Lartirigoyen S.A  --       36-38MT   12-13MT     2.8-3MT

   *The Secretariat revoked its latest forecast, saying that the data was
preliminary and contained mistakes.