BUENOS AIRES (Dow Jones)--Argentine soybean prices edged higher on the week
at the Rosario Grain Exchange Thursday on the further deterioration of the
2008-09 crop potential due to drought damage.

  The decreased prospects and solid weekly sales in the U.S. are pointing
towards weak stocks, said Roagro analyst Pedro Amuchastegui in a market note.

  On Wednesday, the Buenos Aires Cereals Exchange cut its forecast for soybean
production to just 32.8 million metric tons, down from 34 million tons forecast
last week.

  The forecast marks the lowest soy output in four years.

  Severe drought battered the crop, cutting production prospects by about a
third, despite a record area planted with the oilseed and early expectations
for about 50 million tons.

  Almost 90% of the soy crop has been harvested to date, according to the
exchange.

  Spot soybeans were traded for ARS1000 ($268.28) per ton Thursday, up from
ARS990 a week ago.

  Soy futures weren't traded in Rosario Thursday.

   Wheat


  Spot wheat traded for ARS555 per metric ton on Thursday, up from ARS553 a
week ago.

  Last week, President Cristina Fernandez announced a deal under which
exporters agreed to buy 1 million tons of old crop wheat at full price, which
is the theoretical FAS price minus the 23% export tax.

  Local prices jumped 20% last week, as buyers stepped back into the
long-dormant wheat market.

  The plan is designed to stimulate more wheat planting in the face of signs
that 2009-10 production will be down sharply.

  With planting just starting, conditions remain poor. Dry weather and tight
credit are seen causing a sharp decline in area.

  Argentina's 2009-10 wheat planting is expected to fall 18.6% on the year to
3.7 million hectares, the lowest amount since planting records have been kept
in the country, according to the Buenos Aires Cereals Exchange.

  In addition, climate models predict a dry fall and winter, with temperatures
above average.

  Very little new crop wheat is likely to be available for export from the
2009-10 crop, as the government only authorizes exports once about 7 million
tons are set aside for domestic consumption. Only 8.7 million tons are expected
to be grown this season, according to the Buenos Aires exchange.

   Corn


  Exporters bought spot corn for ARS360 per ton Thursday, compared with ARS380
a week ago.

  There was only one buyer for spot corn Thursday, with weak demand from
exporters, according to the Rosario exchange.