Argentina grains exchange trims corn forecast on stunt disease

BUENOS AIRES, April 5 (Reuters) - Argentina's Buenos Aires Grains Exchange on Friday trimmed its forecast for the 2023/24 season's corn crop to 52 million metric tons, citing damage from the Spiroplasma bacteria and saying it could not rule out further cuts.

The exchange has seen an increase in the presence of maize leafhoppers, an insect that carries the harmful bacteria that cause stunt disease. Corn stunt disease hinders growth and can result in ears of corn with loose or missing kernels.

Argentina had previously expected a harvest of 54 million tons, down from an initial forecast of 56.5 million tons.

Argentina is the world's third largest corn exporter.

The exchange said the crop's "normal to excellent" condition had dropped by eight percentage points due to the disease, with outbreaks concentrated in northern areas of Argentina's agricultural heartland.

"New adjustments are not ruled out given that the real impact of the damage is still being evaluated," it said.

Argentine corn farmers have reaped some 11.1% of the fields they planted.

Regarding the current soybean season, the exchange said recent rainfall has hampered harvesting, with just 1.9% of fields harvested. Production is estimated at 52.5 million tons.

In northeastern parts of the country, however, the exchange said crops were suffering from high temperatures and a lack of rain.

If the current forecasts hold true, this season would be the first in seven years to see Argentina's soybean production surpass its corn harvest, after 53.5 million tons of soy to 42 million tons of corn were produced in 2016/17.

(Reporting by Kylie Madry and Lucila Sigal; editing by Gabriel Araujo and Barbara Lewis)