Argentina crop export dollars tumble 74% in February due to drought

BUENOS AIRES, March 1 (Reuters) - Argentina's cropsbrought in 74% fewer export dollars in February, from a yearearlier, an industry group said on Wednesday, as lagging grainssales put pressure on the country's strained foreign currencyreserves.

Last month, the value of dollars from farm exports reached$664.9 million, down 30.5% from January, according to thecombined oilseed industry and grains export chambers CIARA-CEC.

Farmers in Argentina, the world's top exporter of processedsoy and No. 3 corn exporter, have struggled with the worstdrought in six decades, which has cut outputs and delayedplanting.

"The inflow of foreign currency in February is thereflection of a market strongly affected by the extremedrought," the export chambers said in a statement.

Because of the drought and early frosts, the Buenos Airesgrains exchange last week cut its forecasts for this season'ssoybean and corn crops to 33.5 million tonnes and 41 milliontonnes, respectively, down from estimates of 48 million tonnesand 50 million tonnes seen in September.

Grain exports provide crucial hard currency for thecountry's cash-strapped central bank.

On Tuesday, farmers staged a protest against governmenttaxes and currency policies near Argentina's export hub ofRosario.(Reporting by Jorge Otaola; Writing by Brendan O'Boyle; Editingby Shounak Dasgupta)

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