The Argentine government has dropped its forecast for the 2008-09 wheat crop by more than a million tons from last month's estimate, setting the new number at 9 million tons.
If those numbers hold up, that will drastically impact on Argentina's exports.
US Department of Agriculture says Argentina exported more than 10 million tons of wheat from last year's crop.
It estimates exports from this crop at 5.8 million tons, about three times the 2 million tons the new Argentine figures suggest.
With 53pc of Argentine wheat harvested, the country's Ag Secretariat says yields are extremely low.
Drought and a smaller acreage are being blamed for the reduced crop, now down to 9m tons from the 16m tons harvested last year.
The lower figures for exports can also be attributed to increased domestic demand.
Due to the reduction in the amount of wheat Argentina is harvesting, their largest customer, Brazil, will likely have to import grain from North American sources this year.
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