Argentine farmers have made patchy progress on late 2008/09 soy sowing in recent days due to dry weather that is also hampering crop development, the Buenos Aires Grains Exchange said.

Argentina is the world's No. 3 soy exporter. Farmers are expected to dedicate a record 18.2 million hectares (45 million acres) to the oilseed this season. However, dry conditions in many growing areas are raising concerns about production.

In Tres Arroyos (southern Buenos Aires province), soy crops are in an uneven condition and growth has been stunted, forcing farmers to replant some plants due to the extremely dry situation. In southern Entre Rios province, the drought is hampering crop development and future yields could be hit. Buenos Aires province is Argentina's second-biggest soy growing area after Cordoba, while Entre Rios is the No. 4 producer of the oilseed.

However, the exchange said rains 15 days ago had helped speed sowing in western parts of Buenos Aires and in southern Cordoba.

Farmers have planted 83 percent of the area estimated for sowing, gaining 7 percentage points since the last weekly report but lagging last season's rhythm by 1.5 points.

The U.S. Department of Agriculture (USDA) expects Argentina to produce a record 50.5 million tons of soy, up from 46.2 million in 2007/08.