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

BUENOS AIRES, March 1 (Reuters) - Argentina's crops brought in 74% fewer export dollars in February, from a year earlier, an industry group said on Wednesday, as lagging grains sales put pressure on the country's strained foreign currency reserves.

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

Farmers in Argentina, the world's top exporter of processed soy and No. 3 corn exporter, have struggled with the worst drought in six decades, which has cut outputs and delayed planting.

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

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

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

On Tuesday, Feb. 28, farmers staged a protest against government taxes and currency policies near Argentina's export hub of Rosario.

(Reporting by Jorge Otaola; Writing by Brendan O'Boyle; Editing by Shounak Dasgupta)