Palm | Kelapa Sawit

BUENOS AIRES, Feb 23 (Reuters) - Argentina's biggest grains exchange slashed 5 million tonnes from its forecast for the country's drought-damaged soy crop on Thursday, helping push U.S. futures to a five-month high.

Weeks of dry weather battered young soy and corn crops in the South American country. The Rosario grains exchange also trimmed its forecast for corn production, to 19.8 million tonnes from 21.4 million tonnes a month ago.

The country's soy harvest should come in at 44.5 million tonnes, the exchange said, down from the previous outlook for 49.5 million tonnes, as the extent of drought damage becomes clearer in the world's No. 3 soybean exporter.

The losses are significant in main producing provinces, especially Cordoba," an exchange report said, estimating the average yield at 2.4 tonnes per hectare.

Rosario's downbeat forecast -- as well as a weaker dollar --pushed soybean futures on the Chicago Board of Trade higher. Argentine crop problems may signal more export demand for U.S. supplies, traders said.