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In this letter, multitemporal signatures collected by Advanced Microwave Scanning Radiometer (AMSR-E) over the dry forest of Chaco, located in North Argentina, are analyzed. The forest has a biomass of about 100 t/ha and a woody volume of about 120 m3/ha. A clear increase of polarization index at C-band is observed after intense rain events in two different locations. Simulations of a discrete model attribute this effect to variations of soil moisture and predict an effect comparable with the measured one. Results indicate that there is a potential to monitor soil moisture variations below dry forests with moderate biomass, also in view of the forthcoming availability of L-band data.