January 8, 2010

 

Good weather fattens Argentina's corn yield

Argentina is likely to produce 16.5 million tonnes of commercial corn in 2009-10 as the crop benefits from favourable weather conditions while greater use of technology has expanded planted areas.

 

The Buenos Aires Cereals Exchange boosted its output forecast from a December 30 estimate of 15.8 million tonnes.

 

The latest forecast is also higher than the 13.8 million tonnes harvested in the 2008-09 season.

 

Favourable weather and the use of new technology have boosted the volume of the corn grain by 18%, the Buenos Aires Exchange said.

 

It also raised its forecast for planted area to 2.26 million hectares from a previous forecast of two million hectares.

 

While rainfall in parts of the Corn Belt prevented planting over the past week, a forecast for better weather conditions over the next seven days will allow farmers to get seeds in the ground, the Buenos Aires Exchange said. The weather, too, is helping with development of the crop and so there is little concern of crop loss.

 

To date, 92.2% of the area allocated to commercial corn this season has been planted, according to the Buenos Aires Exchange.

 

Argentina's Agriculture Ministry forecasts a total corn planting area of 3.1 million hectares.

 

The Rosario Grain Exchange sees a total corn output of 13 million tonnes.

 

On the other hand, planting of the 2009-10 soy crop continues despite interruptions from frequent showers over the past week, with 96.7% of the crop now in the ground, the Buenos Aires Exchange said.

 

A forecast for beneficial weather over the next week will help planting efforts in large parts of the soy belt, thanks to moderating rainfall, the Buenos Aires Exchange added.

 

The Agriculture Ministry forecasts soy planting area to reach a record 18.2 million hectares this season.

 

The Rosario Grain Exchange forecasts a soy production of 50.8 million tonnes, while the US Department of Agriculture expects 53 million tonnes.

 

Meanwhile, farmers took advantage of dry, warm weather to surge ahead with harvesting of the 2009-10 wheat crop after recent rains in the previous week, the Buenos Aires Exchange said.

 

To date, 93.1% of the crop has been harvested, with yields averaging 2.62 tonnes per hectare, up from the previous week's average yield of 2.58 tonnes, the Buenos Aires Exchange said. It is also up from the average yield of 2.13 tonnes per hectare at this point last season, when the crop was battered by severe drought.

 

The Buenos Aires Exchange expects farmers to wrap up the harvest in the next few days, bringing in a total of 7.5 million tonnes.

 

As for the Agriculture Ministry, it estimates a wheat production of seven million tonnes. Planting area fell sharply this season as farmers shifted to other crops due to export controls on wheat and drought during planting time. The drought extended throughout most of the growing season in the south of Buenos Aires and in the western fringe of the farm belt.