January 10, 2006

 

Argentina's 2005/06 corn crop 94 percent planted

 

 

Meanwhile, farmers lifted the pace of planting on the 2005/06 corn crop to 94 percent, up from 92 percent a week earlier, the Buenos Aires Cereals Exchange reported Monday.

 

Despite the progress, "the drought delayed planting in centre-south La Pampa and in centre-north parts of Santa Fe," the Exchange said. "As a result, the planting pace is down 4.3 percentage points from a year ago. In absolute terms, farmers still need to plant 130,000 hectares, of which 100,000 are located La Pampas region."

 

The lack of rain has been hard on the crop this season.

 

"The drought affecting the crop, which has affected it in all production areas by reducing yields to varying degrees, is complicating the situation for final output. Nevertheless, we still presume that the average national yield will fall 13.5 percent from the previous season, when it totalled 7.58 tonnes/hectare."

 

The Exchange expects farmers to sow 15.2 percent less corn this year as area totals 2.23 million hectares, compared with 2.63 million hectares a year ago. Farmers are planting less because corn is not a very profitable crop given high production costs and export taxes totalling 20 percent.

 

The 2005/06 area, including corn grown for use as animal feed, will total 2.85 million hectares, the Exchange said, reducing its estimate from 2.95 million hectares a week ago.

 

As of Saturday, farmers had sown 2.1 million hectares, the Exchange said.

 

In 2004-05 Argentina produced a record 19.7 million tonnes, up from 13.1 million tonnes a year earlier. Good weather, improved use of agri-chemicals and better use of seed varieties helped increase yields to record levels in many areas.

 

The USDA has forecast Argentina's 2005/06 corn output at 17.3 million tonnes with an average yield of 7.2 tonnes/hectare.

 

Argentines plant corn September through January and harvest it May through August.