January 17, 2006

 

Argentina's 2005/06 corn crop 95.2 percent planted

 

 

Argentina's farmers lifted the pace of planting on the 2005/06 corn crop to 95.2 percent from 94 percent a week earlier, the Buenos Aires Cereals Exchange reported Monday.

 

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 have planted less because corn is not a very profitable crop given high production costs and export taxes that total 20 percent.

 

The rain that did much to improve the condition of soybean crops last week did less to improve the outlook for corn, the Exchange said, noting that the rain had arrived too late in the season.

 

"By Jan 14, the improvement in humidity had not arrived in time to substantially reverse the damage already caused to crops in central areas, given that these crops passed through most of the flowering phase with restricted access to water," the Exchange said. "Even so, the rain has improved conditions and put a stop to declines in potential yields, which would have caused an even greater-than-expected decline in production."

 

Last week's rain will allow farmers to plant an additional 110,000 hectares of corn, the Exchange said.

 

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 2.122 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.

 

Argentina's farmers plant corn September through January and harvest it May through August.