January 19, 2009

 

Argentina's 2008-09 wheat production will total a paltry 8.7 million tonnes, 300,000 tonnes less than last week's forecast, the Buenos Aires Cereals Exchange said in its weekly crop report Friday (January 17).

 

Farmers wrapped up the harvest this week, with the severe drought hitting yields hard, the exchange said.

 

In addition, the production estimate may be reduced further as additional details come in over the next two weeks, the exchange said.

 

Wheat production this season is the lowest amount seen in two decades.

 

Argentina's corn planting will fall short of expectations as the drought is preventing some of the late planting, the exchange said.

 

The exchange cut its forecast for 2008-09 corn area by 60,000 hectares to 2.38 million hectares due to "weather conditions, dates for planting and the economic prospects of the crop," the exchange said. "In many cases farmers decided not to plant."

 

The area expected to be planted with corn is down sharply from the 3.2 million hectares seeded with the grain last season, and total output is expected to fall sharply as the drought cuts yields.

 

To date, farmers have planted 96.2 percent of the area seen going to corn this season.

 

Rain over the last week in the far north helped soy planting in those areas, although conditions remain extremely dry across much of the farm belt, the exchange said.

 

So far, farmers have planted 89.7 percent of the record 18.2 million hectares seen going to soy this season, 7 percentage points behind the planting pace at this time last year, according to the exchange.

 

To date, farmers have harvested 9.1 percent of the 2.12 million hectares planted with sunseeds, 2.1 percentage points behind the harvest pace last year, according to the exchange.

 

Production is expected to be down sharply from last season due to low yields and a 21 percent drop in planted area compared to last season, according to the exchange.