Argentina exchange increases corn forecast to 18 million tonnes

Argentina's commercial corn production is expected to reach 18 million tonnes, up 1.5 million tonnes from the previous forecast, the Buenos Aires Cereals Exchange said in its weekly crop report on Thursday (Jan 21).

With 99.3% of the planting done, corn area is forecast at 2.36 million hectares, down 17.5% on the year. The Agriculture ministry pegs total corn area at 3.1 million hectares and on Jan. 11, President Cristina Fernandez said Argentina is on track to produce between 16.5 million and 17.5 million tonnes of 2009-10 corn.

The crop is developing well across most of the farm belt. Wheat harvest with a total production pegged at 7.44 million tonnes, according to the exchange. Planted area decline sharply this season and the crop suffered from drought in the southern and western fringes of the farm belt.

Earlier, the Agriculture Ministry has raised its forecast for 2009-10 wheat production to 7.5 million tonnes, compared to the 7 million tonnes forecast last month. Soy planting is all but done, with the exchange estimating a record 19 million hectares planted with the oilseed.

Most of the crop appears with good condition, the exchange said. The Agriculture Ministry also forecasts 18.2 million hectares planted with soy this season.