January 31, 2006

 

Argentina expects to harvest 12 million tonnes wheat in 2005/06

 

 

Argentine farmers will likely harvest 12.01 million tonnes of 2005/06 wheat, the Buenos Aires Cereals Exchange forecast Monday.

 

This forecast, which is based on higher-than-expected yields in key production areas, puts production up about 200,000 tonnes from the previous estimate of 11.8 million tonnes.

 

If the latest forecast proves accurate, production would decline 26.4 percent from the previous year, when it totalled about 16.3 million tonnes, according to Exchange data. Yields this season are down about 10 percent from a year ago, mainly because of damage caused by an extended drought earlier in the planting and collection season.

 

By Saturday farmers had harvested 99.6 percent of crop, according to the Exchange.

 

The Exchange didn't say how the collection pace compares with that of the previous year.

 

The average yield last week was 2.47 tonnes/hectare, the Exchange said.

 

The US Department of Agriculture, which has forecast the average yield for Argentine wheat this season at 2.39 tonnes/hectare, sees final output totalling 12.1 million tonnes.

 

Planted area totals 5.08 million hectares, down from 6.09 million hectares a year ago.

 

By Saturday farmers had harvested 4,827,125 hectares, putting production so far at 11.916 million tonnes.

 

If the Exchange's forecast holds, it would put output down from a record 16.345 million tonnes last season. Dry weather and low wheat prices led farmers to plant less wheat this season.

 

Argentines plant wheat May through August and harvest it October through January.