Most Argentine corn and soy crops thriving on rain

Argentina's 2009-10 soy and corn crops are in good condition as rain eased the impact of hot weather and farmers fumigated to prevent fungal disease, the Agriculture Ministry said on Friday (Feb 5).

Argentina is the world's No. 3 soy exporter and the top global supplier of its oil and meal. Buenos Aires Grains Exchange raised its forecast for record production of 52 million tonnes last week.

Drought hit last year's crop, driving down production to 32 million tonnes, but plentiful rains in December and January have brightened the outlook for the current season.

"The rains in Pehuajo improved the condition of crops because the high temperatures had been starting to affect them," the Ministry report said, referring to part of Buenos Aires province.

By Thursday, farmers had planted 99% of the record 18.2 million hectares estimated for the oilseed, unchanged from the previous week and at the same level as last season's sowing rate.

Argentina is also the world's No. 2 corn exporter, and corn crops in most growing areas are in a very good condition due to the recent rains, the ministry report said.

"In Marcos Juarez ... crops are in very good condition and there are expectations for a big harvest as long as there are no weather problems," it said, referring to a district in top producer Cordoba province.

By Thursday, Argentina's farmers had planted 97% of the 3.11 million hectares (7.68 million acres) expected to be seeded with 2009-10 corn, up 1% from the previous week but 2% behind last season's sowing rate.

Argentina's government has not yet forecast corn production, but the Buenos Aires Grains Exchange said output looked set to come in at 18.4 million tonnes.