February 14, 2006

 

Argentina's 2005/06 soy output estimated at 40 million tonnes

 

 

Argentine farmers will produce about 40 million tonnes of 2005/06 soybeans, the Buenos Aires Cereals Exchange forecast Monday, Feb 13.

 

If the forecast holds, it would put production up 3 percent from a year ago, when output totalled a record 38.85 million tonnes, according to the Exchange.

 

As of Saturday farmers had planted 99.8 percent of the estimated area, compared with 98.4 percent a week ago.

 

The Exchange did not say how the pace compares with that of the previous year, when area was one million hectares smaller. The Exchange expects farmers to plant a record 15.62 million hectares of soy this season, up from 14.67 million hectares a year earlier. As of Saturday planted area totalled 15.364 million hectares.

 

The US Department of Agriculture has forecast Argentina's 2005/06 soybean output at a record 40.5 million tonnes, compared with the previous record of 39 million tonnes a year ago.

 

Farmers have planted more soybeans each year because they are cheaper to grow than corn. They also sell for more money in commodities markets.

 

 

Corn

 

The Exchange said 2005/06 corn production will total 14 million tonnes, down 28.6 percent from 19.62 million tonnes a year earlier, according to the Exchange.

 

As of Saturday farmers had planted 99.6 percent of the crop, unchanged from a week earlier.

 

The production estimate is down because farmers are planting less corn this year. The Exchange expects planted area to total 2.23 million hectares, down from 2.63 million hectares a year ago.

 

Yields are also expected to decline because of dry weather during critical phases of the planting season.

 

The 2005/06 area, including corn grown for use as animal feed, will total 2.85 million hectares, the Exchange has said.

 

As of Saturday farmers had sown 2.22 million hectares, the Exchange said.

 

Good weather, better use of agri-chemicals and a more diverse use of seeds helped increase yields to record levels.

 

The USDA has forecast Argentina's 2005/06 corn output at 15.5 million tonnes with an average yield of 7.2 tonnes/hectare.

 

Argentina's Corn Association, Maizar, says production this season will likely total 14 million tonnes.

 

Argentines plant corn September through January and harvest it May through August.