February 16, 2006

 

Argentina sees 2005/06 soy harvest at 38.5 to 40 million tonnes

 

 

Argentine farmers will harvest between 38.5 million and 40 million tonnes of 2005/06 soybeans, the Agriculture Secretariat said Wednesday in its monthly crops report.

 

The Secretariat kept its estimate for the planted area of soybeans at 15.2 million hectares. This puts area up 5.6 percent from 14.4 million hectares a year ago.

 

Area is seen up in part because dry weather prevented many farmers from sowing corn or wheat and those fields were planted with soybeans.

 

The Secretariat said farmers have planted just about all of the estimated soybean area.

 

Recent rain has been very good for the crop, improving its condition in key production areas, the Secretariat said.

 

If the crop continues to receive an adequate amount of rain, production will match the current forecast, the Secretariat said.

 

In 2004/05 Argentina produced a record 38.3 million tonnes of soy, according to the Secretariat.

 

The US Department of Agriculture has forecast Argentina's 2005/06 soybean output at 40.5 million tonnes.

 

 

Corn

 

Meanwhile, the Secretariat forecast farmers will harvest 13.8 million tonnes of 2005/06 corn.

 

That is inline with last month's forecast, which put production at between 13 million and 14 million tonnes.

 

That puts the Secretariat's forecast down measurably from the 15.5 million tonnes forecast by the USDA for Argentina this season.

 

The Secretariat estimated the planted area of 2005/06 corn to 3.05 million hectares, unchanged from a month earlier. If the latest forecast holds, it would put area down 10.3 percent on the year.

 

The combination of a lengthy drought, rising production costs, high export taxes and lower corn prices led many farmers to plant less corn this season. The decline in area is most notable in centre-north Buenos Aires, southern Santa Fe and in Entre Rios. Moreover, a lack of rain earlier in the planting season has caused potential yields to decline.

 

The Secretariat said farmers already have planted almost the entire corn crop.

 

Argentina produced a record 20 million tonnes during 2004/05 corn harvest, according to the Secretariat. Production rose because area and yields were up. Excellent weather and better use of agri-chemicals and seed varieties boosted yields to record levels.