February 19, 2004

Argentina 2003-04 Soybean Area Seen Up 10.6%
 
The forecast size of Argentina's 2003-04 soybean area has been raised by the Agriculture Secretariat as farmers will plant 13.95 million hectares, up from 13.85 million last month.
 
Soybean prices have risen rapidly in recent months, giving farmers added incentive to plant the crop.
 
Farmers are also expected to plant more soy because it is cheaper to plant than corn and more resistant to climatic problems.
 
"The crop continues to expand in marginal areas in the north of the country, while has replaced areas originally destined for corn and sunseed," the Secretariat said, again repeating statements made in last month's report.
 
Many corn and sunseed farmers have replaced those crops with soybeans because a lack of rain has made it too difficult to plant the crops.
 
If the Secretariat's prediction holds, the 2003-04 soy area will be 10.6% larger than it was a year ago, when farmers planted 12.6 million hectares.
 
Argentina produced 34.8 million tons of soybeans in 2002-03, according to the Secretariat.
 
The USDA sees 2003-04 production at 36.5 million tons.
 
The Secretariat has not provided an official estimate for 2003-04 output, but Secretariat sources have put production at between 35 million and 36 million tons.
 
As of Friday, farmers had planted more than 99% of the soybean crop, according to the Secretariat.