February 19, 2007

 

Argentina Soy Planting Complete, Conditions Good
 

 

Argentina's farmers have completed soy seeding and 2006-07 corn planting is 99% complete with the crops generally in good condition the Agriculture Secretariat said in its weekly crop report Friday.

 

Dry weather in the southern areas of Buenos Aires and La Pampa provinces is affecting crops in those areas, the Secretariat said. However, heavy showers fell across Argentina's farmlands Thursday night and continued Friday. The Secretariat's report details crop conditions as of Thursday.

 

Soy

 

Soyseed planting is complete across the country with over 16 million hectares seeded according to the Secretariat.

 

The 2006-07 soy crop is developing well in Cordoba and Santa Fe and Entre Rios Provinces, but plants are suffering from the lack of rainfall in the southern areas of Buenos Aires and La Pampa provinces, the secretariat said.

 

The Agriculture Secretariat sees a record 43 million metric tons of soybeans coming from the 2006-07 crop, while the U.S. Department of Agriculture on Friday raised its forecast to 44 million tons, up from 42.5 million tons seen last month.

 

Corn

 

As with soy, the new corn crop is developing well in Cordoba, Santa Fe and Entre Rios Provinces, but suffering from dry weather in the southern areas of Buenos Aires and La Pampa Provinces, according to the Secretariat.

 

Up to half the crop in La Pampa Province has been affected by the Mal de Rio Cuarto virus which will significantly decrease yields, the Secretariat said. La Pampa Province traditionally accounts for just 3% of Argentina's corn output.

 

Argentina will produce 21 million metric tons of corn this year, according to the Secretariat. The USDA agrees, upping its forecast Friday to 21 million tons, up from 19 million tons seen last month.

 

Sunseed

 

Farmers have harvested 25% of the 2006-07 sunseed crop, one point above the harvest pace last year, according to the Secretariat.

 

The Agriculture Secretariat sees 5 million tons of sunseeds coming from the 2006-07 crop.

 

The USDA estimates that Argentina will produce 4 million tons of sunseed from the 2006-07 crop.

 

Wheat

 

The 2006-07 wheat harvest is complete with 14 million tons produced according to the Secretariat. The USDA has pegged production at 14.2 million tons, while the Buenos Aires Cereals Exchange puts production at 13.8 million tons.

 

Estimates for Argentina's 2006-07 crop production in millions of metric tons:

 

                                      Wheat      Soy      Corn      Sunseed

 Agriculture Sec't                 14         43         21               5

 USDA                                14.2      44         21               4

 Rosario Grain Exchange      14         43         18              3.8

 B.A. Cereals Exchange       13.8      44.3       22               --

Analysts*:

 Ricardo Baccarin               13.9       44.0     20-21        4.2-4.3

 Pablo Adreani                   15          45         20             4.35

 Agropuerto                       14         44.5       21             4

 

   *Ricardo Baccarin is the Chief Analyst at Panagricola and Pablo Adreani is an analyst at AgriPac Consultores.

 

Argentina's historical production estimates in millions of metric tons, according to the Agriculture Secretariat:

 

                          Wheat       Soy       Corn     Sunseed

2005-06               12.6        40.5        14.5        3.8

2004-05                16          38.3        20.5        3.7

2003-04                14.6       31.6        15           3.1

2002-03                12.3       35          14.7         3.4

2001-02                15.3       30          15.4         3.8