March 1, 2006

 

Argentina's 2005/06 soy crop growing well with fresh rain

 

 

Argentina's 2005/06 soybean crop is evolving well with a downpour of fresh rain this week, Estella Carballo, a climatologist at the National Institute of Climate and Water, said Tuesday (Feb 28).

 

"It rained everywhere and things are looking very good," Carballo said. "This is very good, above all for second-crop soybeans. We've had a downpour in Buenos Aires, La Pampa and even in Santa Fe, where it had not rained that much. In Santa Fe it rained yesterday and it's going to rain again today. On Friday we will have another storm that will give us more rain everywhere."

 

This is good news for soybean farmers who a few months ago were worried that a drought could crimp yields and lower production to below last year's record of 39 million tonnes, according to the US Department of Agriculture.

 

"I think we'll be near last year's production level," Carballo said.

 

The USDA sees Argentina's 2005/06 soybean output at 40.5 million tonnes. Most local analysts say output will likely total around 40 million tonnes.

 

Meanwhile, the fresh rain is too little, too late for the 2005/06 corn crop, which is seen declining to 14 million tonnes from about 20 million tonnes the previous year.

 

"The worst areas are in La Pampa and parts of Santa Fe and Cordoba," Carballo said. "In some areas where it did not rain enough earlier in the season, ranchers have had to take their corn and use it as feed because the lack of rain dried up their pastures. A large part of the corn area was lost."

 

The USDA has forecast Argentina's 2005/06 corn production at 15.5 million tonnes, though local analysts say this estimate is too high.

 

Argentina's major summer crops include corn, soybeans and sunseed, which are planted beginning in either September or October. Farmers are already harvesting the 2005/06 corn and sunseed crops and will begin collecting the soybean crop any day. In contrast, Argentine wheat is harvested beginning in October.