March 17, 2004

Argentine Expects Record Soy Acreage In 2004-2005

The Argentine agriculture ministry has increased its estimate for the 2004/05 soybean area to a record 13.95 million hectares, from the 13.85m ha forecast last month. Farmers sowed 12.6m ha to soybeans in the 2003/04 campaign.

"The increase is due to the crop's continued advance in the north, and the planting of soy on lands originally earmarked for maize and sunflower seeds," the ministry said.

Argentina, the world's No.3 soybean producer and exporter, harvested 34.8mt of soybeans in 2002/03. Government officials see soy output this season at between 35-37mt, while the USDA forecasts Argentine production at 36.5mt.

Meanwhile, the government forecast the 2003/04 maize crop at 12.1mt, versus 12-12.5mt last month. The USDA sees output at 12.5mt. Argentina produced 15mt of maize in 2002/03.