April 19, 2007

 

Argentina ups 2006/07 corn forecast to 22 million tonnes

 

 

Argentina raised its estimate for 2006/07 corn production to 22 million tonnes, up from 21.6 million tonnes a month earlier, the Agriculture Secretariat said in its monthly crop report Wednesday (Apr 19).

 

To date, farmers have harvested 27 percent of the area planted with corn, with very high yields, in some cases up to 10 tonnes per hectare, the Secretariat said.

 

The US Department of Agriculture also pegs output at 22 million tonnes this year, while the Exchange sees 22.5 million tonnes.

 

 

Soy

 

The Secretariat slightly trimmed its forecast for 2006/07 soybean production to 45.5 million tonnes, down from 45.6 million tonnes forecast last month.

 

To date, farmers have harvested 24 percent of the record soy crop, down from 39 percent at this point last year due to heavy rainfall over the past weeks that prevented harvest.

 

Farmers are racing to bring in the mature crop but heavy rainfall has delayed harvest and caused losses and deterioration in quality in some crops, according to the Buenos Aires Cereals Exchange.

 

Both the USDA and the Exchange forecast soy production at 45.5 million tonnes.

 

 

Wheat

 

The Secretariat also left its forecast for 2006/07 wheat unchanged at 14 million tonnes.

 

Planting of the 2007/08 wheat crop is set to begin in weeks, but the Agriculture Secretariat did not provide an estimate for the new crop.

 

However, there are expectations that the area dedicated to wheat is expected to be down sharply this year due to government intervention and increased fertiliser costs, according to farmers.

 

"Wheat planting will likely be down 10 percent-20 percent," said Sean Cameron, president of the Argentine wheat growers association, Aaprotrigo.

 

"On my farm, I'm going to plant 25 percent less wheat this year," he said.

 

Argentina produced 14 million tonnes of wheat from the 2006/07 crop, but output from the 2007/08 crop could fall to 11 million tonnes, Cameron said.

 

With domestic consumption estimated at 5 million tonnes, there are not expected to be shortages, but exports will fall sharply, he said.