April 21, 2006

Argentina sees 2005/06 soybean output at 40 million tonnes

Argentine farmers will harvest a record 40 million tonnes of 2005/06 soybeans, more than the 39.5 million tonnes expected a month ago, the Agriculture Secretariat said Thursday (Apr 20) in its monthly crop report.

The Secretariat kept its estimate for the planted area of soybeans at 15.2 million hectares. This puts area up 5.6 percent from 14.4 million hectares a year ago.

Area is seen up in part because dry weather prevented many farmers from sowing corn or wheat and those fields were planted with soybeans. Farmers, too, stepped up soy acreage because of its higher price compared with other crops, the Secretariat said.

In 2004/05 Argentina produced a record 38.3 million tonnes of soy, according to the Secretariat.

The US Department of Agriculture has forecast Argentina's 2005/06 soybean output at 40.5 million tonnes.

Corn

Meanwhile, the Secretariat raised its forecast for 2005/06 corn production to 14 million tonnes from the 13.8 million tonnes expected in March.

The Secretariat estimated the planted area of 2005/06 corn at 3.05 million hectares, unchanged from a month earlier. If the forecast holds, it would put area down 10.3 percent on-year. Area and output are down mainly because of poor weather during the planting season.

Argentina produced a record 20.5 million tonnes during 2004/05 corn harvest, according to the Secretariat. Production rose because area and yields were up. Excellent weather and better use of agri-chemicals and seed varieties boosted yields to record levels.