April 21, 2010
Paraguay to increase soy sowings despite pest concerns
Farmers in Paraguay are to follow their northern neighbours in Brazil and raise soy sowings next season, despite being troubled by pest outbreaks that are tempting many of their Argentine peers to switch to grains.
Soy sowings in Paraguay, the world's fourth-ranked exporter of the oilseed, will edge higher to 2.75 million hectares in 2010-11, according to a USDA forecast.
The increase reflects profit margins which generally favour soy vis-Ã -vis alternative crops, USDA said, forecasting lower corn and wheat sowings.
Paraguayan farmers have enjoyed bumper yields this season, up 70% to some 2.7 tonnes per hectare from last year, when crops were ravaged by drought. Production has reached a record 7.2 million tonnes.
However, the improvement has come at the expense of higher use of sprays deployed to keep down pests encouraged by humidity of the "timely rains."
The remaining 10-20% of the 2009-10 crop yet to be harvested could have lower-than-expected yields due to pest and weather condition through harvest, officials said.
Meanwhile, Argentine farmers have experienced rising attacks of diseases such as froegeye leaf spot on soy fields this season, a rise blamed in part on a lack of rotation with other crops. Many are expected to cut soy sowings next season in favour of grains or even pasture.
Paraguay's soy output looks likely to drop despite the rise in plantings as yields return to average levels, after a season in which they were boosted by good rains.
The slide is expected to cause a 20% tumble to 4.4 million tonnes in Paraguay's soy exports in 2010-11, officials said.
