May 30, 2005

ASA Weekly: ASA launches programme for battling soy rust; record Argentine soybean production forecast

ASA partners to launch rust advisory programme
 

The American Soybean Association (ASA) and the Doane Agricultural Services Company has launched an online Soybean Rust Advisory Program (www.SoyRAP.com) to provide advice on the prevention and treatment of soybean rust.

The US federal government has announced that there will not be enough fungicides if there is a serious outbreak of the damaging soybean rust blight this growing season. The Government Accountability Office (GAO) has assessed preparations by the USDA in 31 individual states to fight soybean rust. According to Robert Robinson, managing director of natural resources and environment at the Government Accountability Office (GAO), some states reported that their diagnostic laboratories may have insufficient funding and/or staff to test suspected samples for rust. In addition, most states have indicated that they were either uncertain or did not believe they would have enough equipment available to apply fungicides to treat the disease.

The disease was discovered in eight southern states last autumn and so far this year has been found in Florida and Georgia. Some experts are worried that the rust could spread into the big soy growing states of Iowa and Illinois. Farm groups have also expressed concerns that fungicide supplies may not be enough to cope with demand in the event of an outbreak of soy rust. But makers such as Dow Chemical and others have repeatedly said supplies will be adequate this year.

Some state farm groups are also providing guidance to producers with regards to crop insurance questions.

Buenos Aires Cereals Exchange expects record Argentine production
 

According to the Buenos Aires Cereals Exchange last week, Argentina could produce a record 38.85 million tonnes of soybean in the 2004-05 production. That would put production up almost 21 percent from 32.2 million tonnes a year ago, according to the exchange. Planted area totals 14.67 million hectares, though just 14.28 million hectares will be collected.

Last year, farmers planted 14.5 million hectares. USDA, which sees the average yield this year at 2.76 tonnes/hectare, estimates Argentina's 2004-05 soybean output at 39 million tonnes. The Secretariat has forecast production at 38 million tonnes.

The Agriculture Secretariat reported that Argentine crushers processed 8.62 million tonnes of oilseeds in the first quarter of 2005, an increase of 15 percent on the 7.51 million tonnes processed in the same period last year. Of this total, soy accounted for 5.71 million tonnes, up 17 percent over the same period in 2004. Soyoil production reached 1,094,000 tonnes in the first quarter¡ªa 16% year-on-year increase.

In terms of exports, shipments of soyoil reached 976,557 tonnes in January-March 2005, a 9 percent year-on-year increase. However, lower world prices caused the value of shipments to fall over the two periods to $459,522¡ªdown 14 percent on last year.