June 6, 2006

 

Argentina's 2005/06 soy crop seen at 40.75 million tonnes

 

 

Farmers in Argentina are on track to collect a record 40.75 million tonnes of soybeans this season, the Buenos Aires Cereals Exchange forecast Monday (Jun 5).

 

The forecast, which is up from 40.4 million tonnes previously, is based on higher-than-expected yields in many provinces.

 

As of Saturday farmers had collected 96.6 percent of the 2005/06 crop, the Exchange said.

 

That puts the collection pace up from 95 percent a week ago and up "slightly" from a year earlier.

 

As of Saturday they had collected 14,891,445 hectares, putting output so far at 39.585 million tonnes.

 

Planted area totals 15.435 million hectares, up from 14.67 million hectares a year earlier. This leap in areas is the main reason why output is up so much this year.

 

The average yield last week was 2.66 tonnes/hectare, unchanged from a week ago.

 

The Exchange has forecast the size of harvest at a record 40.7 million tonnes. If the forecast holds, it would put production up from 38.85 million tonnes a year ago.

 

Production is up because farmers planted more soy this season. Soybeans are Argentina's most profitable crop.

 

The US Department of Agriculture sees Argentina's soybean production at 40.5 million tonnes while the Agriculture Secretariat has put it at 40 million tonnes.

 

 

Corn

 

Farmers had also harvested 84.8 percent of the 2005/06 corn crop by Saturday, putting the collection pace up 4 percentage points from a week earlier but down 5.5 points from a year ago.

 

Excess moisture in southern parts of Cordoba Province, as well as a scarce diesel supply, slowed the collection pace.

 

Asked about reports of diesel-fuel shortages last week, Planning Minister Julio De Vido said, "The supply of diesel was never in danger. There was a problem at distribution points during peak demand, fundamentally in (the provinces of) Chaco, Corrientes, Tucuman, Formosa and Misiones."

 

"We require the (oil) companies to dutifully supply the market, and if they have not carried out the necessary refinery investments, they have to import" diesel, De Vido continued. "We are going to continue to closely monitor the companies to ensure that these inconveniences do not continue."

 

By Saturday farmers had harvested 1.868 million hectares, putting production so far at about 12 million tonnes.

 

The average yield last week was 6.47 tonnes/hectare.

 

The USDA has forecast Argentina's 2005/06 corn output at 14 million tonnes while the Exchange puts it at 14.4 million tonnes, way down from about 19.62 million tonnes a year earlier.

 

Farmers planted less corn this season and a long drought damaged what was planted. Planted area totals 2.26 million hectares, down from 2.63 million hectares a year ago.

 

The 2005/06 area, including corn grown for use as animal feed, totals around 2.85 million hectares.

 

Argentines plant corn September through January and harvest it February through July.