August 16, 2004

Argentina's 2004-05 Corn Area Could Rise 8%
 
Argentine farmers could plant 8% more corn in 2004-05 than a year ago, the Buenos Aires Cereals Exchange said Friday.
 
Farmers currently plan to seed 2.41 million hectares of 2004-05 corn, compared with 2.23 million a year earlier, according to the exchange.
 
Many farmers will plant more corn because they recognize the need to rotate their crops after years of planting only soybeans, the exchange said.
 
By rotating their crops this way, farmers will help "maintain the soil's fertility," the exchange said.
 
Moreover, climatic conditions are different from a year ago, when a devastating drought made it impossible to plant and harvest corn in some areas.
 
This year "there has been an important recovery in area in southern parts of Cordoba, which lost a third of productive area last year because of the drought," the exchange said. Cordoba accounted for 41% of Argentina's corn production in 2002-03, according to the exchange.
 
Finally, for the first time ever, farmers will be able to plant Round Up Ready corn seeds. The genetically modified Round Up Ready seeds, made by the agriculture company Monsanto, should help boost yields in some areas.
 
The 2003-04 corn harvest totaled 13.109 million metric tons, the exchange has estimated.
 
The U.S. Department of Agriculture forecast 2003-04 corn production at 12.5 million tons and the Agriculture Secretariat has projected output at 12.7 million.
 
The USDA has forecast 2004-05 output at 15.5 million tons.
 
Argentine corn is normally planted September through January and harvested between February and July.