September 1, 2008

 

 

Argentina's wheat crop got a slight boost from rainfall this week, but frost and continued dryness across the northern farm belt hindered planting and is damaging the young crop, the Buenos Aires Cereals Exchange said in its weekly crop report Friday (August 29).

 

To date, Argentina's farmers have planted 98.1 percent of the 4.55 million hectares seen going to wheat this season.

 

The rainfall prevented planting in the south of Buenos Aires province, and not much more planting is likely to take place, the Exchange said.

 

As a result, the forecast for total planting is likely to be reduced to 4.47 million hectares, a 19 percent decrease from last season, the Exchange said. The area would be the lowest in 34 years.

 

In addition, yields are expected to be poor due to the dry conditions in northern areas and moderate frost damage.

 

Farmers have planted 1.4 percent of the 2.85 million hectares seen going to corn this season.

 

The area going to commercial-grade corn is expected to fall 5 percent from last season, according to the Exchange.

 

Last week the Agriculture Secretariat released its first estimate of corn planting, forecasting a 5 percent to 10 percent drop to between 3.6 million and 3.8 million hectares. The Secretariat's forecast includes all corn production, not just commercial-grade.

 

Sunseed planting benefited from scattered showers in Chaco and Santa Fe provinces, but continued dryness in Santiago del Estero province is delaying the start of planting there, the Exchange said.

 

To date, 7.2 percent of the forecast 2.84 million hectares have been planted, according to the Exchange.

 

Planting area is seen up 5 percent from last season, but an increase in sunseed prices could spur more planting, according to the Exchange.