September 4, 2006

 

Argentina wheat area at smaller-than-expected 5.38 million hectares

 

 

Argentina has basically completed planting 5.38 million hectares with wheat for the 2006/07 crop season, up 3.3 percent from last year, but down sharply from the 5.9 million hectares initially expected, the Buenos Aires Cereals Exchange reported Friday (Sep 1).

 

Dry weather prevented seeding of the final areas planned for wheat in the Southwest of Buenos Aires Province and in La Pampa Province, the exchange said in it's report of crop conditions up to Sep. 1.

 

"More than a few areas are entering the stages of higher water needs," the exchange said.

 

However, "if the spring rains don't delay, high-yields are foreseeable," it said.

 

Earlier this month, the exchange had forecast 5.45 million hectares but lowered its estimate based in dry weather, which prevented planting.

 

Concern is growing over the status of young plants, as drought conditions continue.

 

The exchange said that last year the area planted with wheat totaled 5.02 million hectares.

 

In 2005/06 Argentina produced 12.01 million tonnes of wheat, according to the exchange. That was down from 16.345 million tonnes a year earlier, when good weather helped lift yields on a bigger planted area.

 

The US Department of Agriculture has forecast Argentina's 2006-07 wheat crop at 13.5 million tonnes.

 

The Agriculture Secretariat estimates 2006/07 wheat planting at 5.4 million hectares, but the drought may cause the planted area to fall to 5.1 million hectares, Agricultural Secretariat Cabinet Chief Patricio Lamarca told Dow Jones Newswires.

 

 

Corn

 

Corn seeding has begun in several provinces, aided by moderate rains in some areas. As of Sep 1, 1.9 percent of the 2006/07 corn crop had been planted, 0.9 points higher than at this time last year, the Exchange said.

 

The exchange estimated that 2.47 million hectares will be planted with 2006/07 corn, up 5 percent from last year.

 

The Agriculture Secretariat sees 3.2 million to 3.3 million hectares planted with corn during the 2006/07 crop cycle.

 

The US Department of Agriculture estimates that Argentina will produce 17.5 million metric tonnes of corn during 2006/07.