Argentina 08-09 wheat yield threatened by drought

The condition of Argentina's 2008-09 wheat crop continued to deteriorate this week, with crops in many parts of the country suffering the effects of ongoing drought, the Buenos Aires Cereals Exchange said in its weekly crop report Friday (September 12).

 

"There isn't enough moisture in almost all the wheat areas, and the production prospects are gradually deteriorating," the Exchange said. About 1.8 million hectares are running a high risk of diminished yields and lower harvested area."

 

The area planted with wheat totals 4.48 million hectares, according to the Exchange.

 

While crop conditions are good in the south of Buenos Aires province, wheat in the northern areas is struggling. Increased rainfall is expected during the last week of September, but it will be too late for more than a few of the northern wheat fields, the Exchange said.

 

On Thursday, the US Department of Agriculture lowered its production forecast for Argentina's 2008-09 wheat crop by 1 million tonnes to 12.5 tonnes.

 

Dry weather prevented planting in many cases, and the area is down 18.5 percent on the year, the smallest area going to wheat in 34 years, according to the Exchange.

 

Corn planting is progressing slowly due to the dry weather, and the area seen going to the grain is expected to fall sharply this season, the Exchange said.

 

Farmers have planted just 2.7 percent of the 2.85 million hectares seen going to corn this season, down from 10.9 percent at the same date last year.

 

The dry weather and high fertilizer costs for corn are causing many farmers to decide not to take a risk on the crop this season, the Exchange said.

 

All this "points to a clear decrease in the area going to corn this year," the Exchange said.

 

On Thursday, the USDA sharply lowered its forecast for Argentina's 2008-09 corn output to 19 million tonnes, down 3 million tonnes from last month's forecast.

 

Sunseed planting made little progress again this week due to the continued dry weather, the Exchange said.

 

Planting area is seen up 3 percent from last season, but the dry weather caused the Exchange to lower its forecast for total planting area by 130,000 hectares compared with last week's forecast.

 

 

On Thursday, the USDA raised its forecast for new crop soy production by 1 million tonnes to a record 50.5 million tonnes.