September 20, 2004

Current Conditions Seen Too Dry For Argentina's 2004-05 Soy Crop

As Argentina gears up to plant the 2004-05 soybean crop, current climatic conditions are looking unfavorable in northern parts of the country, the Buenos Aires-based brokerage Granos del Parana reported Friday.
 
Argentina's soybean crop is normally planted between October and January and harvested from March to July.
 
"In Argentina, the lack of humidity is very critical in northern parts of the country, with temperatures above and rainfall below normal levels in Chaco, Santiago del Estero and northern Santa Fe," the brokerage said.
 
In addition, the climate is excessively dry in large areas of Entre Rios and in center-north parts of Cordoba.
 
"It's worth noting that in the areas currently experiencing drought-like conditions, farmers planted around 4.7 million hectares of the crop in 2003-04, or 30% of total planted area," Granos de Parana said.
 
However, the brokerage said the crop could still be planted successfully and without problem if conditions change in the days and weeks ahead.
 
"Clearly, there is still enough time to reverse this moisture context before seeding begins, and especially before the beginning of the second crop," Granos de Parana said.
 
The U.S. Department of Agriculture has estimated Argentina's 2004-05 soybean production at 39 million tons, though many local analysts think this is too optimistic.
 
Argentina produced 32 million ton of soybeans in 2003-04, according to the Agriculture Secretariat.