October 15, 2010

Argentine wheat output seen to increase

Argentina's 2010-11 wheat output is seen at between 11.3 million and 12 million tonnes, up from the 11.3 million tonnes estimated previously, the Buenos Aires Grains Exchange said on Thursday (Oct 14).

Argentina is one of the world's leading suppliers of wheat and attention is focused on its 2010-11 crop due to an export freeze in Russia, the No. 3 global supplier of the grain.

Plenty of rain in the past few weeks in wheat-growing areas has had a positive effect on the crop, the exchange said in its weekly report. However, the exchange warned that excess humidity could make wheat plantations vulnerable to fungal diseases such as the Asian rust.

Farmers recently started harvesting wheat in some regions, said the exchange, which estimates the area planted with the cereal this season at 4.27 million hectares. The country's farmers produced 7.9 million tonnes of wheat in the 2009-10 season, the smallest crop in 30 years, due to a harsh drought.

The USDA estimates Argentina's 2010-11 wheat production at 12 million tonnes.

Meanwhile, the exchange held its estimate for 2010-11 soy area at 18.7 million hectares and also kept its outlook for this season's commercial-use corn area at 3.0 million hectares.

By Thursday, farmers had planted 53% of the area earmarked for corn, up 12.7% from the previous week, the report said.

Argentina is the No. 3 global exporter of soy and the top supplier of soymeal and soyoil. Planting for the 2010-11 soy season has just started in the South American country. The USDA sees Argentina's soy output this season at 50 million tones.