October 25, 2005

 

Argentina's soybeans 1 percent planted
 

 

Argentine farmers had planted 1.1 percent of the 2005-06 soybean crop by Saturday, according to the latest data from the Buenos Aires Cereals Exchange.

 

That puts the planting pace down slightly from 1.4 percent a year ago.

 

As of Saturday 175,212 hectares had been sown.

 

The Exchange has estimated farmers will plant 15.6 million hectares, compared with 14.67 million a year earlier. However, the Exchange said the area could increase if climatic conditions do not change soon.

 

"If the dry weather continues, fields that were meant to be planted with corn will be planted with soybeans," the Exchange said. "The same will happen with wheat... ."

 

Area is expected to rise this season because soybeans are more profitable than either corn or wheat. Soybeans are cheaper to plant and easier to cultivate than either crop. Moreover, soybeans fetch higher prices in commodities markets.

 

Argentina produced 38.85 million tonnes of soybeans in 2004-05, according to the Exchange. The Exchange has not forecast production for 2005-06, though most analysts say output will top 40 million tonnes this season.

 

The USDA has forecast Argentina's 2005-06 soybean output at 40.5 million hectares.

 

 

Corn
 

Meanwhile, farmers had planted 45.8 percent of the 2005-06 corn crop by Saturday, putting the planting pace up about six percentage points from a year earlier.

 

"The condition of the crop is still good, evolving...from emergence to the formation of four to six leaves in fields that were planted early," the Exchange said, noting that fresh rain is needed in several areas to keep soil moisture levels adequate.

 

The Exchange expects farmers to sow 15.2 percent less corn this year as area totals 2.23 million hectares, compared with 2.63 million a year ago.

 

The 2005-06 area, including corn grown for use as animal feed, will total 2.95 million hectares, according to the Exchange.

 

As of Saturday farmers had sown 1.02 million hectares, according to the Exchange.

 

In the 2004-05 harvest, Argentina produced a record 19.7 million tonnes, up from 13.1 million a year earlier. Great weather, improved use of agri-chemicals and better use of seed varieties helped increase yields to record levels in many areas.

 

The average national yield was a record 7.58 tonnes/hectare, up from 6.28 tonnes/hectare a year ago.

 

The USDA has forecast Argentina's 2005-06 corn output at 18 million tonnes with an average yield of 7.2 tonnes/hectares.

 

Argentine corn is planted September through January and harvested May through August.