October 26, 2009

Argentine soy planting got started across much of the farm belt over the last week, with recent showers helping, but cool weather slowing planting, the Agriculture Ministry said in its weekly crop report Friday (October 23).

 

However, farmers are having problems securing quality seed due to the drought that battered the crop last season, with relatively low germination rates in many areas, the Ministry said.

 

The Ministry has not forecast production, but on Wednesday the Buenos Aires Cereals Exchange said that farmers will plant a record 19 million hectares with soy this season, shattering the previous high mark by 7 percent.

 

The jump in soy area is due mainly to decreased corn, sunflower seed and wheat planting this season, the exchange said.

 

Argentina's 2009-10 soy crop is expected to get a boost this year from favourable weather conditions generally associated with a mild El Nino.

 

Agricultural analysts polled by Dow Jones Newswires forecast 2009-10 soy production of between 48 million and 55 million tonnes, which would smash by as much as 15 percent the previous record of 47.5 million tonnes grown in 2006-07.

  

Wheat conditions are mixed, with recent showers helping the crop across the central farm belt, but insufficient rainfall around the fringes.

 

Conditions are poor in the far south of Buenos Aires Province, where some farmers have decided to turn the crops over to pasture.

 

The Buenos Aires Cereals Exchange forecasts 2009-10 wheat production at a dismal 7.5 million tonnes.

 

That's down sharply from the average of 14.8 million tonnes over the previous five years.

 

With domestic demand pegged at 6.5 million tonnes by the government, just one million tonnes of wheat are likely to be left over for export from the 2009-10 crop.

 

Farmers made significant progress in corn planting this week due to wet conditions and warmer soil temperatures.

 

According to the Buenos Aires Exchange, as of Wednesday, 59.2 percent of the forecast 1,875,000 hectares had been seeded with commercial corn.

 

The Rosario Grain Exchange forecasts total corn planting of 2.3 million hectares, with 2009-10 production at about 16 million tonnes.

 

The government has pegged domestic consumption of corn from the 2009-10 crop at 8 million tonnes, leaving an equal amount available for export, according to the Rosario exchange.

 

Sunflower seed planting conditions are improving across much of the farm belt, but conditions are still dry in the northern provinces.

 

The Buenos Aires exchange forecasts nationwide planted area of 1.9 million hectares, down 15 percent on the year.

 

As of Wednesday, 26.6 percent of the forecast sunseed area had been planted, according to the Buenos Aires exchange.