October 29, 2009

Argentina's farmers have planted about 5 percent of the 19 million hectares seen going to soy this season, the Buenos Aires Cereals Exchange in its weekly crop report Wednesday (October 28).

 

However, germination of the young shoots is progressing slowly due to cool weather and the poor quality of seed left over from last year's drought-stricken crop, the exchange said.

 

Soy area is expected to break the previous record by 7 percent, due mainly to decreased corn, sunflower seed and wheat planting this season.

 

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

 

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.

 

The outlook for the developing wheat crop has improved following increased showers and prospects for favourable weather conditions in the following weeks in the important grain area in the southeast of Buenos Aires province, the exchange said.

 

The Buenos Aires exchange upgraded its forecast for 2009-10 wheat production by 225,000 tonnes to 7.75 million tonnes.

 

But 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 1.25 million tonnes of wheat are likely to be leftover for export from the 2009-10 crop.

 

The harvest has just begun, with about 2 percent of planted area harvested to date, the exchange said.

 

Farmers have planted 63 percent of the 1.875 million hectares forecast to be going to commercial corn this season, the exchange said.

 

Planting is progressing well in the central areas of the farm belt, but dryness around the fringes has slowed seeding in those areas, according to the exchange.

 

In the important corn-growing province of Cordoba, most farmers are waiting for planting conditions to improve and will plant if sufficient showers come in November, the exchange said.

 

The Rosario Grain Exchange forecasts total corn planting of 2.3 million hectares, with 2009-10 production around 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.

 

The exchange trimmed its forecast for sunflower seed area by 8 percent from last week to 1.75 million hectares due to dryness in northwest areas.

 

Farmers have planted 39.3 percent of the area expected to be seeded this season. Planted area will be down 21.5 percent on year, according to the exchange.