October 31, 2005

Argentina's farmers make slow progress planting corn
 

Argentine farmers made slow progress while planting the 2005-06 corn crop last week, the Agriculture Secretariat reported Friday.

As of Oct 27, farmers had sown 58 percent of the crop, up from 55 percent a week ago. The planting pace is down from 64 percent a year ago even though area this season is down 8.7 percent from the previous year.

A lack of soil moisture slowed planting in the provinces of Buenos Aires and La Pampa, which are home to about 39 percent of Argentina's corn. In contrast, excess rain deterred work in Cordoba.

The Secretariat sees area at 3.06 million hectares, down from 3.34 million a year earlier.

A combination of low corn prices, high input and planting costs, a 20-percent export tax and recent dry weather have led many farmers to plant less this season.

As of Thursday, farmers had planted 1.77 million hectares.

The USDA has forecast Argentina's 2005-06 corn production at 18 million tonnes, down from 19.5 million in 2004-05.

The Buenos Aires Cereals Exchange has estimated planted area this season at 2.23 million hectares, compared with 2.63 million a year earlier.

The Exchange's estimate does not include corn grown strictly for use as animal feed.