Argentina soy planting complicated due to poor seeds

 

 

Argentine soy planting is progressing quickly across much of the farm belt, but low quality seed due to drought last season is causing some problems, the Agriculture Ministry said in its weekly crop report late Friday (October 30).

 

Planting is well underway in Buenos Aires, Cordoba, Entre Rios and Santa Fe provinces, although continued dryness in the northern provinces of Chaco and San Luis is preventing progress, the Ministry said.

 

In the Marcos Juarez district of Cordoba province, "seed quality is poor, with low germination potential, leading to higher planting density to compensate," the ministry 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.

 

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 2009-10 wheat crop is showing a wide variety of conditions, with the crop developing well in the central areas of the farm belt, but suffering from continued dryness and late frosts around the fringes, according to the ministry.

 

The ministry has not estimated output yet, but on Wednesday the Buenos Aires exchange upped its forecast for 2009-10 wheat production by 225,000 tonnes to 7.75 million tonnes.

 

That's still 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 left over for export from the 2009-10 crop.

 

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

 

The 2009-10 corn crop is generally developing well, although cool temperatures and frost are causing some problems.

 

In the important corn district of Marcos Juarez, planting is finished, with about 95 percent of the crop germinated already.

 

But "the crop has suffered some damage due to frost and low temperatures, with poor distribution or low plant density," the ministry said.

 

According to the Buenos Aires Exchange, as of Wednesday farmers had planted 63 percent of the forecast 1.875 million hectares seen going to commercial corn this season.

 

 

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.

 

Conditions of the young sunseed crop are spotty, with the oilseed developing well in many areas, but suffering from insufficient soil moisture levels in other areas, the Ministry said.

 

On Wednesday, the exchange trimmed its forecast for sunflower seed area by 8 percent from a week earlier to 1.75 million hectares due to dryness in the northwest.

 

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