November 7, 2005

Argentina's 2005-06 corn crop 62 percent sown

Farmers made slower progress while planting the 2005-06 corn crop, the secretariat said.

As of Thursday they had sown 62 percent of the crop, up from 58 percent a week ago. The pace is down from 70 percent a year ago even though area is down 8.7 percent from the previous year.

The secretariat sees area at 3.057 million hectares, down from 3.348 million hectares 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 1,900,513 hectares.

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

The 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.