November 12, 2009

 

Argentina soy planting surges on hot, wet weather

  

 

Argentine soy planting leapt ahead over the past week as warm, moist weather across much of the farm belt spurred farmers to get their seeds into the ground, the Buenos Aires Cereals Exchange said in its weekly crop report Wednesday (November 11).

 

To date, farmers have planted 33.8 percent of the forecast 19 million hectares seen going to soy. The planted area surged 21.7 percentage points over the last week.

 

Despite the good conditions across much of the pampas, it's still very dry along the western and southern fringes. Farmers are holding off on planting in those areas.

 

However, showers are expected in the northwest over the coming days which the exchange is counting on for farmers are to follow through on planting expectations.

 

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, up from the previous record of 47.5 million tonnes grown in 2006-07.

  

Wheat conditions are mixed, with the crops in the central areas of the farm belt doing well, and the fields in the south struggling due to drought, the exchange said.

 

Yields are expected to fall sharply in the south, but higher yields in other areas are expected to compensate for the losses. The exchange kept its production forecast at 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.

 

To date, farmers have harvested 8.6 percent of the planted area.

 

Corn planting took a back seat to soy planting over the last week.

 

To date, 69 percent of the forecast 1.875 million hectares seen going to commercial corn this season have been planted, 5.3 percentage points behind the harvest pace at this time last season, according to the exchange.

 

Farmers have planted more late corn due to delayed showers and are still putting off planting in the areas that haven't been soaked yet by spring showers.

 

The Rosario Grain Exchange forecasts total corn 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.

 

The exchange trimmed its forecast for sunflower seed planting to 1.66 million hectares, down from 1.75 million hectares forecast last week. Drought in the southern and western fields has prevented planting and pushed farmers to switch to other crops, the exchange said.

 

Planted area is expected to be down 25.6 percent on the season.

 

To date, 55.5 percent of the forecast area has been planted.