November 15, 2005

 

Argentina's 2005-06 soybeans 32.4 percent planted

 

 

Argentina's farmers made rapid progress last week while planting the 2005-06 soybean crop, the Buenos Aires Cereals Exchange reported Monday.

 

However, the Exchange also said a lack of rain in the weeks ahead could cause farmers to plant less soy than originally expected.

 

As of Saturday farmers had planted 32.4 percent of the 2005-06 soybean crop, lifting the pace of planting from 17 percent a week ago. The pace is in line with 32 percent a year earlier.

 

Around 69 percent of planting has taken place in eastern Cordoba, central-south Santa Fe, northern Buenos Aires and Entre Rios.

 

"In this region, rain from Nov 4 added moisture to the soil, making it easier to plant," the Exchange said. "Planting is also up because of greater activity in central-south parts of Cordoba as well as in south-eastern parts of Buenos Aires. However, the situation is totally the opposite in the northern provinces of Chaco and Santiago del Estero, where a strong drought continues. Rain from this past weekend did not help diminish the lack of moisture there."

 

The Exchange said dry weather is also a problem in the provinces of Salta and Tucuman.

 

"If the drought in all of these regions continues, it will jeopardise the planting of 18 percent of the 15.6 million hectares of projected area," the Exchange said. "While there is still time for planting this month and next, the rain must not be delayed..."

 

The Exchange expects farmers to plant a record 15.6 million hectares of soy this season, up 6.3 percent from the previous year. As of Saturday they had sown 5.047 million hectares.

 

The USDA has forecast Argentina's 2005-06 soybean output at a record 40.5 million tonnes, up from the previous record of 39 million a year ago.

 

Farmers are planting and producing more soy because it is cheaper to cultivate than corn and it fetches more money in commodities markets.

 

 

Corn

 

Meanwhile, growers had planted 69 percent of the 2005-06 corn crop by Saturday, putting the planting pace up from about 60 percent a week ago but down 3.4 percentage points from a year ago.

 

A dearth of soil moisture in key production zones has delayed work in those areas. The Exchange expected farmers to sow 15.2 percent less corn this year as area totals 2.23 million hectares, compared with 2.63 million a year ago.

 

Farmers are planting less because of poor profitability for corn and bad weather.

 

The 2005-06 area, including corn grown for use as animal feed, would total 2.95 million hectares, according to the Exchange.

 

As of Saturday farmers had sown 1,538,650 hectares, the Exchange said.

 

In 2004-05 Argentina produced a record 19.7 million tonnes, up from 13.1 million a year earlier. Great weather, improved use of agrichemicals and better use of seed varieties helped increase yields to record levels in many areas.

 

The average national yield last season was a record 7.58 tonnes/hectare, up from 6.28/tonnes a year ago.

 

The USDA has forecast Argentina's 2005-06 corn output at 17.3 million tonnes with an average yield of 7.2 tonnes/hectare.

 

Argentine corn is planted September through January and harvested May through August.