November 16, 2010

Argentine crops require more rain

Argentinais the third-largest exporter globally and farmers are planting 2010/11 soy during a period of high demand from China, the top importer of the oilseed.

By Thursday (Nov 11), farmers had planted 35.8% of the estimated area of 18.7 million hectares, nine percentage points more than last week and two points more than last season.

In order for sowing to continue in central northern parts of Cordoba and Santa Fe provinces, Argentina's second- and third-biggest soy-producing regions, rain is needed, the exchange said. "Conditions are the same in the North-eastern and North-western areas, where limited rainfall is making sowing impossible," the exchange said, adding that delayed sowing in those regions meant farmers could afford to wait for better conditions until December.

Sowing progressed quickly in southern parts of the top soy province, Buenos Aires. The USDA and Argentine agriculture minister, Julian Dominguez, estimated Argentina's 2010/11 soy crop at 52 million tonnes. Argentina had a record of 52.7 million tonnes last season, according to the government. Argentine farmers are also harvesting 2010/11 wheat, and crops in other areas continue to be in good condition, the exchange said. Its outlook for a crop of 12.1 million tonnes remains unchanged but it added that production could be more than that.

By Thursday, they had gathered 10.5% of harvestable lands, 1.9 percentage points more than last season's speed. Farmers in Argentina produced 7.9 million tonnes last season, one of the smallest crops in 30 years. The USDA foresees 2010/11 wheat production at 13.5 million tonnes. As for corn, the exchange said a lot of rain was needed in many northern growing areas to secure crops' healthy growth on a commercial-use corn area estimated at 3.15 million hectares.

By Thursday, farmers had planted 70% of lands targeted at cereal, advancing 1.5 percentage points from the previous week and outpacing last season by 0.9 points. Argentina's government foresees the South American country's 2010/11 corn at 26 million tonnes while the USDA forecasts it at 25 million tonnes.