November 24, 2010

Argentina sees sky high 2010/11 soy plantings

Argentina's soy acreage is seen increasing 1.7% to a new record this season despite dry weather that has halted plantings in some areas of the world's top three exporter, the government said Tuesday (Nov 23).

The Agriculture Ministry put its first formal estimate for 2010/11 soy area at 18.65 million hectares (46.08 million acres).

"In several areas in Cordoba and Santa Fe, sowing has come to a halt as farmers wait for better soil conditions," the ministry said in a monthly crop report, adding that growers had planted 32% of the estimated area.

The government also raised its forecast for 2010/11 wheat output to 12.5 million tonnes from 12 million tonnes, although that trails forecasts by the USDA and local officials.

According to the government, a harvest of 12.5 million tonnes would mark a 65% increase from last season's drought-hit production.

The USDA expects the South American country to gather a wheat crop of 13.5 million tonnes.

Tuesday's report, which had been due for publication last Wednesday (Nov 17), reiterated the ministry's last forecast for 2010/11 corn area at 4 million hectares.

Agriculture Minister Julian Dominguez has already forecast 2010/11 soy production at 52 million tonnes, slightly down from last season's 52.7 million tonnes. He also forecast a record corn crop of 26 million tonnes.