December 11, 2007

High Argentina wheat yields make up for frost damage

Extremely high yields from the 2007-08 wheat crop in Argentina's north-central farm belt will compensate for decreased yields due to frost damage in the south, according to the Buenos Aires Cereals Exchange weekly crop report up to December 7.

Yields have been up 15-20 percent in the north-central areas, with some fields putting out over 7 tonnes per hectare, the exchange said.

The exchange forecasts 2007-08 wheat production of 15.2 million tonnes but cautions that the final number may decrease somewhat depending on whether farmers in the south decide to harvest fields that suffered extensive frost damage or turn the fields over to pasture instead.

As of December 7, farmers had harvested 35 percent of the area planted with wheat this season, 8.5 percentage points behind last year's pace.

Although moderate showers last week helped the young corn plants and seeding in some areas, dry weather continues to challenge the crop, the exchange said.

"The late frost, added to high temperatures and drought have created an uncertain panorama for corn during this season," the exchange said.

As of Friday, farmers had planted 85.3 percent of the 2007-08 corn crop, 3.7 percentage points ahead of the pace a year earlier.