December 11, 2009

  

Poor seed causes mixed Argentina soy conditions

 

 

Argentina's 2009-2010 soy crop is developing at a choppy pace due to the low-quality seed planted this season. However, improving weather augers well for the crop, the Buenos Aires Cereals Exchange said in its weekly crop report on Thursday (December 10).

 

Last season's crop was battered by drought, leaving farmers with weakened seeds for planting this year. That has led to a lack of uniform development in many fields.

 

However, most of the problems are centred on the western edges of the farm belt. In the central fields recent showers have "guaranteed very good crop development, and in some cases the reproductive phase has begun," the exchange said.

 

In addition, continued showers are expected over the short term, which will improve conditions in the western fringes and allow for late planting, the exchange said.

 

To date, 71% of the record 19 million hectares seen going to soy this season had been planted, according to the exchange.

 

The Rosario Grain Exchange forecasts soy production of 47 million tonnes, while the US Department of Agriculture expects 53 million tonnes.

  

Farmers took advantage of dry weather this week to push forward with the 2009-10 wheat crop. To date 24% of the crop has been harvested, with yields averaging 2.24 tonnes per hectare. That's up sharply from the average yield of 1.68 tonnes per hectare seen at this point last season, when the crop was battered by severe drought.

 

The exchange estimates 2009-2010 wheat production of 7.5 million tonnes.

 

The Agriculture Ministry estimates production of just seven million tonnes. Planting area fell sharply this season as farmers shifted to other crops due to export controls on wheat and drought during planting time.

 

That drought extended throughout most of the growing season in the south of Buenos Aires and in the Western fringe of the farm belt.

   

Corn planting is advancing at a moderate pace, with farmers continuing to focus on soy. Conditions have approved following recent showers, according to the exchange.

 

To date, 80% of the forecast 1.875 million hectares seen going to commercial corn this season has been planted, according to the exchange.

 

The Agriculture Ministry forecasts total corn planting of three million hectares.

 

Neither the Buenos Aires exchange nor the Ministry have estimated production yet, but the Rosario Grain Exchange sees total corn output of 13 million tonnes.

  

The exchange again trimmed its forecast for 2009-2010 sunflower seed area to 1.3 million hectares, down from 1.42 million hectares seen last week.

 

Extended dryness in some areas and low sunflower seed prices led some farmers to give up planting the oilseed, the exchange said.

 

To date, farmers have planted 96.2% of the crop, according to the exchange.