December 12, 2006

 

Argentina's 2006/07 soy seeding slowed on rainfall

 

 

Soy seeding was slowed somewhat by showers over the past week, the Buenos Aires Cereals Exchange said in its weekly crop progress report Monday (Dec 11).

 

As of Dec 7, farmers had planted 70.6 percent of the forecast 16.1 million hectares, up 6.6 points from last week, but 3.9 points behind the planting pace last year, according to the Exchange.

 

The Exchange sees soy area up 3 percent from last year, due in part to 480,000 hectares being shifted from cattle pasture to soy cultivation.

 

The Agriculture Secretariat forecasts 15.6 million hectares will be planted with soy in 2006/07, up 1.8 percent from a year ago.

 

On Monday, the USDA upped its estimate for soy production to 42 million tonnes compared with the 41.3 million tonnes forecast last month.

 

 

Corn

 

As of Dec 7, 81.6 percent of the 2.65 million hectares forecast for corn had been planted, down 2.2 points from the same date last year, according to the Exchange.

 

According to the Secretariat, Argentina will plant 3.4 million hectares of corn during the 2006/07 crop cycle, up 6.8 percent from 3.18 million in 2005/06.

 

The Secretariat's forecast includes corn destined for animal feed, which the Exchange doesn't include in its estimate.

 

The USDA also increased its forecasts for Argentina's 2006/07 corn production to 19 million tonnes, compared with 17.5 million tonnes seen last month.

 

 

Wheat

 

Argentina has harvested 43.5 percent of the 2006/07 wheat crop, 6 points ahead of the same date last year, Exchange said.

 

The Exchange said that 54 percent of the new wheat crop was in good or very good condition, 22 percent was average, 22 percent was poor and 2 percent was practically lost and not worth harvesting.

 

The Exchange estimates new-crop production of 13.8 million metric tonnes.

 

The Agriculture Secretariat forecasts 2006/07 wheat production at 13.5 million tonnes, while the US Department of Agriculture raised its production forecast to 14.2 million tonnes from the 13.25 million tonnes forecast last month.