December 16, 2009

Rain is a boon for Argentinean corn producers

For the first time in three years, Argentina's corn growers expect an expansion of their crop after rain boosted yields.

Corn production in Argentina will increase to 14 million tonnes next year from 13.2 million tonnes in the previous February-August harvesting season, up from a previous forecast of 12 million tonnes, said Martin Fraguio, executive director of growers association Maizar.

Rains are so abundant that harvesting in places like Entre Rios province is expected to start in January, 10 to 15 days earlier than usual, he said.

Argentina's corn production had plunged from a record 22.5 million tonnes in 2007 after droughts damaged crops and export bans discouraging planting, said the USDA. But this year, the El Nino weather pattern has brought rain back to major corn-producing regions.

On September 30, Argentina's government eased a ban on corn exports, allowing growers to sell overseas provided they first meet domestic needs.