December 20, 2005

 

Argentina's 2005-06 soybeans almost 80 percent planted

 

 

Argentine farmers had planted almost 80 percent of the 2005-06 soybean crop by Saturday, the Buenos Aires Cereals Exchange reported Monday.

 

That puts the pace of planting up from 74.5 percent a week ago but down half a percentage point from a year ago at this time, when planted area was much smaller.

 

"The condition of the crops (in the main soybean production area) is still good, though rain is needed to add moisture to recently planted crops and to help farmers finish the planting that still needs to be done," the Exchange said. "Areas that were planted earlier in the season are beginning to flower and will need more moisture. In Entre Rios, some plants are entering into the reproductive stages, but most are in the middle of the flowering phase."

 

Most of the areas that have not been planted lies in the northern provinces of Salta and Tucuman. However, the Exchange noted that farmers can sow in these areas until February, giving them ample time to receive more rain.

 

The Exchange expects farmers to plant a record 15.6 million hectares of soy this season, up from 14.67 million hectares a year earlier. As of Saturday they had sown 12.418 million hectares.

 

The USDA has forecast Argentina's 2005-06 soybean output at a record 40.5 million metric tonnes, compared with the previous record of 39 million a year ago.

 

Farmers are planting and producing more soy because it is cheaper to grow than corn and it can be sold for more money in commodities markets.

 

 

Corn

 

Corn farmers failed to progress as much as soybean farmers last week, moving the pace of planting up less than two percentage points to 86 percent by Saturday. The pace is down seven points from a year ago at this time.

 

"The delay is due to dry conditions that have persisted in center-south La Pampa and southwestern parts of Buenos Aires, as well as in center-south Cordoba...," the Exchange said.

 

The Exchange expects farmers to sow 15.2 percent less corn this year as area totals 2.23 million hectares, compared with 2.63 million hectares a year ago. Farmers are planting less because corn is not a very profitable crop given high production costs and export taxes totalling 20 percent.

 

The 2005-06 area, including corn grown for use as animal feed, will total 2.85 million hectares, the Exchange said, reducing its estimate from 2.95 million hectares a week ago.

 

As of Saturday farmers had sown 1.917 million hectares, the Exchange said.

 

In 2004-05 Argentina produced a record 19.7 million tonnes, up from 13.1 million tonnes a year earlier. Good weather, improved use of agri-chemicals and better use of seed varieties helped increase yields to record levels in many areas.

 

The average national yield last season was a record 7.58 tonnes/hectare, up from 6.28tonnes/hectare a year ago.

 

The USDA has forecast Argentina's 2005-06 corn output at 17.3 million tonnes with an average yield of 7.2 tonnes/hectares.

 

Argentines plant corn September through January and harvest it May through August.