December 24, 2010

Argentine soy area seen down due to dryness

Argentina's 2010-11 soy area will be 18.5 million hectares, about 1% smaller than previously forecast, due to dry conditions in some areas, the Buenos Aires Grains Exchange said on Thursday (Dec 23).

In its previous weekly report, the grain exchange forecast soy area of 18.7 million hectares in the world's No. 3 soybean exporter and its top soyoil and soymeal supplier. Last season's soy area was 19 million hectares.

The exchange said dry conditions were affecting several areas of the soy belt, adding that no significant rains were forecast for the coming days and high temperatures could worsen the situation.

"Despite this, soy seeding could still extend into January in several of these regions," the exchange said.

The grains exchange has not yet forecast 2010-11 soy production. The government estimates a harvest of 52 million tonnes, as does the US Department of Agriculture (USDA).

By Thursday, farmers had planted 74.7% of the estimated soy area, up 5.6 percentage points from a week earlier but trailing last season's pace by 11 points, the grains exchange said.

In the same report, the exchange held its outlook for commercial-use corn area at 3.15 million hectares and left unchanged its forecast for 2010-11 wheat production of at least 13.5 million tonnes.