December 27, 2005

 

Argentina's 2005/06 soybean crop 86 percent planted

 

 

Argentine farmers had planted almost 86 percent of the 2005/06 soybean crop by Saturday, the Buenos Aires Cereals Exchange reported Monday.

 

That puts the pace of planting up from about 80 percent a week ago but down 4.5 percentage points from a year ago at this time, when planted area was much smaller.

 

The pace is down because planted area is up about one million hectares from a year ago.

 

The Exchange expects farmers to plant a record 15.62 million hectares of soy this season, up from 14.67 million hectares a year earlier. As of Saturday they had sown 13.35 million hectares.

 

"Soil moisture levels in northern provinces are recovering because of substantial rain in Chaco and Santiago del Estero, and although this is delaying planting, it is guaranteeing that planted area will be up from a year ago," the exchange said. "In contrast, the moisture (level) is still insufficient in western parts of the Pampas region and a lack of moisture has weakened soil conditions in centre-south Cordoba and almost all of the main soybean area in La Pampa, as well as in centre and south-western parts of Buenos Aires. This is making it hard to plant second-crop soybeans."

 

However, the Exchange said soybeans are in "good shape" in the main soybean production area, which includes eastern Cordoba, centre-south Santa Fe and northern Buenos Aires.

 

Crops in this area are "developing through the vegetative phases and have eight leaves while the crops planted earlier in the season are passing through stages R1 to R3".

 

The USDA has forecast Argentina's 2005-06 soybean output at a record 40.5 million tonnes, compared with the previous record of 39 million tonnes 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 lifted the pace of planting to 90 percent by Saturday, up from 86 percent a week ago. The pace is down 6.5 points from a year ago at this time.

 

"Fresh rain slowed planting in northern provinces, but at the same time ensured that it will be possible to plant in these areas," the exchange said. "In addition, rain over the past few days favoured the planting of late crops in northern Cordoba and Santa Fe."

 

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 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 2.0 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 6.28 tonnes/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/hectare.

 

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