January 3, 2006

 

Argentina's 2005/06 soybeans 90 percent planted

 

 

Argentine farmers have planted 90.2 percent of the 2005/06 soybean crop, the Buenos Aires Cereals Exchange reported Monday.

 

That puts the pace of planting up from 86 percent a week ago but down 3.2 percentage point from a year ago at this time, when area was much smaller.

 

"The dry climate in center-west Buenos Aires, Entre Rios and La Pampa is complicating the planting of second-crop soybeans," the Exchange said. "The opposite situation is taking place in northern provinces. A lot of planting is being done in Chaco, Santiago del Estero, Salta and Tucuman, where December rain lifted soil moisture levels and made it convenient to extend the planted area."

 

The Exchange said crops in many areas still need more rain to develop normally.

 

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 Monday they had sown 14.086 million hectares.

 

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

 

Meanwhile, farmers lifted the pace of planting on the 2005/06 corn crop to 92 percent, up slightly from 90 percent a week earlier.

 

The pace is down six points from a year ago at this time.

 

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.

 

A lack of moisture has damaged corn crops in parts of Cordoba and centre-south Santa Fe.

 

"The condition of these crops deteriorates as the days pass without enough rain during the flowering stage," the Exchange said.

 

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 Monday farmers had sown 2.051 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.