January 21, 2013

Argentina to see 10.1 million tonnes in wheat output

Argentina will reach 10.1 million tonnes in wheat output this season, according to the country's agricultural ministry.

With almost all of the harvest already collected, the South American grains powerhouse is looking at a thin wheat harvest, compared with the 14.1 million tonnes collected in the 2011/12 crop year.

Unusually hard early-season rains made this season's wheat vulnerable to water-born fungi that attacks plants' protein content. Floods posed other logistical problems as harvesting machines sank in the mud and access roads were washed out.

The season started at a disadvantage when many farmers shifted to soy and other crops to skirt the export curbs that the government places on wheat.

The Buenos Aires Grains Exchange expects Argentina's 2012/13 wheat harvest to come in at 9.8 million tonnes, a good 30% under the 2011/12 crop.

The ministry kept its soy area estimate unchanged at 19.35 million hectares and corn estimate unchanged at 4.6 million hectares.

The government sees soy harvest at 55 million tonnes or more and expects a corn haul of 28 million to 30 million tonnes. However, the country needs rain by the end of the month to support corn flowering and maximise yields.