February 1, 2005

 

 

Argentina's 2004-05 soy, corn crop plating update

 

Argentine farmers made little progress on the planting of the 2004-05 soybean crop last week, the Agriculture Secretariat reported Monday.

 

Farmers had planted 98% of the crop as of Friday, the Secretariat said. This figure is unchanged from a week ago, putting the pace of planting down from 99% a year earlier.

 

Planted area totals 14.2 million hectares, compared with 14.235 million a year earlier.

 

Total area planted stands at 13,850,360 million hectares, unchanged from a week ago.

 

Despite relatively dry weather in many areas, the crop is evolving well in the key provinces of Buenos Aires, Cordoba and La Pampa, the Secretariat said.

 

In Santa Fe, however, which is home to about a third of the soybean crop, the lack of rain has had a negative impact on growth.

 

"Because there was not enough rain this month, we are beginning to see less developed plants, associated with the (lack of) soil quality," the Secretariat said.

 

In parts of Santa Fe, the crop is also beginning to suffer from bacterial problems.

 

The Buenos Aires Cereals Exchange sees the 2004-05 area at 14.7 million hectares. As of Saturday, some 14,551,800 hectares have been planted, according to the exchange.

 

The Secretariat has forecast 2004-05 soybean production between 31 million metric tons - worst case - and 39 million tons - best case. The probable outcome, says the Secretariat, is production of about 35 million tons.

 

The U.S. Department of Agriculture sees Argentina's 2004-05 soy output at 39 million tons.

 

Argentine soybeans are planted from October through January and harvested from March to July.

 

Corn

 

As of Friday, farmers had also planted 98% of the 2004-05 corn crop, Secretariat data show, putting the planting pace up from 97% a week ago but down from 99% a year earlier.

 

The Secretariat expects farmers to plant 3.4 million hectares, up from 2.99 million a year ago. As of Friday, total planted areas stood at 3,320,807 hectares.

 

In Buenos Aires Province, which accounts for close to 30% of planted corn, the crop is suffering from a dearth of moisture, the Secretariat said.

 

"During the week, scarce precipitation and windy days caused the soil to dry up, meaning that rain will be needed in the next few days to satisfy the crop's needs," the Secretariat said.

 

The exchange said farmers had planted 99.9% of the crop as of Saturday. The exchange sees the area of exportable corn at 2.56 million hectares.

 

Last year, farmers in some areas began planting a new kind of genetically modified corn seed made by Monsanto. This is expected to boost output by allowing farmers to plant the crop in areas that are not typically apt for good growth.

 

In some areas, yields are even expected to total 10 tons/hectare, the exchange has said.

 

Argentina produced 13.1 million tons of corn in 2003-04, according to the exchange. The Secretariat has estimated output for this period at 13.5 million tons.

 

The USDA has forecast 2004-05 Argentine output at 17 million tons, while the exchange has said output will total 17.9 million tons. The Secretariat sees output between 18 million and 19 million tons, depending on weather conditions.