July 13, 2012
 
Argentina's 2011-12 corn production estimates down

After the drought melted early expectations of a 2011-12 crop well over the 23 million tonnes harvested in 2010-11, Argentinean government estimates cut this season's production at 20.1 million tonnes.

The exchange forecasts corn output at 19.3 million tonnes this season while the USDA sees Argentine production of 21.0 million tonnes.

Argentina's 2011-12 corn harvest is 86.1% done, marking progress of 5.1 percentage points over the last seven days but lagging the previous season's tempo by 2.8 percentage points, the exchange said.

US corn futures rose 3% on Thursday (July 11), recouping all of the prior session's losses, as forecasts for moderate rain across the drought-parched Midwest failed to placate worries about shrinking yields.

Argentina is the world's sixth biggest wheat exporter and is the top supplier to neighbouring Brazil. The USDA forecasts Argentina's wheat production in the 2012-13 crop year at 12.0 million tonnes, down from 14.5 million tonnes the year before.

Argentina's 2012-13 wheat plantings are set to fall 20% this season to 3.7 million hectares, the exchange says.

Argentine growers say profits are hurt by export curbs imposed on wheat and corn as part of the state's push to ensure domestic food supplies.

"Seeding has covered 78% of this season's forecasted wheat area, marking progress of 13.7 percentage points over the previous week, reflecting a lag of 1.9 percentage points annually," the report said.

Wheat prices have risen in Argentina since the government approved large 2012-13 export volumes last month, a move welcomed by growers even though it may have come too late to bolster this year's plantings.