July 21, 2005

Argentine wheat farmers might turn to soy amid drought
 

Planted wheat area in Argentina might fall by 10 percent, compared with the previous growing season, due to drought, according to industry reports.

Wheat sown area might be reduced to 5.5 million hectares (13.58 million acres), the lowest level in the past five years.

The Buenos Aires Grain Exchange reported that Argentina could lose about US$225 million during this growing season, assuming a yield of 4,500 kilograms/hectare.

Reports said the long-standing drought had delayed planting and could prompt many wheat farmers to turn to soy instead, which was becoming increasingly profitable.

Meanwhile, Argentina's 2004-05 soy harvest surged by 22 percent over the previous season, to 38.8 million tonnes.