August 28, 2009

Argentina's corn acreage this year will fall 19 percent mainly due to dry soils, according to the Buenos Aires Grains Exchange on Wednesday (Aug 26).

 

Corn acreage in 2009-10 will fall to two million hectares compared with 2.46 million hectares in the previous season. A severe drought in the previous season sank Argentina's 2008-09 corn output to 13 million tonnes.

 

The drought in western farming regions, uncertainties in the market, and higher costs than soy, are main factors behind the decline, a weekly exchange report said.

 

Argentina's government has restricted corn exports in order to protect domestic supplies, driving down the prices farmers get for the grain in local markets.

 

Compared with soy, corn needs more fertiliser in Argentina, making it more expensive to grow.

 

As of Wednesday, farmers had planted 1.5 percent of the estimated corn area, up 0.1 percent from the previous week.