September 9, 2011

Argentine corn, wheat crops affected by rain deficiency

Besides corn, insufficient rain in Argentina's main corn sowing areas is also affecting wheat, according to the Buenos Aires Cereals Exchange.

According to Bloomberg, corn planting and the growth of the wheat crop, which is fully planted, may be hindered by dry conditions, the exchange said in its weekly crop report. The country needs sufficient rain to restore soil moisture in the east of the main growing region to achieve a forecast to plant 3.5 million hectares (8.65 million acres) of corn, the exchange said.

Argentine corn farmers will harvest a record 28 million tonnes in the season that started last month and ends in August 2012, Agriculture Undersecretary Oscar Solis said on August 25. Farmers have planted 4.6 million hectares of wheat in the 2011-12 season, though dry conditions in the west of the growing region are affecting the output outlook, according to the report.

Corn futures for December delivery dropped US$0.14, or 1.9%, to settle at US$7.34 a bushel on CBOT amid speculation that this year's price rally will prompt livestock producers to use other grains as feedstock. The grain has risen 17% this year. Wheat futures for December delivery fell US$0.135, or 1.8%, to US$7.38 a bushel on the CBOT.