September 14, 2011

Argentina's soy area to increase this year

Argentine soy producers may increase planting area by 2.7% (500,000 hectares) while facing slower growth in corn plantings, according to the president of the country's soy association, Acsoja.

Miguel Calvo said that conditions are very favourable and the area will probably grow a bit more, according to a Bloomberg report. It's not the best time in terms of rain. Maybe the biggest uncertainty is what is going to happen with the weather.

The Buenos Aires Cereals Exchange said on September 8 that a lack of rain in the main growing regions is threatening planting of corn and the growth of the wheat crop. A smaller-than- expected increase in corn planting may provide a larger area in which to sow soy.

Still, dry weather may hinder the growth of the crop, he said.

Argentine farmers produced 18.25 million hectares of soy in the 2010-11 season.