Argentina corn planting kicks off; conditions dry

 

 

Argentina's farmers kicked off 2007-08 corn planting this week, but dry conditions continue to slow progress, the Agriculture Secretariat said Friday (September 12) in its weekly crop report.

 

The Secretariat forecasts total planting area of 3.6 million to 3.8 million hectares, a 5 percent to 10 percent drop from last year.

 

Corn area is expected to fall as relatively high input costs and export limits imposed by the government will spur a shift to soy and sunflower seeds, according to analysts.

 

On Friday, the USDA sharply lowered its forecast for Argentina's 2008-09 corn output to 19 million tonnes, down 3 million tonnes from last month's forecast.

 

Sunseed planting did not advance this week due to continued dry weather, according to the report.

 

Farmers have planted 10 percent of the area expected to be sown with sunflower seeds this season, in line with the planting pace last year.

 

Sunflower seed area is seen rising between 14 percent and 18 percent from last year to 3 million to 3.1 million hectares, according to the Secretariat.

  

Argentina's 2008-09 wheat planting is finished, with almost 4.6 million hectares sown, but the young crop continues to struggle against night time frosts and dry weather.

 

On Friday, the US Department of Agriculture lowered its production forecast for Argentina's 2008-09 wheat crop by 1 million tonnes to 12.5 million tonnes.

 

 

On Thursday, the USDA raised its forecast for new-crop soy production by 1 million tonnes to a record 50.5 million tonnes.