September 16, 2010

Argentine 2010/11 soy production seen flat

Soy production in Argentina, the world's third-biggest exporter, should hold steady at 52.7 million tonnes in the upcoming 2010/11 crop year, according to a report by independent farming groups.

The forecast by the CREA organisation, which groups agricultural companies, would match the government's estimate for the 2009/10 soy crop - a record thanks to bumper yields and bigger sowings. Growers will soon start sowing new crop beans.

As well as being the world's No. 3 supplier of uncrushed beans, the South American country is the biggest exporter of soyoil and soymeal.

Argentine farmers have just started planting the first of the 2010/11 corn crop and the CREA group estimated the harvest at 20.1 million with a sowing area of 3.7 million hectares.

That is far below the 26 million tonnes estimated for the next crop by Agriculture Minister Julian Dominguez, who saw soy production slightly lower at 52 million tonnes.

With harvesting all-but finished, Argentina's Agriculture Ministry estimates corn output at a record 22.5 million tonnes.

Wheat production in the 2010/11 was estimated at 11.2 million tonnes. Sowing has finished on an area estimated at 4.25 million hectares.

The report was presented during a news conference by the four farming associations that have led protests against government agricultural policy. The statistics are based on research by CREA.

The report also said farmers would invest some US$17.5 billion in the 2010/11 grains campaign.