September 28, 2004

Dry Spell Continues To Hinder Argentina's Wheat Crop

Excessively dry weather is continuing to pose a problem for the evolution of Argentina's 2004-05 wheat crop, the Buenos Aires Cereals Exchange reported Monday.

"The lack of rain continues to aggravate the condition of planted area in northern parts of the wheat region," the exchange said.

As the exchange said last week, the paucity of precipitation is hindering the crop's progress in center-north parts of Cordoba and Santa Fe, as well as in some areas of Salta, Santiago del Estero and Tucuman.

"As a result, the rains must return immediately to avoid a more serious deterioration in productivity," the exchange said.

A large amount of rain is needed in the short-term to prevent yields from falling below 1.2 metric tons per hectare in northern Cordoba, according to the exchange. Even if rain comes, these yields would be far below the national average forecast by the U.S. Department of Agriculture, whose forecast currently stands at 2.38 tons/hectare.

The exchange has estimated planted area at 6.09 million hectares, compared with 5.92 million hectares a year earlier. Farmers planted an additional 180,000 hectares this year in southern parts of Buenos Aires province.

Argentina produced 14 million tons of wheat in 2003-04, according to exchange data. The Agriculture Secretariat has said 2003-04 production totaled 14.5 million tons.

The USDA predicts that 2004-05 production will total 14.5 million tons.

Argentine wheat usually is planted between May and August. The crop is harvested between October and January.