October 1, 2010
Argentine wheat output to rise 51% as rain aids crops
Wheat output in Argentina, South America's largest producer of the grain, will rise 51% in the coming harvest as increased rainfall helps the crop develop, the Buenos Aires Cereals Exchange said.
Production from the 2010-11 crop will rise to at least 11.3 million tonnes, from 7.5 million tonnes a year earlier, the exchange said today in its weekly crop report. That's below an August 5 forecast from President Cristina Fernandez de Kirchner, who said growers would reap 13 million tonnes.
Crops were damaged last year by the worst drought in at least 70 years, paring output to the smallest in a century. This year, rainfall is boosting soil moisture, which helps wheat in its early growth stages, the exchange said.
Argentine farmers have finished planting 4.2 million hectares of wheat, the report said. Corn planting, forecast to cover 3 million hectares, is 26% completed, it said.
The bulk of Argentine wheat is harvested in December and January.
Wheat futures for December delivery fell US$0.075 cents, or 1.1%, to US$6.76 a bushel on the Chicago Board of Trade (CBOT). Earlier the price touched US$6.51, the lowest level for a most-active contract since July 30.
