October 6, 2008

 

Rain helps Argentina corn, but area seen falling 

 

 

Rainfall over the past week improved planting conditions for corn crops, but falling prices may lead to farmers switching from corn to other crops.

 

The Agriculture Secretariat said in its weekly crop report that rainfall over the past week improved planting conditions for the 2008-09 corn crops, but falling prices may lead to some farmers switching from corn to other crops.

 

As of Thursday, 2 October 2008, just 5 percent of the estimated 3.5 million hectares seen going to corn had been planted, down from 28 percent at this point last season.

 

In Buenos Aires, rain across the province allowed farmers to get a jump on planting, which had been stalled due to drought.

 

In the important corn-growing province of Cordoba, rainfall levels were varied, but conditions improved.

 

The Secretariat also said, in the Laboulaye and Rio Cuarto districts of Cordoba, planting is about 15 days behind schedule due to the drought and falling corn prices are leading some farmers to reconsider planting corn.

 

In Santa Fe province, more rainfall is needed, but this week’s showers moistened the soil enough to allow planting to kick off.

 

Soy

 

Argentina has not started 2008-09 soy planting, but the area going to the seeds is expected to rise sharply this season as the beans take up the slack from decreased wheat and corn area.

 

The USDA forecasts 2008-09 soy production at a record 50.5 million tonnes.