October 6, 2008
Argentina crops get boost from badly needed rain
Beneficial rains swept across Argentina's Pampas this week, alleviating the effects of a severe drought which had been stalling corn planting and damaging the developing wheat crop, the Buenos Aires Cereals Exchange said in its weekly crop report Friday (October 3).
The rainfall last weekend arrived at a critical moment when farmers were deciding whether to abandon the crop due to the ongoing drought, the Exchange said.
Showers raised soil moisture levels across most of the agricultural heartland, allowing farmers to push forward with corn planting.
To date, farmers have planted 11 percent of the 2.7 million hectares seen going to corn, down 14 percentage points from this time last year.
Despite the improved conditions, more rainfall is needed to raise soil moisture to the levels required for good planting and early crop development, the Exchange said.
In addition, the insufficient moisture, high input costs and low corn prices are leading more than a few farmers to put off planting until December to see if conditions have improved, the Exchange said.
Recent rainfall had varied effects on the wheat crop, which had been suffering severe effects from the drought. The rain was too late to help the crops in the northern areas, but very beneficial for the crop in the south, particularly the southeast of Buenos Aires province, where about 26 percent of the planted area lies.
Higher yields from the south will help to compensate for many lost fields in the north, but production is still seen down 25 percent from the 16 million tonnes grown last season, the Exchange said.
Dry weather prevented planting in many cases and the 4.48 million hectares sown is 18.5 percent less than last season. This season marks the smallest area going to wheat in 34 years, according to the Exchange.
The exchange slightly trimmed its forecast for 2008-09 sunflower seed planting again this week after pulling its estimate back 9 percent last week.
This week's rainfall helped, but were too late to allow for some planting in the far north, the Exchange said.
The Exchange lowered its forecast to 2.5 million hectares, down from 2.54 seen last week.
Initially, there were expectations for greatly expanded sunflower seed planting this season due to high prices, but the drought and recent price drops have seen a large shift away from the oilseed.
To date, farmers have planted 9.5 percent of the crop, 6.4 percentage points behind the pace at this time last year, according to the exchange.
Argentina hasn't 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, corn and sunseed area.
