October 6, 2008

Rain helps Argentina corn but area seen falling

As of October 2, 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, according to the Secretariat.

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.

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, the Secretariat said.

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

The 2008-09 wheat crop also benefited from this week's rains, but not all the fields received sufficient amounts and the showers came too late to reverse the poor quality of the crop in many areas, due to drought.

Even in the areas where conditions are good, yields are expected to be average because of decreased fertilizer and pesticide use due to rising costs, the Secretariat said.

The showers were too little, too late, for much of the sunseed crop, the Secretariat said.

The final area planted with the seeds is likely to be reduced as many farmers abandon the crop.

In Cordoba province, planting delays due to the drought and falling sunseed prices will cause some farmers to shift to soy, the Secretariat said.

Farmers have planted 13 percent of the area expected to be sown with sunflower seeds this season, four percentage points behind the planting pace last year.

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 and corn area.

The US Department of Agriculture forecasts 2008-09 soy production at a record 50.5 million tonnes.