October 27, 2004

 

 

Argentina 2004-05 Soy, Wheat Crops Benefit from Climatic Conditions

 

Climatic conditions are likely to be good for Argentina's 2004-05 soybean and wheat crops, according to the director of Argentina's National Institute of Climate and Water on Tuesday.

 

"The conditions are good for wheat," said Cesar Rebella. "It has rained in most of the Pampas region, especially in center-south parts of the region."

 

The Pampas region is considered Argentina's agricultural heartland and is home to many of the country's wheat farms.

 

As of Saturday, farmers had collected 1% of the 2004-05 wheat harvest, according to the latest estimate from the Buenos Aires Cereals Exchange.

 

The average yield last week was 1.35 tons per hectare, down from the 2.38 tons forecast by the US Department of Agriculture. Yields are likely to rise as the harvested proceeds into more southern areas.

 

"The problem areas for wheat are the northern Pampas zone, Chaco, Santiago del Estero and Tucuman," Rebella said. "But there is not a lot of wheat in these areas. So most of the wheat crop, a lot of which is in Buenos Aires Province, is in good shape and expectations are very good."

 

Meanwhile, Rebella said the soybean crop is also likely to be in good shape down the road.

 

As of Saturday, farmers had planted 1.4% of the 2004-05 soybean crop, the latest exchange data show.

 

"Recently rain has replenished the soil-moisture levels in the soybean areas," Rebella said. "Expectations are pretty good and we foresee soybean production matching that of the previous year."

 

Last year a prolonged drought caused millions of dollars in damage, killed thousands of livestock and prevented farmers from harvesting millions of tons of wheat and soybeans.

 

The USDA has pegged Argentina's 2004-05 soy and wheat output at 39 million and 14.5 million tons, respectively. This would be up from 34 million and 13.5 million a year earlier, according to the USDA.