November 10, 2009

Argentine soy planting continues to lag across much of the edges of the farm belt due to insufficient moisture, while conditions are good in the central regions, the Agriculture Ministry said in its weekly crop report late Friday (November 6).

 

In the Marcos Juarez district of Cordoba province, the planting pace slowed last week due to dry topsoil. In the district, 60 percent to 65 percent of the forecast area has been planted and the young crops are developing well, despite the low-quality seed planted.

 

Seed quality is down due to drought last season, with farmers having to put a greater number of seeds into the soil to compensate for decreased germination rates, the Ministry said.

 

In the Casilda district of Santa Fe province, planting is proceeding quickly after heavy storms had prevented progress the previous week, the Ministry said.

 

According to the Buenos Aires Cereals Exchange, farmers have planted 12.1 percent of the forecast 19 million hectares as of Wednesday, 18 percentage points behind last season.

 

According to the exchange, planted area is expected to total a record 19 million tonnes.

 

Argentina's 2009-10 soy crop is likely to get a boost this year from favourable weather conditions generally associated with a mild El Nino.

 

Agricultural analysts polled by Dow Jones Newswires forecast 2009-10 soy production of between 48 million and 55 million tonnes, up from the previous record of 47.5 million tonnes grown in 2006-07.

 

The wheat crop continues to develop well in the central farm belt, but is struggling with dryness around the fringes, according to the Ministry.

 

According to the exchange, as of Wednesday, farmers had harvested 7.4 percent of the planted area, in line with last year's harvest pace.

 

The exchange forecasts 2009-10 wheat production of 7.75 million tonnes, down sharply from the average of 14.8 million tonnes over the previous five years.

 

With domestic demand pegged at 6.5 million tonnes by the government, just 1.25 million tonnes of wheat are likely to be left over for export from the 2009-10 crop.

 

The corn crop is developing well across most of Buenos Aires province, Santa Fe and Cordoba provinces, although more rain is needed in some areas.

 

However, conditions are dry in Entre Rios, La Pampa, San Luis and Chaco provinces, with more rain needed soon, according to the Ministry.

 

As of Wednesday, 66.7 percent of the forecast 1.875 million hectares seen going to commercial corn this season had been planted, 5.9 percentage points behind the pace at this time last season, according to the exchange.

 

The Rosario Grain Exchange forecasts total corn production at about 16 million tonnes.

 

The government has pegged domestic consumption of corn from the 2009-10 crop at 8 million tonnes, leaving an equal amount available for export, according to the Rosario exchange.

 

Sunflower seed planting conditions vary widely, with the crop developing well in moist areas but struggling in the dry regions, according to the Ministry.

 

Almost half of the forecast 1.75 million hectares seen going to sunseeds this year had been planted as of Wednesday, according to the Exchange.

 

Planted area will be down 21.5 percent on the year, according to the exchange.