November 18, 2004

 

 

Argentina's 2004-05 Wheat Output Seen at 14-15 Million MT

 

Argentine farmers will produce between 14 million and 15 million metric tons of wheat in 2004-05, according to the Agriculture Secretariat in its monthly crops report.

 

Farmers are likely to have planted 6.24 million hectares of 2004 wheat this season, the Secretariat estimated. This forecast, which is unchanged from a month ago, would put area up 3.4% from 2003-04.

 

"This increase is based on a larger surface area planted in northern, southeastern and southwestern parts of Buenos Aires (province), which surpasses the decline in coverage seen for center-north parts of the country," the Secretariat said, repeating comments from last month.

 

Farmers have already begun collecting the 2004-05 crop, according to the Buenos Aires Cereals Exchange. The Secretariat has not commented on this as yet. The exchange has forecast 2004-05 output at 14.6 million tons.

 

The Secretariat expects farmers to collect a total of 6.06 million hectares, although it cautioned that this estimate is provisional and could change. The remaining area will likely be lost because of climatic problems.

 

Argentine farmers produced 14.55 million metric tons of wheat in 2003-04, according to the Secretariat.

 

The US Department of Agriculture has forecast Argentina's 2004-05 wheat production at 15 million tons.

 

Argentine wheat is normally planted between May and August. The crop is usually collected between October and January.

 

SOY

 

Meanwhile, farmers will plant 14.2 million hectares of 2004-05 soybeans, the Agriculture Secretariat said.

 

This estimate, unchanged from a month ago, would put area in line with that of the previous year.

 

As of Friday, farmers had planted 37% of the crop.

 

"Area is down in La Pampa, Cordoba, Chaco and Santiago del Estero," the Secretariat said, also repeating comments from last month's report. "This decline will not be compensated for by an increase in area in Entre Rios and other non-Pampas region provinces."

 

Area will not grow from last year because low soybean prices are not encouraging farmers to plant more of the crop.

 

In 2003-04, Argentina produced 32 million metric tons of beans, according to Secretariat data.

 

The USDA has forecast 2004-05 soybean production at 39 million tons.

 

CORN

 

The Secretariat kept its estimate for the planted area of 2004-05 corn at 3.24 million hectares. This estimate includes corn grown for use as local animal feed.

 

The forecast puts expected area up 11.9% from 2003-04, according to the Secretariat. Planted area totaled 2.86 million hectares in 2003-04.

 

The expected increase comes as farmers plant more corn in Buenos Aires, Cordoba, Chaco, Entre Rios, Santa Fe, Santiago del Estero and Tucuman.

 

Farmers had planted 73% of the 2004-05 corn crop as of Friday.

 

In 2003-04, Argentina produced 13.5 million tons of corn, down from 15.04 million tons in 2002-03.

 

The USDA has forecast 2004-05 corn output at 15.5 million tons.