November 21, 2011

Argentine soy area to increase by 0.6%

Argentina's soy area will increase by 0.6% to 19 million hectares on-year, according to the weekly report by the Agriculture Ministry.

The forecast is the first from the ministry for soy, the country's top crop and export. Soy is a key source of hard currency and tax revenue for the government. The country is the world's top soymeal and soy oil exporter and ranks third in global soy exports.

Planting is in full swing after showers earlier in November, and 30% of the soy crop was planted so far, according to the Ministry. Earlier, the Buenos Aires Cereals Exchange raised its forecast for soy area to 18.9 million hectares, up from 18.6 million hectares estimated last week. The Rosario Grain Exchange is expecting the soy crop to total 49.5 million tonnes, the second-largest ever. The 2009-10 seasons holds the record for total soy production, when 54.5 million tonnes were harvested.

The ministry also trimmed its forecast for 2011-12 wheat production to 12 million tonnes, down from 12.6 million tonnes forecast last month. That's down 24% on the year, the ministry said. The Buenos Aires exchange sees 2011-12 wheat production at 13 million tonnes. Argentina is a leading global wheat exporter, with most shipments going to neighbouring Brazil. So far 14.1% of the crop has been harvested, according to the Buenos Aires Exchange.