November 30, 2004

Argentina's 04-05 Wheat Crop Seen at 14.82 Million MT

Argentine farmers will harvest 14.82 million metric tons of 2004-05 wheat, according to the Buenos Arise Cereals Exchange on Monday.

This estimate, which is up from 14.6 million a couple of weeks ago, is based on the assumption that average yields will rise to 2.48 tons per hectare. Nationwide, the average yield currently totals 1.46 tons per hectare.

However, in some areas - such as in parts of Santa Fe Province - output is substantially higher than expected.

"Yields ... are surprising even local farmers because values are hovering close to 2.5 tons/hectare," the exchange said.

In other areas, yields are even surpassing 3 tons/hectare.

Meanwhile, conditions are "very good" in large parts of Buenos Aires province, which is home to more than half of Argentina's wheat crop.

As of Saturday, farmers had collected 16% of the 2004-05 wheat crop, the exchange said. The exchange did not say how the pace of collection compares with that of the previous year.

As of Nov. 27, farmers had collected 963,600 hectares, putting production at 1,402,440 metric tons. Planted area totals 6.09 million hectares and around 6.013 million of this will likely be harvested.

Last year, Argentina planted 5.83 million hectares and produced 13.7 million tons, according to the exchange.

The USDA has forecast Argentina's 2004-05 wheat output at 14.5 million tons.