December 6, 2005

 

Argentina's 2005-06 soybeans 67 percent planted

 

 

Argentine farmers had planted 66.5 percent of the 2005-06 soybean crop by Saturday, the Buenos Aires Cereals Exchange reported Monday.

 

That puts the pace of planting up from 59 percent a week ago but down 1.8 percentage points from a year ago at this time, when planted area was much smaller.

 

Although the planting pace is down from a year ago, the Exchange said soil-moisture levels are better now than they were last season.

 

"Because of this, the pace of planting will begin to speed up next week in the Pampas region," the Exchange said.

 

The Exchange expects farmers to plant a record 15.6 million hectares of soy this season, up from 14.67 million hectares a year earlier. As of Saturday they had sown 10.38 million hectares.

 

The USDA has forecast Argentina's 2005-06 soybean output at a record 40.5 million tonnes, compared with the previous record of 39 million tonnes a year ago.

 

Farmers are planting and producing more soy because it is cheaper to grow than corn and it can be sold for more money in commodities markets.

 

 

Corn

 

Farmers made little progress while trying to sow the 2005-06 corn crop last week, the Exchange said, citing a lack of rain in key production zones.

 

Farmers had planted 82 percent of crop by Saturday, putting the planting pace up from 80.2 percent a week ago but down 10 percentage points from a year ago.

 

The Exchange expects farmers to sow 15.2 percent less corn this year as area totals 2.23 million hectares, compared with 2.63 million hectares a year ago.

 

Farmers are planting less mainly because corn is not a very profitable crop given that high production costs and export taxes totalling 20 percent.

 

The 2005-06 area--including corn grown for use as animal feed--will total 2.85 million hectares, the Exchange said, reducing its estimate from 2.95 million hectares a week ago.

 

As of Saturday farmers had sown 1.829 million hectares, the Exchange said.

 

In 2004-05 Argentina produced a record 19.7 million tonnes, up from 13.1 million tonnes a year earlier. Good weather, improved use of agri-chemicals and better use of seed varieties helped increase yields to record levels in many areas.

 

The average national yield last season was a record 7.58 tonnes/ hectare, up from 6.28 tonnes/hectare a year ago.

 

The USDA has forecast Argentina's 2005-06 corn output at 17.3 million tonnes with an average yield of 7.2 tonnes/hectare.

 

Argentines plant corn September through January and harvest it May through August.