December 18, 2008

Argentina cut its forecast for 2008-09 wheat production to 9 million tonnes Wednesday (December 17), down from the 10.1 million tonnes forecast last month.

Drought and decreased planting area is expected to cause a sharp drop from the 16 million tonnes grown last season.

To date, farmers have harvested 53 percent of the wheat crop, the Secretariat said in its monthly crop report.

The government also raised its forecast for 2008-09 corn area to 3.5 million hectares, up from the 3.34 million hectares forecast last month.

To date, farmers have planted 80 percent of the corn crop, the Secretariat said.

The area expected to be planted with soy will reach a new record of 17.8 million hectares, up 7.2 percent from last season, but down from the 18 million hectares forecast last month.

The increased soy area is due mainly to the drop-off in wheat planting due to weather problems, the Secretariat said.

The Secretariat also trimmed its forecast for sunflower seed area to 2 million hectares, compared with the 2.2 million hectares forecast last month.

To date, 89 percent of the area seen going to sunflower seeds has been planted.