December 28, 2010

 

Agrentine soy belt affected by La Nina

 

 

Dryness caused by the La Nina weather phenomenon continued in Argentine soy-growing regions last week, delaying plantings and stopping soy crops from growing normally.

 

Argentina is the world's third soy exporter and the government has forecast 2010/11 area at 18.7 million hectares, slightly more than last season although some farmers favour corn over soy. The two crops fight for acreage in Argentina.

 

La Nina has caused dry conditions to take place at the South American nation's farming belt since October, meaning sowing has been happening slowly and resulting in analysts to lessen their soy production forecasts for the country.

 

"Over the past week, the oilseed grew at a slower pace in Bragado, located in the north-central Buenos Aires province, mainly due to the lack of soil moisture," the Agriculture Ministry said on last Friday (Dec 24).

 

Buenos Aires is the top soy-growing region in the country.

 

By Thursday (Dec 23), farmers had planted 77% of the estimated 2010/11 soy area, up five percentage points from the previous week but lagging five points behind last season's pace.

 

Agriculture Minister, Julian Dominguez, and the USDA, have forecast 2010/11 soy production at 52 million tonnes. This would be a slight decrease from last season's record of 52.7 million tonnes.

 

However, the Buenos Aires Grains Exchange last week lowered its soy area forecast slightly, saying dry conditions were prompting farmers to plant less soy than expected.

 

Dry weather has also affected the 2010/11 corn campaign in Argentina. Although crops are generally in good condition, the report said corn plants will suffer if it does not rain soon because they are entering the key flowering stage.

 

By Thursday (Dec 23), corn farmers had seeded 85% of the 4.04 million hectares estimated for planting, matching last season's tempo.

 

Argentina, the world's second corn supplier after the US, gathered 22.7 million tonnes last season and the government foresees a record 26 million tonnes this crop year.

 

The USDA forecasts Argentine corn output at 25 million tonnes in 2010/11.

 

Argentine producers are also harvesting the wheat crop. By Thursday (Dec 23), they had gathered 62% of the planted fields, advancing 14 percentage points from last week and outpacing last season's harvest pace by five points.

 

The government sees 2010/11 wheat production at 13 million tonnes, which would mark a 73.3% increase from last season's drought-hit crop.

 

The USDA has forecast Argentina's wheat crop at 13.5 million tonnes.