Argentina: Crop Synopsis
12 November 2007 Soybeans
Soybean planting has started for the 2007/08 season. USDA-FAS expects the planted area to increase by more than 5% over 2006/07 and maintains its forecast for the planted area at 17 million hectares (Ha) for 2007/08. Production is estimated to reach 47.5 million metric tons (MMT).
More than 60% of the projected increase in soybean area will take place in the northern provinces of Santa Fe, Chaco, and Santiago del Estero, though these less fertile areas will reduce the overall yield averages of the country. Also, much pasture land previously used for cattle production in Buenos Aires, Entre Rios, and La Pampa is being converted for soy production. The converted pasture lands in the humid pampas provinces are very fertile and will reduce the amount of yield loss expected from the northern areas.
On Oct. 28, Christina Fernandez Kirchner was elected president of Argentina, and rumors have circulated that export taxes will increase for soybeans and many other commodities by 5%.
Sunflowerseed
Sunflower planting is underway and as of Oct. 25 at almost 40% of the Argentine Sunflower Association’s projected 2.67 million Ha for 2007/08.
The increase in the area planted to sunflower is mainly being pushed by increases in southern Buenos Aires and the Santa Fe Province. However, a shortage of the most desirable planting seed dampened earlier high forecasts. Total production is expected to reach 4.5 MMT in 2007/08, an increase of 25% over the Secretariat of Agriculture’s estimated 3.6 MMT for 2006/07.
Rice
The Secretariat of Agriculture projects total rice area to reach 184,000 Ha for 2007/08, an increase of 9.5% over its previous year’s estimate. In Entre Rios, some planting was stopped due to rains, and some lots will need to be replanted. In Corrientes, it is estimated that 35% of the central-south (the departments of Mercedes and Curuzú Cuatiá) has been planted. In the north of Corrientes and part of the coast of the Uruguay River, only 15% to 20% has been planted due to rains over the last two weeks which have delayed planting activities.
Corn
The harvested area will increase in 2007/08 by around 6% over the current USDA estimate to total 3.2 million Ha. Yields are unlikely to reach the levels attained in 2006/07 due to expectations that some of the production area will suffer from limited rains due to the effects of La Niña. The current production estimate stands at 24.5 MMT.
Corn planting has progressed quickly this year due to good soil moisture and favorable weather conditions. As of Oct. 25, the Secretariat of Agriculture reported the planted area had reached 64% (2.6 million Ha) of its estimated 4 million Ha for 2007/08. The crop is developing well in Cordoba and Buenos Aires, with reports that the first plantings have reached a height of 15 centimeters in northern Buenos Aires.
Wheat
As of late September, wheat planting was completed. The total harvested area is expected to reach 5.2 million Ha in 2007/08, and total production is forecast at 14.7 MMT based on expected yield increases.
The overall crop condition is excellent. Rains in the major producing areas and high temperatures will likely produce higher yields than last year, and farmers treated many plots with fungicides to prevent damage. The Argentine Grain Exchange reports that the best wheat zones show similar to better conditions than last year and around 74% of the wheat surface is characterized as good to excellent. Southern Buenos Aires province is showing similar to better conditions than last year, while Cordoba is showing much better conditions than a year ago. Cordoba and La Pampa have seen an increase in area planted and are expecting higher yields, with some areas projecting 70% to 120% yield increases over last year.
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