Argentina: Soybeans Delayed, But Yields Good
15 April 2008 Argentina’s soybean harvest, which had been delayed for two weeks because of the agriculture sector’s strike against the government, has begun in full force. According to a report from the US Dept. of Agriculture’s Foreign Agriculture Service (USDA-FAS), the government’s implementation of floating export taxes had created tension in the sector, but the two sides called for a truce for 30 days to allow farmers to begin the harvest.
USDA-FAS contacts estimate that by the end of the week, about 15% of the harvest will be complete, compared to an average year’s progress of 26% to 28% for this time of year. Farmers are opting to harvest soybeans while leaving the remaining corn crop to be collected afterward due to a higher risk of yield losses to soybeans. Rains could impede the soy harvest and degrade yields, while those risks are much lower for corn.
Despite the late harvest, USDA-FAS has increased its production forecast to 47.5 million tons as many producers are reporting higher yields than expected. Particularly, in the central-south region of Santa Fe province, farmers that have harvested are reporting significantly higher yields than were initially expected. Yields across the country are generally expected to be slightly higher than expected.
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