This years major drought in the US wrecked havoc on their corn production – Argentina however looks set to have a record harvest with ideal sowing conditions.
Argentina’s 2012/13 corn season, which many analysts think could yield a record harvest, has got off to a good start as moist fields spur seeding, the Buenos Aires Grains Exchange said on Thursday.
Argentina is the world’s second-biggest supplier of corn after the United States and ideal sowing conditions and high global prices have revived farmer interest in growing the grain. Heavy rains soaked the South American nation’s main agricultural belt last month and, while they flooded some wheat crops, most plants are expected to get a boost. The 2011/12 corn crop was affected by a severe drought. “Over the last seven days, big advances have been registered in planting commercial-use corn,” the exchange said in a weekly crop report. “This is due to the good moisture levels and because this is the ideal planting time in the main corn belt.”
By Thursday, farmers had sown 5 percent of the estimated area of 3.4 million hectares, advancing 2.8 percentage points from a week earlier though lagging last season by 2.7 points. The exchange said the delay was due to the abundant August rains that made it impossible for machinery to enter fields. The US Department of Agriculture (USDA) forecasts Argentine 2012/13 corn output at 28 million tonnes, up from last season’s 21 million tonnes.
Although the government has not formally predicted production, a senior official said it could exceed 26 million tonnes. The wetness has caused problems for wheat crops, mainly in central western Buenos Aires province, and the exchange said there were “total and partial” crop losses in the worst-hit areas in the Salado river basin. Wheat plants are, however, in good general shape in the vast province, which accounts for more than half of national wheat production.
“The rains recorded last week were widespread over much of the country’s farm belt. As a result of that, crops remain in good condition as they pass through development stages that require more moisture,” the report said. Meanwhile in far northern growing areas in Salta province, the first wheat has been harvested with parched, hot conditions causing low yields. The USDA forecasts Argentina’s wheat crop this season at 11.5 million tonnes, down from 15 million in the last crop year when exports totaled an estimated 12.1 million.
Argentina is the world’s No. 6 supplier of wheat and is the main supplier to neighboring Brazil. With regard to planting 2012/13 sunflowers, growers have sown 28 percent of the estimated 2.0 million hectare area so far, leading last season’s pace by 5.4 points.
Copyright Reuters, 2012