The Buenos Aires Grain Exchange on Monday cut once again its forecast for 2005/06 wheat area due to dry soil conditions, this time to 5.67 million hectares from 5.8 million hectares. Farmers planted 6.09 million hectares with wheat in the prior-growing season. "The central-west area of the Pampa region continued losing topsoil moisture, making seedlings impossible and halting activity for the last 20 days," the grain exchange said in its weekly crop report.
In much of south and south-west Buenos Aires and Cordoba, along with northern La Pampas's province, wheat area could shrink up to 40 percent, which the grain exchange said would have "a several impact on the national total."
Buenos Aires is Argentina's top wheat-growing province, followed by Cordoba, Santa Fe, Entree Rios and La Pampa. On Saturday, farmers had seeded 42.2 percent of forecast wheat area, rising 9.3 percentage points from a week but still lagging last year's planting pace by 16 points.
Rains were scattered last week, and seedlings are delayed in some areas by drought and in other areas by excess moisture. "The persistent lack of water to the west and south of the Pampa region and its excess in northern Santa Fe and Entree Rios continue to disrupt local plantings," the exchange said.
Meanwhile, in eastern Cordoba, south central Santa Fe and northern Buenos Aires, rains improved conditions for seedlings.
The US Department of Agriculture estimates Argentine wheat production at 15.0 million tonnes in the 2005/06 season. The local Agriculture Secretariat has yet to make an output forecast but puts wheat area at 5.9 million hectares.
Argentina's 2004/05 soyabean harvest is practically finished with yields averaging 2.73 tonnes per hectare, well above the 2.21 tonnes per hectare reaped last season, when drought slashed production.
On Saturday, farmers had gathered 99.5 percent of the 14.67 million hectares seeded with soya, rising half a percentage point from a week.
By the same time last year, the soyabean harvest had concluded.
"The remaining hectares, located mainly in Chaco, Santiago del Estero and the northern tip of Santa Fe, are being gathered very slowly due to the moist climate and yields are low while quality is just regular," the report said.
Santa Fe is the top soya producer, with Santiago del Estero and Chico in the north ranking fifth and sixth, respectively.
The grain exchange forecasts 2004/05 soyabean output at 38.85 million tonnes, while the Agriculture Secretariat puts production at a record 38.3 million tonnes and the USDA forecasts 39 million tonnes.
Corn farmers have harvested 97 percent of the 2.63 million hectares planted with commercial-use corn, advancing 1 percentage point from a week and nearly matching last season's harvest tempo.
Humid conditions are also hampering the corn harvest in northern provinces and northern Santa Fe. The exchange expects Argentina to produce 19.7 million tonnes of 2004/05 corn.
Yields so far average 7.68 tonnes per hectare, well above the 6.28 tonnes per hectare notched last season. Both the local government and the USDA forecast Argentina's 2004/05-corn production at a record 19.5 million tonne.
With regard to sunflower seeds, farmers finished gathering the 2004/05 crop seeded on 1.92 million hectares.
The exchange forecasts sunseed output of 3.525 million tonnes, a shade lower than the 3.65 million tonnes foreseen by the government.
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