Argentina's wheat output to spike higher

Argentine farmers will harvest more wheat than expected this season thanks to increased investment in pesticides and fertilizers prompted by new government export policies, the Agriculture Ministry said in its weekly crop report on Thursday. The 2016-17 crop year is the first since President Mauricio Macri ditched the export curbs and taxes that the previous government used to ensure ample domestic food supplies.
The opening of the international market to Argentine wheat farmers spurred a massive increase in planting that has cut into the area dedicated to soyabeans, the country's main cash crop. Argentina is expected to produce 15.7 million tonnes of wheat this season versus the ministry's previous estimate of 14.9 million and way over the 11.3 million harvested last year.
About 90 percent of the expected wheat planting area has been sown in Cordoba, Santa Fe and Entre Rios, the report said. "Yields in these provinces are being reported at much higher than historical averages, thanks to the improvement in the package of inputs being used," it added. Argentine growers are expected to plant 20.3 million hectares with soya this crop year, the report said, slightly above the 20.2 million hectares previously forecast but still under the 20.6 million hectares dedicated to soya last year.
More than 70 percent of 2016-17 soya has been planted so far, the report said, while wheat harvesting is 58 percent complete. Argentine wheat is planted in June and July, and harvested in December through January. Soya planting starts in mid-October and November. Harvesting starts in March and ends in May. Soya farmers are watching the weather because a dry spell poses a threat in southern parts of bread-basket province Buenos Aires.
Argentina is out to increase farm production under Macri, who has implemented a slew of market-friendly reforms since taking office a year ago but the weather has not been cooperating with farmers in some key growing areas. The Buenos Aires Grains Exchange forecasts the 2016-17 soya planting area at 19.6 million hectares, with an estimated 75.8 percent of the crop planted so far. The exchange forecasts 2016-17 wheat output at 12.5 million tonnes.