USDA forecast: Argentina's soybean planting area to hit a record high
USDA says Argentina's soybean planting area will set a new historical record
According to the latest oilseed outlook report released by the USDA, Argentina's soybean planting area for 2009/10 is expected to increase to a record 18.8 million hectares, up 200,000 hectares from last month and far above 16 million hectares the previous year.
The USDA said that in western Argentina, poor planting conditions, high production costs and unfavorable government policies have led to a decline in the planting area of other crops. Argentina's wheat planting area hit a 50-year low, while the corn planting area hit a 20-year low.
Insufficient soil moisture has reduced the corn and wheat planting areas and may also delay soybean planting. However, weather in the soybean-producing areas has improved over the past few weeks.
For eastern Argentina, conditions this year have improved markedly, after the region was severely devastated by drought. So far, about 12% of Argentina's soybean planting work has been completed.
The USDA noted that although part of the increase in Argentina's soybean planting area is due to relatively low planting costs, farmers' shortage of funds may prompt them to reduce the use of fertilizer and other production inputs. In addition, insufficient seed supply may also limit yield potential. Farmers using soybeans damaged by last year's drought as seed will lead to poor soybean germination.
The USDA currently expects soybean production for 2009/10 to reach a record 53 million tons, up 500,000 tons.
The USDA said that in western Argentina, poor planting conditions, high production costs and unfavorable government policies have led to a decline in the planting area of other crops. Argentina's wheat planting area hit a 50-year low, while the corn planting area hit a 20-year low.
Insufficient soil moisture has reduced the corn and wheat planting areas and may also delay soybean planting. However, weather in the soybean-producing areas has improved over the past few weeks.
For eastern Argentina, conditions this year have improved markedly, after the region was severely devastated by drought. So far, about 12% of Argentina's soybean planting work has been completed.
The USDA noted that although part of the increase in Argentina's soybean planting area is due to relatively low planting costs, farmers' shortage of funds may prompt them to reduce the use of fertilizer and other production inputs. In addition, insufficient seed supply may also limit yield potential. Farmers using soybeans damaged by last year's drought as seed will lead to poor soybean germination.
The USDA currently expects soybean production for 2009/10 to reach a record 53 million tons, up 500,000 tons.