Abundant rains in Argentina since mid-July have created favourable conditions for the 2011/12 wheat crop, whose planting is almost finished, the Buenos Aires Grains Exchange said on Thursday. Argentina, which according to the exchange will see 4.6 million hectares (11.4 million acres) sown with wheat, is a leading wheat exporter and sends most of its shipments to neighbouring Brazil.
"In addition to the rains, low temperatures during June and July have helped wheat growth, creating conditions that we had not seen for years at this point in the season," the exchange said in its weekly crop report. By Thursday, farmers had planted 98.4 percent of the area earmarked for wheat, up 1.9 percentage points from a week before and 5.3 points ahead of last season's tempo. However, in the province of Entre Rios, Argentina's fourth-largest wheat-producing area, excess rains have damaged some fields.
On Wednesday, the Rosario Grains Exchange estimated 2011/12 wheat output at 12.5 million tonnes. The Bahia Blanca grains exchange sees production at 13 million tonnes. The US Department of Agriculture (USDA) on Thursday lowered its forecast for Argentine wheat production to 13.5 million tonnes, from 15 million tonnes in July.
CORN AND SUNSEEDS Argentina's 2010/11 corn harvest is seen by the Buenos Aires exchange at 21 million tonnes, with average yields down 21 percent from the previous season due in part to dryness during key development stages of the crop.
The government initially forecast a 2010/11 harvest of 26 million tonnes, which would have been far above the record 22.7 million tonnes gathered in the previous campaign. But it has since lowered its estimate to 21.7 million tonnes. Argentina is the world's No 2 corn exporter after the United States.
By Thursday, farmers had harvested 97.2 percent of the area planted with commercial-use corn, up 3.3 percentage points from the previous week. The exchange also reported that farmers have planted 8.5 percent of their 2011/12 sunflower crop, which will be sown on a total of 1.86 million hectares.