Dry weather in Argentina has dimmed the outlook for 2011/12 wheat output although rains in recent days have allowed progress on delayed corn sowing, the government and a grains exchange said on Thursday. Farmers in the South American country, a leading global wheat exporter and the No 2 corn supplier, have dedicated almost 3 percent more land to wheat this season, according to Agriculture Ministry estimates.
But with dry, windy weather sapping soil moisture and battering developing crops, the ministry forecast production of between 11 million and 13 million tonnes, down from 14.7 million tonnes in the prior season. "There's a pressing need in the short term for precipitation so productivity per hectare isn't hurt," the Agriculture Ministry said in a monthly crop report.
In its weekly crop progress update, Buenos Aires Grains Exchange said wheat crops in No 1 wheat-growing province Buenos Aires were in a bad state due to the lack of rain. "The situation is critical in south-western Buenos Aires ... where the drought continues and the situation is getting worse," the exchange said.
It rained in parts of the wheat belt last week but not enough to bring moisture-depleted crops back into shape, the report added. The showers and warmer weather did help growers get 2011/12 corn plantings on track after seeding got off to a sluggish start because of parched fields. Some farmers are increasingly worried that the La Nina weather phenomenon will bring severe dryness for a second year running, which would hurt output
"The outlook is for high temperatures to continue, which would fuel (corn planting) in those regions where soils have gathered enough moisture. However, more rains are not expected to make up for uneven rainfall earlier," the exchange said.
By Thursday farmers had seeded 7.7 percent of the 3.5 million hectares forecast to be planted with 2011/12 commercial corn, lagging last season's pace by 5.8 percentage points. The Agriculture Ministry, which did not estimate new crop corn area, surprisingly raised its 2010/11 production estimate by nearly 4.6 percent to 22.9 million tonnes - a new record.
That marks a 1 percent increase from the previous campaign. It held its forecast for the 2010/11 soy harvest at 48.8 million tonnes, which would represent a 7.4 percent fall compared to last season's harvest. The ministry sees a slightly smaller area of 1.74 million hectares.