Argentine farmers look set to increase corn plantings by 6.5 percent this season, the government said on Friday as early seeding gathers pace in areas where soils are moist enough. Argentina, the world's second-largest corn supplier after the United States, produced a record harvest of 22.9 million tonnes in the 2010/11 crop season, the Agriculture Ministry said in an updated estimate earlier this week.
Friday's forecast for 2011/12 corn area of 4.9 million hectares from 4.6 million in the last season is slightly lower than estimates given earlier by grains exchanges and industry analysts. Buenos Aires Grains Exchange sees the commercial-use corn area rising 9 percent, while Rosario grains exchange estimates a 10 percent jump in plantings.
However, dry weather is slowing early seeding in key growing areas and analysts say that persistent dryness could eventually persuade some farmers to switch to later-planted soybeans. "Sowing is being carried out at a gentle pace in Lincoln and it hasn't yet started in the district of F. Ameghino because there's still not enough moisture.
This could alter the final corn area," the government said in a weekly crop report. Lincoln lies in Buenos Aires province, Argentina's No 1 corn producer. In No 2 corn area Cordoba, rains did allow swifter seeding progress in Marcos Juarez, the report said. By Thursday, farmers had planted 10 percent of the estimated area, up 1 percentage point on last season's pace.