The USDA forecasts Argentine soybean production for 2008/09 at 50.5 million tons, unchanged from last month. Area is estimated at 18.2 million hectares, up 1 percent from last month. Yield is forecast at 2.77 tons per hectare, compared to the record high of 2.99 tons per hectare in 2006/07 and the five-year average of 2.70 tons per hectare. Hot, dry weather affected much of the Argentine agricultural producing areas during November. Recent rainfall brought much needed moisture that has energized planting activities for soybeans.
Soybeans will be planted in sunflower and corn areas that were severely damaged by drought, frost and hail. Decreased prices for sunflower seed, sunflower oil and corn led to reduced planted area as the optimum planting windows closed, thus allowing more soybeans to be planted. Some wheat area was also harvested earlier than expected or was grazed due to drought conditions, prompting land preparation and soybean planting as first-crop beans. Lower input costs including less need for fertilizer for soybeans and the ability to shift to earlier soy varieties will allow more first and second crop beans to be planted. (For more information, contact Denise McWilliams at 202-
720-0107.)
Source: USDA