USDA says Argentine soybean acreage will set a new record
According to the latest oil outlook report released by the USDA, the sown area of soybeans in Argentina is expected to increase to a record 18.8 million hectares in 2009, an increase of 200000 hectares from the previous month and much higher than the 16 million hectares last year.
In western Argentina, the acreage of other crops has declined due to poor planting conditions, high production costs and unfavorable government policies, according to the USDA. The planting area of wheat in Argentina is the lowest in 50 years, while the planting area of corn is the lowest in 20 years.
Insufficient soil moisture leads to a reduction in the planting area of corn and wheat, and may also delay soybeans. However, the weather in soybean producing areas has improved in the past few weeks.
For eastern Argentina, the situation has improved significantly this year, when the region was severely damaged by drought. So far, about 12% of soybeans have been sown in Argentina.
Although the increase in soyabean acreage in Argentina is partly due to relatively low planting costs, a shortage of funds for farmers may prompt farmers to reduce their use of chemical fertilizers and other means of production, according to the USDA. In addition, insufficient seed supply may also limit the potential yield per unit area. Farmers using soybeans damaged by last year's drought as seeds will cause soybeans to germinate badly.
The USDA now expects soybean production in 2009 / 10 to reach a record 53 million tons, an increase of 500000 tons.
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