Argentina’s soybean crop will set a record by an even clearer margin than expected, the Buenos Aires grains exchange said, citing better-than-expected yields extending into the last stages of the harvest.
The Argentine soybean harvest will hit 60.8m tonnes, the exchange said, an upgrade of 800,000 tonnes on its previous estimate, and taking output more than 6m tonnes above the current record set five years ago.
The upgraded estimate would also keep the exchange ahead of Informa Economics, which on Wednesday raised its forecast for the crop by 1.0m tonnes to 60.0m tonnes.
The US Department of Agriculture, whose data set world benchmarks, currently pegs the harvest at 58.5m tones, although investors are expecting it on Wednesday, in its monthly Wasde world crop report, to lift the estimate to 59.2m tonnes.
Yields exceeding expectations
The exchange’s upgrade came after a drier spell allowed a reacceleration in the harvest pace to cover 3.1% of Argentina’s soybean area, of 19.1m hectares, taking the total reaped to 93.4%.
“The last 15 days favoured the advance of combines in most of central regions,” the exchange said in a report.
Yields, at 3.29 tonnes per hectare, were continuing to exceed expectations on the 17.8m hectares now reaped, taking the amount of soybeans already reaped to 58.7m tonnes, and warranting the upgrade.
Clearer weather also allowed an acceleration in Argentine wheat sowings, with 5.4% of the crop seeded last week, taking the total completion to 9.8%, although 2.1 points behind last year’s pace.
Farmers in north eastern Argentina had been encouraged by soil moisture replenished by previous rains.
The exchange expects some 4.1m hectares of wheat to be seeded, although some is seeded merely to protect the soil during winter, and may not be harvested.
Indeed, in Cordoba and Santa Fe recent plantings were being made “in many cases for the purpose of ground coverage” with “minimal investment” in inputs.
(Source – http://www.blackseagrain.net/novosti/argentine-soy-crop-upgraded-as-harvest-nears-end)