Argentine Wheat Plantings Revised Lower Again
Argentine farmers will plant just 2.6 million hectares of winter wheat for the 2009/10 season, according to Oil World. That's 200,000 hectares down on their last estimate and a stunning 2.1 million less than was planted in 2008/09.
Last season's drought-ravaged crop only managed to yield 2 MT/hectare, and subsoil moisture levels have been depleted even further since then.
Of course it's not all about drought, part of the reason behind lower plantings is a two fingered salute to the government and their export restrictions.
Argy President Cristina Fernandez has indicated a willingness to talk to farmers following her defeat in last months mid-term elections, prompting some to believe that her resolve to leave taxes and export restrictions where they are may be weakening.
Regardless of whether she lowers the 35% export tax on soybeans or not, Argy farmers are still expected to plant a record acreage for 2009/10. Oil World are predicting 19 million hectares, up 3 million, or almost 19% from last year. The USDA currently say 18 million hectares, although some private analysts say the figure could be closer to 20 million given the sharply lower wheat plantings.
Corn plantings will be 3.3 million acres say Oil World, that's 200,000 million lower than 2008/09.
Argy farmers might not like the soybean tax, but they dislike export bans on corn and wheat even more.
Last season's drought-ravaged crop only managed to yield 2 MT/hectare, and subsoil moisture levels have been depleted even further since then.
Of course it's not all about drought, part of the reason behind lower plantings is a two fingered salute to the government and their export restrictions.
Argy President Cristina Fernandez has indicated a willingness to talk to farmers following her defeat in last months mid-term elections, prompting some to believe that her resolve to leave taxes and export restrictions where they are may be weakening.
Regardless of whether she lowers the 35% export tax on soybeans or not, Argy farmers are still expected to plant a record acreage for 2009/10. Oil World are predicting 19 million hectares, up 3 million, or almost 19% from last year. The USDA currently say 18 million hectares, although some private analysts say the figure could be closer to 20 million given the sharply lower wheat plantings.
Corn plantings will be 3.3 million acres say Oil World, that's 200,000 million lower than 2008/09.
Argy farmers might not like the soybean tax, but they dislike export bans on corn and wheat even more.