Jan 24, 2019

Outside of Saturated Areas, Argentina's Crops Progressing Well

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Argentina Soybeans - There is a lot of variability with the soybean crop in Argentina. In some areas, heavy rains have hurt the crop, while in other areas, beneficial rains have helped the crop.

Heavy rains in northern Argentina have prevented farmers in the provinces of Chaco, Santiago del Estero, and northern Santa Fe from planting all their intended soybeans. The Buenos Aires Grain Exchange estimates that 200,000 hectares of intended soybeans either were not planted or lost due to the saturated conditions. As a result, they lowered their 2018/19 soybean acreage to 17.7 million hectares, which is now about equal to last year.

The soybeans in general are 98.8% planted and the crop is rated 9.9% poor to very poor and 51.2% good to excellent, which is a slight improvement compared to last week. The condition of the soybeans in Argentina continues to improve week by week. The soil moisture for the soybeans is rated 0.8% short to very short and 63.8% optimum to surplus. This is also an improvement over last week, which is not a surprise given all the rainfall they have received in recent weeks.

In the core production regions of Argentina, the excessive rainfall has caused some problems. The Commercial Exchange of Rosario reported that the percentage of soybeans in the core production region that are rated average to poor increased from 22% to 25% last week with the double crop soybeans being a little worse at 30% average to poor. This is what you would expect given the late planting of the double crop soybeans and the recent wet weather. The Rosario Exchange generally only reports the conditions across central Argentina.

Approximately 3,000,000 hectares of soybeans received too much rainfall last week. It is too early to assess the amount of damage, but I think it is safe to say that the soybean planted and harvested acreage in Argentina will be less than anticipated. As of last week, the soybeans in Argentina were 39% blooming and 11% setting pods.

Argentina Corn - The corn in Argentina advanced last week to 89% planted, which is just slightly below average. Planting in the northern part of Argentina was suspended last week due to the excessive rainfall.

The corn outside of the saturated areas is doing quite well with a good yield potential. The corn in general is rated 4.8% poor to very poor and 55.3% good to very good, which is an improvement over last week. The soil moisture for the corn is rated 3.9% short to very short and 52.9% optimum to surplus, which is also an improvement over last week. Generally the corn is approximately 36% pollinating compared to 35% last year and 33% for the 5-year average.