Thursday, December 27th 2012 - 06:01 UTC

Xmas rainstorms and soggy soil delaying soy and corn planting in Argentina

Christmas rainstorms across Argentina further delayed soy and corn planting, keeping markets guessing about whether the grains powerhouse can produce enough this season to help bring high-flying global food prices down to earth.

Wheat harvesting has also been delayed and the crop estimate was lowered 5% by the government

Argentina is the world's No. 2 corn exporter after the United States and its No. 1 soy-oil and soy-meal supplier. But sowing in the central Pampas farm belt lags last season's tempo by about 20 percentage points, said Tomas Parenti, an agronomist with the Rosario grains exchange.

Up to 100 millimetres of rain fell late on Monday and early Tuesday (Christmas Eve and Christmas Day), forcing some growers once again to park their seeding machines lest they sink in the mud.

Any more harsh rains at this point -following an unusual August-October wet spell that turned prime Argentine farmland into soggy soil, will add to the problem, Parenti said.

“There is excessive moisture in low-lying areas throughout the central farm belt,” Parenti said, referring to an area including parts of Buenos Aires, Santa Fe and Cordoba provinces.

“Fields located in the same area but at higher elevation are in good shape. We're not expecting a lot of rain over the week ahead but if we get any surprises, anything over 40 or 50 millimetres, it will worsen the problem,” he added.

Argentina's main grains port of Rosario situated along the Parana River and offering access to the shipping lanes of the South Atlantic, has received almost twice its normal rainfall this year.

Soggy conditions on the Pampas are bad news for consumer nations looking to Argentina for the supply needed to soften food prices squeezed higher this year by dry crop weather in breadbaskets Russia, the United States and Australia. Benchmark Chicago soy futures are up 20% over the last 12 months, with corn up 9% and wheat 22%.

Global food markets face further volatility in 2013 as stocks and supply of key cereals have tightened, the United Nations food agency said this month.

The rains have also slowed 2012/13 wheat harvesting. The Argentine Agriculture Ministry cut its estimate for 2012/13 wheat production by 5% to 10.5 million tons, which is still higher than leading private forecasts but reflects damage caused by the wet weather.

The Buenos Aires Grains Exchange expects farmers to harvest 9.8 million tons of wheat, while the Rosario exchange sees the crop coming in at 9.5 million tons. Rosario sees 53 million tons of soybeans produced this season and 24 million tons of corn. The Buenos Aires exchange has not yet issued 2012/13 corn and soy projections.

19 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 lsolde (#) Dec 27th, 2012 - 09:13 am Report abuse
Good to see a bit of quality JohnDeere Agricultural machinery there.
2 yankeeboy (#) Dec 27th, 2012 - 11:45 am Report abuse
20% less crops planted...hmm

It has got to be hard to run an economy that is 100% dependent on good weather.
3 Conqueror (#) Dec 27th, 2012 - 01:46 pm Report abuse
Checking out argieland's weather forecasts suggest that there will be around 100mm of rain in January. Bit too much methinks. Never mind. Does that mean even less crops?
4 Optimus_Princeps (#) Dec 27th, 2012 - 01:51 pm Report abuse
This is one of the only times where I consider bad a weather a good thing. We need this loony government to go out of business as soon as possible.
5 Pete Bog (#) Dec 27th, 2012 - 02:17 pm Report abuse
Argentina should get onto the blower to the FI Ag. dept and pay them consultancy fees for some advice........
6 yankeeboy (#) Dec 27th, 2012 - 03:25 pm Report abuse
Planting: October through December.
Harvest: April through early June.

At what point do the farmers throw in the towel?

I wonder if they are worried their farm will be classified as “unproductive” and nationalized FOR THE GOOD OF THE PEOPLE?
7 Nostrolldamus The 5th (#) Dec 27th, 2012 - 09:56 pm Report abuse
A family member has a friend living in the USA. He told me this friend commented that he was shopping before Christmas and he heard a balloon pop... and people started running in PANIC!!! Apparently this happens now all the time across the USA, especially in malls, schools, universities, and movie theaters... even the most silly sound (like someone dropping a wood plank), sets off mass histeria.

And people call that civilization??? What a horrifying place to live, always with your heart at your throat. Maybe Somalians still feel at home there.
8 Anglotino (#) Dec 28th, 2012 - 12:54 am Report abuse
Ummm yeah so that post made no sense whatsoever.

Back to the rain and soggy soil?

Unless you have another family member who has a friend living in Argentina and they have told you that every time someone hears a balloon pop there people start running in PANIC and get covered in mud.
9 Captain Poppy (#) Dec 29th, 2012 - 05:39 am Report abuse
Yes....of course what a horrible place to live....words from the person who has never been there or anywhere out of Argentina and of course an absolutely a meaningless contribution of a post as usual.
Why do you not add something to the fact that Argentina is now becoming an agrarian nation in order to finance it's infrastructure and how this weather will impact Argentina's means to acquire U$ that is so desperately needs, demonstrated by it's the outlawing possession of greenbacks? Or how the combination of this weather and the farmers strike for retaliatory expropriation will effect Argentina? Maybe your intellectually cunning use of words can tell us how Argentina has found a new method of sowing seeds in mud? Come on nostril, get that thesaurus moving.
I think I speak for every poster here that we all are waiting with bated breath for the great NOSTRIL to hurl a new volley of insults and of course the self praise of one's own intellect that always follows. Truly titti boi.....we are all waiting......don't fail us or deprive us all of another laugh on the great nostralldamus. We all look forward to your meaningless and laughable posts.....please, I know I can hardly wait. Please tell us....we least I am waiting for my insult of diversion.
10 Ayayay (#) Dec 30th, 2012 - 06:18 pm Report abuse
@7 Um, maybe your friend was panicky from running from immigration?
11 British_Kirchnerist (#) Dec 31st, 2012 - 01:30 pm Report abuse
#4 It will take more than rain to dislodge government of the people, by the people, for the people, which is what Cristina represents...
12 Captain Poppy (#) Dec 31st, 2012 - 03:09 pm Report abuse
As I have told shed time and always told you, you need to be there to form a real, meaningful opinion. Your's is far from based on the reality of the people or what ACTUALLY goes on in Argentina. You experinced nothing, you know no one and the now know nothing but what you read. On top of that you are so blinded for you errection of CFK, that in you eyes she is perfect. As I said before, they failure of the people to hold a critical eye to their leaders was how hitler and the third reich started.
13 XAVIERV (#) Jan 02nd, 2013 - 07:44 pm Report abuse
I love reading as many bloggers Islanders (probably all people do) want deep inside the wreck of the Argentina. We say we are clumsy, barbaric and backward .. certainly are. But you harbor the worst feelings are all RESENTFUL! Dan penalty ..
14 lsolde (#) Jan 02nd, 2013 - 10:34 pm Report abuse
If Argentina wasn't so belligerent, we could accept them into the family of nations.
lt is precisely Argentina's attitude that cause us to wish ill for the country.
For myself, l would rejoice to see Argentina break up into many smaller nations.
You bring it all upon yourselves without any outside help.
Don't you wish that Argentina was as prosperous & respected as it was in 1900?
Ask yourself,“what happened? why”
lts all in your people's hands.
15 Captain Poppy (#) Jan 03rd, 2013 - 12:48 am Report abuse
It gives me goosebumps BK, to see you quote an American Presidential speech dedicating a battlefield. A Republican no

#14 Unfortunately for the moderate mind Argentine's, they are somewhat behind the 8 ball. Peronism has infected Argentina like a cancer. Also I am not so convinced as many Argentine's that the democracy there is on the up and up.
16 British_Kirchnerist (#) Jan 04th, 2013 - 01:29 pm Report abuse
Lincoln was a real hero, Marx also admired him =)
17 Captain Poppy (#) Jan 04th, 2013 - 03:52 pm Report abuse
I can't imagine why.....he was the farthest thing from a marxist commie
18 British_Kirchnerist (#) Jan 04th, 2013 - 11:04 pm Report abuse
Because Marx was anti-slavery. And while Lincoln was no communist the Republicans were to the radical left of the racist Democrats at the time; American political history is a bit bizzare =)
19 Captain Poppy (#) Jan 05th, 2013 - 02:29 am Report abuse
I would call it evolutionary, you want bizzare .....come down to Argentina

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!