MercoPress. South Atlantic News Agency

Argentina expects record crop.

The Argentine 2004/05 season of wheat, corn, sunflower and soybeans is expected to reach a record 75.5 million tons, according to the latest report from the Inter-American Institute of Agricultural Cooperation, IICA.

This represents a 15% increase over the 2003-2004 harvest and could mean Argentina may regain its former position as the world's second-leading exporter of corn. IICA said the Argentine government's decision to approve sowing genetically modified corn will help boost that crop's standing compared to soybeans, a crop that has expanded rapidly in recent years incentivated by higher world prices.

"For the 2004/2005 season we expect world-record production of corn and soy, as well as a significant recovery in wheat production and a decrease in sunflower crops", indicates the report.

"Regarding soybeans, corn and wheat, much will depend on China's demand that has recently proved the leading force in world markets".

Argentina's agricultural sector enjoyed "steady growth" during early 2004. During the first quarter the Argentine agricultural sector expanded 30% over the same period in 2003 and accounted for 57% of Argentina's exports between January and May, reports IICA.