Argentina's sunseed, soya output to go up
MUMBAI, Oct. 27. (Business Line) - BOTH sunflowerseed and soyabeanplantings in Argentina are expected to be strong during the 2002-03season. Favourable prices for sunseed and relatively lower input cost forsoyabean are seen driving acreage higher. However, area expansion for thetwo crops will be at the cost of corn (maize).Sunseed area this year is expected to expand to 2.3 million hectares, upfrom 2.0 ml ha last year and 1.9 ml ha the year before. Higher relativeprices are believed to have spurred an increase in area of cultivation.Typically, Argentine sunseed yields range between 1.65 and 1.85 tonnes perhectare. Under normal weather conditions, the output should touch 4.2million tonnes; and not less than 4.0 mt in any case, it is believed. Lastyear, the output was 3.7 mt.As Argentina's production is largely export-oriented, a sharp devaluationof the currency has ensured higher prices for producers.International sunseed and sunoil prices have been ruling rather high lasttwo years because of decline in global output. A notable recovery of about2 mt in sunseed is seen for this year because of improved productionprospects in major origins. Global sunseed output is expected to be around23.3 mt.Soyabean acreage in Argentina is forecast to increase 6 per cent to 12 mlha, while corn is forecast to decline 8 per cent to 2.25 ml ha. Farmersare expected to plant more soyabean as it is a lower input-cost crop thancorn, an important deciding factor this year when farmers' access tocredit is restricted due to Argentina's economic collapse, the USDepartment of Agriculture (USDA) pointed out.Last two years, the country's soyabean yields have been in excess of 2.6tonnes per hectare. Assuming unchanged yield, Argentina will produce arecord 30 mt plus crop. USDA put the forecast output at 31 mt. The cropswill be ready for harvest by February-March next year.