July 14, 2000

ARGENTINA SOYBEAN PRODUCTION UP WHILE SUNFLOWERSEED DECLINES IN 2000/01

Argentina’s 2000/01 soybean production is forecast to increase to a new record of 21.5 million tons, up 0.8 million tons or 4 percent from the 1999/2000 level. After another successful season, the upward trend in soybean production is expected to continue with rising area driving production higher. A record area of 8.8 million hectares is forecast which is 3 percent higher year-to-year. Additional area is expected to be taken from sunflowerseed and possibly new areas brought under cultivation. Also, an increase in second-crop soybeans will likely accompany the increased wheat area.

The 1999/2000 soybean production estimate was revised this month to 20.7 million tons, down 0.3 million ton or 1 percent from last month, to account for losses due to heavy rainfall during harvest in April and mid-May. The excess moisture reduced yields and quality in the affected areas of southern Santa Fe, northern Buenos Aires and Entre Rios. The area that received the heaviest rainfall grows close to 1 million hectares of soybeans and has a production potential of approximately 3 million tons. However, a large percentage of the single-crop soybeans had been harvested prior to the heavy rains in mid-May, and approximately 60 percent of the soybeans that were remaining were second-crop which generally have lower yields. So it is estimated that yields in the area were reduced less than 15 percent, amounting to a loss of approximately 300,000 tons. Harvest of this crop is essentially complete according to a July 7 government report.

Sunflowerseed production is forecast to decrease in 2000/01 to 5.5 million tons, down 0.7 million or 11 percent year-to-year. Area is forecast at 3.1 million hectares, down 13 percent from the 1999/2000 level. At this time, a year-to-year decrease in area is expected because of declining prices on the local market. However, the market situation when planting begins (August- September) will be the determining factor. Some production is expected to move west and north into drier areas, leaving traditional sunflowerseed-production areas available for more profitable soybeans and wheat. The 1999/2000 crop was revised to 6.2 million tons, down 0.2 million tons or 3 percent from last month.

For more information, contact Maria Anulacion with the Production Estimates and Crop Assessment Division on (202) 690-0139 or by e-mail at anulacionm@fas.usda.gov