Argentina Ready to Harvest Record Bean Crop

April 18, 2002

Argentina's 2001-02 soybean production is estimated at a record 29.5 million tons, 750,000 tons or 3% more than USDA predicted last month and 6% more than last season's revised estimate of 27.8 million tons. Yield is forecast above average at 2.61 tons per hectare due to good growing conditions.

First-crop soybeans escaped most of the potential damage from the February dryness that affected some fields at the end of pod-fill. The recent March rains have alleviated dryness in the main growing areas, improving the conditions for second-crop soybeans.

Soybean harvest has started and was 6% complete by the end of March, similar to last year's pact. Harvested area is forecast at a record 11.3 million hectares, up 200,000 from last month and up 9% from last season.

Argentine producers used the situation provided by flooding problems that affected planting corn and sunflower to increase soybean area, according to USDA. Additionally, soybeans are the low-cost choice compared to most other crops. The cost of production for soybeans is US$100 per hectare versus US$200 per hectare for corn. The costs for soybeans are even lower if farmers save seed to replant, a common practice.