Argentine Farmers Wary of Planting Crops
Aug 17, 2012 07:57 AM EDT | By Sharon Robinson
Farmers in Argentina, fearing a repeat of last year's bad weather, are wary of planting new crops. While an exceedingly hot weather spoilt crops last year, this year it is too much rain.
The farmers have already been battling bad policies from the government led by President Cristina Fernandez. As bad weather persists, planting season, which begins in September and continues into October, could have a very bad start.
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This will only further frustrate farmers looking to take advantage of high prices that grains are going for in the international market. But, were the rain to let up now, farmers can still have a good planting season, according to Reuters.
Since the U.S. mid-west has been wilting under the most severe drought in 56 years, hopes have been placed on South American countries like Argentina to meet global demands for corn, wheat and soy. It is very likely that the global demand may go unfulfilled.
The planting season for wheat has already begun. But, the dry weather which persisted in the first couple of weeks of August has seen a decrease in the amount of land being planted with wheat. According to a report in the Financial Times, farmers have planted only 3.6 million hectares of land, a million hectares less than last year.
It is unlikely that the area planted will be increased; the rain will prevent farmers from doing so.
Moreover, Argentina's high inflation may keep farmers from planting corn, a costly crop to plant, the Financial Times further adds. But, soy outputs may increase.
Meanwhile, the price of corn, wheat and soy has been on the uptick. Corn is currently going for $8 per bushel, after a 2 percent rise, on the Chicago Board of Trade (CBOT). Wheat is priced at $8.42 per bushel, and soy at $15 a bushel, at the CBOT.
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