Soybean planting nears completion on sufficient rain: BAGE

New Delhi — Soybean planting in Argentina is nearing completion amid favorable weather, according to a report from the Buenos Aires Grain Exchange Jan. 21, and the sufficient rainfall is likely to improve crop conditions significantly.

Of the total projected acreage of 17.2 million hectares for the 2020-2021 crop year (November-October), Argentinian soybean farmers have managed to plant 98.6% of the area as of Jan. 20, down 1 percentage point year on year, BAGE said.

While the first soybean crop was planted in 98.9% of the projected area, second soy crop was planted in 97.8% of the area, the data showed.

The most significant planting advances were made in the Northeastern and Northwestern regions, the report said.

Rainfall in the past seven days has also improved the crop conditions.

According to BAGE, 90% of the planted soybean crop are in fair-to-excellent condition, up 9 percentage points week on week.

Rain over the week ending Jan. 16 in Argentina favored northern and central areas, with the heaviest amounts reported in northern Cordoba, northern and central Santa Fe, and northwestern Entre Rios, weather agency Maxar said Jan. 19. The rains in these areas improved soil moisture for corn and soybean growth, but some dryness is still lingering in far southern Santa Fe, far southern Entre Rios, and northern Buenos Aires, the agency added.

Rain in the coming days will be crucial as the soybean crop requires ample moisture levels during development and pod filling. However, dry weather concerns persist in some regions, stoking crop damage fears.

Dry weather in the week ending Jan. 23 will allow soil moisture to decline again across the region, particularly in east central areas, Maxar said. Rain will return by the six to 10 day period, but the heaviest amounts should be limited to northeastern areas, it added.

The dry weather and crop damage possibilities are expected to support US soybean futures prices, which are trading at a seven-year high since Jan. 12, analysts said.

The March soybean futures contract was trading at $13.4638/bu on the Chicago Board of Trade at 0605 GMT Jan. 22.

La Nina impact

La Nina-induced dry weather concerns linger for Argentinian soybean farmers as the weather phenomenon has brought irregular rains and droughts in the country in recent years.

Argentinian soybean yields have declined by 2%-6% during La Nina years, analysts said. Climatologists have predicted the current year's La Nina to be one of the strongest in three decades.

For the 2020-2021 crop year, Argentinian soybean production is forecast around 46.5 million mt, down 2.5 million mt year on year due to the La Nina impact, according to analysts' average estimates.