Nov 23, 2022
2022/23 Argentina Soybeans 12% Planted vs. 29% Average
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The weather improved last week in Argentina and farmers took advantage of the improved soil moisture to focus on planting their soybeans. While recent rains have improved, the 6-month moisture deficit weighted for the soybean acreage, is 5-6 inches, so there is a long way to go to fully recharge the soil moisture in Argentina.
Weekend rains continued to help improve the soil moisture in southern Argentina, but the forecast is calling for a hotter and dryer pattern in the 6-10 day period.
The soybeans in Argentina were 12% planted as of late last week compared to 28.7% last year. There are reports of farmers planting soybeans in abandoned wheat and barley fields and in fields originally intended for early corn. The biggest advance in soybean planting last week was in La Pampa and Buenos Aires. Farmers will continue to focus on soybean planting for the next several weeks before some farmers start planting their late corn in about two weeks.
November is the main soybean planting month in Argentina and the planting is getting off to a slower than average start due to dryness. There were reports last week that the soybean acreage may end up below expectations due to the dryness, but I think that may be premature.
Farmers may switch some of their corn to soybeans because soybeans are more tolerant to dry weather than corn, but if farmers plant less corn and less soybeans, I do not know what the alternative would be. Additionally, the Argentine government appears to be poised to offer another incentive program with a preferred exchange rate for farmers to sell their remaining soybeans (see later article).
This would be the second incentive program for soybeans this year and it could set a precedent for similar programs next year. So, it seems like the government would like to see more soybean production, not less. In that light, I do not see why farmers would want to cut back on their soybean acreage. Having said that, if parts of Argentina have a severe drought, then maybe they might not plant all their intended soybeans.