Argentina's 2007-08 wheat planting might rise higher than last year thanks to a surge in prices, according to a Dow Jones report on analyst consensus. The report notes that early forecasts had called for a drop in wheat planting due to government intervention, which kept spot prices down. However, the price picture has changed.
Despite higher fertilizer prices, growers are going to plant about the same acres to wheat as they did last year. Some see wheat planting up as much as 4% due to favorable planting and weather conditions.
In March, Argentina suspended the wheat export registry to ensure domestic supply and keep a lid on local prices for bread and pasta. The government intervention was also to include a subsidy to domestic millers to keep the local price on par with international prices, but according to the report, the government has been slow on this topic.
Wheat planting is going full blast in Argentina now with more than 15% of the new crop planted as of June 1.