MercoPress. South Atlantic News Agency

Asian fungi detected in Argentina soybean cultivation

Argentina is the world's third exporter of soybeans

Argentina detected the presence of dangerous Asian fungi in soybean cultivations in the province of Santa Fe the second oilseed producing area of the country, reported the Agriculture Health and Quality National Service, SENASA.

The outbreak was detected in the northeast of Santa Fed with a potential intensity of 5% and "phytosanitary monitoring has been implemented in the surrounding areas to check the situation of the disease", said SENASA in internet. The fungi which is highly aggressive causes the premature loss of foliage and impedes the germination of seeds, was first reported in early February in a few plants in the province of Entre Rios, Argentina's fourth producing area. In past crops the incidence of the Asian fungi was minimal in Argentina that is the world's third exporter of soybeans. However in Brazil, the world's leading exporter behind United States, the disease is estimated to have caused losses of 2.3 million tons in the 2005/06 season which totaled 55 million tons. Argentina president Nestor Kirchner said last week that Argentina's global cereal crop in 2006/07 will reach a new record of 94 million tons, 44million of which soybeans. The latest report from the US Department of Agriculture indicates that soybean existence for the coming crop will be the highest ever in United States because of declining exports given competition from Brazil and Argentina. February existences are 3.5% above January and 33% up from a year ago. However in spite of the surging inventories the Chicago price of a bushel of soybean to deliver in March rose 2.75 US cents to 7.4375 US dollars per bushel the highest since June 2005. During the last year soybean price has soared 29% with market analysts estimating that the growing profitability of corn will have a direct impact on the area planted with the oil seed. Since the US soybean season begun last September demand for US soybean has jumped 30% reaching 23.7 million tons, even when exports are down 14% from the 2004 record, show US Agriculture data. US exports this crop are estimated in 29.9 million tons. In Brazil abundant and timely rainfall anticipates record crops both for soybeans and corn, according to Brazilian Agriculture minister Luis Carlos Guedes Pinto.