UPDATE 2-Argentina farmers seen planting 6.5 mln hectares with 2021/22 wheat -exchange
(Adds context, background, quote from report)
BUENOS AIRES, April 21 (Reuters) - Argentine farmers are expected to plant 6.5 million hectares with 2021/22 wheat, unchanged from the previous season, the Buenos Aires Grains Exchange said in a report on Wednesday.
Argentine wheat sowing starts in May. Harvesting ends in January.
Good international grain prices "support a planting intention similar to that of last year. That is to say: an area of 6.5 million hectares," the exchange said in its first wheat forecast of the season.
Factors adding downside pressure to wheat sowing include dryness in some farm areas and fear among growers that the government may increase wheat export taxes and/or limit exports as part of an effort to contain domestic food price increases.
"A prolonged water deficit in some key areas, a rise in the cost of fertilizers and the loss of competitiveness with other crops, such as barley and sunflower, limit the possibility of expansion of wheat," the exchange said.
"To these factors are added questions regarding the rules of the game for the next season," it said. (Reporting by Maximilian Heath, writing by Hugh Bronstein; Editing by Steve Orlofsky)
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