The seeds industry is so far ahead in preparing for North American plantings for 2009-10 that it has begun stockpiling treatments for corn not due for sowing until next year, Bayer has revealed.

The German chemicals group credited a 33% jump in sales of seed preparation products in the April-to-June quarter on "early receipt of orders" from seed groups.

Bayer noted in particular a rise in orders for corn seed treatments, which historically has not been in demand until later in the year, with the crop sown in North America the following spring.

"Normally we see a pick-up for September or October," a Bayer spokesman told Agrimoney.com.

"This year sales are very early."

Rise in plantings

The comments follow what current US estimates show has been the second strongest spring for American corn plantings in 63 years, with sowings estimated at 87m acres.

Corn plantings are expected to continue increasing, hitting 89m acres next year and 90m acres in 2011, a US Department of Agriculture report in February said.

Meanwhile, signals of farm strategy for the next crop cycle are being especially keenly watched following a 2008-09 season in which falling crop prices prompted drastic cutbacks of some products, in particular fertilizers, with North American potash applications falling by a record 40%.

Agco, the tractor maker, warned on Tuesday of a continuing decline in industry orders.

Slide in fungicide demand

However, Bayer noted a "positive outlook" for its CropScience division, which includes seed treatments and herbicide and insecticide sprays.

The unit raised sales by 2.7% rise to E1.85bn in the second quarter, led by North American takings which soared 23% on seed treatment business and a rise in sales of the Liberty/Ignite herbicides.

European sales dipped 8.8%, hurt by the impact of low disease rates and cereal plantings on fungicide sales, comments which echo those from rival Syngenta last week.