The first corn-based ethanol plant of Brazil started its works to be built in Chapadão do Sul, Mato Grosso do Sul. The initial investment is projected at US$ 140 million by BioUrja Agroindustrial Brasil. The enterprise would absorb the corn production from the region to process the meal and produce ethanol.
The Brazilian state of Paraná already has harvested nearly 29 percent of the wheat surface, according to the weekly report of the southern state’s Secretariat of Agriculture. Compared to the previous week, there was an advance of about 11 percent of the harvest.
Approximately 86 percent of the crops in Paraná are considered good or excellent. Average conditions are seen on the 13 percent of the planted area.
After a phytosanitary agreement between China and Argentina, the South American country will be able to export sorghum to Asians and benefit from the skyrocketing demand in this season already. According to numbers from the United States Department of Agriculture, the Chinese imported a volume of 84,000 tons of sorghum in the 2011/2012 season. In the 2013/2014, imports of the grain jumped to stunning 3.4 million.
Prior to the Argentinian agreement with China, the only countries allowed to exported sorghum to that populous Asian country were the United States, Myanmar, and Australia. In the meantime, in Argentina, it seems that farmers are already aware of the trade possibilities with the grain. The sorghum surface increased from 1.4 million acres to 2.9 million acres in the last five years.
However, problems will be seen in the next crop because of the lack of technology, knowledge and market dynamism, experts say. “Sorghum is fragmented market (in Argentina). It does not have a region of producers, but isolated growers with insignificant material able to export”, said Esteban Martínez, a researcher at Nidera‘s Department of Sorghum.
Sorghum can also be specially attractive for Argentine growers because it does not have the undesired tax on exports (called locally retentions). That is one of the reasons that the crop already caught the attention of local growers.
The Rural Institute of Technical Assistance of Rio Grande do Sul, the southernmost state of Brazil, informed that the southern Brazilian state has had favorable weather for corn planting in recent days. The institute estimates that nearly 20 percent of the projected 2.1 million acres surface of the cereal was already planted in Rio Grande do Sul.
Planting started in the northeastern, center, and northwestern parts of the state, where about 58 percent of the total area was planted. In other regions, planting intensifies during the final weeks of September.
Contrary to what was seen in previous years, the soybean off-season in Brazil is having the price of oilseed lower in 2014. According to the Center of Advanced Studies of Applied Economics of the University of São Paulo, this is happening because of development in North America.
“This pressure comes from the possibility of a record crop in the United States and the perspective of a relation of final stock over the world’s demand would also be a record”, evaluate the researcher of the Center.
In the port of Paranaguá, in the southern state of Paraná, the bag of 60kg of soybeans is priced at R$ 62.94 (US$ 26.87). In a period of a month, the devaluation is of 6.66 percent.
The corn production in Argentina would fall 23 percent in 2014/2015 compared to the previous season, reads the latest projection of the Buenos Aires Cereal Exchange. The South American country, which lies third on world’s exports of the cereal, would have an output of 20 million tons.
Experts blame low international prices of corn, high inflation in the country, and the regulations over the field – which pays exports taxes. “The business model is cracking down”, analyst Pablo Adreani told Reuters.
The sales of machinery at Brazil’s Expointer, a huge farm show held last week in Porto Alegre, Rio Grande do Sul, accounted nearly US$ 1.1 billion (R$ 2.7 billion). The number is lower than what was expected, but is an increase compared to the 2013 edition of the fair.
For the vice-president of the Federation of Agriculture of Rio Grande do Sul, Gedeão Pereira, those numbers show a sign of confidence on the part of Brazilian farms. “The results of this year are even more impressive. Farmers already took credit and the international panorama is not favorable. Therefore, those numbers are fantastic”, said Pereira.
Animal sales accounted US$ 5.4 million, while the number of visitors at Expointer were over 445,000 people until last Sunday.
The Brazilian production of grains in 2013/2014 is reaching 195.6 million tons, according to the country’s National Supply Company. The number is 3.6 percent increase compared to the previous season.
The soybean output was confirmed at 86.12 million tons, while the corn production fell two percent to 79.9 million tons. The Brazilian wheat production reached 7.66 million tons in the period, a hike of 38.7 percent.
The Brazilian minister of Agriculture, Neri Geller, said yesterday at Expointer, a farm show held in the greater Porto Alegre area, Rio Grande do Sul, that Brazil will probably confirm the production of 200 million tons of grain in 2014/2015 season.
I think we are being too modest regarding the next crop. I think a 200 million tons crop will be confirmed”, said the minister at Expointer. Geller also informed that the government is consolidating the number of 194 million tons of production volume in the current crop. “There was an initial forecast of production fall during the second crop (in the season) because of rains in the center-west. But a ‘supercrop’ was consolidated”, summarized.
On the prices, however, the minister affirmed that the perspectives are not so good, especially for corn. He assured, however, that the government will continue with support for the cereal trade.
“We are going to make up to R$ 300 million of subventions for the drainage of the crop from Mato Grosso, Goiás, and Bahia”, promised the minister.
The higher increase of the employment of the transgenic technology in this technology will be observed again on soybeans (6.1%) with 29.1 million hectares of the total area of the oilseed. This represents not least than 93.2% of the crop in Brazil.
For corn there will be a reduction of 2.3% of genetically modified seed in the summer crop. However, the sum with the winter crop the fall diminishes to just 0.2%. The percentage is based on the total 7.7 million hectares in the winter and 12.5 million hectares in the summer with an adoption rate of 82.4%. This because the Brazilian farmers opted for an increase of the soybean crop at the expense of corn areas because of the market reality.
According to Céleres, the adoption of the transgenic technology for cotton crops will remain stable at 65.1% of the area. This despite a planting projection of an area 18.1% smaller for the crop in 2014/2015.