A year away from the national election, Argentina’s Unión Cívica Radical, the main opposition party in the country, has promised to end the retentions policy created by the Kirchner government in 2003. The policy applies 35 percent taxes on soybean exports, 28 percent on wheat exports, and 25 percent on corn. The government uses it to pay the foreign debt with the dollars generated by those exports and to provide subsidies to some services and other sectors, such as the bus ride in Buenos Aires and gasoline.
The promise was made during a meeting with the leaders of the main institutions representing the local rural sector. “It is very important to eliminitate these discriminatory retentions on the agricultural sector”, said Rubén Ferrero, president of the Argentine Rural Confederation, at the event.
German consultancy Oil World has reduced in one million tons the projection of the Brazilian soybean production. According to the consultancy, the country would have an output of 84 million. It is the third time that the consultancy reduces the projection for the Brazilian production. Again, the drought in western Paraná and parts of Rio Grande do Sul combined with continued rains in Mato Grosso were the main reasons for the fall.
Argentina’s Ministry of Agriculture have reduced the estimated area for corn in the country. According to the organism, the planted area fell to approximately 14 million acres. The reduction is explained by extensive rains in the province of Córdoba, northern part of the country.
The yields were not projected by the ministry. However, the Buenos Aires Cereal Exchange forecasts a volume of 23.5 million tons in its weekly report for corn production.
Dry weather in Southern Brazil (Rio Grande do Sul and Paraná) combined with the excess of rains in Mato Grosso have made Safras & Mercado, a Porto-Alegre based consultancy, change its projection for corn and soybean production in the country. According to Safras & Mercado, the soybean production would be 86.1 million tons, while the January forecast for the soybean output was 91.8 million tons. The losses in the state of Paraná alone would be 1.7 million tons.
In the meantime, the corn production, reads the report, will be 71.1 million tons in Brazil. The previous prediction was that the country would generate 75.5 million tons of the cereal.
A new projection released by Safras & Mercado, a consultancy based in Porto Alegre, says that Brazil would increase its wheat area to 6.1 million acres. With that area, the country would jump its production to 7.3 million tons. Last year, the country harvested 5.3 million tons.
According to Luiz Pacheco, a consultant from Curitiba, an increased wheat area would be explained by a reduced area of the second corn crop and good prices. However, as happened in last year, drier weather or frosts can potentially damage major projections of production.
Farmers from the Brazilian state of Mato Grosso will harvest 1.2 million acres less of the soybean area, according to a new survey from the Association of Soybean and Corn Growers of the state of Mato Grosso. The smaller productivity is due to increased precipitation in the last few days. The yields lost might be 487,000 tons. The total crop would be reduced to 26.8 million tons.
Argentina’s exports of beef have dropped 21.9 percent in January compared to the same month of last year, according to the country’s Institute of Promotion of Beef Exports. The percentage is based on the weight exported, which was 8.26 tons in that month. The main destination of the meat was Chile, followed by Germany, and finally Israel.
Even with an uncertainty generated by an erratic weather, the domestic prices of corn in Brazil are still firm. On Monday, the price per bag (60kg) reached R$ 28 (US$ 12) in Paranaguá (Paraná) and R$ 31 (US$ 13.28) in the port of Rio Grande (Rio Grande do Sul). Valmir Brandalizze, an analyst at Brandalizze consulting, has told to Brazil’s portal Notícias Agrícolas that those prices tend to remain high. “There is still uncertainty over the size of the second corn crop. Nearly 50 percent of the safrinha can be finished after the end of the ideal window”, he explained.
Extensive rains have generated losses and local authorities have declared state of emergency in the city of Sorriso, Mato Grosso, delaying the soybean harvest and therefore the corn planting. In Paraná, in the south, and in Bahia, in the Northeast, the problem is the opposite: dry fields.
AgRural consultancy has released its report informing that the Brazilian soybean harvest has reached 30 percent of the projected area for the 2013/2014 season. The harvest advanced nine percentage points in one week. It could be faster if not for the non-stopping rains of the state of Mato Grosso – with over nine inches.
The consultancy predicts a 87 million tons production of soybeans for Brazil. In Goiás and Mato Grosso, the harvest works already overcame 50 percent of the area.
The soybean harvest in the Brazilian state of Mato Grosso has reached 47.3 percent of the total area, according to date released by the Mato Grosso Institute of Agricultural Economics. Therefore, there was an advance of 11 percent in one week. The report says that the harvest just did not advance more because the rains have not stopped for a single day. The total soybean area in Mato Grosso is 20.5 million acres.