The second corn crp harvest in Mato Grosso advanced 15.67 percentage points in one week and reached 78.62 percent of the surface of 8.1 million acres, according to the Mato Grosso Institute of Agricultural Economics (Imea). There is still a delay of nearly 0.12 percent compared to previous years. Average yields have slightly decreased this season.
Torrential rains have delayed the second corn crop harvest in several state of Brazil. In the case of Mato Grosso do Sul, according to the local Association of Corn and Soybean growers, the harvest reached 12.4 percent of the 4.04 million acres planted. Compared to the average of the previous years, there is a delay of nearly seven percent. But, according to local agronomists, the rains and frosts in that state did not affect yields yet and have not generated losses.
By Luís Vieira
SHANGHAI AND BEIJING, China (Agriculture.com) – The Chinese grain stocks, purchase intentions, and production estimates are always an issue of concern and curiosity for the followers of the markets. However, when one goes to China it is relatively easy to find the reasons and the data that some folks may be eager to know in the U.S., South America and around the world.
Perhaps because of China’s censorship and cultural differences compared to western democracies, when the country does make public its numbers and does not explain the reasons for its decisions, the guessing game starts to play out.
In general, a lot of people do not feel very comfortable in China talking about of food and some asked not to be identified. Feeding 1.3 billion persons is one of the major concerns of its central government and keep food security a top priority. But in communism or other closed regimes, it will depend on the persons you talk to.
The Association of Corn and Soybean Growers of Mato Grosso (Aprosoja-MT) released a statement informing that the lack of physical storage is already an issue of concern in that Brazilian state. As harvest advances to nearly half of the surface, there are farmers already storing grain at “open skies”. In some cases truckers also over 24 hours waiting to be loaded.
“There is a big risk that this problem grows as harvest advances,” according to the statement. Among the factors that contributed to this scenario, there are the truck strike that delay soybean shipments and the lack of storage capacity. Several farmers are yet reported to be storing soybeans from the summer crop.
The Rosario Board of Trade announced its estimate for final wheat stocks in Argentina in this season, which will be 4.5 million tons. The account was made considering that wheat and flour exports quota will be 4.7 million metric tons, six million tons of domestic consumption and 500,000 tons used on seeds.
“This means that wheat prices in the Mercosur bloc (Brazil, Argentina, Uruguay, and Paraguay) will be under pressure. The pressure will be even higher in the first semester of 2016,” analyzed Luiz Pacheco, director of consultancy Trigo & Farinhas.
Iranian importers have purchased nearly 200,000 tons of corn and soybeans from Brazil and Argentina last week. This was the first contract to increase its reserves after sanctions, Argentina’s news website Infobae reported. A contract of 180,000 tons of Brazilian corn would be shipped in July. In August, the country would receive 29,000 tons of Argentinean soybeans.
An operator told Infobae that Iran has big necessities of food for livestocks, even thought it has a good harvest this year. As the supply of soybean meal from India was reduced, the country will increase its demand for soybeans in grain. Iran was never banned from buying food, but certain limitations imposed by the United States and the European Union have hampered contracts in 2014.
The Brazilian state of Mato Grosso registered of volume of imports of 9.66 million tons in the first six months of 2015, according to the Mato Grosso Institute of Agricultural Economics (Imea). Compared to the same period of last year, there is a delay of 1.3 million tons in volume.
According to Imea analysts, the delay may be compensated in the coming months. Despite the delay, the revenue in the period with those sales was bigger than the value registered in 2014.
The harvest of the second corn crop advanced to nearly 47.52 percent of the total surface in Brazil’s top producing state, Mato Grosso. In a weekly comparison, it jumped 16.97 percent. The data was released by the Mato Grosso Institute of Agricultural Eonomics (Imea). There is still a delay compared to last year. By the end of July of 2014, the second corn crop harvest reached 47.94 percent of the total surface in the state. In the majority of the regions, the yields registered are higher than the average registered in the last few years.
The Rural Institute of Technical Assistance of Rio Grande do Sul has lowered its projection for the wheat surface in that Brazilian state to 2.2 million acres. The previous forecast was at 2.3 million acres. The reduction was a consequence of recent rains which impeded the replacement of fertilizers and compromised the control of plagues.
Compared to last year, there is a fall of 22.6 percent of area. Currently, farmers of Rio Grande do Sul already planted 92.5 percent of the projected surface.
The next corn crop (2015/2016) surface may fall 40 percent from the 13.8 million acres (5.6 million hectares) registered last year. The Rosario Board of Trade does the projection based on the current wheat crop, which fell 35 percent, and the demand for inputs. According to some reports, the search for corn inputs at this time has been null. The reason for the fall is attributed to the lower prices of the cereal and the taxes on exports – making soybeans a lot more attractive.