Maurício Macri, the current mayor of Buenos Aires, was declared the elected president of Argentina yesterday. Daniel Scioli, the representative of the incumbent party, assumed that he was defeated. That means that the export taxes of soybeans in Argentina would be reduced from 35% to 5% by December 10th, when Macri takes office, and the export taxes all other grains would be eliminated as well as all international sales restrictions regarding wheat, corn, oat or sunflower. This morning in a press conference Macri reiterated his position: “I will keep what I have said in the last few months and we will cut the taxes at the day one of my government to bring profitability in the field”. Another promise from the next president of Argentina was to fix only one dollar rate in the country (currently there are five different rates), but he did not specify yet when the local currency would be devalued and how these measures would take place. This another move that would boost the gains of Argentina farmers.
The president of the Rural Society of Argentina, Luis Miguel Etchevehere, said he expects that the future administration implement the policies promised by Macri. Argentina has an estimated stock of soybeans near 20 million metric tons, about five metric tons of corna and over five million tons of wheat. That would be sold pretty soon, according to most analysts, because much better conditions are coming for these farmers.
Differently of what some were expecting, the estimates for corn planting in Argentina have not changed because of the looming election results – which are likely to put Maurício Macri as the new president of the country. The Buenos Aires Cereal Exchange projects still a reduction of 20 percent of the corn surface comparing to the previous season. If the forecast is confirmed, the total planted area would be 6.7 million acres. The planting advanced to 37.1 percent of this likely surface as of now.
So far in the year, the grain terminal of Maranhão (Tegram) shipped 3 million metric tons of soybeans in grain or meal. The volume overcame the initial target of the terminal, built in the port of Itaqui in the Brazilian state of Maranhão and as an alternative to major ports in the Southeastern region of the country, like Santos. The terminal is operated by NovaAgri, Glencore, CGG Trading, Amaggi and Louis Dreyfus.
The total wheat production in Brazil would reach just 6.23 million metric tons in this season, according to the latest National Supply Company (Conab) survey. The number is six percent lower compared to the previous estimate and is a result of weather losses. With that output, imports would jump. Wheat growers from the state of Paraná have opted to retain the grain awaiting for “real size of the losses” in the country, while in the state of Rio Grande do Sul, the mills have not demanded local wheat because of the low quality, a report from the Center of Advances Studies on Applied Economics (Cepea) of the University of São Paulo revealed.
The grain exports (considering corn, soybeans and wheat) of Argentina from January to November have summed US$ 17.6 billion. The number is 18 percent smaller comparing to the same eleven months of 2014. The reason is that local farmers await for an update of the currency value (devaluing the Argentine Peso), the end of export restrictions and export taxes, as the new president of the country would take office by December 10. The data is from the Center of Cereal Exporters.
Consultancy AgRural, which is based in Curitiba, Paraná, released a survey saying that the country planted 60 percent of the estimated surface for soybeans. The works are still delayed compared to last year and the average of the last five years (71 percent). The most advanced state is Mato Grosso do Sul, where nearly 94 percent of the crop was planted now. In Mato Grosso, the top producing state, the works reached 77 percent of the surface and the yields were reduced because of dry and hot weather.
In the state of Rio Grande of Sul, the southern-most state of Brazil and third largest soybean producing subdivision, the planting of the oilseed reached 20 percent, which is below the average for the last five years. The area estimated in this season is 1.3 million acres. The reason for the delay was the lack of rains, but with the recent return of moisture, the works advanced 15 percentage points in one month. The data is from the Rural Institute of Technical Assistance of Rio Grande do Sul.
The government of Argentina has announced a reduction of export taxes on biodiesel. Authorities have lowered to a rate of 3.31 percent – the lowest in history. The previous rate was at five percent. Argentina has exported 1.1 million tons of the renewable fuel so far in the year.
Brazil’s National Supply Company (Conab) has reduced its estimates for corn production in Brazil. According to the agency, the planting of the first crop will be reduced 13.5 million acres – comparing to the previous forecast of 14.3 million acres. With that change, the summer output would be just 26.2 million metric tons. The estimate for the second corn crop was also reduced for 23.4 million acres.
A report of consultancy AgRural reveals that the planting of soybeans has reached 47 percent of the surface in Brazil. The works advanced 17 percentage points in just one week. The rains of last week have favored the planting and now the speed of the work aligned with the traction of the last five years. The top producing state, Mato Grosso, got to 60 percent of the surface, while there is still lack of rains in the region combining the states of Maranhão, Tocantins, Piauí, and Bahia.