In its weekly report, the Buenos Aires Cereal Exchange revealed that approximately 3.2 million acres of soybeans, corn, and sunflower are damaged in Argentina. The hydrical stress is affecting mostly the soybeans, but also damaging is happening because of frosts registered in the provinces of Córdoba, Buenos Aires, and San Luis.
In the meantime, the earliest corn lots started to have harvest with yields that are below average. Improvements were seen in the Northeastern and Northwestern regions of the country in soybeans fields.
Córdoba consultant Pablo Adreani, owner of Agripac, has updated his estimate for Argentina’s soybean production and revised it from 57 million metric tons to 47 million metric tons due to the recent drought. For corn, the estimate was lowered from 40 million metric tons to 35 million metric tons.
In terms of financial loss, according to Adreani, that would be US$ 4 billion for the oilseed and US$ 1 billion in corn losses. Argentina is the largest soybean meal and soybeal oil provider in the world.
Yesterday (02.09), the ornanizers of a trucker strike in Argentina announced to have reached an agreement to end the strike that had blocked several roads in the countries that affected grain transportation. Though the agreement was announced, several raods continued to be blocked this morning in key producing reions like Santa Fe, Córdoba, Buenos Aires, and La Pampa. Strikers want that the government sets the tariff for grain transportation.
After one week of protests throughout Argentinian roads which constantly are ways for transporting grains. Trcukers were received by officials of Argentina’s national government and they agreed to stop the force measure. Truckers expect that a dialogue intermediated by the government would bring more favorable tariffs.
A report from the Rosario Board of Trade revealed that precipitations would take place tonight in the provinces of Buenos Aires, Córdoba, La Pampa, and San Luis. But that rainfall would not be important enought to overcome the hydrical stress.
The rains would repeat on the Thursday afternoon, but just a large volume would fall on Friday (02.09). But the Rosario Board of Trade says it is unlikely that the overall precipitation overcomes 1.5 inch.
Groups of truckers have impeded the traffic of trucks loaded with grains this Tuesday (02.06) in the provinces of Chaco, Santa Fe, and Córdoba in Argentina. In the case of Santa Fe, there are six blockades at the roads. The truckers involved at the protest claim that a new tariff was agreed, but they have not received the price they asked for. The strike would continue until protesters get an appointment with Argentina’s Transportation Minister, Guillermo Dietrich, and the government sets a price that traders would be forced to pay.
Favorable climate conditions revised INTL FCStone’s estimate numbers for the Brazilian soybean production. The previous number was 110.09 million metric tons, but was revised to 111.08 million metric tons.
“The climate during the crop development was generally beneficial with some producers reporting yields above the previous year,” said INTL FCStone analyst Ana Luiza Lodi.
Exports are now estimated at 63.5 million metric tons, which is below last year’s 68 million metric tons. In the meantime, corn output estimate is up from 23.44 million metric tons to 23.44 million metric tons and way below the 2017 production of 30.46 million metric tons.
The Buenos Aires Cereal Exchange has updated its soybean production estimate lowering to 51 million metric tons through a total planted surface of 44.4 million acres. In different regions of the country, the situation is considered adverse. Nearly 34.6% of the field are considered by the Exchange to have a regular or bad condition, while 53% are under regular or dry prospects. Approximately 31.5% of the surface is at the stage that defines yields.
The short-term perspectives do not foresee any relieve in terms of weather. The estimate is down from the 54 million metric tons published in September of 2017. There was planting incorporation that still was not counted in this latest estimate by last week in the Northern parts of the country.
The early fields start to transit the reproductive stages awaiting for the beginning of the harvest in the coming weeks.
Argentinian farmers have planted 98.9% of the projected surface of 44.4 million acres of soybeans, according to the most recent report of the Buenos Aires Cereal Exchange released today (01.25). The advance was 2.2 percentage points in one week.
In the last seven days, there were significant rains in the Northeast and Northwestern regions of Argentina, where there was a big level of water stress. But in the Central parts of the country there is still need for more rain.
In the case of corn, the works progressed to 924% of a total area of 13.3 million acres. The weekly advance was 1.1 percentage point and is 5.9% ahead of the previous season. The vast majority of the acres that still be planted are concentrated in Northeastern and Northwestern regions of the country. The early planted is reported to have good quality.
Rains and storms are forecast for key grain production regions of Argentina this Tuesday and Wednesday (01.24). This includes the Northeastern and Northwestern areas that still need to finish corn and soybean planting.
In the Central parts of the country, where most of the production occurs, the temperatures are high and there will be also rain in the coming days, but the surface to be planted is not significant now. Still, there will be gusts in the region. In Buenos Aires, La Pampa, and south of Córdoba the precipitations would reach 0.3 inches.