Major Brazilian port tries to avoid losses after threat of Chinese default

After the Shandong Sunrise Group, a Chinese imports firm, threatened to default on some soybean contracts, the port of Rio Grande, in the southern-most Brazilian state of Rio Grande do Sul, has operated very cautiously shipments of grains. The line up was altered and 12 barges were to put to the end of the line. The measure aims to avoid a loss of over US$ 1 billion and speeding up other 38 boats. If the default is confirmed, the port of Rio Grande has announced that there will not be enough warehouses to store all the grains because of 720,000 tons left from the contract at play.

Argentine farmers prepare for soybeans leftovers

By Luís Vieira

As Argentine farmers work hard on their harvest, they also worry about what they will do with leftovers of soybeans. According to Rosario-based analyst Pablo Fraga, who is from BLD brokerage, the perspective is that stocks are likely to be big when the harvest finishes. Local farmers had kept for long soybean stocks as a way to protest against the government and attempting to be paid with better prices.

Fraga reveals that right now those farmers that used that resort are selling most of their stocks. “The price is a bit lower compared to the peak of this season (US$ 320/ton), but still are good prices. Currently, farmers send to ports all the soybeans they can”, explained Fraga.

 

Wheather helps second crop of soybeans in Paraguay

The weather has been “perfect” for the second crop of soybeans in the country of Paraguay, according to information revealed by Agridatos consultancy. Rains from April 11 to April 17 ranged accumulated over 15 inches. Productivity is expected to be 2.2 tons per hectare in at least half of the area of 1.3 million acres planted in the country. The other 50 percent was planted in February when the weather was not that helpful.

Mato Grosso already sold 75% of soybean production of the season

The Mato Grosso Institute of Agricultural Economics informed today that the state of Mato Grosso, in the center-west of Brazil, already sold 75.5 percent of a soybean production of 26.1 million tons. The pace of sales is nearly 6.5 percent delayed compared to the same period of last year. The prices of soybeans have fallen 1.6 percent in the average of last week. The fall was pushed by a fall of the oilseed value in Chicago and the devaluation of the US dollar compared to the Brazilian Real.

Brazil’s corn production drop seen reversing

By Luís Vieira

Two of the most prominent Brazilian economists José Roberto Mendonça de Barros and Luiz Carlos Mendonça de Barros created in 1978 a consultancy called MB Associados to advise people interested on Brazil’s macroeconomics. As the importance of agriculture grew rapidly in the 1990s and early 2000s, the two associates have decided to create an agricultural arm for the company in 2005 – MB Agro, which is based in São Paulo.

In an interview to Agriculture.com, José Carlos Hausknecht, director of MB Agro, said that in the coming months a likely higher US dollar value might be helpful to Brazilian farmers, but he denied to predict an specific number. As of today, US$ 1 buys R$ 2.24. In 2014, the price reached over R$ 2.50.

Read the interview at Agriculture.com

Perfect conditions reported for wheat planting in Paraná, Brazil

The Department of Rural Economics of the Brazilian state of Paraná reported this week that planting already reached seven percent of a total estimated area of nearly three million acres of wheat in the state. Almost half of what was planted in is the stage of germination. The other half is on vegetative stage.  According to the report, 100 percent of the crops are either in excellent or good conditions.

Weather helps and second corn crop advances in Brazil

The planting of the second corn crop has advanced to 99 percent of the area in all the states south of Brasília, the most important producing areas of the country. According to Clarivi consultancy, the stage of flowering was reached in the state of Paraná and some parts of the center-west of Brazil. By comparison, last year in this same period the crop had reached 91.4 percent of the area. That area, however, is 2.3 percent smaller than the previous season because of lower corn prices. The projection is that Brazil will have a total corn crop of 75.4 million tons.

Argentina: soybean harvest reaches 14% of area

The weekly report of the Buenos Aires Cereal Exchange has released data on the progress of the soybean harvest in Argentina. The harvest has reached 14 percent of projected area of the country. More than seven inches were registered in the most important producing areas that are the provinces of Santa Fé, Córdoba, Entre Ríos, and Buenos Aires last weekend. A larger delay was expected, but the harvest pace is just 10 percent behind the last season. No productivity losses are forecast.

Secorn corn crop may have lower productivity in Mato Grosso

The planting of the second corn crop, known locally as safrinha, in the Brazilian state of Mato Grosso, in the center-western part of the country, has almost finished. But signs of a lower productivity have already appeared. For instance, Sorriso’s Rural Union informed this week that average losses for farmers from the region are at 10 percent compared to the productivity of last year. Some producers in the region have lost up to 30 percent of the productivity, Brazil’s portal G1 reported today. Those losses are happening because of continued rains in large parts of Mato Grosso. Corn was planted out of the ideal period after a delay on the soybean harvest.

Chinese cancellations could get to two million tons of soybeans

After Reuters unveiled a default from Chinese companies of soybean contracts with Brazil and United States totaling a volume of 500,000 tons, representatives of the US Soybean Export Council told Bloomberg that China firms could cancel soybean contracts as big as two million tons. Soybeans traded lower yesterday in Chicago as a result of those talks.