The official estimate of Argentina’s wheat production was increased to 13.2 million tons. The announcement, made by the country’s Ministry of Agriculture, yesterday reveals that productivity has improved in major producing areas. The previous official forecast was 12 million tons.
After an approval of a protocol from the United States Department of Agriculture, high value Uruguayan beef is now allowed to be on the U.S. supermarkets shelves. The protocol refers to fresh cattle cuts.
“With the certified beef, there is a better chance to achieve a better positioning within the market and will improve prices (paid),” said Luis Alfredo Fratti, president of Uruguay’s National Institute of Meat.
In the first 11 months of 2014, 83 percent of the beef exported from Uruguay to the United States were low-value, mostly used on hamburgers.
Worries have grown in Brazil in these final weeks of soybean planting. In the southern-most state of the country, Rio Grande do Sul, irregular rains are the issue of concern and already generated losses of corn in Ijuí.
In the northeastern states of Brazil, the problem is excess of dryness. The unfavorable weather is seen in Tocantins, Piauí, Maranhão, and Bahia. Meteorologists says, on the other hand, that the moisture tends to come back in the next few days. The four states account for 10 percent of the Brazilian soybean output.
According to an estimate accounted by Rosario broker Lorena D’Angelo, the year will end in Argentina with nearly five million tons of wheat as exportable leftovers. What is going to be actually exported, however, is still unknown because the government does not unveil the released exportable quotas upfront. An initial quota of 1.5 million tons was authorized (300,00 tons of flour) in November and another permission of one million tons was announced earlier this month.
“I believe that there will be bigger quotas during the month of January because of the high volumes of wheat right now,” analyzed D’Angelo.
Soybean planting in the Brazilian state of Mato Grosso has finished last Friday, according to the Mato Grosso Institute of Agricultural Economics (Imea). In the previous crop season, planting had finished on December 5. The total surface for the oilseed in that state alone stayed at 21.8 million acres. Productivity is slightly higher than last year.
The second corn crop planting intentions in Brazil will be reduced in 6.2 percent in 2015, a new projection of consultancy AgRural says. The surface next year would reach 19 million acres. The total output coming from the winter crop is expected to be 41.3 million tons. The largest cut will happen in Mato Grosso, where the corn surface will be reduced in over 10 percent.
Argentina’s Ministry of Economy announced the permission for farmers to export one million tons of wheat planted in the 2014/2015 season. So farmers are allow to sell this volume since January 1st. This new quota is added to a previous permission of one million tons – set up in November. Yesterday, a group of 400 wheat growers from the Buenos Aires province threatened to do a “wheat strike” – not proving the cereal in the domestic market. They accused the government of producing a cartel that results in a discount of US$ 70 of the price paid for the grain. Most farmers were from the region of Tres Arroyos, which accounts for 25 percent of the wheat output of Argentina.
Brazil’s National Supply Company (Conab) updated its estimated for the country’s wheat production to 5.9 million tons. The initial forecast, made in September, was 22.39 percent higher than the current. The major drop happened in the state of Rio Grande do Sul, where over half of the crop was lost. With the new production estimates, more imports, exports, and higher final stocks are expected.
According to consultancy Trigo & Farinhas, with final stocks expected to be 724,900 tons, price hikes tend to happen. The consultancy disagrees over Conab’s forecast of exports. “The state of Rio Grande do Sul already traded more than 600,00 tons. The USDA puts the Brazilian wheat exports at one million tons and that might be closer to reality,” summarized Luiz Carlos Pacheco, Trigo & Farinhas director.
Brazil’s National Supply Company (Conab) has increased the forecast of soybean production in the country to 95.8 million tons. In November, the agency was expecting a production of nearly 90.5 million tons. If this output is confirmed, that would be a 11.2 percent higher production than in the last season. The surface occupied the oilseed in the country is 78.3 million acres.
A favorable weather in most parts of Brazil has pushed the planting of soybeans to nearly 92 percent of the expected surface, a report from Safras & Mercado consultancy revealed yesterday. That, however, is still a delay compared to the average of 95 percent of previous years.
In Mato Grosso and Mato Grosso do Sul, there works already finished. In other states in the Center-west and South, planting should finished this week. The last region to plant would be the Northeastern part of Brazil. In Bahia, the largest state in the region, planting reached 70 percent.