The soybean planting in the Brazilian state of Mato Grosso reached 1.2 percent of the forecast surface until yesterday, according to data released by the Mato Grosso Institute of Agricultural Economics (Imea). The expectation is that the state plants 23.1 million acres in this season. By the same period of 2015, planting was at 0.55 percent of the estimated surface. Production costs are expected to be at US$ 920 per hectare.
So far in the year, Argentina has sold about 20 million metric tons of corn of a total of 25 million metric tons that would be exportable. The purchases were made by Cofco (15.8 percent), Cargill (15.8 percent), Bunge (12.8 percent), LDC Argentina (9.5 percent) and ADM (8.2 percent). Analysts say that those purchases are advanced because the hoard the highest market share possible. The average domestic prices in Argentina have been high.
The Brazilian imports of U.S. wheat have increased 60 percent in August in comparison with the same period of last year, according to data from the Ministry of Industry, Foreign Trade and Services. The South American country purchased 103,410 tons from the United States, besides 60,807 tons from Canada.
According to Luiz Pacheco, owner of Trigo & Farinhas consultancy, the reasons for this increase was the end of Brazilian wheat supply in July already and the need to speed up the purchases, avoiding a major traffic during the corn and soybean harvest. “Everything could come from Argentina, but in this crop there was not 12 percent of the corp with enough protein to attend its domestic market more exports, having to supply wheat only 10.5 percent to 11.5 percent of protein, respectively,” explains Pacheco.
The weather in the Brazilian state of Rio Grande do Sul, the southern-most state of the country, has been favorable for corn planting and reached 35 percent of the estimated surface for 2016/2017 season, according to the Rural Institute of Technical Assistance of Rio Grande do Sul. The only setbacks for the corn planting is that the germination tends to be slow. The prices, on the other hand, continue to be considered good for farmers.
The soybean planting in Paraguay is about to start and the surface may grow 13.2 percent from the current 8.1 million to 9.1 million metric tons, according to a report from the United States Department of Agriculture. The exports would also grow in the 2016/2017 season from 8.5 million metric tons approximately to 8.74 million metric tons.
As the soybean planting approaches, there is a dry weather alert for the center-western state of Brazil like Mato Grosso and Goiás. According to most metereologists, the dry soil may last longer and would delay the planting of the oilseed. Yet, there can a delay of rains by March, which would influence negatively the harvest.
The president of the Brazilian Association of Animal Protein, Francisco Turra, has said yesterday in a press conference that he wants an end to all restrictions for imports of corn, including from the U.S. He also wants the Brazilian National Technical Commission of Biosecurity to authorize the entrance of GMO corn.
The issue already got the support of the country’s Ministry of Agriculture, Livestock and Supply. The only pending part of the deal is the Ministry of Natural Environmental, which woul request to review that proposal. Turra said that there will be a “market balance” with frequent entrances of U.S. corn. In several regions of Brazil, corn production was impacted by the La Niña phenomena and was scarce also because of higher exports.
Bayer’s agricultural division has revealed its own study about perspectives on the 2016/2017 crop season in Brazil for grain. According to Marc Reichardt, chief of global operations of the division, Brazil will recover investments in this next seasons after registering losses due to drough and also lack of credit access.
“Perhaps the surface will not increase, but the Brazilian farmer will invest on technology because it is the only way to boost yields,” said Reichardt in an event held by the company in Leverkusen, Germany.
According to new data of Argentina’s Ministry of Agriculture, the volume of corn sold by the country’s producers to exporters reached 3.2 million metric tons by August 31, which is 1,583% comparing to the same period of last year. A significant part (836,200 tons) of those contracts have the prices yet to be stipulated and will delivered in the new crop. Experts say that the end of export taxes in Argentina, more demand for the cereal and yet more trade agreements in the world have influenced the results so far.
By Luís Vieira
As the U.S. crop season prepares to end, Brazilian farmers prepare for a new crop season. Right now, early planting decisions are for more corn in southern Brazil and less of that grain in the larger-farm area of center-west states.
More Corn In Southern States
One of the best events in Brazil to give a better picture of what will happen with this upcoming corn and soybean year is the Expointer. Held in Rio Grande do Sul, the state that pioneered grain production, the largest outdoor farm show in Latin America is the main stage for machinery sales, animal trade, competitions, and direct marketing. It is also an opportunity for urban populations to encounter some unknown aspects of rural production.