The sales of the 2017/2018 crop in Argentina are strong. According to Buenos Aires brokerage Zeni, there a growth of 62.2% on sales compared to the same period of last year. The volume of forward sales already reached three million metric tons. The reason behind the increase is that soybean will have a decrease of export tax by 0.5 percentage points per month in 2018, starting in January.
Category Archives: Argentina
The government of Argentina has announced this Wednesday (09.20.2017) that imports of Brazilian beef are allowed. For five years, Argentina did not import beef from Brazil after a mad-cow disease outbreak registered in Londrina, state of Paraná.
By Luís Vieira
Low commodity prices are an issue that farmers will always have to face from time to time. On the other hand, there are alternatives that some farmers may consider for the purpose of rotation and to diversify risk.
The current season is definitely not the best for a lot of farmers in the Midwest, especially if you grow either wheat or corn. For Kansas analyst Mike Zuzolo, director at Global Commodity Analytics & Consulting, there has never been so much interest in replacing crops.
A new cold front has come in the last week of this winter to the central regions of Argentina bring temperatures below 10 degree Celsius (50 degrees F) or even five degrees (41 F) in some cases, but these temperatures would go up again by the weekend. The forecast from the Buenos Aires Cereal Exchange also says that rains would return to the main producing rains after the scarcity of drops in the middle of the coming week. More precipitation would be seen in the Northern parts of the country. Argentina is about to start planting of corn and soybeans.
After abundant rains over the weekend, nearly three percent of the total surface for the grain agriculture in the season, or 2.4 million acres, could not be used in the next season in Argentina, according to the Buenos Aires Cereal Exchange. Experts at the Cereal Exchange do not eliminate the possibility that more acres are cut. In just ten days, there was more rain volume than expected for the month of September in key producing provinces of Buenos Aires, Santa Fe, La Pampa, and Entre Rios.
The Rosario Board of Trade released data that foresses that precipitations of 1.77 inches to 1.9 inches could affect the provinces of Santa Fe in Argentina as it prepares to plant corn. If this volume of rain really falls, experts say that will be impossible to plant corn in September and would delay also the planting of soybeans. The planting will be limited in the province of Buenos Aires and La Pampa because they are previously affected by floods.
The United States has requested Argentina to set a minimum biodiesel price after the North American country had imposed duties of up to 64.17 percent for the imports of Argentinian biodiesel. The government of Argentina seeks a quick solution for the problem and avoid new restrictions. For the National Biodiesel Guard, the group behind the denounce before the U.S. Commerce Department, Argentina does dumping by having different export taxes on biodiesel (0.13 percent), soybean oil (27 percent), and the soybean grain (30 percent), benefiting its biodiesel processing. A possibility indicated by unnamed sources is to have quotas for Argentina with lower duties.
The European Union decided to anticipate a decision about the duties on the imports of biodiesel from Argentina and lowered to a rate of 24.8 percent. The bloc has also set a timeline to lower the duties to a range between 4.5 percent and 10 percent. The new duties are expected to be valid by September 29.
The exports of the grain and cereals complex reached a value of US$ 12.4 billion in Argentina in the first half of the year, according to official data. The volume exported in the period reached 22 million metric tons, which a fall of 12 percent compared to 2016 when 25.3 million metric tons were shipped.
In the meantime, beef exports have risen 6.8 percent to US$ 1.3 billion. In terms of volume, there was a hike of 24 percent to 168,000 tons. The number is expected to grow a lot more in the coming months because has open its market of frozen beef for Argentina.
Exports of soybeans from Brazil to China jumped 30 percent in July compared to the same month of 2016. According to Brazilian official data, China imported a total of 10.08 million metric tons with 27.7 percent or 7.63 million metric tons coming from Brazil. The other top suppliers in the month were Argentina (1.47 million metric tons) , followed by the United States (499,920 tons) and Uruguay (397,960 tons).
In the first six months of 2017, China imported a total of 54.88 million metric tons of the oilseed with 30.83 million metric tons coming from Brazil.