Wheat sales from the recently harvested wheat crop in Argentina already reached 4.5 million metric tons. By comparison, in the same month of last year sales of the cereal had reached 2.5 million metric tons. Of the current volume from this crop that is already sold, nearly 3.9 million metric tons already have a price set. The average price sold is US$ 170 per metric ton. The data is from the Rosario Board of Trade.
The estimated production is slightly below the last year crop that reached a record of 17 million metric tons. In this season, the total production would reach 16.5 million metric tons, says the Rosario Board of Trade.
While the fight related to biodiesel is going to the level of the World Trade Organization, the United States would open up its market for Argentinian beef until the end of the year. The Food Safety and Inspection Service had banned the entrance of Argentinian beef in 2001 after a mad cow disease outbreak. The measure would put nearly 20,000 tons of Argentinian beef in the U.S. market yearly. The revenue generated would reach US$ 100 million.
The cattle slaughtering reached 1.1 million herds in October in Argentina and reached the highest level for a month since 2013, according to the country’s Consortium of Beef Exporters. Sources say that the level of activity started to grow since the end of last year and the pace was maintained since 2017. The volume of exports accumulated over the 10 months of the year is 10.4 million herds, which is 7% more than last year. Total beef production in the period 2.3 million metric tons in the period or 5% more compared to 2015.
Official data from the Argentina’s government reveals that the country’s beef exports have risen more than expected. In September, total beef exports reached 30,000 tons. Compared to September of 2016, it is a 60% hike, when the estimate was 30%. Compared to August, there was an increase of 34% of international sales. The volume of exports acummulated over the year is 30% higher than 2016. Total exports for 2017 are now estimated at 300,000 tons – up from 280,000 tons previously.
A weekly crop update of the Buenos Aires Cereal Exchange reveals that the soybean planting advanced 5.4 percentage points in the present week and is 2.2 percentage points ahead of the previous year, covering 7.2% of the estimated area for the oilseed. The total soybean surface is expected to be 44.7 million hectares (18.1 million hectares). Most of the planting works took place in the Nucleus regions, which includes the Northwest of the Buenos Aires province, South of Córdoba and Soutwest of Santa Fe.
Regarding corn, the planted area reached 33.9% this week, considering a surface of 13.3 million acres (5.1 million hectares). The pace is 5.9 percentage points ahead of the previous season. The most significant advances happened in the provinces of Buenos Aires and La Pampa. In Central and Northern areas of the country, more works will take place starting in December.
In the case of sunflower, the work is more concentrated currently in the Buenos Aires province and La Pampa. The national progress rate is at 60% of a surface of 4.4 million acres. In one week, there was a progress of 9.4 percentage points. On the other hand, precipitation was low in those regions recently and will impede a faster advance in the coming days.
Data from the Rosario Board of Trade reveal that the soybean sales in Argentina are the slowest since 2015, when the country was still governed by the Kirchner administration. On the other hand, grains from the coming season have more volume and the largest commercialization of the last six years. For the coming crop, 4.9 million metric tons were already sold.
The explanation from the tax reduction. The current of soybean exports are at 30%. For 2018, the sales of the grain will a rate reduction of 0.5 percentage points per month. For the end of the next year, the rate would be 24%, which generates a larget difference for the future.
In Rosario, the value of the oilseed dropped 2% to US$ 252 per ton. The contracts for May 2018 are quoted at US$ 265 per ton. The difference between both contracts widened to 5%. For the Futuros Y Opciones analyst Dante Romano this trend would continue.
“In this context, farmers will retain more grain once the producer sees a prize increasing slowly, leaving the grain in the silo bags”, stated the analyst.
The level of soybeans processed are also the lowest since 2015. Yet according to the Rosario Board of Trade, the volume of final stocks in Argentina would reach a record of 16 million metric tons. Therefore, the historic volume to be sold next year would be 70 million metric tons. A large of the contracts to be delivered next year do have a price set.
Several localities in the province of Córdoba, Central Argentina, have suffered this morning (10.27) with a 15-minute storm. After several months with a high level of water, strong rains affected localities in the province like Río Tercero, Embalse, Almafuerte, Berrotarán, and La Cruz. Power outages were registered in all of these locations. The precipitation level this morning reached 2.7 inches.
Argentina has already started soybean planting. In the case of corn, nearly 32.8% of the surface is already planted, according to the data from the Buenos Aires Cereal Exchange. The harvest takes place for wheat, where the nationwide surface was 2.8% harvested.
The United States government has decided to increase the duties paid to import Argentinian biodiesel from 54% to 70% this week. The Argentinian Chamber of Biodiesel (Carbio) considered this measure “unjustifiable” and “unsupported”. In addition, the Chamber stated that the U.S. industry will “monopolize the market”.
Occurrences of rail were registered in several locations of the province of Córdoba, Argentina, one of the leading corn and soybean producers in the country. The weather in the region has been unstable and precipitation is also happening in the south of the Buenos Aires province, the largest soybean producing province. More instability will be seen in the coming days, according to Argentina’s National Weather Service. One million hectares are already considered lost by floods in the season.
With several fields still under water, there is a delay of 35% on the corn planting progress in Argentina compared to last year, according to the Rosario Board of Trade. As of last week, nearly 57% of the fields had already finished planting, while at this same week of 2016 the progress was at 92%. Nearly 990,000 acres are still flooded in the North of the Buenos Aires province and South of Santa Fe and those are exactly the acres where farms need to plant the grains.
If farmers are still not able to finish planting in the coming weeks, they will have to either plant corn or switch the surface to soybeans. And the bad news is not over yet. Soybeans have high costs in Argentina with export taxes and the moisture tends to bring more pests and weeds.