Category Archives: Crop conditions

Pvt consultancies put Brazilian soybean production at 114.1 MMT

Agroconsult was the latest consultancy in Brazil to update its soybean production projection to 114.1 million metric tons. The surface planted was increased to 86.4 million acres in a scenario where the yields fell 3.5% compared to the previous season.

“The surface increase of soybeans will occur mostly over soybean crops due to the expressive reduction of the profitability of the grain. Secondarily, we will have yet the contribution of pasture areas for this growth”, explains André Pessoa, associate director at Agroconsult.

The first consultancy in Brazil to estimate a production above 114 million metric tons was Porto Alegre-based Safras & Mercado in December. Back then, their projection was already 114.6 million metric tons.


Weekend rains brought relieve to Argentina soy crop

Rains that fell in the last weekend in dry areas in the major producing regions of Argentina helped producers to end the soybeans planting, according to climate expert Natalia Gattinoni from the National Institute of Agricultural Technology (INTA). Farmers in this state worried that excessively dry in the North of the province of Buenos Aires was blocking the planting of soybeans in some areas.

“In the Central and Northern parts of the country the rains were significant, but inconsistent. Some areas had an important volume of rains, while others have not,” stated Gattinoni.

For instance, parts of the Córdoba province and the major location of Junín in the North of the Buenos Aires province received more than 1.9 inches of precipitation, she added. Farmers further in the South were not as lucky.
“It rained a little bit in the North of the country in the weekend. It did not rain here, but we already planted all the soybeans we planned to sow,” said Fernando Meoli, a producer in the South of the Buenos Aires province, in an interview to Reuters. He relied on 0.7 inches of rains and achieved to end planting last week.

Argentina is estimated to harvest 52 million metric tons in this season, according to the Rosario Board of Trade. The previous estimate was 52 million metric tons.


INTL FCStone: Brazil to produce 110.1 MMT of soybeans; higher than previous forecast

Consultancy INTL FCStone revised its estimate for the Brazilian soybean crop from 107.6 million metric tons to 110.1 million metric tons. The adjustment came because of higher yields, but the area planted has not suffered alterations.

According to INTL FCStone, even with delays on planting, due to the slow normalization of rains, currently the crop conditions are very favorable and the climate has contributed for a positive perspective. Therefore, the average productivity expected was 3.15 tons per hectare.

“Anyways, the climate keeps following the crops passing through grain filling. In the states where planting takes place later, the climate in February is also determining”, affirms the consultancy.

For corn, INTL FCStone did not bring changes in comparison to the December numbers. The estimated output is 23.4 million metric tons, a fall of 23% compared to the previous cycle. Overall, the climate is favorable, but in the state of Rio Grande do Sul, where the conditions are drier, there is worry about the impact on some fields. “Anyways, the yield project is already lower for that state”, says the consultancy.

It is still early to talk about the second corn crop, but INTL FCStone reduced the projection to 63.2 million metric tons because of a lower surface in the state of Paraná.


Dryness expands in Argentina

A recent official report in Argentina reveals that the lack of moisture has advanced to more regions in recent days. December rains in key areas of Córdoba and the Buenos Aires provinces have improved conditions, but still, in those provinces, there are areas with a severe scarcity of moisture. Yet, the worst cases of dryness are in the Northern parts of the country. A low pressure systemis expected for the end of the week in all key regions.

Rains improve conditions in Argentina

Rains in key regions of Argentina ranged from 1.1 inches to 3.9 inches during this weekend. Nearly half of the total surface in Argentina is under dry conditions, especially in the South of Córdoba, South of Santa Fe, and Northwestern Buenos Aires. “It was a relief”, said Esteban Copatti, Chief of the Department of Agricultural Estimates at the Buenos Aires Cereal Exchange. Copatti, on the other hand, highlighted that Córdoba still needs more rain.

Soybean planting reaches 63.5% of surface in Argentina

The Buenos Aires Cereal Exchange released a new report yesterday (12.14) with updated crop conditions in Argentina. The soybean planting in the country is still delayed and reached 63.5% of the estimated surface of 44.7 million acres. The half of the remaining area is expected to be planted in the coming two weeks if the weather helps.

Recent rains have improved conditions, but they were still insufficient to generate a major work progress. The risk pointed out by the Buenos Aires Cereal Exchange is that a lot of the grain will be out of the commercial market. Compared to the same period of last year, there is a delay of three percentage points for soybeans.

In the case of corn, the works have advanced to 45.3% of the total surface of 13.3 million acres. The weather has been a worry for crops in the Northern provinces of Chaco and Salta.



Argentina has 50% of its crop endangered, analyst says

Pablo Adreani, an Argentinian analyst at AgriPac, a consultancy from Córdoba, affirmed this weekend that the remaning acres that need to be planted in Argentina are threatened by the lack of rain. According to the Buenos Aires Cereal Exchange, soybean sowing reached 53% of the estimated surface and the planting of corn got to 4o% of the projected area. The weather forecast there will be no rain in most Argentinian regions in the last 15 days of December.

“This week, if there is not important rains, there will be only two weeks in which we could plant. This situation is extraordinary and could be a lethal factor to the market”, said Pablo Adreani in his column at Buenos AIres prominent newspaper La Nación. One of the exceptions is the region of Rio Cuarto, Córdoba, which will have some precipitation in the last days of the year, according to the current weather forecast. “We are in a full weather market and, if there no miracle, we will see a brand new situation in the country. Nearly 50% of the hectares planted in the summer are at stake,” reads his column.

Pablo Adreani yet forecasts that there will be a strong volatility in the market in the coming days. “There is no doubt that we will have from now one of the most volatile and extraordinary markets, which would be impossible to foresse prices. While that happens, the farmer continues to be ‘sat’ on soybeans,” said the analyst referring to the 12 million metric tons of soybeans stocks in Argentina. Farmers await for a gradual reduction of soybean taxes in the coming year to sell.

Soybean planting progress advances 10 ppt in Argentina

A new report from the Buenos Aires Cereal Exchange reveals that the works of soybean planting advanced 10 percentage points in one week.  The total estimated surface to be planted is 44.7 million acres and 53.2% of this area was reached by planters. It is a delay of 4.4 percentage points compared to the previous year crop. In the northeastern parts of the country, the works still lag behind, while the Northwest is about to start.

In the case of corn, planting has reached 40.4% of a surface of 13.3 million acres, while the sunflower planting is about to finish with 98.1% of the total area implemented.

Argentina: Growing fears that lack of rains would stop soy planting works

The lower than average rains that are forecast for the first half of December would create difficult to progress with corn and soybean planting in Argentina. After a first half of the year with abundant rains, the spring had low precipitation in the South American country.  This weather pattern affects mostly the late-planting fields.

“It is going to rain below the average in this first half of December. It could be very critical for late planting”, said Germán Heinzenknecht, a meteorologist at Climatologia Aplicada consultancy.

The most recent report of the Buenos Aires Cereal Exchange said that the planting advanced to 34% of the surface in the case of soybeans and 35.8% in the case of corn.

FCStone: Brazil will not repeat soybean records of previous years

International consultancy INTL FCStone released a new projection for the Brazilian grain and oilseeds crop. In the December edition, the consultancy increased the estimate of Brazilian soybean production to 107.6 million metric tons – down from 106.1 million metric tons a month before.

“Planting is about to be finished, but the yield estimates are better than expected with favorable conditions”, said analyst Ana Luiz Lodi.

For summer crop corn, the consultancy estimates a Brazilian production of 23.4 million metric tons because of a smaller planted surface. Corn yields are expected to be also lower. “The shrink will be very significant”, concludes Lodi.

For the second corn crop, an output of 63.5 million metric tons is projected, which would be a fall of 5.8% compared to last year. The window for planting is tight and there is greater climate risk.