A report from consultancy Trigo & Farinhas, based in Curitiba (Brazil), denies that Brazil would import Russian wheat after yesterday’s market speculation at the Chicago Mercantile Exchange. Luiz Pacheco, the consultancy’s director and editor of the reporter, said that there are three reasons that the South American country would not bring wheat from Russia.
The first one is that imports are made by private companies, not the government, and they already allowed to do it and never done before. Second is that Russian wheat does not have quality. “Russian wheat is 10%-12% of protein, but it does not grow for consumption of pizzas or cakes”, explained Pacheco.
Finally, the third reason is that the Russian wheat is not competitive against Argentinian wheat. A FOB price listed in a Russian port by Trigo & Farinhas was US$ 192 per ton this week, while Argentinian wheat is paid US$ 176 per ton with a costly freight cost from the Black Sea to Brazilian ports.
By Luís Vieira
It’s common knowledge that corn is used to make ethanol and soybeans to make biodiesel.
But did you know that soybeans are now being used as a raw material for ethanol production?
As the tensions between Brazil and the U.S. over ethanol duties grow, Brazilian company Caramuru, which is based in Sorriso, a city in the northern state of Mato Grosso, announced it will produce hydrous ethanol from soybeans and will also process soy lecithin.
Read the full story at Agriculture.com
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.
The soybean planting in the Brazilian state of Paraná reached 80% of the projected surface of 13.4 million acres. A production volume of 19.5 million metric tons is expected to be harvested in the state in this season.
For corn, the government projects a production of 3.06 million metric tons in the summer, which is 38% lower than the volume harvested last year. Planting of the cereal as of this week reached 99% of the area.
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.
Brazil’s export of the soybean complex summed 3.87 million metric tons in October, according to official data. The volume has jumped 123.83% compared to the same month of 2016. The revenue generated by those sales was US$ 1.45 billion, which is 107.6% higher than last year. On the other hand, the number is 27.7% lower than September.
The sum of Brazilian exports of the soybean complex accumulated in the year is 77.1 million metric tons and US$ 29.1 billion, while a year ago the export sales reached 64.2 million metric tons or US$ 24.1 billion. Still in October of 2017, the soybean exports in grain reached 2.48 million metric tons, which is 149.1% more than a year ago. The soybean meal exports summed 1.27 million metric tons in the month, an increase of 76%. The soybean oil external sales reached 115,600 tons, a jump of 1,070.6% from a year ago.
There were rains recently in the Center-West of Brazil, but there is a forecast of below average rain in key producing regions of Brazil in the month of November compared to the previous five years, according to Somar Metereologia.
The planting works advanced 18 percentage points in one week for soy, but producers now worry with the weather forecast for the beginning month, data from the Mato Grosso Institute of Agricultural Economics (Imea) reveals. The total sobyean surface planted 44.06% in the state.