Brazil’s National Supply Company (Conab) has released a new report this Tuesday (09.12) and confirmed a record grain production of 238.7 million metric tons in the 2016/2017 season. The total output is 27.9 percent or 51 million metric tons higher than last year due to more favorable weather that generated higher yields.
The first crop finished with a total output of 30.46 million metric tons, while the second corn crop, that is about to finish harvest, is still estimated at 67.25 million metric tons. In the meantime, the total soybean production in the country was 114 million metric tons.
For wheat, there is an estimated production of 5.19 million metric tons, but there is still a lot to be harvested. For cotton, a harvest is near the end with an estimate of 1.53 million metric tons of cotton plume and 2.3 million metric tons of cotton core. In the season, 12.33 million metric tons of rice were produced.
Argentina’s agricultural exports moved US$ 10.9 billion in the first six months of the year, according to data from the Center of Cereal Exporters. During last week alone, the sector moved US$ 308.7 million. Compared what was exported in 2016, it represents 45.6 percent of the sum of the whole year.
The agricultural sector in Argentina has sold in the year of 2016 the sum of US$ 23.9 billion, according to the Center of Cereal Exporters. Comparing to 2015, the country has shipped US$ 19.6 billion of agricultural products. The newest number is just below the record of 2011, when Argentina’s ag sector exported US$ 25.1 billion. Just in the last four days of 2016, exporters had sold US$ 241 million.
The government of the Buenos Aires province has authorized an increase of 23.5 percent on transportation prices of grains and cereals. Buenos Aires is the largest producer of soybeans, wheat, and corn in Argentina. The increase considered the “wages implied on the personnel, costs of transportation and the amortization of capital”.
The government of the new Brazilian president Michel Temer seeks to approve a bill that flexibilizes the rules regarding the purchase of land by foreign citizens. Since 2010, foreign citizens just can purchase law with a limit of 12,300 acres. The new government considers the flexibilization of the law a key change for the country’s economic recovery and development.
By Luís Vieira
The Brazilian House of Representatives yesterday approved by a vote of 367 to 137 the admission of an impeachment process for incumbent president Dilma Roussef, accused of mismanaging public funds and fiscal crimes.
The final decision will happen in the Senate between May 4 and May 12. In the meantime, the weak currency that long has benefited Brazilian farmers may get stronger with more governability, but this has not happened yet. So Brazilian farmers await a clear definition of this process to get to the market.
Read the full story at Agriculture.com
Archer Daniels Midland announced on Tuesday it has begun the expansion its bulk grains terminal and silo space at Brazil’s port of Santos, Reuters reported. Greg Morris, ADM’s processing head, affirmed in a statement the work will raise the company’s capacity to transport grains through the terminal to 8 million tons from a current 6 million metric tons per year. Reuters also reported that the expansion and modernization is also expected to help reduce the trader’s emission of particulates of grain dust into the air around its terminal, which had prompted complaints from local businesses and residents. The works should finish by the end of 2017. “We are continuing also with the expansion of our export terminal … in Barcarena (in Para state), which will raise capacity to 6 million tonnes annually,” Morris said.
The Brazilian government announced that it will probably ease the restrictions for foreigners, including U.S. citizens, to purchase land in the South American country. The agricultural sector has lobbied for that flexibilization and the government has admitted to attend the pressure because of need for finacial resources. Big international funds are interested to buy land in Brazil, but currently the law just allows foreigners to buy properties of up to 12,300 acres, which is not much for the country’s Center-West proportions, considering the scale needed for a farm to be profitable with the logistical costs.
The government of Argentina has declared that the provinces of Entre Ríos, Santa Fe, Chaco, La Rioja and Corrientes are in state of emergency because of the floods of the last days. The six provinces are significant producers of grains and other agricultural products. At the provincial level, the province of Córdoba has declared it is in an agricultural disaster. Most farmers in these regions had their payment deadlines for taxes extended. Losses were not accounted yet.
Loans for agricultural business in Brazil summed R$ 76.5 billion from July to December of 2015, which is very similar to the amounts of 2014, but the credit operations fell 18 percents because of a riskier economic scenario in the country, according to the country’s Ministry of Agriculture. Analysts say that the state of economy reflects at the farm business with farmers reducing their appetite for investments. The Brazilian economy shrank nearly 3.5 percent in 2015.