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 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.
In Argentina, the crushing of soybeans and sunflower has grown 6.1 percent in the first ten months of the year. The total volume crushed of those grains in that period was 39.9 million metric tons. This tonnage was later sold by US$ 16.5 million.
Considering that total, 37.4 million metric tons were crushed of soybeans and 2.5 million metric tons of sunflower with a production of 1.03 million tons of sunflower oil, 28.6 million tons of soybean pellets and another 1.02 million metric tons of sunflower pellets.
Agroconsult released today a new projection for the Brazilian soybean crop. The consultancy estimates a total output of 101.7 million metric tons, a new record. Even though there was an erratic climate in the country’s Center-West, the yields are high on average, but in fact with a lot of disparities.
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.
The new president of Argentina, Maurício Macri, confirmed today the elimination of the export taxes on corn, wheat, sunflower, beef, and sorghum. The soybean export tax was reduce from a rate of 35 percent to 30 percent – with the promise of a new reduction of five percentage points in one year. “Our fiscal loss will be compensated with the income tax generated by the gains. But we will also improve enforcement and nobody will avoid taxes,” emphasized Macri.
Maurício Macri, the current mayor of Buenos Aires, was declared the elected president of Argentina yesterday. Daniel Scioli, the representative of the incumbent party, assumed that he was defeated. That means that the export taxes of soybeans in Argentina would be reduced from 35% to 5% by December 10th, when Macri takes office, and the export taxes all other grains would be eliminated as well as all international sales restrictions regarding wheat, corn, oat or sunflower. This morning in a press conference Macri reiterated his position: “I will keep what I have said in the last few months and we will cut the taxes at the day one of my government to bring profitability in the field”. Another promise from the next president of Argentina was to fix only one dollar rate in the country (currently there are five different rates), but he did not specify yet when the local currency would be devalued and how these measures would take place. This another move that would boost the gains of Argentina farmers.
The president of the Rural Society of Argentina, Luis Miguel Etchevehere, said he expects that the future administration implement the policies promised by Macri. Argentina has an estimated stock of soybeans near 20 million metric tons, about five metric tons of corna and over five million tons of wheat. That would be sold pretty soon, according to most analysts, because much better conditions are coming for these farmers.
The grain exports in Argentina have accumulated until last week nearly US$ 14.2 billion, according to a report released by the Chamber of Oil Industries of Argentina and the country’s Center of Cereal Exporters. Last week alone, the value accumulated was US$ 355.5 million. Considering the volume over the same period of last year, there was a drop of 16.5 percent. Comparing just the July figures, the fall was 19 percent. This year, Argentina harvested a record of nearly 61 million tons of soybeans – 14.2 percent more than 2014.
According to a study released by the Federation of Agriculture and Livestock of Rio Grande do Sul, the Inflation of Production Cost in Brazil jumped 1.25 percent in July in the comparison with the previous month. The top influence on that increase was the price of fertilizers and agrochemicals. Throughout the year, costs for rural producers jumped 4.60 percent.
On the other hand, prices paid to Brazilian producers on average jumped 4.65 percent from June to July. During 2015, the value paid to farmers readjusted 3.26 percent. Antônio da Luz, an economist at the federation, forecasts that during the whole year, prices will surge in two digits. “Our costs will increase a lot more than those for final consumers,” analyzed Luz.
Soybean planting in the Brazilian state of Mato Grosso reached 40.5 percent of the expected surface last friday, according to Mato Grosso Institute of Agricultural Economics (Imea). The forecast is that the state would plant 21.7 million acres.
Rains have intensified last week in Mato Grosso, but still are irregular in some regions. So that there is a delay compared to last year. In October of 2013, soybean planting was at 71.5 percent of the surface.
The United States Department of Agriculture forecasts a Brazilian production of 94 million tons, even though they already acknowledge that planting was delayed. A new National Supply Company (Conab) report is expected to be released next week.