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.
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.
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.
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.