Wheat

Paraguay wants export taxes on grains, including corn, soybeans, and wheat

The government of Paraguay has already sent a bill to the Paraguayan Congress that would impose taxes at a rate of 15 percent for all grains exported from the country. President Horacio Cartes believes he has enough votes to approve the measure in an agreement with the leftist opposition. Paraguay, today, is the fourth largest exporter of soybeans in the world with 6.3 million metric tons shipped. The argument of the Paraguayan government is that the agricultural sector has a revenue of over US$ 3 billion, but contributes less than other sectors of the economy. This year alone, the soybean output in Paraguay overcame 10 million metric tons.

In December of 2015, Argentina eliminated export taxes on wheat and corn. The result of the elimination was the doubling of wheat production and generating a growth of two percentage points of corn production. A program of reduction of export taxes on soybeans until its elimination in 2019 was also set.

Wheat planting advances to 35% of surface in Argentina

The planting of the wheat surface in Argentina has reached 35 percent of the projected area, according to the country’s government. In one week, there was an advance of 17 percentage points and it is 13 percentage points ahead of the average of the last four years for the period. There is an estimate that Argentinian exports would reach 11.3 million metric tons in the season.

Wheat sets new record of exports in Argentina; volume beats soybeans

The volume of wheat exports in Argentina reached 8.9 million metric tons in the 2016/2017 season crop and would beat a new record, according to the Rosario Board of Trade. In the 2011/2012 season, the previous registered for the winter cereal, the sales reached a total of 13 million metric tons.

The Rosario Board of Trade forecasts that a record volume of corn would also be exported with the total of 24 million metric tons that would be sold abroad with the record reached by mid-June.

The bad news would just stay with soybeans. The oilseed has the worst sales in six years and total sales accumulated in the year is four million metric tons, which is less than wheat, and below the average of 5.85 million metric tons of the last five seasons. The reasons for the lower exports of soybeans is the local export taxes at a rate of 30 percent and also the lower price of the oilseed in the international market.

Wheat planting delays in key producing region of Argentina

The Buenos Aires Cereal Exchange has reduced in 247,000 acres the planting estimate for wheat in Argentina. The reason is the delay of planting due to the excess of moisture in key producing regions of the country, like parts of Cordoba and the west of Buenos Aires. As of this Thursday (06.09), the planting reached 21.4 percent of the total surface calculated at 13.5 million acres. The total production increase compared to last year would be 7.8 percent.

Brazilian govt releases US$ 58 billion on credit loans, price support programs for farmers

The Brazilian version of the farm bill, called locally as Plano Safra (Crop Plan), was announced today (07.06) and the total amount available was R$ 188.3 billion (almost US$ 58 billion). The amount provided is lower than what was available during the 2016/2017 season if inflation is considered. The investment in the previous crop was R$ 185 billion.

By far, the largest percentage of the plan is put on credit subsidy programs. The total amount used in that is R$ 150 billion. Of this total, R$ 116.26 billion will be used on loans with controlled interested rates and R$ 34 billion with regular interest rates.

“We are here to reaffirm our unequivocal support to Brazilian agriculture. The farm business is synonym of efficency,” said Brazilian president Michel Temer at the lauch of the program.

Wheat planting starts slowly in Argentina

The wheat planting has started slower than the average of the works of the last few years due to the weather in Argentina. Rains were reported in the provinces of Buenos Aires, Córdoba, and La Pampa last week. On the other hand, early planting in some Northern provinces goes faster than the average of previous years. The overall progress reached 5.4 percent of the total surface estimated, according to the Buenos Aires Cereal Exchange. The weekly advance was 2.6 percentage points. The coming weeks would be key for the advance and quality of the crop.

Wheat sales beat new record in Argentina

A report from the Córdoba Cereal Exchange reveals that Argentina has beat a new record with nearly 12.5 million metric tons sold in the 2016/2017 season. The previous commercialization record was during the 2011/2012 season with 11.9 million metric tons of volume sold. On average, the sales are 45 percent higher than the last five years.

For the Brazilian consultant Luiz Carlos Pacheco (Trigo & Farinhas), this is explained by the great performance of the exporting sector in Argentina and this would help to sustain prices if the demand keeps strong and Argentinian wheat stays on competitive levels.

Argentina: Grain exports grow 97% in first quarter

The Buenos Aires Cereal Exchange has reported today that within the first three months of the year grain exports in Argentina have grown 97 percent in value compared to the first quarter of 2016. On the other hand, products deriving from those grains have had a decline in exports of 10.6 percent. In the case of biodiesel, there a fall of 16.8 percent, while oil exports dropped 15.3 percent.

Total sales summed US$ 326 million in the period against US$ 165 million in the first quarter of last year. The sales of derived products were US$ 2.3 billion. There was less crushing and less oil processing in the period.

Brazil’s Real drops 40 cents amid presidential bribe scandal

The Brazilian Real has dropped almost 40 cents comparing to the U.S. Dollar this Thursday (05.18). The dollar in Brazil is now worth R$ 3.38. The devaluation is after a political that involved a bribe between the country’s largest meat maker and packaging company, JBS, and the president of the nation, Michel Temer. Usually, when the Brazilian currency value drops, grain exports tend to grow.

Mexico imports 50,000 tons of Argentinian wheat for “tests”

Sources from Mexican mills revealed to Reuters that purchasers bought 50,000 tons of Argentinian wheat this week. The industry that this would be a test and “transport from Argentina would be at a competitive level against the United States”. The trend is that Mexican buyers do more purchases throughout the year.

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