By Luís Vieira
Low commodity prices are an issue that farmers will always have to face from time to time. On the other hand, there are alternatives that some farmers may consider for the purpose of rotation and to diversify risk.
The current season is definitely not the best for a lot of farmers in the Midwest, especially if you grow either wheat or corn. For Kansas analyst Mike Zuzolo, director at Global Commodity Analytics & Consulting, there has never been so much interest in replacing crops.
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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.
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 exports of the grain and cereals complex reached a value of US$ 12.4 billion in Argentina in the first half of the year, according to official data. The volume exported in the period reached 22 million metric tons, which a fall of 12 percent compared to 2016 when 25.3 million metric tons were shipped.
In the meantime, beef exports have risen 6.8 percent to US$ 1.3 billion. In terms of volume, there was a hike of 24 percent to 168,000 tons. The number is expected to grow a lot more in the coming months because has open its market of frozen beef for Argentina.
Wheat planting in Argentina is getting to the final stretch with nearly 98 percent of the total surface planted. There is some dry soils in regions like the Center-East of the Entre Ríos province, North of La Pampa, and West of the Buenos Aires province. Of the 13 million acres that were already planted, 74 percent of the conditions are considered good, 16 percent under normal conditions and 7 percent are excellent. The data was released by the Buenos Aires Cereal Exchange on Thursday (08.10).
Data released from consultancy Trigo & Farinhas reveals that Brazil has imported 7.09 million metric tons so far in the year, while just in July the volume imported was 505,000 tons. The volume for the period is 11 percent higher than last year.
The Buenos Aires Cereal Exchange has updated its report saying that the planting of the wheat crop has reached nearly 95 percent of the surface expected. The area estimated is at 13.3 million acres (5.4 million hectares). In one week, there was an advance of 3.2 percentage points. The Cereal Exchange assessed that there mixed conditions in the country with moisture excess in the Buenos Aires province and La Pampa, while Northern province face dry fields.
The Brazilian wheat crop had an overall production estimate of 5.5 million metric tons, according to the National Supply Company (Conab). But the consultancy Trigo & Farinhas says that because of frosts and dry weather the output would shrink by over 300,000 tons considering both the states of Paraná and Rio Grande do Sul. The projection of T&F is that the production would be 5.15 million metric tons considering previous weather events.
A report from consultancy Agridatos revealed yesterday (07.25) that the Paraguayan wheat crop could shrink nearly 30 percent of a previously expected output of 694,000 tons. If that is confirmed, the South American could not export the volume of 350,000 tons that it wishes to ship to Brazil. Sellers, that is broekrs and cooperatives, expected to charge US$ 240 to US$ 250 per ton for the cereal, according to Agridatos.
All Argentinian ports, including Buenos Aires and Rosario, will not work for 48 hours, affecting grain exports, starting tonight. Unions complain that maritime safety is treated as “just another commodity”. In practice, no barge will be able to leave the country in that period. Unions seek new regulations that would assure the safety of professionals in local ports, channels, and rivers.