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.
Category Archives: Wheat
The country of Uruguay has released its new official grain stock numbers. The South American country has 1.4 million metric tons of soybeans, 123,157 tons of corn and 305,140 tons of wheat. The majority of the soybean stocks are located in the region of Colonia, while there is more corn in Rio Negro. The data is from the Ministry of Livestock, Agriculture and Fishery.
Data from the Buenos Aires Cereal Exchange reveals that there were some recent precipitations in the provinces of Buenos Aires, La Pampa, Córdoba, and Santa Fe, but mostly the weather has favored wheat planting during the current week with the majority of the works advancing in the most Northern parts of the country. In one week, planting progressed 11.8 percentage points to 64.8 percent of the surface of 13.5 million acres. The report also says that most of the already planted areas of the cereal have been under adequate conditions.
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 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.
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.
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.
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.
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.
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.