Cotton: Paraguay sees a seed crisis

The current number of cotton seeds in Paraguay just would cover 24,710 acres in the 2013/2014 crop season. The information comes from Héctor Cristaldo, president of CAP (the local farmers union). Cristaldo, who is an agronomist, says that the majority of the seeds in Paraguay does not have adequate quality. He considers that the Paraguayan government is also taking too long to approve the Monsanto seeds Bt-RR and RR.

“If the cotton Br-RR is not allowed until June 10th, it will be too late to import for sowing purposes”, said Cristaldo told ABC Color newspaper.

The 2012/2013 cotton crop in Paraguay estimated in 43,000 tons. The planted area was nearly 111,197 acres. The previous record was in 1991, when Paraguay planted 1.3 million acres.

Brazil: Machinery sales booming

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The sales of harvesters in Brazil have increased 65 percent in 2013. From January to May, 3,425 units were sold in the country, says the National Association of Automotor Vehicles Manufacturers (Anfavea). In the meantime, tractor purchases are not behind. Nearly 26,500 tractors were commercialized in the period. The reason for the boosted sales are attributed to federal credit programs and Brazil’s infrastructure holes.

 

Transportation: Argentina nationalizes more railways, ALL leaves the country

Argentina’s minister of Interior and Tranportation, Florencio Randazzo, announced yesterday the end of all the América Latina Logística (ALL), one of the major grain transportes in South América, concessions to operate railways in the country. Randazzo said the Brazilian company has not complied with some items in the contract. “We’ve made an audit in 2012 and we found out that the company’s fine overcame 30 percent of the contract’s guarantees and they have not achieved the total amount of the investment program”, Randazzo told Buenos Aires newspaper La Nación.

ALL operated 4.8 thousand miles in Argentina and began in the country by 1999. The company transportated a volume of five million tons on Argentine railways. ALL did not recognized the “concrete fundamentals” of the government decision. According to the company, several presentations were shown to the local government in order to readjust the goals.

 

Soybean giant “Los Grobo” turns to agrochemicals

Los Grobo is a company from Argentina owned by the Grobocopatel family and it is one of the largest soybean growers in the world. They have announced yesterday that they will buy Agrofina, a company designed to develop and produce agrochemicals only in Argentina. The deal, which includes the acquisition and the development of new fitosanitary goods, was worth US$ 400 million. Under the plan, three seed factories would be built in Córdoba, Guamini, and Tandil.

“We this deal we are integrating our value chain and diversifying our business model through being closer to the technology”, explained Gustavo Grobocopatel, president of Los Grobo, in a press release. The giant has a total US$ 1.3 billion revenue (US$ 600 million in Argentina, US$ 500 million in Brazil, and US$ 200 million in Uruguay).

The current Los Grobo CEO is Horacio Busanello, who already worked at Monsanto and was president Syngenta Agro before joining to the group.  Argentina has over 200 companies in the fitosanitary market.

Second semester will be bad for Brazilian agriculture, says economist

Marcelo Portugal, a professor of Economics at the Federal University of Rio Grande do Sul, predicted a darker second semester for agriculture in Brazil. According to Portugal, China will have a moderate economic growth in the period and commodity purchases will not be “abundant”. Therefore, prices wouldn’t be as good as before

“The moderate growth of China affects commodity prices. The European Union also goes negatively”, said the economist. Marcelo Portugal lectured during a summit of Cooplantio in Gramado, Rio Grande do Sul. He also forecast a three percent average economic growth in the world for the year 2013. Cooplantio is the union of tillage farmers in Rio Grande do Sul.

Argentina: local demand for soybeans is smaller than outside market

The domestic soybean market in Argentina has not followed the optimism of the Chicago Mercantile Exchange this week. Previous purchases have slowed down the interest of Argentinean factories for grains.

La Nación newspaper reports this morning that the price of the ton was set to AR$ 1730 (US$ 326) in the regions of San Martín, San Lorenzo, General Lagos, Timbués, Ricardone, and Villa Gobernador Galvéz. Buyers have bargained at the Rosario Board of Trade for a AR$ 5 discount, but vendors have not bowed. A few contracts were sold at AR$ 1760.

The boads of the Chicago Stock Exchange yesterday showed increases of US$ 8.27 and US$ 7.81 for July and November contracts of soybeans, whose settings resulted from 563.10 and $ 487.04 per ton. Yesterday, the USDA also has reported that the US soybean harvest advanced to 57 percent of the area. Last week, it was under 44 percent.

New corn numbers for Brazil

Clarivi consultancy has updated its numbers for the Brazilian corn crop. The projection is that Brazil will harvest 76 million tons. The previous prediction that the country would produce two million tons less than what is forecasted now.

According to Clarivi, the rise of exports is making corn more attractive to Brazilian growers. The planted área would jump to 20 million acres. The soybean crop remained at 81 million tons. Clarivi is based in Urberlândia, Minas Gerais.

Brazil: demand for wheat is still high

 

A higher demand for wheat in Brazil has already generated an 80 percent surge in prices from a year ago, according to the Bread Industry of Rio Grande do Sul Union. On the other hand, a 32.6 percent increase in this year’s crop is likely to put prices slightly down again. In Rio Grande do Sul, one of the main wheat producers in Brazil, the planted area is about to increase 3.85 percent to 2.5 million acres, according to Emater (the local agriculture authority). Productivity jumps to nearly 88 buchels per hectare (2.4 acres).

Supply from Paraguay, Uruguay and Argentina has fallen, Brazil´s traditional trade partners, is smaller, while imports from the United States have increased. From January to April, Brazil has gotten 34,000 tons from the US. In the meantime, Argentina sent 1.9 million tons and Paraguay shipped 305,000 tons of the grain.

Porto Alegre-based consultancy Safras & Mercado says the minimum wheat price in Rio Grande do Sul is currently at US$ 248/ton. Last year, the minimum price paid for that grain was nearly US$ 215/ton. Elcio Bento, Safras & Mercado’s analyst, says the market is paying up to US$ 328/ton and this will keep growers interested on raising wheat. The average grower price in the state of Rio Grande do Sul is at nearly 52 buchels per hectare (2.4 acres).

In the last season, Rio Grande do Sul harvested 1.86 million tons of wheat due to a drought that has generated a dire situation for local farmers. The state is projected to harvest 2.4 million tons this year. Paraná, another major wheat producer in Brazil, has a forecast of nearly 2.6 million tons. In 2012, Brazil produced a total of 5.07 million tons.