Cotton area of Brazil will increase 23%, says Safras & Mercado

A survey authored by Safras & Mercado, a consultancy from Southern Brazil, reveals that the country will increase by 23 percent its cotton area. This means the area will be 2.7 million acres and that cotton growers will recover some of the area which was previously replaced by grains. “This is increase is directly related to the recover of prices, which 38 percent higher than in the same period of last month’, said Elcio Bento, an analyst at Safras & Mercado, who also cites the drop of the corn value.

A negative aspect are the dire effect of Helicoverpa for the Brazilian cotton crops. If this area is confirmed, nearly 1.5 million tons of cotton lint will be produced in Brazil in the 2013/2014 season.

Argentinean farmers claim for “freedom to work”

“The government lies”, said the president of Sociedad Rural Argentina

Strong criticism to the presidency of Cristina Fernandez de Kirchner was seen during the Rural Fair of Palermo in Buenos Aires at the event’s inauguration . Luis Miguel Etchevehere, president of Sociedad Rural Argentina, stated that the current Argentinean federal administration “has been characterized for the corruption”. He also asked for “freedom to work” for  president Kirchner. “The reality is much different of official announcements, which intend to sustain that a model that has failed with growing corruption and inefficiency. That’s why they lie about the management”, he said.

During the 23-minute speech, Etchevehere cited the fact that Latin America has multiplied its level of international investments in the last decade, while Argentina saw a record evasion of capital of US$ 85 million when Kirchner was in power. “We are without cows and without market. We lost 10 million heads. It is also responsibility of this government that we are currently thinking of importing wheat”,  declared the president of Sociedad Rural Argentina.

In 2013, Argentina registered a new fall of beef sales. The country exported a total 101,000 tons (or US$ 525 million) so far in the year, which is an average of 17,000 tons in the month. The monthly average in 2009 was 53,000 tons of meat. These figures were released this week by the Institute of Promotion of Argentine Beef.

Argentina: Planted wheat reaches 93% of the area

The Argentine wheat plating has reached 93 percent of the 8.6 million acres area, according to an estimate by the Buenos Aires Cereal Exchange. The works have been pretty slow in the last few weeks in the country because of recent rainfalls. If the weather improves, on the other hand, farmers from the Buenos Aires province will be able to finish the planting process within 15 days. The estimated harvest is currently 13 million tons.

Brazil: Rio Grande do Sul finishes wheat planting without frost damage

Emater/RS, the state agricultural entity of Rio Grande do Sul, informed today that the planting process of wheat finished and and that the grains are in good shape. Even though there was frost received by the soil over the last few weeks,  no significant damage was reported in the state and according to the current soil conditions, the development of the wheat tends to be good. Low levels of precipitation and lower temperatures have contributed to the soil conditions. In most areas of Rio Grande do Sul, farmers are still working at the fertilization stage and controlling weeds.

Safras & Mercado: Brazil will produce more soybeans and less corn

Safras & Mercado, a consultancy based in Porto Alegre, Rio Grande do Sul, has released a new projection for the 2013/2014 corn and soybean crop season in Brazil. The consultancy forecasts that Brazil will increase 3.7 percent of its soybean are compared to the previous crop, occupying nearly 71.5 million acres with the oilseed. If this figures are confirmed later on, the amount produced would reach 88.1 million tons – 7.4 percent more than in 2012/2013.

“Productivity generated by higher technogy is at 3.04 tons/ha, much higher than the current 2.9 tons/ha, but is below the 2011 records”, analyzed França Júnior, market analyst at Safras & Mercado.

Corn would have, according to Safra & Mercado, its area reduced in Brazil to approximately 13.05 million acres, which is 10.1 percent lower. Considering the weather conditions, the second corn crop is estimated at 42.6 million tons – also lower than in 2012/2013.

Earnings fall in Córdoba province, Argentina

A survey authored by Márgenes Agropecuários, a magazine from Argentina, has calculated the possible earning for farmers from the south of the Córdoba province in the 2013/2014 season with prices estimated for next year. The total earnings for farms with direct administration in the region are 37 bushels per hectare for wheat, 17 bushels per hectare for soybeans of second crop, 72 bushels per hectare for corn, 17 bushels per hectare and 25 bushel per hectare for soybean of regular crop.

The rented farms have averaged earning in the south part of Córdoba province of 44 bushels/ha for wheat, 31 bushels/ha for soybeans of first crop, 22 bushels/ha for soybeans of second crop, 21 bushel/ha for sunflowers, and 85 bushels/ha for corn. The report says that local farmers are likely to need more credit and costs tend to remain this high.

Corn productivity sets new record in Tocantins, Brazil

Early estimates reveal that second corn crop productivity in Tocantins, Brazil, will set a new record. It will jump from 4.2 tons/hectare to 4.7 tons/hectare comparing to the previous season, according to the National Supply Company and  state authorities. The total production from the last season was 187,100 tons. This year the yield is expected to overcome 192,600 tons.

The area decreased in 2013 to 101,066 acres from 109,710 acres last year. Local sources says that the area decreased because of delayd planting of soybeans, generated by a lack of rains in last October and November. The majority of the corn produced in Tocantins to feed the cattle

Frost in South America will generate more demand for North American wheat

By Luís Vieira

The frost in the south of Brazil has been less intense than expected, according to some meteorological services. The coffee crops in Paraná  have escaped from severe damages, tell union workers from the region. On wheat and cane crops in Paraná and São Paulo, the frost also had lower volumes than forecast. However, a detailed briefing from the Trigo & Farinhas bulletin reveals that a significant slice of wheat crops in the north Paraná were affected by some damage.

Some yields from the northern part of the state are reported with stems and that can result in death of the grains. The south part of Paraná, however, has escaped completely from frost damage. In Paraguay, nearly 25 percent of the crops were lost. In approximately 10 days more detailed briefing will be released in Brazil reporting the total wheat losses in Rio Grande do Sul and Paraná. The services of Rio Grande do Sul did not release any sort of report on losses of wheat so far.

Luiz Pacheco, editor of Trigo & Farinhas bulletin, thinks that the damages indeed will impact the market. It would bring more purchases from the United States. An estimated 800,000 tons, he reveals. “Domestic prices in Brazil will remain high at least for the next two months. In Rio Grande do Sul the price will be R$ 800 and R$ 900 in Paraná”, explained Pacheco.

Estimates brought to the public yesterday say that China will also contribute for higher demand in the world for wheat. The country will need at least 10 million of imports of the cereal – beating Egypt as an importer. Brazil, also one of the largest importer, currently need seven million tons. “Producers are still cautious with the sales, but they realize the Chinese interest and they are awaiting to see how the crop advances”, has told Reuters Tom Puddy, trader of the Australian group CBH.

Monsanto announces seed to fight Helicoverpa

Monsanto has announced that will start to sell the soybean seed Intacta RR2 Pro this Wednesday in Brazil. The technology is designed to increase productivity, to give tolerance to glyphosate and to control the main caterpillars, such as the Helicoverpa group, which threatened several crops in the country.

According to Monsanto, the initial cost will be R$ 115 (US$ 69) per hectare. A credit of R$ 15.50 will be offered by the major company in the next four crop seasons, which can be used in different season to purchase the seeds again.

Soybeans: Low exports from Argentina to pressure US market

Argentinians are not willing to sell soybeans. Photo: INTA

Argentina has shortened its soybean exports this year. According to Oil World consultancy, this will result in more demand for soybeans coming from the United States and will create more shortage of offer. The consultancy says that global importers of beans expect a large crop from North  America and, therefore, think that this could mitigate a three-year three year of low supply of the oilseed. On the other hand, the fall of the Argentine threats to put even more pressure on the high prices.

Soybean stocks from last season in the United States are likely to be at lowest levels in nine years. Soybean and soybean meal future prices have gone up in the US as the crushing industry disputes the stocks. Argentine farmers are not willing to sell the grain because they are unhappy with taxes and the delayed currency exchange rate, imposed by their government.