The government of Brazil announced Friday it was going to sell as much as 700,000 metric tons of corn stock in its domestic market in response to the draught that has hit the southern states of the nation.
States targeted via auctions are Santa Catarina and Rio Grande do Sul,
where a sell of up to 500,000 metric tons of corn will be initiated.
The Brazilian Agriculture Ministry said this: "The measures are a way for the government to supply the market's shortage of the product and help the sector, which faces difficulty due to the smaller crop caused by weather factors,"
Other states in Brazil targets from corn sales are Minas Gerais, Rio de Janeiro and Espirito Santo. Corn sales are focused on those looking to acquire feed for the various meat industries.
The other 200,00 metric tons of corn is slated to be sold directly to Rio Grande do Sul and Santa Catarina, which have been hit the hardest by the drought. There the fixed price will be $12.18 for each 60-kilogram bag of corn feed.
Included in the fixed price sale will be agricultural cooperatives, along with buyers of feed for meat producers.
Corn farmers in the U.S. could boost production by 15 percent over 2011 as a result of the drought in Brazil and in Argentina. Corn exports in the U.S. are expected to rise in response to the lower supply in the region.
Showing posts with label Drought. Show all posts
Showing posts with label Drought. Show all posts
Friday, March 2, 2012
Wednesday, February 8, 2012
U.S. Corn Farmers to Plant Large Acreage Say Analysts
In a Reuters poll of 24 analysts, consensus is U.S. farmers will plant the largest amount of acres in corn in 68 years. Expectations are a faster than usual planting because of mild and drier weather will help raise the corn acreage planted.
Estimates are a total of 94.2 million acres will be planted, which could result in a record crop of 13.8 billion bushels produced, based upon a yield of 161.4 bushels an acre. The previous record is 13.1 billion bushels.
If the estimates are accurate, it'll be the largest amount of acreage planted in corn since 1944.
Some think the higher corn planting estimates are premature, citing farmers who haven't made a decision yet on whether to go with soybeans or corn. Corn is expected to be more profitable, but also has higher input costs.
Most believe higher corn prices are sustainable, which should drive up the earnings per acre by about $100 more than soybeans, matching performance over the last three years.
That assumption is based upon low supply and high demand. The drought in Argentina is also considered a major support for corn prices this year, and a reason for U.S. farmers boosting the number of acres planted.
The thought is if corn is above $6.50 a bushel, farmers will plant more acreage in 2012.
Estimates are a total of 94.2 million acres will be planted, which could result in a record crop of 13.8 billion bushels produced, based upon a yield of 161.4 bushels an acre. The previous record is 13.1 billion bushels.
If the estimates are accurate, it'll be the largest amount of acreage planted in corn since 1944.
Some think the higher corn planting estimates are premature, citing farmers who haven't made a decision yet on whether to go with soybeans or corn. Corn is expected to be more profitable, but also has higher input costs.
Most believe higher corn prices are sustainable, which should drive up the earnings per acre by about $100 more than soybeans, matching performance over the last three years.
That assumption is based upon low supply and high demand. The drought in Argentina is also considered a major support for corn prices this year, and a reason for U.S. farmers boosting the number of acres planted.
The thought is if corn is above $6.50 a bushel, farmers will plant more acreage in 2012.
Tuesday, January 31, 2012
Prime Iowa, Minnesota Corn Country Faces Drought
Prime corn-growing regions of Iowa and Minnesota are facing challenges similar to the last major drought in the region in 1988, causing some growing concern in a year starting with tight corn supply.
Some of the more productive parts of northwest Iowa and southern Minnesota are under pressure, and there's little relief seen to be coming at this time.
While the weather this year is in fact very similar to 1988, the one difference is it is happening earlier than that disastrous year, and so has more time to rebound if wetter weather arrives.
Of course if that doesn't happen, there will be some production and supply problems emerging from the area. If it continues, expectations are parts of eastern Nebraska could be affected as well, and it could spread from there; although that is more the worst case scenario.
In 1988, on average, the drought resulted in about 25 percent less yields for corn.
One major change in corn farming since than has been more drought-resistant corn seed, which should help alleviate some of the effects of dry weather.
That would make it better than 1988, but it would still have a major impact if the weather patterns don't change.
You can see on the map how conditons look at this time.
Some of the more productive parts of northwest Iowa and southern Minnesota are under pressure, and there's little relief seen to be coming at this time.
While the weather this year is in fact very similar to 1988, the one difference is it is happening earlier than that disastrous year, and so has more time to rebound if wetter weather arrives.
Of course if that doesn't happen, there will be some production and supply problems emerging from the area. If it continues, expectations are parts of eastern Nebraska could be affected as well, and it could spread from there; although that is more the worst case scenario.
In 1988, on average, the drought resulted in about 25 percent less yields for corn.
One major change in corn farming since than has been more drought-resistant corn seed, which should help alleviate some of the effects of dry weather.
That would make it better than 1988, but it would still have a major impact if the weather patterns don't change.
You can see on the map how conditons look at this time.
Monday, January 30, 2012
Brazil Drought Effect Downgraded
The severity of the effect of the ongoing drought in Brazil's Parana state, located in the southern region of the country, is worse than originally believed, according to a Dow Jones Newswires report.
Agroconsult's Fabio Meneghin, said, "The western part of Parana, near the border with Paraguay, has been particularly affected. I didn't expect it to be so bad."
Quoting one farmer from the region, the story said corn losses are estimated to be 40 percent on his farm, with soybean losses even higher, estimated to be about 60 percent.
There was no rain in the region for about 45 days, added the farmer.
Agroconsult's Fabio Meneghin, said, "The western part of Parana, near the border with Paraguay, has been particularly affected. I didn't expect it to be so bad."
Quoting one farmer from the region, the story said corn losses are estimated to be 40 percent on his farm, with soybean losses even higher, estimated to be about 60 percent.
There was no rain in the region for about 45 days, added the farmer.
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