Pesticide prices may rise with coronavirus outbreak
The coronavirus outbreak's impact on logistics within the top pesticide feedstock producer, China, is raising concern about Brazil's access to pesticides supply.
In 2019 China supplied 38pc of all Brazilian pesticide demand, said Brazilian bank Itau BBA. Brazilian dependence on China is even more concentrated for herbicides, with China supplying 99pc of Brazil's Glyphosate and Imazaquim demand. For Paraquate, another herbicide, Chinese accounted for 97pc of Brazilian demand in 2019.
The Chinese government has instructed local road transportation authorities to assist agriculture-related sectors — a directive that helps Chinese industry continue to operate. And for Brazil the Chinese imports do not typically spike until May-October.
But if the coronavirus outbreak continues into the coming months and further transportation interruptions occur, the Brazilian industry could see more significant supply disruption for agricultural chemicals, which may lead to higher prices for such inputs.
China's industrial activity has slowed since the start of the coronavirus outbreak. Official purchasing managers index (PMI) for the manufacturing sector dropped to a record low in February. The manufacturing PMI plunged to 35.7 last month, versus 50.0 in January and the previous record low of 38.8 in November 2008 amid the global financial crisis. A reading below 50 indicates contraction.
Related news posts
USCG updates ongoing lower Mississippi restrictions
USCG updates ongoing lower Mississippi restrictions
Houston, 17 September (Argus) — The US Coast Guard (USCG) will further limit northbound movement for barges transiting the lower Mississippi River despite slightly higher water levels following Hurricane Francine's landfall late last week. The USCG announced on 16 September that all northbound traffic traveling from Tunica, Mississippi, to Tiptonville, Tennessee, can only have five barges wide and only four of those can be loaded. Barges also cannot be loaded deeper than 9.5ft. Any southbound traffic from Vicksburg, Mississippi, to Tunica cannot move more than seven barges wide or be drafted deeper than 10.5ft. Southbound traffic from Tiptonville to Tunica can only be six barges wide or less and cannot have a draft greater than 10ft. The USCG has updated lower Mississippi river draft restrictions about four times since the end of August, but this is the third year in a row of notable low water for the fall on the lower Mississippi river which has triggered draft restrictions to arrive more quickly than previous years. Hurricane Francine brought significant rainfall to the lower Mississippi at the end of last week . But this has not eased the minds of mariners, who anticipate the water may leave as quickly as it arrived. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
France lowers 2024-25 wheat production outlook
France lowers 2024-25 wheat production outlook
London, 17 September (Argus) — French wheat output in 2024-25, excluding durum, is now estimated at 25.78mn t by French agricultural ministry agency Agreste, down by 540,000t from its August projections . The agency attributed the cut to unfavourable weather conditions, with average yields estimated at 6.15t/hectare (ha). This compares with average yields pegged at 6.24t/ha in the agency's projections last month . Agreste now pegs France's durum wheat production at 1.18mn t, down from the 1.19mn t it forecast in August. Barley estimates also took a hit, with the agency now seeing France's total winter and spring barley production at 10.05mn t, down from 10.4mn t last month. Spring crops fared better since Agreste's August report, with corn output projections rising to 14.39mn t, up from the 14.01mn t the agency forecast last month. It expects a year-on-year increase in both planted areas and yields for French corn. And sunflower seed and rapeseed production forecasts were each raised by 10,000t, to 1.86mn t and 3.95mn t, respectively. But less favourable weather means both oilseed crops are scheduled to decline year on year. By Megan Evans Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's Parana ports handle record cargo in Aug
Brazil's Parana ports handle record cargo in Aug
Sao Paulo, 16 September (Argus) — The Paranagua and Antonina ports, in Brazil's southern Parana state, handled a record amount of cargo in August thanks to increased fertilizer imports. The two ports handled 6.9mn metric tonnes (t) of cargo in August, up by 14pc from the same month in 2023 and above the prior record of 6.6mn t in June, according to Parana's port authority data. That also surpassed July's handling by 20pc. Imports totaled 2.5mn t last month, a 41pc hike from August 2023 and above the 2.2mn t handled in July. Fertilizer imports increased by 59pc to 1.2mn t in August from a year before and were 29pc — or 265,170t — above the prior month's imports. Exports reached 4.4mn t, up from 4.3mn t in August 2023 and a near 27pc increase from July's exports. Soybean shipments rose by 10pc to 1.9mn t in August from the same month last year. That was also above the 1.3mn t exported in the previous month. Corn exports decreased by 77pc to 72,900t, down from 316,430t shipped in August 2023 and almost in line with July's exports. Exports of bulk sugar increased by 34pc to 836,430t last month from the same period a year ago. That was also up by 77pc from July's exports. Parana ports handled 46.4mn t in January-August, up by 10pc from the same period in 2023, also boosted by higher imports. Imports increased by 23pc to 17.2mn t. Fertilizer imports rose by 14pc to 6.9mn t, up from 6mn t in January-August 2023. Exports totaled 29.2mn t, a 4pc increase from the same eight months last year. Soybean shipments rose by 11pc to 11.2mn t in the period, while corn exports dropped by 80pc to 581,730t from the same eight-month period in 2023. Wheat exports in January-August more than tripled to 171,830t from the same period a year before. Sugar shipments increased by 46pc to 4.2mn t. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India hikes import duties on vegetable oils
India hikes import duties on vegetable oils
Kyiv, 16 September (Argus) — India has sharply increased duties on crude and refined vegetable oils in a bid to reduce imports and protect local oilseed farmers. Import duties on crude palm oil (CPO), sunflower oil (SFO) and soybean oil (SBO) will increase to 27.5pc, from 5.5pc, while duties on refined oils, like RBD palm olein, are now set at 37.75pc, compared with 13.75pc earlier. The new rates came into effect on 14 September. The move might reduce overseas imports of CPO, SBO and SFO, and support local oilseed prices, before regional elections. On Monday, SFO was offered to India at about $1,060/t for October-November shipment, compared with $1,045-1,050/t a week ago. The higher import duties could pressure palm oil prices. Palm oil imports represent the biggest share in India's overall vegetable oils purchases at 7.64mn t so far this season, down from 9.79mn t a year earlier. India — the world's largest vegetable oil importer — received 13.69mn t of vegoils in November 2023-August 2024, the first 10 months of the vegetable oil year. SBO imports in August reached 455,000t, the highest since the start of the 2023-24 marketing year in November. By Kristin Yavorska Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more