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Drought limits water supply for western US agriculture

  • Spanish Market: Agriculture, Fertilizers
  • 08/03/22

Drought in the western US is limiting water availability for agriculture in 2022, spurring cuts to allocations in California and Arizona as extreme dryness continues into a third year.

The US Bureau of Reclamation announced last month that irrigation districts accounting for farmers across California's Central Valley would receive a zero-water allocation from the Central Valley Project as early-year dryness weighs on anticipated water supply. No water is allocated for irrigation north and south of the Sacramento-San Joaquin river delta, including off the Sacramento river, according to the 23 February announcement. Additional allocations will be announced in May.

The Central Valley Project spans from the Cascade mountain range to Kern River in southern California, distributing about 5mn acre-feet (enough water to cover one acre of land to a depth of 1ft) of water for irrigating one-third of the state's agricultural land.

But water reserves in major regional reservoirs continues to decline from historical levels, and total storage for the northern Central Valley Project averaged 60pc of the 15-year average as of yesterday, according to the agency.

The entirety of California remains in at least moderate drought, according to the US Department of Agriculture (USDA) drought monitor. Snowpack in the Sierra Nevada, a key determinant of the state's water supply, neared 15 inches by the end of February — less than two-thirds of the typical amount by that time, the USDA said.

Meanwhile, the California Department of Water Resources cited record dryness in January and February, compared to the same period in prior years. The Sierra Nevada snowpack statewide was 63pc of average by the beginning of March, bringing statewide snowmelt forecasts to 66pc of average in tandem with below-normal precipitation.

Increasingly scarce water supply in the western US is also poised to be a key factor in Arizona planting decisions this season as water levels continue to decline in the Colorado River Basin. Lake Powell will soon decline below 3,525ft — the lake's target elevation — following abnormal dryness from January-February, although water elevation is expected to recover during the spring runoff season, according to a 4 March release from the Bureau of Reclamation. Falling water levels on Lake Mead have triggered a Level 1 Shortage Condition, reducing water allocations to Arizona by about 18pc, according to the bureau.


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14/04/25

Argentina FX change, return of tax to spur exports

Argentina FX change, return of tax to spur exports

Sao Paulo, 14 April (Argus) — Argentinian farmers will likely boost exports of soybeans, corn and other products in coming months after the government loosened foreign exchange controls and President Javier Milei said export taxes will rise again at the end of June. Those two factors, combined with better weather conditions for soybean and corn harvesting should spur sales, according to Javier Preciado Patiño, director of RIA Consultores. The Argentinian peso is expected to weaken with the new exchange rules, which will move it from trading with a narrow peg to the dollar to moving within a wider, slowly expanding, range against the US currency. A weaker currency will increase the number of pesos Argentinian farmers receive in exchange for products priced in dollars, such as corn, wheat, soybeans, soybean meal and soybean oil. The new rules also get rid of a special exchange rate for exporters that left farmers with less money for their sales abroad, which will also encourage producers to sell. Milei announced the exchange rule changes on 11 April and they went into effect today. As a result, the value of the peso weakened through out the day, losing 11pc relative to the US dollar. Argentina has gone through a series of complicated exchange rate regimes over the years intended to prevent a rapid devaluation of the peso, keep dollars from flowing out of the country and allow the country's central bank to maintain enough dollar reserves to meet debt servicing needs and import necessary goods. Looming tax increase Milei's announcement today that a temporary tax reduction on ag exports will end as expected in June should also push farmers to sell more of their crops in the next few months. Until this morning, many people in the farming sector had hoped that the tax cut initiated by the government in January would be extended, or that duties would be eliminated altogether . But Milei confirmed the end of the tax cut in June during a radio interview today. The temporary cuts, which reduced the tax on soybeans to 26pc from 33pc, cut soybean product taxes to 24.5pc from 31pc, and trimmed the levy on corn, wheat, barley and sorghum to 9.5pc from 12pc, will revert to their previous levels, the president said. "Let farmers know that if they want to sell, they should sell now, because the taxes will return" as scheduled, he said. Argentinian governments have for years taxed exports of agricultural products, taking advantage of the country's status as a farming giant to raise much-needed funds, but also reducing farmers' incomes. Waterlogged fields Improved weather is also expected to boost sales, especially for soybeans, in the next few weeks. Argentina's soybean harvest got off to a slow start about two weeks ago because steady rains in many areas had left fields and rural roads too soggy for farm equipment to enter. Sunny weather in recent days has helped dry fields out, and farmers in those areas will want to pick up the pace to take advantage of improved conditions to make up for lost time, according to Patiño. The improving pace of harvest is expected to provide farmers ample supplies to sell in the coming weeks, allowing them to exploit of the advantageous currency situation. By Jeffrey T. Lewis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US winter wheat declines as rain misses key regions


14/04/25
14/04/25

US winter wheat declines as rain misses key regions

St Louis, 14 April (Argus) — A lack of rain worsened the US winter wheat crop outlook over the week ending 13 April, with crop conditions falling in four of the top five states. Portions of eastern Kansas, as well as western South Dakota and North Dakota did receive rain in the week following the previous US Department of Agriculture (USDA) crop conditions update. However, those areas primarily received a quarter of an inch or less of precipitation, according to US National Weather Service data, providing minimal support to the developing US winter wheat crop. As a result, the share of US winter wheat area rated in good to excellent condition fell 1 percentage point over the week, down to 47pc. Of the top five US winter wheat producing states, crop conditions fell the most in Kansas. The state, which accounts for 22pc of total US winter wheat planted acres, saw the share of acres rated in good-to-excellent condition decline 8 percentage points from the prior week, to 43pc. Despite the decline, the Kansas remained 5 percentage points above the five-year average. However, the crop emerged early this year due to warmer than typical temperatures and has developed quickly. As of 13 April, 46pc of the crop was reported in the jointing phase, 12 percentage points ahead of the five-year average, according to USDA data. In the next two weeks portions of the crop will begin to develop its grain producing head, making additional precipitation critical. In addition to Kansas, winter wheat crop condition also declined in Texas, Colorado, and Nebraska. Of the top five wheat producing states, Montana was the exception with the state's winter wheat good-to-excellent ratio remaining flat with the prior week at 59pc, 13 percentage points ahead of the five-year average. Looking at the week ahead, rain is forecast across the entirety of the US high plains region. Portions of central and eastern Kansas are projected to receive an inch of rain or more, according to the US National Weather Service, adding a much-needed boost to the state's wheat crop outlook. Other portions of the region are expected to receive a quarter of an inch at most, but any additional precipitation at this point in the year will bring a boost to the crop's outlook. By Ryan Koory Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Funding cuts could delay US river lock work: Correction


14/04/25
14/04/25

Funding cuts could delay US river lock work: Correction

Corrects lock locations in paragraph 5. Houston, 14 April (Argus) — The US Army Corps of Engineers (Corps) will have to choose between various lock reconstruction and waterway projects for its annual construction plan after its funding was cut earlier this year. Last year Congress allowed the Corps to use $800mn from unspent infrastructure funds for other waterways projects. But when Congress passed a continuing resolutions for this year's budget they effectively removed that $800mn from what was a $2.6bn annual budget for lock reconstruction and waterways projects. This means a construction plan that must be sent to Congress by 14 May can only include $1.8bn in spending. No specific projects were allocated funding by Congress, allowing the Corps the final say on what projects it pursues under the new budget. River industry trade group Waterways Council said its top priority is for the Corps to provide a combined $205mn for work at the Montgomery lock in Pennsylvania on the Ohio River and Chickamauga lock in Tennessee on the Tennessee River since they are the nearest to completion and could become more expensive if further delayed. There are seven active navigation construction projects expected to take precedent, including the following: the Chickamauga and Kentucky Locks on the Tennessee River; Locks 2-4 on the Monongahela River; the Three Rivers project on the Arkansas River; the LaGrange Lock on the Illinois River; Lock 25 on the Mississippi River; and the Montgomery Lock on the Ohio River. There are three other locks in Texas, Pennsylvania and Illinois that are in the active design phase (see map) . By Meghan Yoyotte Corps active construction projects 2025 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Frost spells may affect Turkey's wheat production


14/04/25
14/04/25

Frost spells may affect Turkey's wheat production

Kyiv, 14 April (Argus) — Turkey has recorded some of the lowest temperatures in 30 years in some regions over the past three days, sparking concerns of a loss of winter wheat areas and a production decline. Severe frost last week — particularly in Central Anatolia, the country's largest wheat production area, where the temperature fell to as low as minus 13°C — could affect wheat production this marketing year. The weather forecast for the next seven days continued to show temperatures of below zero in the east and southeastern parts of the country. This could further increase the risk of damage to the winter wheat crop. But according to market participants, it is still too early to fully assess the impact. Turkey received some rainfall in April, which improved soil moisture in some wheat-growing areas that had previously suffered drought. Turkey's wheat imports are already projected to double on the year to 8mn t in the coming 2025-26 marketing year (June-July), according to the US Department of Agriculture Foreign Agricultural Service (FAS) in its April report . The FAS earlier this month forecast Turkey's wheat crop at 18.5mn t in 2025-26, slightly below the 19mn t for the outgoing marketing year, to reflect the risk of drier weather affecting yields and offsetting a slight rise in areas. By Kristin Yavorska Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pupuk Indonesia receives final standard MOP offers


14/04/25
14/04/25

Pupuk Indonesia receives final standard MOP offers

Singapore, 14 April (Argus) — State-controlled fertilizer group Pupuk Indonesia held an e-auction today for final offers, for its tender seeking 175,000t of white standard MOP and 20,000t of red standard MOP for delivery from June-September. BPC, Eurochem, Uralkali, APC and K+S offered in the range of $360-363/t cfr, while Canpotex offered at $400/t cfr. Initial offers were submitted on 8 April, ranging mainly at $362-368/t cfr with one offer at $400/t cfr. There is no confirmation from Pupuk Indonesia on these offers. The group is likely to counter-bid these offers, according to suppliers. By Huijun Yao Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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