US spring planting faces high soil moisture: USDA

Spanish Market: Agriculture
03/04/23

The US Department of Agriculture's (USDA) crop progress report shows elevated levels of soil moisture in the major grain producing states, which could slow spring planting.

In its first crop progress report for the 2023-24 marketing year, the USDA reports 19pc surplus condition for topsoil compared with 13pc at the same time last year and 57pc adequate as compared to 50pc last year.

Illinois, Indiana, Ohio, Michigan, and Wisconsin are all over 45pc in surplus condition, representing 28pc of corn acreage for 2023-24.

The northern states of North Dakota, South Dakota, and Minnesota are at 12pc, 8pc and 27pc, respectively, although the potential for flooding exists based on NOAA's spring outlook.The USDA shows Texas at 57pc of intended corn acres planted versus the five-year average of 54pc. With that said, corn planting begins in late April for most of the Midwest with most of the corn crop planted by mid-May.

Winter wheat conditions are 28pc good to excellent versus the same time last year at 30pc, while poor to very poor are at 36pc this year, similar to last year.

By Eduardo Gonzalez

Surplus Moisture.pdf Surplus Moisture

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04/12/24

Brazil's economy accelerates to 4pc growth in 3Q

Sao Paulo, 4 December (Argus) — Brazil's economic growth accelerated to an annual 4pc in the third quarter, led by stronger consumer spending, according to government statistics agency IBGE. The economy accelerated from 3.3pc annual growth in the second quarter and posted the fastest growth since the first quarter of 2023. Household consumption grew by 5.5pc in the third quarter from a year earlier, while government spending increased by 1.3pc. Services grew by 4.1pc. The industry sector grew by an annual 3.6pc, driven by civil construction and five-year high automotive production in July , according to the national association of vehicle manufacturers. Exports rose by 2.1pc, while imports grew by 18pc. The oil, natural gas and mining industry contracted by 1pc, thanks to lower oil and gas exploration and production. Brazil produced 4.35mn b/d of oil equivalent (boe/d) in the third quarter, down from 4.51mn boe/d in the July-September 2023, according to oil and gas regulator ANP. The electricity and gas, water and sewage management sector increased by 3.7pc from July-September 2023, favoured by higher demand despite higher power tariffs. Brazil faced a severe drought in the first two quarters of the year that lowered river levels at hydroelectric plants and increased power charges in September. But the agriculture and cattle raising sector fell by 0.8pc, with expected production of significant crops such as corn and sugarcane dropping from a year prior also because of adverse weather. Still, output of cotton, wheat and coffee increased by 14.5pc, 5.3pc and 0.3pc, respectively, according to IBGE. The investment rate — the percentage of a country's total production that is invested — grew to 17.6pc in the third quarter, an increase of 1.2 percentage points from the same period in 2023. Brazil's GDP growth in the third quarter was up by 0.9pc from the second quarter, reaching R3 trillion ($494bn). By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Treasury eyes 45Z guidance before Biden exit

03/12/24

Treasury eyes 45Z guidance before Biden exit

New York, 3 December (Argus) — The US Department of Treasury said it still plans to issue guidance before president Joe Biden leaves office next year clarifying how refiners can qualify for a new tax credit for clean fuels. The agency "anticipates issuing guidance" around the Inflation Reduction Act's 45Z credit before 20 January to "enable producers to claim the 45Z credit for 2025", disputing a report today that the Biden administration planned on punting implementation to president-elect Donald Trump. The credit, set to kick off regardless on 1 January, will differ from some prior federal incentives by offering greater subsidies to fuels that produce fewer greenhouse gas emissions. Treasury did not commit to any definitive timeline for releasing guidance, and it did not immediately clarify how thorough any eventual rule would be. Companies in the biofuel supply chain say the current lack of clarity from Treasury — particularly on how it will calculate carbon intensities for various fuels and feedstocks — has slowed first quarter dealmaking. Government guidance could make or break the economics of certain plants, particularly for relatively higher-carbon fuels like soy biodiesel or jet fuel derived from corn ethanol. The US Department of Agriculture's timing for releasing a complementary rule to quantify the climate benefits of certain agricultural practices, envisioned as a way to reward refineries sourcing feedstocks from farms taking steps to reduce their emissions, is unclear. The agency said today that a "rulemaking process" in response to its request for information on climate-smart farm practices is "under consideration" but did not elaborate. Agriculture secretary Tom Vilsack had insisted earlier this year that his department would release some package before the end of Biden's term. Some industry groups remain pessimistic that the Biden administration will answer all of the thorny questions still lingering around the 45Z credit, especially given signals earlier this year that other Inflation Reduction Act programs would take priority. The Renewable Fuels Association, which represents ethanol producers, says final regulations around 45Z "seem highly unlikely" before the end of Biden's term but that it hopes Treasury releases at least some "basic information" or safe harbor provisions. Delays getting credit guidance could prod Congress to extend expiring biofuel incentives for another year, including a $1/USG credit for blenders of biomass-based diesel. Some formerly skeptical lobbying groups have recently come on board in support of an extension, fearing that biofuel production could slump next year given the lack of 45Z guidance and uncertainty about how Trump will implement clean energy tax credits. But four lobbyists speaking on background told Argus today that the proposal still faces long odds. Congress has various other priorities for its relatively brief lame duck session, including government funding and disaster aid, that take precedence over biofuels. A staffer with the Democratic-controlled US Senate Finance Committee said last month that Republicans have been reluctant to negotiate tax policy in a divided Congress this year when they are planning a far-reaching tax package under unified Republican control next year. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's Mato Grosso ups 2024-25 corn outlook

02/12/24

Brazil's Mato Grosso ups 2024-25 corn outlook

Sao Paulo, 2 December (Argus) — Brazil's central-western Mato Grosso state increased its outlook for the 2024-25 winter corn crop, based on higher projected acreage. The state now expects to produce 45.8mn metric tonnes (t) of corn this season, up from 45.5mn t in November's outlook, according to Mato Grosso's agricultural economics institute Imea. That is less than the 47.2mn t produced in the 2023-24 crop. The estimate for planted area advanced to 6.83mn hectares (ha) from 6.79mn ha. That is almost 0.6pc above the 2023-24 area. The upwards revision follows recent increase of corn prices in the state, allowing for more farmers to cover production costs. Yields are estimated at 111.7 60kg bags/ha, roughly stable from November and a 3.4pc drop from 115.6 bags/ha in the 2023-24 cycle. That is a preliminary forecast based on the average from the three prior seasons, as sowing is only set to begin in January 2025. A slight change this month follows the area readjustment that alters the average for each region and their share to the state result. Cotton Unfavorable weather conditions that delayed soybean sowing dropped the state's 2024-25 cotton output to 2.7mn t, a 1.8pc drop from November's outlook. The delay in soybean sowing can extend harvest periods and hamper cotton sowing within the ideal window. Still, volumes are up by 2.4pc from the 2023-24 cycle. The year-on-year increase is still driven by cotton's higher profitability than in the previous season, which encourages farmer investments. Total sowed area is expected at 1.5mn ha, a 1.8pc decrease from November's estimate but up by 5pc from the 2023-24 season. Yields remain projected at 284.3 15kg bags/ha, based on a three-year average, since the factors that define crop yields are yet unknown, such as climate conditions and the ideal planting window period. That is 2.6pc below 2023-24 levels. Soybeans Mato Grosso continues set to produce 44mn t of soybeans in the 2024-25 season, unchanged from November's estimate. That is a near 13pc hike from the 39.1mn t in the 2023-24 crop. The 2024-25 yields remain projected at almost 58 60kg bags/ha. But it is still too early in the cycle to make more certain projections, as sowing finished last week. The prior season yielded 52.2 bags/ha. The outlook for planted area is also stable at 12.7mn ha, 1.5pc above the 2023-24 season. By Nathalia Giannetti Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Ukraine agri-exports decline on the month

02/12/24

Ukraine agri-exports decline on the month

Kyiv, 2 December (Argus) — Agricultural exports from Ukraine fell in November as an increase in shipments of corn and sunflower oil (SFO) failed to offset lower exports of wheat, barley, soybeans and rapeseed, customs data show. Ukraine exported about 5.48mn t of grains, oilseeds and by-products in November, down from 6.01mn t in October but slightly up from 5.46mn t in November 2023. Exports by all transports fell in November. But in relative terms, shipments from the deep-sea ports of Pivdennyi-Odesa-Chornomorsk (POC) continued to increase, reaching around 82pc of Ukraine's total agricultural exports. This is up from 80pc in October and only 50pc in November 2023. Agricultural exports from Danube river ports fell to 362,740t in November, from 495,225t shipped in October and 1.54mn t in November 2023. The share of products exported from Danube ports has declined to 7pc, down from 8pc in October and 28pc in November 2023. Grains Ukraine shipped 3.86mn t of grains in November, down from 3.92mn t in October, but up from 3.64mn t in November 2023 (see chart). Corn exports continued to rise, to 2.6mn t in the reporting month from 1.93mn t in October and 2.33mn t a year earlier. Turkey remained the largest buyer of Ukrainian corn in November, followed by Spain, Italy and Egypt, according to customs export declarations. In contrast, wheat exports fell to 1.11mn t from 1.65mn t in October and 1.13mn t a year earlier. Spain remained the largest buyer, while Indonesia, Bangladesh, Vietnam and Tunisia made up the top five. Barley exports declined to 157,382t last month, down from 350,055t in October and 181,368t a year earlier. Libya was the main buyer, followed by Cyprus and the United Arab Emirates. Oilseeds Ukraine exported 1.62mn t of oilseeds, vegetable oils and meals in November, down from 2.09mn t in October and 1.82mn t a year earlier. Soybean exports fell sharply to 415,284t, from 715,697t in October and 505,832t in November last year (see chart). Pakistan was the largest buyer of Ukrainian soybeans, followed by Egypt, the Netherlands and Turkey. Ukraine's rapeseed exports fell to 290,583t last month from 475,214t in October and 349,495t a year earlier. This brought Ukraine's total rapeseed exports to about 2.7mn t since the start of the 2024-25 marketing year (July-June). Exports of sunflower seed (SFS) amounted to only 1,242t in November, down sharply from 16,276t in October and 38,584t a year earlier. Exports of sunflower meal (SFM) decreased to 356,553t in the reporting month, down from 383,643t in the previous month, and from 387,397t a year earlier. China was the largest buyer of Ukrainian SFM, followed by France, Poland and Egypt. In contrast, sunflower oil (SFO) exports rose to 508,650t, from 458,260t in October and 506,218t a year earlier. India was the main destination for Ukrainian SFO in October. Spain, Italy, Iraq and Romania made up the top five. By Alexey Yeromin Ukraine grain exports mn t Ukraine oilseed, vegoil and meal exports t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US weekly soybean sales up, corn and wheat down

29/11/24

US weekly soybean sales up, corn and wheat down

London, 29 November (Argus) — US weekly net export sales of soybeans rose in the week ending 21 November, while those of corn and wheat were down from the previous seven days, according to the US Department of Agriculture (USDA). Soybeans US weekly soybean net export sales reached 2.49mn t, rising on the week and exceeding the previous four-week average. Total commitments of the 2024-25 crop so far this season (September-August) reached 33.87mn t, compared with 30.88mn t at the same time last year. So far, total commitments account for 68pc of the US' projected soybean exports for 2024-25, according to the USDA's forecast, broadly in line with 67pc at this point last year. China booked 1.09mn t of US soybeans last week, with 306,000t of this volume having switched from a previously unknown destination. Outstanding sales of US soybeans to China stood at 4.32mn t, with total commitments to the country — exports and outstanding sales — having reached 15.81mn t since the start of the season. Grains US weekly corn net export sales declined by 29pc to 1.06mn t in the week ending 21 November. But total commitments since the start of the season in September reached 32.46mn t, or 55pc of the USDA's forecast 2024-25 exports, up by 8mn t and 13 percentage points, respectively, on the year. Export sales to Mexico rose by 405,200t in the week ending 21 November, to reach total commitments of 13.31mn t, up on the year by 1.31mn t. Of the total volume, 8.21mn t had yet to be shipped as of 21 November. Total commitments of US current-crop corn to China stood at 26,400t, a sharp drop from 1.31mn t a year earlier. As for wheat, weekly net export sales declined by a third to 366,800t in the week ending 21 November, pushing total commitments of US 2024-25 crop US wheat to 15.17mn t, up by 2.48mn t on the year. This represents 68pc of the USDA's forecast total US wheat exports for 2024-25, nearly in line with the 66pc of last season's crop committed a year earlier. Meanwhile, US weekly net export sales of 2024-25 crop sorghum were unchanged on the week at 121,200t. Total commitments reached 1.15mn t, down sharply from 3.47mn t of the previous season's crop committed a year earlier. By Anna Sneidermane Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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