Brazil ups 2024-25 crop farm loans by 10pc
Brazil's subsidized farm loan program for medium and large producers in the 2024-25 season will rise by 10pc from the prior season.
The federal government will offer R400.6bn ($71.7bn) in loans to producers, up from R364.2bn in the 2023-24 season. The loans offered under the program, known as Plano Safra, are destined for the crop year starting on 1 July and ending on 30 June 2025.
The total amount set for funding operational costs and commercial transactions is set to rise by 8pc on the year to approximately R293.3bn. The remaining R107.3bn are intended for investments, a 16.5pc yearly increase.
Farmers will also be able to count on credit lines and bond issuances, which are set to add another R108bn in available resources.
Interest rates for investments vary from 7-12pc/yr, depending on the loan, which compares with Brazil's basic interest rate Selic of 10.5pc/yr. For those under the Pronamp program, which is available to medium-sized farmers, interest rates for funding and commercial transactions were fixed at 8pc/yr.
Rates were at 5-12.5pc/yr under the 2023-24 program, while the national interest rate was at 13.75pc/yr at this time last year.
The RenovAgro credit line — aimed at financing sustainable agricultural practices that reduce greenhouse gas emissions — continues with an interest rate of 7pc/yr.
The federal government will also offer R76bn in loans to small-sized farmers, up by 6.2pc from the prior program.
Considering small, medium and large farmers, the loans under the federal program total R475.5bn, a 9pc increase from R435.8bn in the previous cycle.
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Mexico economy showing 'timid growth': IMEF
Mexico economy showing 'timid growth': IMEF
Mexico City, 3 July (Argus) — Indicators of Mexico's non-manufacturing and manufacturing sectors suggested the economy recovered "some dynamism" in June, while maintaining the slow pace of growth of the second quarter, according to domestic financial association IMEF. "The trend suggested by the IMEF indicators suggest a moderate growth for the second quarter of the year," IMEF said. "The economy finds itself in an evident pause compared with the solid dynamism observed during 2022 and a large part of 2023." Manufacturing "stagnated" in the second quarter, it said. "It is very probable that economic activity will undergo additional slowdown in the second half of the year that will extend into 2025." IMEF's June manufacturing purchasing managers index (PMI) increased by 0.4 points to 49.5 points, still beneath the 50-point breakeven that shows contraction. This has been the third consecutive month of contraction. PMI adjusted to compensate for variations in company size was more positive, growing by 0.8 points to 51.2 in June, the group said. Manufacturing accounts for about a fifth of the Mexican economy. The non-manufacturing PMI, which covers the lion's share of the economy, rose by 0.6 points to 51 in June, marking a 29th month of expansion, IMEF said. Adjusted for company size, the headline services PMI rose by 0.9 to 5.18. Economic activity in Mexico continues to surprise downwards. After growth came in at an annual 1.6pc in the first quarter from a year earlier, the first data for April showed a monthly contraction of 0.6pc, IMEF said. Headwinds and tailwinds IMEF representatives highlighted growing market uncertainty following the Mexican election and ahead of the US presidential election in November. On the upside, said IMEF, Mexico should benefit from continued strength in the US economy, adding the incoming administration looks to bring down the current fiscal deficit, which is equal to 5.9pc of GDP. It will not reach the government's 3pc target for the budget coming out in November, but progress is expected with next year's budget and moving forward. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU’s centre-right EPP mulls Green Deal tweaks
EU’s centre-right EPP mulls Green Deal tweaks
Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Egypt's Abu Qir to gradually restart urea output
Egypt's Abu Qir to gradually restart urea output
Amsterdam, 2 July (Argus) — Egyptian nitrogen producer Abu Qir is set to gradually resume urea production following the restoration of natural gas supply, having stopped output towards the end of last month alongside Egypt's other producers. Abu Qir has issued a stock exchange filing today, announcing the gradual restart of its plants. The firm's granular and prilled urea plants, which have a capacity of 650,000 t/yr and 580,000 t/yr, respectively, stopped on 24 June. Fellow Egyptian suppliers Kima, NCIC, Helwan and Mopco told Argus that there has been no change to the status of their urea production, with all output idled through last week. A gas supply crunch in Egypt in recent weeks has shuttered urea production, with production impacted since 20 May, as the country prioritised gas flows to power plants to meet cooling demand in the summer months. Egypt's prime minister said on 25 June that the country will spend $1.18bn on LNG and fuel oil imports this summer in a bid to stop daily power outages. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IGC keeps Australian grain output, export forecasts
IGC keeps Australian grain output, export forecasts
Sydney, 2 July (Argus) — The International Grains Council's (IGC) projections of Australia's grain production and exports in 2024-25 remain largely unchanged, despite rainfall in major cropping areas in June. The IGC revised its forecasts for Australia's 2024-25 grain production slightly downward from May by 125,000t to 45.5mn t, and exports by 50,000t to 31.7mn t. Wheat production and exports remained unchanged at 30.1mn t and 21.5mn t, respectively. The Bureau of Meteorology (BoM) June rainfall summary showed national rainfall at almost 10pc above the 1961-1990 average. National area-averaged mean temperature was 0.71 degrees higher than the 1961-1990 average. Rainfall was above average for most of Western Australia in June, or in the top 10pc of June months since 1900, supporting crop germination and development. Areas near the Geraldton cropping region — which accounts for approximately 22pc of WA's wheat crop area — received their highest rainfall on record, according to BoM data and the Grain Industry Association of Western Australia (Giwa) estimates. The seasonally late major rainfall event delayed the state's crop development, but warmer soil temperatures accelerated crop growth. That put the state back on track for at least an average year as opposed to a well below average year, Giwa said in its crop report released in early June . Rainfall remained below average in parts of WA's Albany and Kwinana South cropping regions in June. Dryness in June was even more severe in southern New South Wales (NSW) and Victoria, which received below average or very much below average rainfall in June. The Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) noted earlier in June that yield expectations in NSW's southern cropping regions were highly contingent on sufficient and timely rainfall. Abares expects the state's overall winter crop to yield 2.5 t/hectare in 2024-25. The IGC did not change its 2024-25 world grain output projection in June from 2,312mn t in May. Global carryover stocks in 2024-25 were revised upward by 2mn t, but remained the lowest in a decade at 582mn t. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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