Buenos Aires, October 4th. The following information summarizes the main topics of the weekly inform Reporte Institucional Agropecuario, by RIA Consultores.
Wheat at risk: According to the Buenos Aires Cereals Exchange 26% of the wheat acreage is in “poor to very poor” condition, mostly in the western area. The latest rains did not be able to reverse the lack of humidity in the soils. Sources of eFarmNewsAr.com consider that the next two weeks will be key to determine if the forecasted 21 MMT harvest will be cut.
Accelerated exports: During September, the exporters continued accelerating the registration of foreign trade operations, basically corn, wheat, and soybean. During Aug/Set exporters registered 34 MMT of grains and byproducts to export, versus 17.7 MMT last year. Accumulated registrations climbed to 97.6 MMT since January, versus 75.0 MMT last year.
Wheat milling up: The Ministry of Agriculture, Livestock and Fisheries informed a 523K tons wheat milling during August, 8% up in a year over year basis. Accumulated milling Jan-Aug climbed to 4MMT versus 3.2 million last year. The increase in the registered milling is the result of the strong inspection work by officials from the Ministry.
Beef boom. During August beef exports jumped to 78,945 tons (weigh carcass equivalent) the largest volume since August 2005. The accumulated Jan-Aug reaches 482K tons. China is the largest customer, representing 73% of the total exports.
Grain defaulters: One of the largest domestic grains trading houses, BLD, announces last Friday the default of his debt with the farmers, estimated in approximately US$100 million. It’s the third house in bankruptcy in the current year, after Sebastian Grimaldi (AR$984 or US$16 million) and Cereales del Sur (AR$450 M or US$7.5 million). The dynamic and unpredictable economic measures of the Government are driving the trading houses to a critical situation.
See the past report: Highlights September 27th