Feb 03, 2021

Crop Conditions Slip In Southern Brazil

Untimely, very heavy rainfall over the past week has impeded field progress

Crop Conditions Slip In Southern Brazil

  • Parana’s bean crop conditions fell with 77% rated good compared to 82% last week.
  • 15% of the crop is now mature, while 67% of the crop is still in the pod filling stage.
  • There has been no harvest progress yet compared to 4% done last year as soil moistures need time to dry out.
  • First crop corn conditions are at 71% good to excellent, down from 79% last week and below 91% last year.
  • Second crop (safrinha) corn planting was 1% complete versus 4% last year and 14% average.

FBN’s Take On What It Means: Untimely, very heavy rainfall over the past week has impeded field progress. Rains are forecast to continue in the south for another few days before moving north, making any progress this week difficult also. Until more crops are harvested it will be difficult to determine if there has been any crop damage to accompany the delays. Slow bean harvest is holding up safrinha corn planting and will push maturity further into the dry season, increasing production risks.

FBN
FBN

Trucking Strikes Hit Argentina and Brazil

  • Argentine grains exports have been disrupted by roadblocks set up by truckers around ports in Buenos Aires province.
  • The arrival of grains trucks at Bahia Blanca terminals was down by 95% compared with normal levels.
  • Protests are expected to move north to the country's main shipping hub of Rosario.
  • Local government officials were expected to meet drivers' representatives over the days ahead to try to negotiate an end to the protests.
  • In Brazil, the 80,000 member truck drivers union has started a strike which began February 1.
  • There are concerns of a repeat of a 2018 protest when roadways were paralyzed for weeks.
  • A senior union leader stated that truckers were divided over a strike.

FBN’s Take On What It Means: In Argentina port and soy crushing plant workers held strikes in December, and unions eventually reached contract agreements with export companies after the government stepped in, which is likely again. The strike in Brazil is not gaining momentum and due to harvest delays there is little to disrupt. These strikes are typical in South America, but due to tight stocks, any stall in logistics can be expected to have a greater effect.

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Kevin McNew

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Magazine

Marketwatch: Jan, 18

US Corn Price Idx: ZCPAUS.CM

open: 5.7667
high: 5.8486
low: 5.7266
close: 5.8288

US Soybean Price Idx: ZSPAUS.CM

open: 13.366
high: 13.376
low: 13.2328
close: 13.2696

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 7.3061
high: 7.3384
low: 7.2334
close: 7.2454

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.0114
high: 7.0566
low: 6.9566
close: 7.0014