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Community Manager
marketeye
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Registered: ‎05-03-2010
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Brazil Update

[ Edited ]

Here is an update on Brazil's growing, harvesting, and transporting of corn, soybeans, and sugarcane. The following video contains an interview with an independent journalist in southern Brazil.

 

Video: Brazil Update

 

In addition, I spoke with our counterparts at Gazeta do Povo that are traveling throughout the country on their Crop Expedition report. The following is a question & answer session:

 

In central Brazil,  Mato Grosso do Sul is having problems with early planted soybeans. In cities like Sonora (north part of state) and Dourados (southwest), the losses in productivity are over 60%. Farmers are hoping for rain this week to overcome this situation.
 
In southern Brazil, farmers in the state of Rio Grande do Sul are seeing recovering yields, compared to last year. But, the lack of rain on the first weeks of this year are concerning the farmers. In Paraná, the expected soy production is about 15.3 million tons, an increase of 41% compared to last year. The harvest is slowly beginning, but rain is still necessary for a good result.


--What are the yields like coming out of Mato Grosso and how does that compare to normal yields?
 
In Mato Grosso, the northwest region has the best condition of the state, in cities like Canarana and Querência. Even though, the current rainfall is delaying harvest. Until this moment, only 10% of area has been harvest, when the expected amount was double this rate. This week's (February 4, 2013) climate conditions will decide the future in state.

--Are the trucks getting log-jammed at the ports? How’s the logistics? Whatever you can learn from your Brazilian contacts. It’s a hot topic.
 
In Mato Grosso, roads are with a lot of traffic, even on the beginning of harvest. Our team visited BR-163, one important road that connect Mato Grosso and Para, that has no pavement. Truck traffic on the road is terrible, and will get worse when harvest become more intense.

--I’m hearing the government is thinking about taxing soybean exports there. IF they did, what impact would that have on exports, farmers, etc?
 
There was some discussions about this topic this week, but government announced officially that has no interest on tax exports this moment.

 

Mike

Community Manager
marketeye
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Re: Brazil Update

Meanwhile, there is new news out of Argentina Monday.

 

In Argentina, the Ag Minister released this crop progress report:
--As of January 31st, 25% of the corn crop was in the silk stage.
--46% of the corn is in the grain-fill stage and 4% mature.
--83% of the corn is rated as good/excellent, below the previous 87%.
 --70% Argentina's single-season soybean crop is blooming/setting pods.
--86% of Argentina's double-cropped soybeans are in vegetative stage.
--The condition of the crop has dropped from 91% two weeks ago to 88% good/excellent, this past week.

 

I hope this helps,

 

Mike

Senior Advisor
ECIN
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Re: Brazil Update

Thanks ------ Ke-- Mo  -- Sah-- Bee

Esteemed Advisor
sw363535
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Registered: ‎07-18-2011
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Re: Brazil Update

interpretation---------------- fearless leader.

sw
Community Manager
marketeye
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Re: Brazil Update

And here is a press release from the Port of Paranuagua. The governor of infrastructure and logistics wants folks to know that the port has implemented new measures to handle 2,000 trucks daily and the portion of the record Brazilian soybean crop that is coming to this Port.

 

This is the press release that has been translated into english. It reads fairly understanably.

 

"The governor Beto Richa announced on Friday (01/02) operational measures Safra (Crop) Program, created to expedite shipments of grain through the Port of Paranaguá. Exporters, truckers and port operators are receiving detailed information about the logistics of shipping the crop of 2013.

   
The Port Authority of Paranaguá and Antonina (APPA) has made operational changes to give more fluidity to receive production, which promises to be a record. The shares will synchronize the work of all sectors involved and reduce queues unloading cargo. "An unprecedented planning prevention to minimize bottlenecks at the Port of Paranaguá. With the synchronization of all sectors, we will achieve greater operational efficiency and agility to be able to meet with record crop, "said the governor.

   
Beto Richa announced that over the next two years, the state government will invest £ 1.6 billion to improve infrastructure of ports Paraná. "Modern and efficient, the terminals will contribute to economic development statewide," he said.

   
The Appa implemented new access routes to the terminals of grains with the definition of alternative paths for each terminal discharge. Regarding the schedule of charges will only be programmed to discharge the trucks that are registered in the system load Online. With this, the guidance is that trucks do the register before leaving your home, so that Appa has a plan of what will be downloaded.

COMMUNICATION - To guide the truck drivers and operators on rules for receiving loads, road signs will be installed in the city and distributed information at the toll plazas and patio screening, with access routes to terminals. Also in the courtyard, there will be audible and totems to disclose receipt of the rules of the trucks.

   
Exporters receive electronic newsletters that detail the rules of the Service Order 21 issued last year, which regulates the receipt of cargo at the Port of Paranaguá. "We have developed materials to communicate with different audiences and ensure the smooth flow of the season, with no queues and the best use of our structures," explained the superintendent of Appa, Luiz Henrique Dividino.

HARVEST - The harvest estimate for 2013 is approximately 22 million tons of grain, 23% higher than last year. Since the movement of the grain export corridor is expected to reach 19.8 million tonnes, 24% higher than in 2012. "The Paraná has the largest grain crop in Brazil. Planning to give agility to the runoff is necessary, mainly due to the difficulty of storage ", said the Secretary of Agriculture, Norberto Ortigara.

   
According to Sérgio Malucelli, president of the Federation of Enterprises of Cargo Transportation of the State of Paraná (Fetranspar) during the grain harvest approximately 2000 trucks with the product arriving daily to the Port of Paranaguá. Malucelli said that prevention is the best way to avoid the long lines that generate many losses. "The plan is excellent and has the support of the federation. It is very important that truckers are aware of the changes, especially the compulsory registration of the load, "he said. He assured that the organization will work with the truckers informative.

   
The Harvest program was developed in partnership with the private port terminals of the Port of Paranaguá, Federal Highway Police and the concessionaires and Ecovia Rodonorte. Present at the ceremony deputies Reinhold Stephanes and Andrew Zacarovski, state Rep. Alexander Curi and the mayor of Maringá, Roberto Pupin, besides representatives of the Navy and the Federal Highway Police," according to the APPA press release.

 

What did you think?

 

Mike

Esteemed Advisor
sw363535
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Re: Brazil Update

Some serious covering of his backside there Mike.

 

 

sw
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sw363535
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Re: Brazil Update

Mike I should have noted another thing or two.   That much commenting by the guy who is probably taking some heat from disturbed "growers" might tell us the bottle neck is not going away soon------- especially when he starts claiming a much larger crop than anyone else you are talking to.  Makes it look like he is trying to distribute blame.

 

My experience in delaying a soybean harvest is not good if you can't get trucks..  When you can't get it out of the field the crop gets smaller.

 

Is there any local storage down there??  This makes it sound like they don't have any coops or farmer storage??

sw
Senior Contributor
Bugeye
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Registered: ‎11-30-2012
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Re: Brazil Update

SW I have read they only have enough farm storage for 15% of the crop, the rest has to go to terminals. I think they only have like 8 terminals. That's something I have never really understood. Building storage isn't exactly cost prohibitive. Not getting a crop in , especially a crop like beans, can be hazardous to ones financial health. Even more so if you don't have MPCI to cover your butt.
Esteemed Advisor
sw363535
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Re: Brazil Update

[ Edited ]

Yes bugeye,

 

That is real risk--------------- planting a bean crop with no storage for hundreds of miles of dirt road-----  If I were the banker, that loan would be hard to make.

sw
Veteran Advisor
roarintiger1
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Re: Brazil Update

A loan for farm storage would be easy to make......I would think.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"