03-01-2013 07:05 AM
There is a lot of crop in South America which will eventually get out of the country. But there is alot of other stuff going on Argentina.
Policys and politians are really get bad down there from what I've been reading. I'm not for sure if they can sustain this output forever just because of a really poor politcal climate. If I was cargil or somebody I don't know if I would want to sink millions of dollars into a port system down there.
Our politcal system is bad, theres is way worse.
03-01-2013 07:11 AM
Talking about Cargill investing in SA?????? Weren't these large grain companies the first to invest large $$ down there? They are THE reason Brazil and Argentina are competing with the United States when it comes to grain exports. (Not ot mention that the land used to be really cheap.)
03-01-2013 07:24 AM
I think you are right. Well, if you believe the complaining truck drivers that come to these ports every year, you are exactly right. Because, it's what they are arguing about. They say the congestion is like this every year. But, their wait time is getting longer. And, to boot, the record-sized crop is not helping logistics.
03-01-2013 07:33 AM
Indeed there are folks interested on investing in the country's infrastructure, but it isn't so easy. Most ports in Brazil are administrated by the federal government. Last week, it has announced a plan to privatize major ports to gain efficiency. However, port workers have threatened to start a strike. They fear of having to work harder and being more vulnerable to layoffs.
Some say that Brazil is the country which has more water in the country, but waterways are not very used. Bureaucracy makes almost impossible for transportation companies to operate in the rivers.
03-01-2013 07:40 AM
If I remember right it was the far east (Japan/China) that started the investing in South America 20-30 years ago when we were too expensive/ unreliable or were embargoing. Kind of fuzzy on the detaills, but that is nothing new.
03-01-2013 08:12 AM
Cargill has operations in Brazil since 1965. They started major investments since the 2000s, as many other corporations. Some years after Brazil has curbed inflation. Their port in Northern Brazil has got a license after 12 year of waiting, being able to work just last year. The 2008 recession in the US and Europe helped a lot the country for investments because there are a significant growth of the middle class, while consumption was shrinking in the developed world.
There never was a trade embargo against either Brazil or Argentina by the US.
03-01-2013 08:44 AM
ECI - need to ask Ray why it takes 9 hours for Cargill to load a grain trailer with soybean hulls here in Iowa, and an equal amount of time to unload at another facility where they sell them. lol.
No doubt about it, Cargill is really on the cutting edge when it comes to dumping and loading trucks here in Iowa. NOT!!!!!! Kinda funny to listen to the pot calling the kettle black. Just sayin . . . John
03-01-2013 09:32 AM
FWIW, I just read that Allendale says that the weather market in South America is over............which means......that it's time for the weather market here in the USA.......
Too much rain in the east = delayed plantings
Too little rain in the west = drought conditions continue
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