Corn and wheat are weaker to start the week while soybeans show the strength. Currently corn is down 3, wheat is down 10 and soybeans are up 14.
Several Argentine agricultural companies on Friday said they had slashed their forecasts for this season’s soybean and corn harvests due to a historic drought and mid-summer frosts, which they warned could cost the country more than $20 billion.
Argentina, the world’s top exporter of soybean oil and soymeal and the third-biggest corn exporter, has been hit by a severe drought described by the Rosario grains exchange in Santa Fe province as the worst in 60 years. On Thursday, the Buenos Aires grains exchange said it would in the coming weeks further cut its current soybean harvest forecast of 33.5 million tonnes, without saying by how much. The latest estimates mean Argentina would produce 38% less soy and 30% less corn than initially forecast. CREA said the forecasts could be revised further downwards in coming weeks.
Brazil’s biosecurity agency approved the use of a genetically modified wheat variety on Friday, making the country the second in the world (after Argentina) to grant permission for GMO wheat. Also, the country’s Ag Ministry on Friday said that an additional 90 local firms have been cleared to export corn to China in the first two months of the year, bringing the total to almost 450.
AgRural also said Brazil’s second corn planting, which represents about 75% of the country’s overall corn output in a given year and is cultivated in the same areas as soybeans, had “good progress” in the week.
According to the consultancy, 70% of the expected second corn area has been planted in the center-south region, up from 55% a week earlier but still below the 80% of a year ago as sowing in Mato Grosso do Sul remains delayed.
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