The US government is ending a three-decade-old policy of subsidizing corn ethanol, but it appears that the loss of the 6 billion dollars annual benefit will have little impact on farmers.
A recent study, released on 11 October, Bio-fuel Markets and Technologies released by Pike Research states that the global bio-fuel market will double within the next decade to 183.3 billion dollars from its current level of 82.7 billion, with ethanol production accounting for 78 billion of future worldwide bio-fuel production, while predicting that bio-diesel production will reach 25.5 billion.
Argentina has rapidly displaced the US as the main supplier to Colombia of corn and in near future wheat, with volumes soaring from 99.000 tons in 2007 to over 2.2 million tons currently, points out Agrimoney.
Argentina is undergoing a “corn planting boom” because of its more diversified market opportunities which help to ease the full impact of the export quotas system imposed by the government of Cristina Fernandez.
The price of corn suffered its biggest fall for 15 years on Thursday, prompting speculation that the high cost of food may start to ease. Corn prices dropped 10% after a US Department of Agriculture report that farmers are sowing unexpectedly large amounts of the grain.
Brazil will harvest this year a record crop of 158.7 million tons, 6% higher than last year’s 149.7 million tons, according to the latest release from the country’s Geography and Statistics Institute, IBGE.
Paraguay is experiencing a boom in corn with an area planted of over a million hectares compared to 600.000 hectares a year ago, according to the country’s Soybean Farmers’ Association president agronomist Francisco Regis Mereles.
Paraguay’s 2010/11 soy bean crop covers 2.830.000 hectares (twice the area ten years ago) and the expected yield is between 2.900 and 3.100 kilos per hectare according to the latest satellite pictures in hands of the Paraguayan Chamber of Grains and Oilseed Exporters, Capeco.
So far the record yield dates back to 2003 with a national average of 2.915 kilos.
A good crop year for Argentine farmers and the government: export revenue will be up 4 billion US dollars and the tax man will bag an additional 888 million US dollars according to estimates from local grain dealers.
Corn and soybeans advanced for a second day as dry weather stressed crops in Argentina, raising concerns the global deficit may be larger than estimated.