Weeks of drought and heat have hit Brazil's soy and corn production, but the agriculture ministry still predicted a record 2014 harvest. Corn production is set to total 75.5 million metric tons, down from a January estimate of 79 million, state food supply agency Conab said in its monthly report.
Argentina’s 2013/14 soybean crop will be above 50 million tons while corn can be expected to reach 30 million tons, according to the country’s Agriculture minister Norberto Yauhar, based on preliminary production estimates. The minister also advanced that caps on wheat and corn exports could be lifted in the near future.
United States corn exporters are concerned with the fact that Venezuela, one of their prime markets, is now a full member of Mercosur, which includes Brazil and Argentina two major exporting countries.
Argentina pledges to export an extra 2.75 million tons of corn from its 2011-12 harvest to a total of 16.45 million tons helping to ease tight international markets after this summer's drought in the US damaged crops there and fuelled fears of a food crisis.
The world could face a food crisis of the kind seen in 2007/08 if countries restrict exports on concerns about a drought-fuelled grain price rally, the UN food agency FAO warned, after reporting a surge in global food prices in July.
The commodities soy and corn’s prizes sky rocked on Thursday thanks to the severe drought that has been punishing the United States heartland. Soy and corn were being sold at record high of 638.89 dollars/ton and 320.26 dollars/ton respectively.
US agrochemical giant Monsanto will direct most of a 365 million dollars investment in Argentina to a corn seed factory in the central city of Cordoba, the local government there has announced.
Corn fell in Chicago on concern a record harvest in Brazil’s Mato Grosso state may add to a supply glut and on speculation slowing US economic growth will cut demand for grain used to make ethanol.
Corn advanced heading for the biggest weekly gain in five as concerns that a renewed heat wave in Argentina and south Brazil may damage crops boosted demand for US grain. Soybeans were little changed.
Argentine corn and soy farms will suffer from hot weather and scant rains for the rest of this week, forecasters said on Tuesday, increasing worries that crop losses will eat into global supplies.