Oil World cut its forecast for Brazil and Paraguay soybean production, extending the run of downgrades amid ideas that rains in the last two weeks has been insufficient to put a hold on crop losses.
The 2012 Brazilian grains and oilseed is expected to be below the 2011 record because of the intense drought in the months of December and January, particularly to the south of the country where soybeans and rice suffered most reported the Geography and Statistics Institute, IBGE.
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.
As extreme drought conditions punish Argentina’s crops throughout the country farmers’ organizations are at loggerheads with the government of President Cristina Fernandez, which is refusing to increase the emergency fund for such situations and to alleviate the tax burden.
The most intense La Niña climate pattern since 1975 is coming to a close in Chile, after it cooled water temperatures off the Pacific coast of South America and left a troubling drought in its wake.
A new study has revealed widespread reductions in the greenness of Amazon forests caused by the last year's record-breaking drought.
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.
Countries anxious to avoid a repeat of the 2007-2008 global food crisis when they were caught short of grain supplies, have stepped up their buying programs and are driving prices to new highs.
Chilean farmers and produce distributors estimate that prices will increase for some fruits and vegetables by as much as 10 to 20% within the next 60 days, due to water shortages in northern and central Chile.