Guess who is the main producer of soy beans in Brazil, the country that is the world’s second exporter of oilseed behind the United States?, a Brazilian, no an Argentine group.
Mercosur full member Argentina this week is expected to approve the use of genetically-modified soy seeds made by German company Bayer as part of its push to increase farm production, a top Argentine official said on the weekend.
South American grain and oilseed production may be in jeopardy from the formation of a La Niña weather pattern, which might curb rainfall in parts of Brazil and Argentina, Oil World said.
China, the second-largest buyer of soy in the world wants an end to intermediation by US multinational companies working in the sector and plans to invest purchasing directly from farmers in Mato Grosso and another five states in Brazil, according to the Brazilian press.
Soybean was king of corps in Uruguay last summer with 1.5 million tons planted in 862.000 hectares and with an average yield of 1.788 kilos per ha, according to the latest data from the country’s Agriculture Statistics Office, DIEA.
Brazil’s trade surplus more than doubled in July from a year ago fuelled by higher commodity prices in spite of the over-valued Super Real that is having an impact on manufactured goods exports and promotes the import of ‘cheap’ products.
Soybean processing and exports from the US, Argentina and Brazil, the largest shippers, were below expectations in the second quarter on reduced Chinese imports and competition from palm oil, Oil World said in a Tuesday released report.
“Saving in US dollars or in soybeans is the same” cautioned Argentine economist Carlos Melconian, who argued that “grain and oilseed prices are more linked to the value of the dollar than to demand for food produce”.
Brazil's 2010-11 soy crop was larger than previously estimated, as higher productivity and a greater area of land planted with the oilseed resulted in record output, agricultural consultancy Celeres reported this week.
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.