ARGENTINA – Local news: While the peso seems to have stabilized, inflation continue to run (July 2018).
After having reached a peak end of June (above 29 ARS/USD), the peso seems to have stabilized around 28 per USD thanks to the 3 increases in minimum reserve requirements made by the B.C.R.A. (June 18, July 2 and July 18).
Regarding inflation, that’s another story: Monthly inflation was 3.7% in June (the strongest monthly hike since 2 years) and 16% over the cumulative first six months of the year. In comparison with the month of June 2017, prices rose by 29,5%. Housing prices, water, Electricity, gas and other fuels have increased by 48.5% year-over-year.
Meaning that national inflation rate targeted for the year by the B.C.R.A. (15%) has already been exceeded over the first six months of the year.
ARGENTINA – Update on Curupi Pora farm activities (July 2018).
Situation/weather: Even if more rains have been registered in Corrientes province since March, damage causes previously by the drought could not possibility reverse, especially for crop activities as water is required at given time. As of end of May, cumulative rainfall for the cycle was 1,120 mm or -20% compared with the historical average for the same period.
Cattle operation: Our cattle herd (5,412 heads currently) is in good conditions and the more sensitive categories to high temperature have started to recover. Young male calves are going to be send to San Bartolo farm where fattening process is easier and faster than in Curupi Pora given Salta’s climate. Young female calves are retained to increase and replace mothers’ herd. Self produced Bradford bulls will also improve internal genetic of the herd while old bull are going to be sold.
As we were able to access to the limit of the farm bordering with Santa Lucia river, we took advantage to put fences in place to segregate the floodplain in order to graze cattle on the unfloodable section as pasture are very dense there.
URUGUAY/ARGENTINA – Hot, dry spell weighs on Ag outlooks (July 2018).
The drought situation faced during the austral spring leads to a decrease of 78% of soybean export in Uruguay, compared to the same period a year ago. Argentina’s agriculture sector plummeted 31% in April on a year-on-year basis, according to government data.
For the first time, Paraguay is forecasting to export more soybeans than Argentina in order to fill the supply gap left by the drought (6.3 million tons this year from Paraguay vs 4.2 million tons from Argentina). Argentine soybean harvest just came in at 36 million tons, a drop of 38% over the previous year.
As a result, crushers are operating at less than 70% of capacity and they need to import soybean in order to keep their facilities up and running ; closing down a facility or reducing operations due to a lack of soybeans is more complex in Argentina than importing it (Cargill tried it).
In Brazil, the situation is quite the reverse. Thanks to better climatic conditions, soybean harvest should reach a new record level, and at a lesser proportion for corn. Brazil will likely surpass the U.S. as the largest producer of soybeans this year, taking over the top ranking for the first time in history. According to U.S.D.A. forecasts, the U.S. is expected to harvest 116.48 million tons of soybeans later on in 2018, falling short of Brazil’s estimated collection of 118 million tons for its crop year. Brazil, already the world’s largest soybean exporter, is expected to expand this lead in the coming years thanks to its unique ability to expand planted area in opposition with the Americans which already are using the maximum area possible.
All eyes are now focus on forthcoming harvests of the northern hemisphere were crop conditions decline due to dryer conditions, especially in the Corn Belt.
Heat waves and temperature records were beaten over the last month of June making it the 3rd hottest month registered in the U.S. by the N.O.A.A. in 124 years. Europe neither the Black Sea countries do not escape from the same problems.
URUGUAY – UPDATE ON LA ESPERANZA FARM ACTIVITIES (July 2018).
The farm is recovering more rapidly than foreseen from the recent drought, but the damage is done for this campaign.
To restore healthy pastures as quickly as possible, we concentrate on protecting existing plants and encouraging new plants. You can see OAT and Ray-grass planted 3 months ago which have developed properly.
Summer crops (Soybean & Sorghum): Harvest of both crops is now completed. Soy plants were the most affected by the drought since this crop is a large water consumer. The most important times for soybean plants to have adequate water are during pod development and seed fill, and water was then lacking as previously detailed. As a result, we get 1,25 t/ha (equivalent to the nationwide soybean yield estimated by the D.I.E.A.) vs 2,5 t/ha budgeted for the 710 ha sowed – some plots registering 600 kg/ha while others 1,7 t/ha.
Sorghum yields were less affected as we registered 4 t/ha vs 4,5 t/ha budgeted.
Cattle activities (4,065 heads): Because drought weakens plants and amplifies the effects of grazing, we have limit the time that animals spend on each pasture and supplemented the herd with silage and corn. As a result, beef production has also been affected by the drought but to a lesser extent than expected given the intensity of the drought faced.
In addition, we are in the process to increase the stocking rate of animals, mainly with cows in order to get more calves in the future. The male calves are going to be sold with 210 to 230 kg and we must compensate those with bellies. Once the number of bellies will be stabilized, we will increase meat production.
Between autumn and spring services, 2,000 bellies are going to be at work. Next year, our objective is to have around 2,400 bellies if climate conditions remain favourable (no floods in particular).
ARGENTINA – Local support to the deprived kids of Corrientes (June 2018).
As part of your engagement in the development of the local communities nearby our operations, we decided to provide a support in kind to the catholic institution of Corrientes called C.A.R.I.D.I. “Jesus Nazareno”.
We offered all our used IT equipment to this local institution so that children and teenagers can become familiar with and learn how to use these tools for the future.
