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Paraguay- Update on Salitre Cue farm rice production (April 2018).

Harvest: We now completed the harvest of all plots, dried and stored our production in our silos. Over 9,200 tonnes of paddy rice have been produced during this campaign, and meaning a year-on year  improvement in production results as as our average yield was above 7 t/ha (dry).

Sales: We have started to sell and deliver some of our production (limited quantity). However, local prices are depressed as most of Paraguayan rice production final market is Brazil, currently again affected by political tensions with the Lula’s case which translated in depreciation of the Brazilian Real against USD (reference currency for Paraguayan rice price).

Thanks to our silo facilities, we can continue to store our production and waiting for better market prices.  

Argentina – Central Bank intervention to fend off inflation (March 2018).

Earlier this month, the Central Bank (BCRA) had to sold massively USD in the spot market to halt peso weakening after the USD quote fell to a record of ARS 20,65.

The BCRA is concerned about the impact that the weaker ARS can have on the already very high inflation. National inflation is now expected to be 15% at the end of the year while a range of 12% to 17% was targeted previously. Economists are more septic about and they expected an inflation of 20% minimum.

 According to the National Statistics Institute (INDEC), national consumer prices rose 2.4% over the previous month in February, coming in above January’s 1.8% rise. However, the increase was expected due to a hike in prices of electricity, transportation, communication and medicine that came into effect on February 1, 2018.

Argentina – Update on Curupi Pora farm activities (March 2018)

Situation/weather: Drought has prevailed in northern Argentina during most of the growing season that began in late September and October. Dryness reached serious proportions a number of times, but most recently during January and February. Corrientes province, which is mainly focused on cattle and rice operations as well as forestry, was not spared from La Niña phenomenon.

As of 03/16/2018, cumulative rainfall for the cycle was 796 mm or -29% compared with the historical average for the same period. The good news is that we are now again able to access the limit of the farm bordering with Santa Lucia river.

Cattle operation: our cattle herd (5,911 heads currently) is overall in good conditions even if some categories, more sensitive to high temperature, are a bit lighter than they should be. An abundant supply in water to the herd is key here, completed by other actions (high quality silage, more health controls, cattle handling only early in the morning during heat waves, etc). Management is key during those phases.



Pasture-fed cattle: Pasture planted last October showed good resilience to heat waves and water shortfalls. We are also in the process to start aerial sowing of 144 hectares with OAT. OAT not only has a high protein content to feed cattle but is also cleaning the soil and improving its structure. This sowing will be completed with Ray grass pasture over 260 hectares as it supports high loads of animals per hectare, making it a species
particularly suitable for grazing.

Corn: 270 ha have been sowed in February for self-consumption after having been delayed due to lack of humidity. For now, the crop is in blooming stage but we already anticipate to get lower yield than usually (4.75 t/ha) given delay faced in sowing and dryness.

Argentina/Uruguay – Drought damaged over half of the Argentinean crop and extent to the region (February 2018)

Until mid-January, farmers in the Latin American countries endured a lack of rain and drought has continued to worsen, especially in Argentina and in the heart of the Pampa húmeda. Fields didn’t get enough rain to ensure an optimal soil moisture (less than 1/5 of the average rainfall was registered for January) while temperatures are higher than usually. The situation is not unique for Argentina; South of Brazil and Uruguay are experiencing similar weather conditions.

Furthermore, February is the month when corn and soybeans are in their fill stages (the reverse of August in the Northern Hemisphere) and the lack of soil moisture has begun to affect critical stages of both crops. According to the latest weekly report from the Buenos Aires Cereal Exchange, approximately 13 million hectares of grains production (soybeans, corn, sunflower, etc) are damaged in Argentina. The hydrical stress is affecting mostly the soybeans.

Hot, dry weather in the world’s #3 exporter of raw soybeans and top supplier of soy meal livestock feed has pushed up prices on the Chicago Board of Trade (CBOT) in recent weeks, with soybean futures hitting a seven-month peak on 02/22/18.

Article from Perfil, dated 21/02/2018

The situation is likely the same in Uruguay as you can see on the water availability map for the 10 first days of February.

For us, soybean is the most affected at La Esperanza farm (700 ha) but it is still too preliminary to quantify losses in yield or quality.

ARGENTINA – Local news: While grain transporters strike in Argentina, Brazil is downgrading its soybean and corn harvest expectations (February 2018)

Owners of trucks are currently striking to protest for higher freight rates and have slowed transport of grains to ports, cutting into stocks for wheat, corn and soybean.

The situation is particularly serious at Rosario port which will be the most affected as the complex is responsible for exporting 80% of agricultural products, and only 50% of the trucks currently arrive to the port.

Argentine exporters and crushers may not benefit from the expected downsize in Brazilian soybean and corn. Even if Conab (National Supply Company) increased recently his latest estimate of production for the current cycle thanks to better weather conditions (rain) – expected production for both grains should be down by at least 3% in terms of volume compared to last year.

Paraguay – Harvest progress at Salitre Cue farm (February 2018)

Rice harvest has begun at the farm and so far, over 600 hectares have been harvested with a yield of 7.5 t/ha (dry).

Drying reduces grain moisture content to a safe level for storage. It is the most critical operation after harvesting the crop. When rice is harvested, it will contain up to 25% moisture. High moisture level during storage can lead to grain discoloration, encourage development of molds, and increase the likelihood of attack from pests.

Video: Cleaning, roughing, split and grain drying

Delays in drying, incomplete or ineffective process are reducing grain quality and result in losses. To this aim, we have dryers with a daily capacity of 600 tons to address our needs. After drying process is completed, our paddy rice is stored in our 3 silos by index of quality and awaiting for optimal conditions for best prices.

Meanwhile, we continue the harvest of our various plots as around 55% of the sown area for this cycle remains to be harvest.

Uruguay – Farmers launch massive protest against the Uruguayan government (January 23, 2018).

Uruguayan farmers have decided spontaneously to voice their anger in the street against the government during the January recess. They strongly protest against the government to demand improvements in conditions to promote profitability in the agricultural sector. Farmers are suffering from prices increase of most crucial inputs such as fuel, power, water, etc, establishes administratively by the government, which make several farm activities unprofitable.

The rural sector is demanding lower production costs as well as measures to resolve the country’s lagging exchange rate. A cheap US dollar in Pesos, makes Uruguay a very expensive costly country to produce. Furthermore, the Uruguayan government needs also revenue to lower the deficit and retain the investment grade: so far it has been done mainly by increasing taxes directly or indirectly through the goods and services provided by government monopolies.

 Uruguayan agricultural producers demonstrate massively on January 23, 2018, joined also by industry and workers.

“Local press articles from MercoPress, dated 01/24/2018″.

Uruguay – La Niña is back, and already impacts the region with temperatures above normal and scarce rains (January 2018).

Crops activities are currently suffering from dryer weather conditions for a number of weeks in Southern Brazil, northern Argentina and Uruguay, driven by high temperature and limited rainfall.

In some areas, it has deteriorated to the point that soybean or corn sowing have been suspended, waiting for additional moisture.

For our own grain production performed in Uruguay: Soybean #1 planted by mid-November is doing fine so far at Santa Maria (over 430 has) while the situation is getting more complicated at La Esperanza (over 700 has) due to lack of water during pollination.

Furthermore, we just completed second-crop sowing of soybean (over 370 has) and of corn (280 has) in Santa Maria after being delayed various time due soil conditions (lack of moisture and rain to insure germination).

Those conditions have the potential to reduce yields and quality of grains. If the situation persists, cattle operation might also be affected (pasture contraction). Rains are expected to improve conditions.

“Uruguay climate report December 2017 and forecast 2018, published by INIA”

Uruguay – Update on La Esperanza farm activities (December 2017).

Crops activities: Over 710 hectares are currently sowed with soybean. We are targeting a yield of 2,5 tons/ha.

We are also going to sow 70 hectares with sorghum which should produce 330 tons of grain. We have given for rent 400 hectares to a third party for rice production.

Cattle activities: The entire herd is in very good shape and has access to dense pasture. For the current cycle, we are expecting to produce 530 tons of meat with an average herd of 4,000 heads.

We will have around 1,590 cows in spring service. Autumn service of heifers took place (insemination of 380 heads) and we obtained a pregnancy ratio close to 92%.

Uruguay – Update on Santa Maria farm activities (December 2017).

Winter crops: 100 hectares planted with barley have been harvested so far and 264 hectares are remaining.

The 40 hectares planted with OAT are almost harvested. Our OAT production is directly delivered to a Uruguayan malt house with which we are cooperating since years.

Summer crops (Soybean & Corn): 500 hectares are planted with soybean #1, of which 425 hectares have already been sowed. We are targeting a yield of 2,8 tons/ha. We will then doublecrop soybean over 400 hectares.

As for corn, we are going to start soon with the sowing of 290 hectares. We are targeting a yield of 5,5 tons/ha for this crop.

Cattle activities: The entire herd is in very good shape and has access to dense pasture as you can see. For this cycle, we are targeting to produce 475 tons of meat with an average herd of 3,100 heads.

Currently, we have around 920 cows in spring service.