3 Things to Know about South America This Week

September 16, 2016 02:36 PM
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South America’s corn crops may be shrinking, but soybean crops are increasing, and soybean producers are expected to increase plantings of Monsanto’s second-generation GMO by nearly 60%. And Argentina is holding off on getting rid of a soybean tax.

Here are three items to consider this week regarding South American agriculture:

1. The size of Brazil’s 2016 corn crop is shrinking. It will be 2.5 MMT smaller than it was in 2015, according to USDA estimates, for a harvest of 82.50 MMT. Brazil’s 2016 soybean production of 101 MMT, on the other hand, is projected at 3.80 MMT more than it was last year, but it has fallen 2 MMT from USDA’s August projections.

Argentina’s 2016 corn production is expected to grow by some 30% to 132 MMT, according to USDA, with new crop ending stocks at 10.86 MMT. New crop soybean production is estimated at 57 MMT, 4.4 MMT less than last year, with ending stocks of 27.82 MMT.

2. South American soybean producers are expected to plant 57% more area of Monsanto’s second-generation GMO soybeans, according to the marketing firm Allendale.

3. Argentina's government is considering postponing a tax cut planned for next year on soy exports as a recession in Latin America's third largest economy eats into fiscal revenue, Reuters reported. Argentina already has eliminated taxes on corn and wheat exports and promised to gradually eliminate the taxes on soybeans, but difficulties meeting planned budget cuts may force a change in plans, according to a government spokesman.

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