Here's what to consider about South American crop production this week. A weaker currency is boosting Brazil’s exports, Argentina says it will plant 25% more new crop corn, and Brazil’s soybean planting is underway.
Argentina's government grain agency Buenos Aires Grain Exchange estimates a 25% increase for the country's 2016/17 corn plantings, at 4.5 million hectares. Farmers in central Argentina are planting corn earlier than normal, with 15.2% of the planting already complete, at 655,000 hectares, the agency noted in its weekly report. The report also notes that about half of the wheat crop is in good condition, despite lack of rainfall.
Brazil’s Mato Grosso Institute of Agriculture Economy estimates soybean plantings in the state of Mato Grosso – the country's largest agricultural producer – is 1.2% complete. Last year at this time, planting was 0.55% complete, according to the marketing firm of Allendale. USDA expects an increase of only 1.5% next year in South American soybean acreage, mostly accounted for by Brazil.
Brazil’s currency, the real, is fluctuating between gains and losses amid speculation that economic reforms may be harder to push through as a corruption investigation ensnares top politicians. For now, the lower real and a commodity rally is boosting the outlook for exports, according to a Bloomberg report.