Here's what U.S. producers need to know about South America this week.
- While the Olympic Games in Rio de Janeiro are taking center stage, Brazil’s Senate voted this week to indict President Dilma Rousseff and put her on trial for impeachment. Rousseff's opponents needed only a simple majority in the 81-seat Senate for the trial to proceed. Critics note that politicians who have been accused of receiving kickbacks are ousting Rouseff. A conviction would remove Rousseff and allow interim President Michel Temer to serve out the rest of her term through 2018.
- Brazil’s government crop supply agency CONAB said drought hindered the safrinha corn crops this year. This caused an estimated 22% drop in total production (of the first and second safrina corn crops combined) to an estimated 68.4 million metric tons, compared with last year’s corn production of 84.6 million metric tons.Brazil’s soybean crop also fell by an estimated 0.8 percent, to 95.4 million metric tons, down from last year’s 96.2 million metric tons. Soybean acres make up 57% of the South American country’s cropland, according to CONAB.
- Argentina could be cashing in on a windfall in wheat exports. The Buenos Aires Grains Exchange said wheat exports, mainly to Brazil, have more than doubled compared to the same period last year, rising to 6.9 million tons. Argentina has wheat plantings of 240,000 hectares, the country’s grain exchange reported. Meanwhile, agricultural cooperatives reported heavy rainfall in some areas of the country, warning that rains will delay corn and soybean harvests, and lead to trouble meeting the timetable on contracts for delivery, the agency reported.