Evening Report (VIP) -- October 15, 2013

October 15, 2013 09:37 AM
 

SENATE TALKS ON HOLD AS HOUSE WORKS OUT ITS OWN PLAN... The stock market continues to oscillate between risk aversion and risk appetite, with today favoring the former, as negotiations in Washington, D.C., regarding the debt ceiling and funding the government came up against more hurdles today. Yesterday, the markets responded positively to indications talks between Senate Majority Leader Harry Reid (D-Nev.) and Senate Republican Leader Mitch McConnell (Ky.) could yield a potential accord that would fund the government through Jan. 15, extend the debt ceiling until Feb. 7 and have a Dec. 13 deadline for a longer omnibus spending bill before Jan. 15 when the next round of sequester cuts is slated to occur.

Today the House worked on and may vote on a new fiscal plan that mirrors the Senate plan with a few key exceptions. Namely, it would delay ObamaCare's medical device tax for two years and it would eliminate healthcare subsidies for members of Congress as well as top Cabinet officials. Meanwhile, talks in the Senate have been suspended to until the House moves forward with its plan. Senate Democrats and the White House say the House draft proposal is not workable.

 

 

NEW PEST IN BRAZIL COULD CAUSE SIGNIFICANT HARM TO CROPS... South American crop consultant Dr. Michael Cordonnier says one of the biggest concerns for Brazilian farmers this year is the discovery of a new pest commonly known as the corn earworm or cotton bollworm. The pest caused significant damage to soybean, corn and cotton crops in western Bahia last year and is now being found in large numbers throughout the soybean producing regions of central Brazil.

Unfortunately, there is currently no proven method for controlling the pest in the country as there are no natural predators in Brazil. Both houses of Congress approved insecticides that have helped to control the pest in other countries, but President Rousseff has yet to sign the bill.

Dr. Cordonnier reports that worms were found feeding on volunteer corn from last season as far south as southern Mato Grosso do Sul.

 

 

CONSULTANT LEAVES SOUTH AMERICAN CROP PEGS UNCHANGED... Dr. Cordonnier left his South American corn and soybean crop estimates unchanged from last week. Speculation is rising that safrinha (second season) corn acreage in Brazil will decline due to low or negative margins. He says if that occurs, producers may increase acreage for a second crop of soybeans, cotton or another crop. "Therefore, the final Brazilian corn production could end up being lower than what is currently estimated," he says.

Dr. Cordonnier currently expects 2014 South American soybean production at 158.8 MMT, up from 146.4 MMT last season. He pegs South American corn production at 100.6 MMT, down from 111.6 MMT last year.

Dr. Cordonnier 2013-14 Soybean Estimates

Est.
Maximum
Minimum
2012-13

in million metric tons

Brazil
88.0
90.0
83.0
82.0
Argentina
55.0
57.0
51.0
49.5
Paraguay
10.0
11.0
9.0
9.3
Bolivia
2.6
2.9
2.2
2.6
Uruguay
3.2
3.5
2.8
3.0
Total
158.8
164.4
148.0
146.4

Dr. Cordonnier 2013-14
Corn Estimates

Est.
Maximum
Minimum
2012-13

in million metric tons

Brazil
72.0
74.0
66.0
81.0
Argentina
25.0
27.0
23.0
26.5
Paraguay
2.5
2.8
2.1
3.0
Bolivia
0.7
0.8
0.6
0.7
Uruguay
0.4
0.5
0.3
0.4
Total
100.6
105.1
92.0
111.6

 

 

MARTELL: MORE RAINS NEEDED IN BRAZIL... Meteorologist Gail Martell of MartellCropProjections.com says the rainy season has been slow to develop, but weekend rains in some areas of Brazil encouraged planting. She says while rains have been generous in Parana, areas of Rio Grande do Sul and Mato Grosso do Sul still need additional moisture to improve soils. She says weather models predict improved rainfall in Mato Grosso and the tropics for the next several days, which would be just in time to help with crop establishment.

Back to news


Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close