Weather is cooperating in most of Brazil, with the exception of the southern region, which is responsible for 45% of corn production, reports Eder Silveira of Weisul Agricola. Argentina, on the other hand, is still in severe drought in its main production areas.
More troublesome is continued lack of credit, Silveira says. "Despite government actions to guarantee credit for agriculture, banks are still not lending. As always, official credit came too late.”
In fact, he reports, machinery dealers are canceling delivery of equipment bought on credit, leaving some farmers unable to plant. "Rumors are that another agricultural machinery plant had about 600 sales canceled for this year and has already announced collective vacations [plant shutdowns].
"Cotton exports are on standby,” Silveira says. "Merchants are not shipping cotton since buyers don't have the needed letter of credit from buyers overseas. There are rumors of some washouts from merchants and confirmed postponed shipments. Without credit, and with payments delayed, producers can't plant as planned.”