Brazil’s soybean production could jump by 9%, and corn production could also rise in both Brazil and Argentina. Meanwhile, Argentina’s government put off taxing soybean exports, the country’s main cash crop, due to budgetary concerns.
Brazil’s 2016/17 soybean production will increase between 6.7% to 9%, to between 101.8 MT and 104 MT. That's according a recent report from the South American country’s crop agency, Conab.
Brazil’s soybean acreage also will increase, from 33.25 million hectares in 2015/16 to 33.44 million to 34.53 million hectares in 2016/17. That would bring the total increase of 191,000 to 1.2 million hectares, according to the Soybean and Corn Advisor market newsletter. The 2016/17 Brazilian soybean yield will rise 6.1%, from 2,870 kg/ha in 2015/16 (41.6 bu/ac) to 3,046 kg/ha in 2016/17 (44.1 bu/ac), according to the newsletter.
Brazil’s estimated corn crop is between 82.3 to 83.8 MT (26.6 first crop and 56.1 second crop). That would be roughly 16 MT above last year's damaged crop of 66.7 MT, according to Allendale.
Meantime, Argentina’s Buenos Aires Grain Exchange estimates the 2017 corn crop at 36 MT, up from last year's crop of 30 MT. The soybean crop was estimated at 53 MT, down 3 MT from last year, Allendale reports.
Argentina’s government says it will wait until 2018 to cut back on export taxes of its main cash crop, soybeans, because of budgetary concerns. Plans now call for the tax to be reduced by 0.5% per month between January 2018 and December 2019.
Shortly after taking office in December, Argentina’s President Macri eliminated corn and wheat export taxes as part of his plan to revitalize the country's ag economy. The export tax on soybeans also was cut from 35% to 30%, Reuters reports.