Delays for South American Harvest Remain

Published on: 13:31PM Mar 04, 2011

While popular – and politics – thinks only about carnival, some news from the country side brings worries that may cause even more inflation on food prices: harvest is still delayed due to rains, and now it’s becoming worse as some disappearnace is assumed. The center west region is already considering losses of 5% to 20%, because soybeans are rotting in the pods.

Some local private agencies are now estimating 1 mmt less in soybean crop, assuming the total of 69,1 mmt. For every week the rains persist from now on, another 1mmt should be lost.
 
However, long truck lines are forming in the Paranaguá port pressing down the local basis -  I can’t wonder what will happens when harvest catch up!!! Every year we get closer to an expected "logistic blackout", as production increases and we have no compatible investments in structure… but that’s the way Brazil walks!
 
Rains are also affecting the 2nd crop corn, which planting should be started in the end of February. Some producers are planting anyway as seeds are already in the warehouse, but low yields will be expected.
 
In Argentina, same problems as always: producers, port labors and government fighting around taxes, wages, export limits… and problem there is lack of rains. I believe in reduction.
 
Meanwhile I was writing this, a report from U.S private agencies blew my mind with higher crop number for Brazil in Argentina! I hope I’m wrong and they are right. We will know soon.
 
But actually nothing matters. It’s Carnival and all problems in Brazil will sink down in the ground with warm beer, nihilist music, and many dead in the roads. We all forget the miserable living of 80% of the people, the corruption of our politics, cut of R$3,5bi on education budget, and get happy as a lotto winner, for 5 days.