Brazil adds R1.4bn to farm credits in 2023-24 crop
Brazil's development bank Bndes will make an additional R1.4bn ($278mn) available for its subsidized farm loan plan for the 2023-24 crop.
The amount will be available on 11 April and will be for credit operations under the program, known as Plano Safra. Brazil's federal government initially offered R364.2bn in loans to medium-sized and larger farmers and R71.6bn for family farming for the 2022-23 season.
Bndes has approved more than R28bn for the 2023-24 Plano Safra, a 23pc increase from the same period in the previous season, it said.
The bank still has R4.6bn available to transfer to farmers — who can request loans until June — including the latest addition.
The loans offered under the program are destined for the crop year starting on 1 July 2023 and ending on 30 June 2024.
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La Nina outlook offers boost to Australian agriculture
La Nina outlook offers boost to Australian agriculture
Sydney, 16 May (Argus) — The outlook for Australia's crop and beef production is turning more positive in 2024-25, with the country's Bureau of Meteorology (BoM) updating its climate forecast towards a La Nina weather trend forming at the end of this year. BoM updated its El Nino-Southern Oscillation (Enso) outlook to a La Nina Watch alert on 14 May, with indicators suggesting this phase developing in late 2024. Approximately half of all watch alerts have followed with the projected Enso event occurring. Crop production and grazing conditions will likely benefit from increased rainfall should the weather trend eventuate. La Nina is associated with higher than average winter-spring rainfall from the northwest to southeast of Australia. Grain yields and production in Australia's eastern cropping regions typically increase with a La Nina. Australia experienced record production during La Nina events that occurred during 2020-23. Winter crop production peaked at 69mn t and 63mn t in the 2022-23 and 2021-22 fiscal year respectively, according to Australian Bureau of Agricultural and Resource Economics (Abares) data. The La Nina Watch alert comes as the US Department of Agriculture projected Australia's wheat production to increase by 3mn t from a year earlier to 29mn t in the 2024-25 marketing year, according to data released in its World Agricultural Supply and Demand Estimates on 10 May. Coarse grain production is also projected to rise by 4pc to 14.87mn t. But Enso weather events have limited impact on southwest Western Australia (WA). A potential La Nina is unlikely to aid WA cropping zones currently experiencing very low soil moisture levels . Increased rainfall from a La Nina developing in late 2024 may not coincide with the growing season of east Australia's wheat crops, which are typically sown during April-June and harvested in November–January. Too much rain around the harvest can damage crops and degrade quality. Floods in late 2022 damaged harvests in New South Wales, resulting in Abares at the time downgrading the state's production projections by 2mn t. Increased rainfall in east Australia will boost pasture availability for cattle producers. Increased capacity of feed may encourage producers to increase herd sizes, potentially supporting future slaughter and beef production. But the agriculture industry may be wary of the BoM's latest outlook. BoM was widely criticised after last year's El Nino declaration in September, which promoted some producers to pre-emptively destock at low prices in fear of dry conditions that did not occur. By Edward Dunlop Australia winter-spring rainfall during La Nina years (deciles) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s IPL fertiliser sale process 'advanced'
Australia’s IPL fertiliser sale process 'advanced'
Singapore, 16 May (Argus) — Australian chemicals and fertilizer producer Incitec Pivot (IPL) said the sale of its fertilizer business, first proposed last year, is now in "advanced negotiations". The potential sale of Incitec Pivot Fertilizers (IPF) to Indonesian producer Pupuk Kalimantan Timur (PKT) is subject to agreeing and executing final binding transaction documents, although there is no certainty that any deal will be reached or that any sale will occur, IPL said its financial report for its October 2023-March 2024 half year on 16 May. While IPL considering the sale of its fertilizer unit first emerged in July 2023, it was unclear who the interested buyers were. PKT is a subsidiary of state-owned fertilizer group Pupuk Indonesia Holdings and has production capacity of 2.74mn t/yr of ammonia, 3.43mn t/yr of urea and 300,000 t/yr of NPKs. Should the deal eventuate, the Indonesian producer intends to continue supplying fertilizers to Australia, support the retention of IPF's workforce and grow IPF's business in Australia, PKT confirmed to IPL. IPL reported a 77pc year-on-year fall in its first-half earnings before interest and tax (ebit) to A$10mn ($6.7mn). This was mainly attributed to the closure of Gibson Island that was producing ammonia, urea, granular ammonium sulphate and diesel exhaust fluid AdBlue, as well as reduced manufacturing performance at Phosphate Hill in Queensland with a capacity of 1mn t/yr of DAP, MAP and specialty products. But its distribution business was supported by firm demand and a well-managed fertilizer supply chain with its first-half ebit more than doubling from a year earlier to A$27mn, which partially offset a weaker manufacturing performance. By Huijun Yao Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s live cattle exports slip back in April
Australia’s live cattle exports slip back in April
Sydney, 16 May (Argus) — Australian cattle exports fell in April from a month earlier as demand from Indonesia waned, Department of Agriculture Fisheries and Forestry (DAFF) data show. Live cattle exports fell by 20pc to 60,521 head in April, as Indonesian demand dropped by 16pc but still made up 86pc of the monthly total. Indonesian imports rose sharply in March , likely in preparation for the end of Islamic fasting month Ramadan celebrations in early April. Total exports may have also been affected by the continued wet season in northern Australia, supporting domestic prices and motivating producers to retain stock. The fall was partially offset by increased exports to Vietnam that rose by 37pc in April from March and comprised a 14pc share of shipments. January-April exports were 20pc higher than the same period of 2023. Australia as at 3 May has used 16pc of the total quota of 672,669 head of live male cattle under the Indonesia-Australia Comprehensive Economic Partnership Agreement, according to DAFF. By Edward Dunlop Australia live cattle exports (head) Apr '24 Mar '24 Apr '23 Apr '22 Apr '21 Jan-Apr '24 Jan-Apr '23 Jan-Apr '22 Jan-Apr '21 Indonesia 51,941 62,041 26,926 35,936 39,659 129,381 97,170 102,860 138,384 Vietnam 8,290 6,041 9,580 4,688 3,713 32,037 20,721 7,730 44,367 China 0 3,500 7,160 1,609 7,061 32,306 27,003 41,439 34,600 Malaysia 290 0 0 59 1,893 1,490 1,749 879 6,667 Israel 0 501 9,252 1,596 0 2,728 19,798 13,041 11,909 Total 60,521 75,704 55,611 45,288 59,396 209,592 175,299 171,482 250,100 Source: DAFF Totals include all destinations not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
More Egyptian urea sold at $286/t fob for June loading
More Egyptian urea sold at $286/t fob for June loading
Amsterdam, 14 May (Argus) — Egyptian fertilizer producer Mopco has sold a further 25,000t of granular urea at $286/t fob for loading next month to a European market. The producer is now targeting $290/t fob. The deal follows business which emerged at a similar level today, with Mopco selling a total of 20,000t at $286/t fob to two trading firms, while fellow producer Alexfert sold 5,000t of granular urea at $287/t fob for June loading. Trading firms covering short sales across mainland Europe and Turkey have been driving these latest deals out of Egypt, with purchases taking place earlier in the week in the lower $280s/t fob. By Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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