Kory writes.
I covered 2000 KM of Mato Grosso last week.
2nd crop corn and cotton look good.
Rainfall totals for central Mato Grosso are at 1400 MM as of March 14th. Normal is 2000 MM for this date.
The rainy season will end by the end of April. Normal rainfall amounts are 2200-2400 MM for the season.
As long as rains come for another 6 weeks, the 2nd crop corn should be fine. If rains end early, then yield problems will show up.
Soybean yields were as expected for most producers: 50 sacs or 44.5 bushel per acre.
Cash price for soybeans are about US$ 7.00 per bushel basis central Mato Grosso.
Everyone is in survival mode. They know they are not going to make much money this year. They know it will be tough sledding into 2010. Credit is expensive. All banks want 2% per month or more. One producer said he made his payments to the bank, and now the bank does not want to lend the money back out again.
Local Coops are offering 2010 soybean packages for 22 sacs of soybeans per hectare for trading. This includes fertilizer, seed, and chemicals. This is not too bad. However, this is a coop and not a multinational. Their packages will be higher.
Rumor has it that Russia "stiffed' a Brazilian grain trading company. "Hundreds of millions of dollars" on a soybean sale to Russia. If this is true it is affecting a major Mato Grosso producer. I have not heard or read the story in the media. Thus, this could be a Brazilian soap opera episode. Stay tuned.
Rumor also has it that a major Argentine farming group has NOT paid land rent to its landlords yet for this crop. If this story remains true, this will have serious ramifications on land values and rents as we go forward. I repeat this is a rumor.
I also spoke with a large scale cattle producer that lives in western Sao Paulo state. His area has been overtaken by sugarcane. I posted an article in last newsletter how sugarcane suppliers and landlords were not getting paid. I am now hearing that some sugar mills are 3 months behind on paying employees. If this continues, we ain't seen nothing yet.
I have spoken with head agronomists from large scale farming operations. 200,000 hectare farms in 7 locations in Mato Grosso. I asked their opinion of the last Conab report. I.E. 57 MMT ton Brasil soybean crop and 17.8 MMT Mato Grosso. They all just laughed.
No way Kory!!!! No way.
Makes you wounder.
USDA facts vs Someone actually on ground and is a agronomist.
Iam betting on the guy on the ground.
I covered 2000 KM of Mato Grosso last week.
2nd crop corn and cotton look good.
Rainfall totals for central Mato Grosso are at 1400 MM as of March 14th. Normal is 2000 MM for this date.
The rainy season will end by the end of April. Normal rainfall amounts are 2200-2400 MM for the season.
As long as rains come for another 6 weeks, the 2nd crop corn should be fine. If rains end early, then yield problems will show up.
Soybean yields were as expected for most producers: 50 sacs or 44.5 bushel per acre.
Cash price for soybeans are about US$ 7.00 per bushel basis central Mato Grosso.
Everyone is in survival mode. They know they are not going to make much money this year. They know it will be tough sledding into 2010. Credit is expensive. All banks want 2% per month or more. One producer said he made his payments to the bank, and now the bank does not want to lend the money back out again.
Local Coops are offering 2010 soybean packages for 22 sacs of soybeans per hectare for trading. This includes fertilizer, seed, and chemicals. This is not too bad. However, this is a coop and not a multinational. Their packages will be higher.
Rumor has it that Russia "stiffed' a Brazilian grain trading company. "Hundreds of millions of dollars" on a soybean sale to Russia. If this is true it is affecting a major Mato Grosso producer. I have not heard or read the story in the media. Thus, this could be a Brazilian soap opera episode. Stay tuned.
Rumor also has it that a major Argentine farming group has NOT paid land rent to its landlords yet for this crop. If this story remains true, this will have serious ramifications on land values and rents as we go forward. I repeat this is a rumor.
I also spoke with a large scale cattle producer that lives in western Sao Paulo state. His area has been overtaken by sugarcane. I posted an article in last newsletter how sugarcane suppliers and landlords were not getting paid. I am now hearing that some sugar mills are 3 months behind on paying employees. If this continues, we ain't seen nothing yet.
I have spoken with head agronomists from large scale farming operations. 200,000 hectare farms in 7 locations in Mato Grosso. I asked their opinion of the last Conab report. I.E. 57 MMT ton Brasil soybean crop and 17.8 MMT Mato Grosso. They all just laughed.
No way Kory!!!! No way.
Makes you wounder.
USDA facts vs Someone actually on ground and is a agronomist.
Iam betting on the guy on the ground.
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