Evening Edition | Thursday, July 7, 2022
In tonight's Evening Edition, read the latest news about fertilizers, cattle and lean hog markets, and the wheat crops in Brazil and Argentina.
The fertilizer industry is scrambling to find solutions to fertilizer prices that have been on the rise since last fall.
Claire Carlson reports, however, that some farmer advocacy groups worry the efforts being made don’t address the control big fertilizer companies wield over the market and the effects of synthetic fertilizer on the environment.
According to one farmer advocate, some proposed solutions don’t address what he believes is a key cause of these high prices: price manipulation by the small number of fertilizer companies controlling the industry.
Brazil imported record volumes of potassium chloride (Kcl) from Canada in the first half of the year, a sign that domestic farmers will have plenty of the fertilizer to nourish crops, boost yields, and potentially expand area when sowing starts in September.
With trade flows undeterred, growers in Brazil's top grain state Mato Grosso have acquired practically all the nutrients they will need to start planting summer crops, notes Jeferson Souza, an Agrinvest analyst.
Cattle and Lean Hog Markets
Terry Roggensack with The Hightower Report writes, "October and especially December Live Cattle are trading at a stiff premium to the August contract, and rightfully so."
Third quarter beef production is expected to be up 2.1% from last year, but fourth quarter production is expected to be down 5.8%. This sets the stage for a more bullish supply tone for the fourth quarter.
Lower grain prices and the potential for better pasture conditions could tighten fourth quarter production further.
- READ MORE: Supply demand for live cattle to turn bullish; decline in lean hogs positive fundamental factor
Brazil and Argentina Wheat
Argentina's wheat-planting area for the current 2022/2023 harvesting season is estimated at 6.2 million hectares (15.3 million acres), down from the 6.3 million hectares previously estimated, the Buenos Aires grains exchange said on Thursday.
The cut is the fourth made by the exchange since the season began in May, mainly due to unfavorable weather that has prevented many farmers from meeting their original planting targets.
Brazil is expected to harvest a record wheat crop of 9 million tonnes in 2022, with growers sowing the largest area for this crop in the past 32 years, according to a survey released on Thursday by Conab, the country's food supply and statistics agency.
Brazil has already planted around 65% of the wheat area this season, estimated at 2.9 million hectare (7.166 million acres).
Local farmers expanded acreage by 6.6%, just below the 1990 level of 3.28 million hectares.