Argentina to inaugurate crop-friendly leader
Pledges by Argentina's new president, Mauricio Macri, to lower or eliminate a variety of taxes on crops may lead to more production and crop exports from the South American powerhouse, crop experts say.
Years of domestic policies under former President Cristina Fernadez limited crop production and had farm-ers storing crops to avoid taxes on their sales. It is believed much of that stored grain will come to market early in 2016 once Macri initiates his reforms.
Macri will be inaugurated Dec.10.
An agronomist in a Reuters story also predicted corn acreage will increase 33% in 2016 to 9.9 million acres and corn exports could rise 44% in the next three years to 23 million metric tons. Wheat exports could reach 11 million in three years from the current 4.3 million.
Mexico buys more U.S. corn, soybeans
Mexico is a leading market for U.S. crops and in the third quarter it took 3.25 million metric tons of corn and nearly 1 million tons of soybeans. The corn business is up 12% from a year ago and the soybeans areas up 65%, USDA said.
Mexican feed consumption is expected to shift from sorghum to corn because of lower than-previously-estimated domestic production of sorghum along with affordable corn prices. Also, soybean imports are expected to remain strong because of the low domestic production, and the United States should continue to be the main supplier of soybeans to Mexico.
Australia cuts 2016 wheat estimate 5%
Australia cut its wheat forecast 5.2% for the 2015-16 season as dry weather curbed output, the world's fourth largest exporter said.
Production of wheat, Australia's largest winter crop, for the season ending July 1, 2016, was forecast to be 23.98 million metric ton. That is down 5.2 percent from its previous estimate of 25.3 million tons, but the smaller estimate is up 1% from the 2015 crop, Australia's Agricultural and Resource Economics and Sci-ences said.
El Nino was blamed for hot and dry conditions across much of eastern and southern Australia from Sep-tember to the end of October.
"Rainfall was severely deficient to well below average during October 2015 in most cropping regions in Western Australia, Victoria, South Australia and southern New South Wales," it said.