Bunge Yara merger green light

Cade approves purchase of fertilizer assets of Bunge by Yara

By Thiago Resende | Value

BRASILIA -  CADE approved without restrictions, the business in which the Norwegian fertilizer company Yara International intends to acquire Brazilian fertilizer assets of American Bunge.

Announced in December last year, the operation is estimated at $ 750 million. The purchase involves "virtually all assets related to the fertilizer business of Bunge in Brazil, consisting of mixing units located in 22 locations throughout Brazil", 16 owned and six leased, according to information sent by the businesses to Cade. Additionally, other assets such as a phosphate factory will also be acquired by Yara.

"The only asset used in the fertilizer business by Bunge Group that will not be transferred to Yara's Termag, a port terminal used for fertilizer in the port of Santos,"  companies completed to notify the transaction to the national antitrust.

Yara The group primarily operates in the production and sale of fertilizers, and sale of ammonia. Thus, companies recognize the business generates a higher concentration by the Norwegian market, but without "cause any competitive concern, in view of the "high rivalry" in the industry.

The process was analyzed by the new law antitrust and now, with the endorsement of Cade, companies can perform the operation. The green light was given by order of the Superintendent-General of the agency published today in the "Official Gazette" and therefore the case does not need to undergo trial in plenary Cade.

Mato Grosso corn and railroads

A few news items in the news today.

Brazil government plans to buy 8 million tons of
2nd crop corn to help prop up prices and help
with logistics to get Mato Grosso corn to the
Northeast and to the ports.

Spot Mato Grosso corn is at US$ 2.72/ bushel locally(Sorriso.)

Govt will come in at R$ 15/sac which is about US$ 3.40/bushel.

This will help buffer the surge.

Also this week progress on East/West railroad details.
After 3 years of dilly dallying, it will become official that
Lucas do Rio Verde will be the site of a dry port and
railway depot. Various public announcements are being
scheduled from Brasilia to Cuiaba to Lucas.

Lots of pats on the back and congrats will be handed
out again. Just like three years ago!!!!!!!!!
I was there......
I have heard and seen all this before.

Let us hope during the upcoming dry season BR 163
can get 90% paved to Santarem and maybe in 2014
we can break ground on the railroad.
The new forecast for a functioning railroad is now
2017/2018 crop year. I can hardly wait.

NE drought

Near Bom Jesus, Piaui, Brazil

Soybeans being disked under due to extreme drought conditions

NE Brazil

Warm and sunny

Another warm and sunny week in central Brazil.

I know many analysts are talking circa 78 mmt tons

for the total Brazil corn crop. The 2nd crop keeps

getting bigger. I kinda doubt it. It will be big but

not Mega big. Too much of the 2nd crop corn got planted

in late February and early March. The rains ended at

the normal time of mid April. The last corn to be planted

will not be much. It might be just a cover crop.

There is a corn plant but no cob.

I also am hesitant to rubber stamp the recent media

reference to a 1.2 million hectare increase in Brazil´s

planted area of soybeans for 2014. I really doubt that.

The last two years we have seen the surge in soybean area

for Brazil. It is time to stand pat and plateau for a bit.

The USA will likely plant copious amounts of soybeans

before this late season is done. The USA will likely produce

3.5 billion bushels of soybeans in 2013. Let us hope China

imports 69MMT of soy in 2014 or look out below.

INCRA recently released a parcel of land to a foreigner

group. We have been in a holding pattern with regards

to this tract for one year. A good sign and good news for

those interested in Brazil land.

Brazil land is still a bit pricey. Asking prices in sacs of

soybeans are still firm.

Thank you to all the newsletter renewals of late and

VIP clients that confide in me. Very much appreciated.

Soybeans to USA

http://br.reuters.com/article/businessNews/idBRSPE94705C20130508

Brazil and Paraguay will export soybeans to the U.S. - traders

Wednesday, May 8, 2013 15:22 EDT

 

]

BUENOS AIRES, Aug 8 (Reuters) - Brazil and Paraguay are ready to export soy to the United States, at a time when the U.S. market is facing a shortage in the offseason after breaking harvest in 2012, industry sources said Wednesday.

After suffering the worst drought since the 1930s, it is estimated that the reserves U.S. soybean retreat until the end of summer, to its lowest level in nine years.

In the grain market of Chicago, rumors circulate of shipments of South American oilseed being sent north, but so far not confirmed any shipping during this season.

"The operations are closed and the boats have been nominated. Accordingly, it is done," he told Reuters operator of an exporter, based in Buenos Aires.

The source said that a ship is scheduled to depart this month the port of Ilheus, in northeastern Brazil, while the other is supposed to leave the terminal port of Nueva Palmira, Uruguay, used by Paraguayans to ship grain.

"At least three shipments were traded yesterday (Tuesday) to send Soy in Paraguay and Brazil to the U.S.," said another trader with knowledge of agricultural operations.

The next soybean crop will be harvested in the U.S. only in three or four months and physical markets in regions of soybean processing record currently historically higher prices for a spring, due to tight inventories.

(By Hugh Bronstein)

2nd crop corn potentials

2013 Brazil Corn Expedition

Second crop 'safrinha' of 40.58 million raises total corn crop to 76.88 million t

With record production, Brazil awaits definitions on United States planting - which remains behind schedule - with the challenge of sustaining prices and shipments

Brazilian farmers placed their bets high and are about to retire from field activities after yet another record winter corn production of 40.58 million tonnes. This estimate is from the Brazil Corn Expedition, a project conceived by Agronegócio Gazeta do Povo, INTL FCStone consultancy and the Mato Grosso Institute of Agricultural Economics (Imea) who toured the five major producing states of the grain's second crop in recent weeks. The grain's harvest, which should begin next month, exceeds for the second year in a row the volume produced in the summer, making the term 'safrinha' (or the "little crop" in Portuguese) a thing of the past.  In the field, the winter harvest has earned a more appropriate nickname – ‘safrona’, meaning the "big crop".

During a 7,000 km trip through Mato Grosso, Paraná, Mato Grosso do Sul, Goiás and São Paulo technicians and journalists confirmed optimistic expectations for production. And it's no surprise. Following gains from last winter, farmers put into practice a recipe for high productivity. Soils were well fertilized and most used high-tech seeds. To top it off, the climate was almost as perfect as in 2012.

The few areas needing rain to reach yields equal to or higher than last year, found salvation. In Paraná - the second largest domestic producer of the crop - it rained last weekend in much of the dry areas. "I still have not confirmed with my father, but I think the rain was around 15 mm. It came at a good time. Now, we hope that the colder days won't cause us any damage", said agronomy student Pedro Versari, who works with his father David on a property of 600 hectares planted with winter corn. They believe they will be able to achieve the same average productivity as last year, equivalent to more than 82 bags per hectare.

Challenge

On the other hand, the projected crop is a red flag for Brazil, which must confront the challenge of increasing its exports in a year of stable domestic consumption, the recovery of the largest global producers and suppliers (United States), and weak advanced sales. Sales of the winter grain continue at a pace 50% below the same time last year, the Corn Expedition found.

Altogether, Brazil will dump 76.88 million tonnes of corn into the market, considering summer (36.3 million/t) and winter production. With domestic demand at 52 million tonnes, the country is expected to end the year with more than 16 million tonnes in stock, the largest in history. To make matters worse, the delay in soybean shipments since the beginning of the year will also likely influence the market for the cereal.  "Corn will only likely begin to be shipped out of the country in August and September, which is very worrisome, because it will be at the same time that the United States is to begin its harvest," said Otávio Celidonio, superintendent of Imea.

The future scenario has already started coming true. According to a survey conducted by the consulting firm FCStone, "from February to January [the National Supply Company's crop year] exports in the 2012/13 crop accumulated 4.5 million tonnes, representing 30% of the 15 million estimated for the entire cycle." Last week, the performance of corn futures prices was marked by fears over delays in planting, which served as a factor of support, according to a weekly report from the consultancy.

The document emphasizes that the cold and wet weather in the United States' Corn Belt throughout the week complicated planting and reinforced expectations of greater potential to transfer area from ​​corn to soybeans if the delay persists. 80% of the crop is expected to be planted after May 15, demonstrating the record delay, the report shows.

Brazil Corn - Aside from Agronegócio Gazeta do Povo, FCStone and Imea, the Brazil Corn Expedition received support from Sicredi, Montana and Perfipar.

____________________________

Luana Gomes Jornalista/Analista de Agronegócio - Gazeta do PovoGRPCOM – Grupo Paranaense de Comunicação 41 3321.5366 | 41 9187.4305 www.gazetadopovo.com.br

May 6 Mato Grosso update

I chatted with some friends in Mato Grosso this morning.

We are finishing up on a land deal. Good news indeed.

Lots of new things happening out in Mato Grosso. Expansion
of animal numbers, corn ethanol mills, etc.

The last rain was 10 days ago. It would have been best
if the 2nd crop corn could have received one more drink.

The last planted corn will not be much. It will be harvested, but
yield will be very low.

This will subdue the large volumes forecasted by various
agencies.

I look to be in Mato Grosso in early June.