Mexico might reconsider its ban on the import of GMO white corn
Taxes on exports of soybean meal and oil should be increased from 31% to 33%. Other agricultural products will have their taxes raised to 15%. “In addition to understanding the delicate situation of public accounts, we reiterate the need to adopt an export policy that includes a tax scheme that encourages production and added value, which should make it possible to develop a schedule for the elimination of fees for the oilseed and grains sector later…”, according to a note from the Argentine Agroindustrial Council. (Argentine Agroindustrial Council; Bioeconomy Secretariat)
Central Bank has announced that it will adopt a new reference interest rate in the country, which will be of 100% per year, compared to the previous rate of 133%. This change aims to simplify national monetary policy due to the serious economic crisis. (BCA)
Brazil has recorded 150 occurrences of avian influenza, mainly in wild birds. Most cases occurred in the State of São Paulo, with 52 occurrences in wild birds and one in a marine mammal. (MAPA)
Agricultural Parliamentary Front – FPA has overturned the presidential vetoes regarding the Indigenous Lands’ Temporal Framework. The FPA obtained 374 votes to restore the project that had already been approved by a large majority in the National Congress, but which had been vetoed by the Brazilian president, Luiz Inácio Lula da Silva. According to the president of the FPA, congressman Pedro Lupion, restoring the Temporal Framework as it was approved in Congress is a step towards guaranteeing property rights and legal security in the rural sector. “We have overturned the vetoes and left the Bill as it was approved in its entirety. There can be no negotiation and relativization of property rights in the country”, said Lupion. (FPA)
Beef prices are increasing, driven by strong domestic demand and exports. Exports of fresh beef reached a daily average of 8.85 thousand tonnes in December, compared to 6.94 thousand tonnes in the same period of 2022. (Cepea)
There was a reduction in the estimated soybean harvest after a 20% drop in the State of Mato Grosso. Brazilian soybean harvest in 2023/24 was estimated at 153 million tonnes, 5 million below the previous forecast. “Given the entire context of irregular rainfall in Mato Grosso since the beginning of the harvest… we have made a new estimate”, according to a note from Itaú BBA. In comparison, the biggest crop failure to ever occur in Mato Grosso was around 11%, in the 1989/90 season. “If we are correct, 2023/24 will be the worst year in the history of soybean in Mato Grosso”, according to Itaú BBA. (Itaú BBA; Conab)
November’s trade balance surplus reached US$ 8.8 billion, which leads to a cumulative balance of US$ 89.5 billion in 2023, driven by agriculture and the extractive industry. China was responsible for 52.3% of Brazil’s trade balance surplus in 2023 so far. (FGV)
SLC has approved distribution and payment of interest on equity of US$ 4.91 million, based on the application of the long-term interest rate. (SLC Agrícola)
88% of the 2023/24 soybean farms in the State of Paraná are in good condition, 11% are in average condition and 1% are in conditions considered poor. (Deral)
Minister Dias Toffoli, of the Federal Supreme Court, has suspended payment of the US$ 2.11 billion fine for the J&F group, which had been determined in the leniency agreement with the Federal Public Ministry. The company was the target of corruption investigations and signed a leniency agreement in 2017 with the Federal Public Ministry, in which it committed to paying the amount. For Toffoli, there is “reasonable doubt” that the leniency agreement was signed voluntarily by the company. (STF)
Central Bank of Chile has announced a reduction in the basic interest rate, bringing it to 8.25% per year. According to an official statement, the decision took place in the context of the slowdown in inflation on the international scenario and the projection of monetary flexibility, particularly in the USA. Next monetary policy decision will be released on 01/31/2024. (Central Bank of Chile)
Ministry of Agriculture and Agricultural Sector Financing Fund will provide up to US$ 6,595,422 in loans for agriculture in 2024. “Peasants and small farmers will be prioritized, with cheap credit”, said Ángela Penagos, president of Finagro. (Ministry of Agriculture; Finagro)
National Land Agency has approved the expansion of 15 indigenous reserves, in six departments, reaching a total of 1.65 million hectares. (ANT)
GDP grew just 0.4% in the 3Q of 2023, indicating “stagnation” of the economy. Central Bank’s general manager, Guillermo Avellán, said that among the causes of this situation is the increase in government spending by 5.1%, while there were contractions in family consumption (- 4.7%), in investment (- 5 .6%) and in imports. (- 14.1%). (BCE)
USA Secretary of Agriculture Tom Vilsack said it is possible that Mexico will reconsider and even lift its ban on the import of GMO white corn after the 06/02/2024 presidential election. The US claims that this ban violates trade agreements established between the countries. (USDA)
Imports of agricultural machinery are reflecting the market’s good expectations for the next agricultural season. Between January and October of 2023, 3,973 agricultural machines were imported, reaching an expenditure of US$ 402.8 million, a value 43.3% higher than the same period in 2022. Tractors, seeders, harvesters and sprayers were the most imported machines, respectively. (Capeco)
46 cases of equine viral encephalomyelitis have been confirmed. The disease occurs predominantly in humid areas, where there are many mosquitoes coexisting with birds that function as viral reservoirs. Humans and horses are incidental hosts when they are bitten by mosquitoes carrying the virus. Infected horses pose a negligible risk of contagion to other horses and humans. (Ministry of Agriculture)
Uruguay exports 37% of its citrus products. Orange, tangerine, lemon and pomelo (Citrus maxima) production of 2023 was estimated at 245,826 tonnes. Total orange harvest was estimated at 88.45 thousand tonnes, being the most cultivated citrus species. (Ministry of Agriculture)
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