{"id":90895,"date":"2024-09-11T11:49:14","date_gmt":"2024-09-11T14:49:14","guid":{"rendered":"https:\/\/murray.adv.br\/?p=90895"},"modified":"2024-09-11T11:49:16","modified_gmt":"2024-09-11T14:49:16","slug":"dry-weather-affects-crops-raises-flag-on-food-prices","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/dry-weather-affects-crops-raises-flag-on-food-prices\/","title":{"rendered":"Dry weather affects crops, raises flag on food prices"},"content":{"rendered":"\n<h6 class=\"wp-block-heading has-text-align-center\"><em>Lack of rain delays planting of beans, soybeans; concerns increase export premiums at the port of Paranagu\u00e1<\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>09\/11\/2024 <\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/s2-valorinternational.glbimg.com\/0cxgkxYfQjQu7MmAH5IQMu47oNA=\/301x0:1280x801\/984x0\/smart\/filters:strip_icc()\/i.s3.glbimg.com\/v1\/AUTH_37554604729d4b2f9f3eb9ad8a691345\/internal_photos\/bs\/2024\/6\/P\/xs7RbpRCaHP92QHsTK4A\/whatsapp-20image-202024-09-10-20at-2009.58.21.jpeg\" alt=\"Coffee crops damaged by drought in Bom Jesus \u2014 Foto: Alexandre Maroti\/Arquivo pessoal\" style=\"width:380px;height:auto\" \/><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center\"><em>Coffee crops damaged by drought in Bom Jesus \u2014 Foto: Alexandre Maroti\/Arquivo pessoal<\/em><\/p>\n\n\n\n<p>The recent fires in agricultural production areas in different parts of Brazil prompted a warning on the population but the dry weather is currently the major concern in Brazilian agribusiness. The lack of rain is delaying planting of important crops, such as soybeans and beans. The impact of the drought on the prices of food and other agricultural products has been limited so far. However, that does not downplay the issue as meteorology indicates that the dry weather is expected to continue in the foreseeable future.<\/p>\n<\/div><\/div>\n\n\n\n<p>In the case of soybeans, Brazilian agriculture\u2019s main export item, the drought has demanded changes to the planting schedule for the 2024\/25 season. According to the official calendar, in important producing states, such as Mato Grosso, sowing for the new season should start on the first weekend of September.<\/p>\n\n\n\n<p>The delay in planting is accelerating sales on the spot market. Researchers from the Center of Advanced Studies on Applied Economics (CEPEA) say this movement fuels competition between domestic and international buyers for soybeans.<\/p>\n\n\n\n<p>That is reflected in soybean premiums, a bonus paid on the price of the grain at origin. On Monday (9), premiums for soybeans delivered to the port of Paranagu\u00e1 (Paran\u00e1) were $1.18 per bushel, and, for October, $1.20 per bushel. The CEPEA indicator based on the Paranagu\u00e1 port has risen 1.35% this month so far, to R$140 per bag.<\/p>\n\n\n\n<p>The drought has also hampered the planting of beans in the country. The sowing of the first of the three national crops began in August, mainly in Paran\u00e1, but the dry soil has made the work difficult. According to a survey by the Department of Rural Economy (DERAL), by the Secretariat of Agriculture and Supply, as of September 5th, planting had occurred in only 3% of the area planned for the 2024\/25 summer season. In the same phase of the previous cycle, work had reached 10% of the area.<\/p>\n\n\n\n<p>DERAL estimates that farmers in Paran\u00e1 will plant 131,000 hectares of beans between August and December, an area 22% larger than that of 2022\/23. \u201cWith the price of soybeans down [compared to previous years], farmers have turned to beans,\u201d said Marcelo L\u00fcders, president of the Brazilian Institute of Beans and Pulses (IBRAFE). If projections are confirmed, production should grow 57% in the state, to 251,000 tonnes.<\/p>\n\n\n\n<p>At the moment, there is a stock of beans on the national market as the third yearly crop has ended\u2014the harvesting was 812,500 tonnes. \u201cIn some areas of the Cerrado region, high temperatures increased the incidence of whiteflies, reducing productivity,\u201d Mr. L\u00fcders said.<\/p>\n\n\n\n<p>Farmers have been receiving R$260 per bag of \u201ccarioca\u201d beans [pinto beans], or R$50 more than the average for the same period in 2023. \u201cIf the weather doesn\u2019t help, we won\u2019t have beans between late October and the beginning of the next harvest,\u201d Mr. L\u00fcders says. \u201cIn that case, prices are expected to soar.\u201d<\/p>\n\n\n\n<p>The fires that occurred between late August and early September in S\u00e3o Paulo hit 80,000 hectares of sugarcane in the state. Due to the dry weather in the center south, the mills brought forward the end of crushing for the 2024\/25 season, which could increase sugar prices in the first quarter of next year.<\/p>\n\n\n\n<p>\u201cThe off-season will start earlier. As the drought damaged the sugarcane fields, there will be few sugarcane, and crushing will end earlier,\u201d said Maur\u00edcio Muruci, an analyst at Safras &amp; Mercado. In S\u00e3o Paulo, the price of crystal sugar rose 2.5% in August, to R$24.50 per bag.<\/p>\n\n\n\n<p>The analyst believes that the increase in crystal sugar prices on the domestic market could impact the entire food industry that uses sugar as an ingredient, as well as food staples. He said that could reflect on the Extended Consumer Price Index (IPCA) from October onwards. On Tuesday (10), despite the worrying situation regarding Brazilian crops, the most liquid sugar contracts on the New York Futures Exchange, a reference for global negotiations, closed down 1.9%, at 18.47 cents per pound.<\/p>\n\n\n\n<p>Climate issues in Brazil and other important producing countries have fueled rising coffee prices on the international market. On Monday (9), the most traded contracts on the New York Futures Exchange rose almost 4%. On Tuesday (10), they rose another 0.73%, to $ 2.4720 per pound.<\/p>\n\n\n\n<p>\u201cThe crops [for the 2025\/26 season] are very weak, with high defoliation and drying flower buds. I see only bad consequences of this drought,\u201d said Alexandre Maroti, the owner of 15 hectares of coffee in the city of Bom Jesus, Minas Gerais.<\/p>\n\n\n\n<p>He says he used to produce, on average, 80 to 90 bags of coffee per hectare. At the moment, due to the drought and high temperatures, the yield is no more than 40 bags per hectare. Mr. Maroti foresees a 20% drop in the 2025\/26 cycle.<\/p>\n\n\n\n<p>The situation is a little better for larger farmers, who boast irrigation systems. Still, many Brazilian coffee farmers are wary and estimate a drop in harvesting volume until next year. In some states, such as Minas Gerais, it hasn\u2019t rained for four months.<\/p>\n\n\n\n<p>\u201cCoffee prices have soared due to adverse weather events around the world, which could reduce production,\u201d said Rich Asplund, coffee analyst at Barchart. Mr. Asplund points out that Robusta prices also rose\u2014in this case, the increase was due to Typhoon Yagi\u2019s passage through Vietnam, a country that had been hit by severe drought last year. Vietnamese production in 2023\/24 was only 26 million bags, while the country\u2019s annual capacity is 31 million per year.<\/p>\n\n\n\n<p>Vicente Zotti, managing partner at Pine Agroneg\u00f3cios, points out that, in the case of arabica, it is necessary to analyze the climate of each coffee region in Brazil to estimate the consequences for the 2025\/26 cycle. The extent of the drought varies in each of these areas.<\/p>\n\n\n\n<p>The hot and dry weather led the Citrus Defense Fund (Fundecitrus) to reduce its estimate for the orange harvest in the citrus belt of S\u00e3o Paulo and the Tri\u00e2ngulo Mineiro region. A 7.1% reduction was announced on Tuesday (10), to 215.78 million boxes of 40.8 kilograms, or 16.60 million boxes less than the previous projection, in May.<\/p>\n\n\n\n<p>According to Climatempo, since May, the volume of rain was 31% below the forecast. In any case, drought is not the only major issue in orange crops, which are experiencing an increased incidence of greening, a disease that reduces the orchards\u2019 productivity.<\/p>\n\n\n\n<p>The severe drought damages some crops but the dry weather has not caused losses to all of them. \u201cThe drought has two sides. It favors some crops, such as carrots and tomatoes, as [low humidity] advances maturation and harvesting,\u201d said Jo\u00e3o Paulo Deleo, a vegetable analyst at CEPEA.<\/p>\n\n\n\n<p>In the case of potatoes, the harvest window starts in July and runs until early October. However, \u201cwhen it starts to get too hot in September, harvesting is accelerated so as not to lose quality,\u201d Mr. Deleo says.<\/p>\n\n\n\n<p>The heat and dry climate also accelerate the ripening of some fruits, making them taste sweeter. The analyst points out, however, that most of these crops are irrigated and production costs increase in times like these, which could compromise supply in the longer term.<\/p>\n\n\n\n<p>\u201cExtremely dry periods could affect crops in other ways. Furthermore, it will be necessary to monitor the supply of water for irrigation,\u201d he emphasizes.<\/p>\n\n\n\n<p><em>(Camila Souza Ramos contributed reporting.)<\/em><\/p>\n\n\n\n<p>*Por Fernanda Pressinott, Isadora Camargo, Cleyton Vilarino, Gabriella Weiss, Globo Rural\u00a0\u2014 S\u00e3o Paulo<\/p>\n\n\n\n<p>Source: Valor International<\/p>\n\n\n\n<figure class=\"wp-block-embed\"><div class=\"wp-block-embed__wrapper\">\nhttps:\/\/valorinternational.globo.com\/\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Lack of rain delays planting of beans, soybeans; concerns increase export premiums at the port of Paranagu\u00e1 09\/11\/2024 Coffee crops damaged by drought in Bom Jesus \u2014 Foto: Alexandre Maroti\/Arquivo pessoal The recent fires in agricultural production areas in different parts of Brazil prompted a warning on the population but the dry weather is currently [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[25418,25419],"class_list":["post-90895","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-dry-weather-affects-crops","tag-food-prices"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - 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