Firstly, increasing construction of new soybean squeezing facilities and biodiesel plants results inthe increasing soybean demand in the domestic market. In 2007, National Administration of Fuels, Alcohol and Cement (ANCAP) of Uruguay published a law that mandated diesel shall be mixed with5% biodiesel beginning from 2012. Furthermore, the gasoline shall be mixed with 5% bioethanol in2015. Recently, biodiesel is mainly produced from soybean in Uruguay, which means that thedomestic consumption of soybean will be largely increased by the policy enforcement.Secondly, wheat or corn farmers in Uruguay are pessimistic about their profit margin of their produces, because the prices of wheat and corn are not as attractive as that of soybean and themarket outlook is not so promising. "Much wheat remains unsold and market price prospects arenot encouraging as a year ago, when prices were significantly higher," said Gutierrez. In fact, dueto the high storage and the increasing production of wheat, the wheat price becomes unattractivecompared with soybean whose price is at a high level recently. Those wheat or corn farmers prefer to rent land for the soybean production, and even rent land to Argentine for soybean planting.
Content of South America Crop Protection Monthly Report 1206:
Argentine sunflower to play increasingly important role in global marketSoybean planting's fast growth in UruguayCNA officials visit Chinese ports and hope to improve Brazil portsBrazilian farmers win lawsuit against Monsanto to return royalties paid ANVISA refutes complaint on slow process of agricultural chemicals registrationFederal judge in Brazil maintaining use of MSMAMonsanto shows new technology in Agrobrasilia 2012Dow AgroSciences to launch first five-gene trait stack technologySyngenta and Buck Semillas sign cooperation agreement in ArgentinaUSDA publishes new estimation of soybean and corn production in Brazil and Argentina
South America Crop Protection Monthly Report,
a monthly publication issued by CCMInternational on 30th(31st) of every month, brings you the latest information on new companydynamics, new policies, new market trends, new technology, International trade in the South America crop protection market.