Skip Navigation Links
Home
InstitutionalExpand Institutional
Grains MarketExpand Grains Market
Capital MarketsExpand Capital Markets
Livestock MarketExpand Livestock Market
Grain Arbitration BoardExpand Grain Arbitration Board
Arbitrage CourtExpand Arbitrage Court
Ingresar

 News

28/11/2017 0:00 - Agricultural Commodities Market
JULIO CALZADA - CRISTIAN RUSSO
18 Mt of late corn impacts on the Gran Rosario logistics

2016/17 corn production is estimated at 38 Mt. 47% of that production - 17.7 Mt- represents late corn. This corn is between April and July of each year, and also later -according to climatic conditions-. This is already a structural phenomenon that have had a strong impact on the logistics in the Gran Rosario. Both in the road infrastructure, in truck traffic, as well as in grain receiving facilities and cargo in ships in port terminals, cereal has influenced in several aspects.

According to GEA / BCR estimates, 38 Mt of corn were produced in the 2016/2017 marketing year. 53% of that production it’s the so-called “early corn”; around 20.2 million tons. The remaining 47%, 17.7 Mt, was the so-called “late corn”. While early corn is harvested in the months of March, April and May of each year, the late corn is harvested between April and July and also later depending on the weather conditions. This structural phenomenon has been impacting trucks logistics arriving to the Gran Rosario. The late corn is generating a temporal shift in the arrival of most of the trucks to the aforementioned area, which is the main destination for corn exports departures.

Between 2002 and 2011, March was the highest month with number of truck arrivals loaded with corn. This was the classic month in the beginning of the corn harvest. The participation hovered around 20% of the annual total. Already starting in 2012, the pattern of deliveries began to change. There was a relative temporal shift and the peaks resulted in the months of June or July. The year 2016 was an exception since the peak month of arrivals was August, participating with 20% of the annual total.

From 2002 to 2006, 40% of trucks with corn were delivered in the March/May quarter and 25% between June/August. The greater participation of late corn changed this pattern. In the 2012-2016 period it can be seen that from March to May, on average, 30% of trucks with corn were delivered, while from June to August, corresponds 39% of the total corn-loaded trucks arrived in Gran Rosario (GR).

Although a mayor temporal spread in truck deliveries means less saturation for the road network of the Metropolitan Area, there is a much higher volume that has to be handled by the port terminals. The average of corn trucks arriving GR in 2012-2016 fell by 14% in the March/May quarter compared to the average of the same quarter in 2002-2006. On the other hand, the 2012-2016 average of June/August quarter surged 81% compared with same period of 2002-2006.

 

Besides the higher corn volume arrived, there is a fierce competition with soybean discharges and its storage in ports. Soybeans trucks supplies the crushing plants that requires a regular basis of soybean stocks to maintain its facilities running almost all the entire year.

Comparing corn production amongst different provinces around the country, Córdoba leads the ranking with 15 Mt. We estimate that 54% of its production accounts for late corn. The late corn plating in December benefits from escaping the summer thermo hydric stress and takes advantage of the rains in early autumn. Buenos Aires ranks second and Santa Fe third in the ranking of province production. Buenos Aires is the province with the highest proportion of early corn in the whole country (84%). The Northwest and Northeast of Argentina would have produced about 5.2 Mt of this grain in the 2016/2017 marketing year. This kind of corn is "late planted" in the whole zone.

The disaggregation between early and late corn is a relevant data for grain marketing. GEA - Strategic Guide for Agro (GEA-BCR) has done a work of disaggregation of the production of early and late corn in Argentina for the 2016/2017 season. It must be taken into account that:

• When talking about early corn, references to the one that is sown from early September. This corn competes with first crop soybeans, and depending on the areas, it is harvested between March, April and May of each year.

• Late corn sown usually starts on December. It can also be planted immediately after a winter crop, like wheat. In that case it is called a second crop. The latter case competes with the second crops soybeans under the same plating schedule. For this report, late corn is referred to as the sum of "late-first corn" and "second-season corn." Depending on the zones, this late corn is harvested between April and July of each year. If certain situations arise, it can be harvested even later.

A table and three maps were developed for the study of early and late corn:

Table No. 1: 2016/2017 total national corn production disaggregated for provinces and districts levels (“delegaciones”, in Spanish). The percentage of late corn is exposed by district, province and nationwide.

 

Argentina Early Corn Map: The 2016/2017 early corn production is grouped by several departments (counties) named as districts by the Argentina’s Ministry of Agroindustry (group of departments which in some cases are within the same province). The harvest stating date in each district is labeled on the map.

 

Argentina Late corn Map: The 2016/2017 late corn production by district and the harvest starting date by district is labeled on each colored group.

 

Argentina total corn Map: The total corn production is detailed. Is comprises the sum of the early and late 2016/2017 corn production disaggregated for each district. It also shown the participation for district over total.

 

Other conclusions obtained in this report:

a) According to GEA / BCR estimates, 38 Mt of corn were produced in the 2016/2017 marketing year. 53% of that production it’s the so-called “early corn”; around 20.2 million tons. The remaining 47%, 17.7 Mt, was the so-called “late corn”.

b) 20 million tons of early corn, are estimated to be harvested in the months of March, April and May of each year. In contrast, late corn (17.7 million tons) would be harveted between April and July of each year. This structural phenomenon clearly affects transport logistics as we saw earlier.

c) Córdoba undoubtedly leads the corn production in Argentina. In the 2016/2017 MY, it was close to 15 million tons. Late corn production is the most important in this area. It accounts 8 million tons, almost 54 % of the total. With that "modus operandi", the planting in December allows the crops to escape from the Argentina’s summer thermohydric stress and takes advantage of the rains in early autumn.

d) Buenos Aires ranks second with 9.1 million tons of corn produced. 84% of Buenos Aires corn production (7.6 million tons) is early corn. It is the province with the highest proportion of early corn in the whole country.

e) The province of Santa Fe occupies the third place in the production ranking with 4.6 million tons. 70% of the Santa Fe corn production is the early type (3.2 million tons).

f) The Northwest (NOA) and Northeast (NEA) of Argentina produced about 5.2 million tons o in 2016/2017 marketing year. 100% of this corn is the late type. NOA/NEA groups provinces of Catamarca, Chaco, Formosa, Jujuy, Salta, Santiago del Estero and Tucumán.

g) The national growth of late corn production is generating a temporary shift in the arrival of most of the trucks to Gran Rosario, the main destination node for corn export departures. The 2016 data show that the product with the greatest temporal shift in the arrivals at ports and factories of the Gran Rosario was corn. It can be seen in table No. 2, the different peak months and the number of trucks for each product that arrived Gran Rosario during the 2012-2016 period.

 

In 2012, June was the month of greatest truck arrivals carrying corn. In 2015, March was the peak month. In 2016, it was August. There is a clear shift towards July and August of each year as we saw earlier. Last year, there were some rainfalls in April, which delayed the corn harvest. So the "second-season corn" and "late-first corn" coincided over the month of August.

 

 Institutional video


Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

[Read +]

 
 
Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
TE: (54 341) 5258300 / 4102600
TE: (54 341) 5258325 (Complejo de Laboratorios - servicioalcliente@bcr.com.ar)
Rosario - Santa Fe - Argentina

Oficina Buenos Aires Reconquista 458 piso 7° - C1003ABJ - Cdad. de Buenos Aires.
Tel: (54 - 011) 43280390/1484 43939391/9649- Fax: (54 - 011) 43939649
contacto@bcr.com.ar