Global Hotspots: JBS to buy Cargill pork operations

Global Hotspots: JBS to buy Cargill pork operations

China devoting more acreage to corn, less to cotton; Dry conditions may cut Argentina wheat acreage

1. JBS to buy Cargill pork operations

JBS-USA, the U.S. unit of the Brazilian meat producer, this week said it will buy Cargill's hog and pork operations in a deal valued at $1.45 billion.

The deal, which may require regulatory approval, will give JBS two Midwest pork processing plants, five feed mills, and four hog farms. The two processing plants combined can process 9.3 million hogs a year.

JBS produces beef, pork and chicken in the United States, and its current U.S.  pork business includes three processing plants.

2. China devoting more acreage to corn, less to cotton - Attache

China devoting more acreage to corn, less to cotton; Dry conditions may cut Argentina wheat acreage

Corn production in China this coming year (Oct-Sept) is forecast at 230 million metric, up two million from previous forecast and up 14.3 million from the previous harvest,  on higher acreage as corn continues to eat into cotton acreage, said USDA's Foreign Agricultural Service.

Corn consumption is revised up 1 million tons to 221 million as strong growth in industrial usage offset a decline in feed use.

Rough rice production in the coming year is revised slightly lower to 206.4 million tons due to less optimistic yield projections. Estimated 2014/15 rice imports are revised down 400,000 tons to four million tons due to the delayed release of rice tariff rate quotas in 2015.

Wheat production this 2015/2016 year (July –June) is revised down two million tons to 128 million due to slightly lower than expected acreage growth. Total wheat consumption is forecast at 116.5 million tons on declining feed use in recent years as wheat became more expensive than corn.

3. Dry conditions may cut Argentina wheat acreage – Reuters

Argentina's 2015/16 wheat planting area is expected at 3.75 million hectares, the Buenos Aires Grains Exchange said  in a Reuters report, citing recent dryness as the reason for cutting its previous estimate of 3.9 million hectares (9.6 million acres).

Farmers sowed 69.4% of the fields expected to be planted with 2015/16 wheat, the exchange said in a report.

"Rains last weekend allowed for the recuperation of soil moisture in southern and eastern parts of the farm belt," the report said.

"However," it added, "the lack of moisture in Cordoba and northern Santa Fe province impeded wheat sowing in areas that are now past their optimal planting time."

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