Producers run out of space in silos with accumulation of record harvests

In a warehouse on the main agricultural region of Brazil, the producer Rafael Bana notes if trucks Queuing to unload corn on the ground, out in the open, alongside huge storage silos.
Your own corn, ready to be thrown out of a 50-ton truck that has just arrived, is destined to join the bunch, which already reaches about 20 meters of height, since silos are still full of soya harvested this year in the State of Mato Grosso.
"For the first time in history, producers here are piling a crop on top of each other," said Bana, 33 years old, who grows about of 4,700 acres of soybeans and corn near Vera, the Middle-Northern State.
From Iowa to China years of record harvests and low prices have overwhelmed stores of corn, wheat and other staple foods. The situation is pressing the income of producers and making it harder for trading companies such as Archer Daniels Midland and Bunge to obtain profits.
But Brazil, the largest exporter of soybeans and the second in corn, behind the United States, see the beans if amontorarem because the second cereal crop, which historically is a crop rotation.
The second crop of corn, or "off-season", was so great this year, and prices are so low, that the producers had no choice but to leave it exposed to the weather.
In Mato Grosso, the great harvest became the options for permanent storage even more limited, since part of the record production of soybeans is still in their silos as producers await a recovery in prices.
The buildup demonstrates the problems of infrastructure in Latin America''s largest economy, where the logistical bottlenecks were worsened by chronic refusal of producers to sell your production amid the decline in prices, with various effects.
Brazil''s stocks were also increased by the extra harvest of corn that your climate allows, and will reach 66.6 million tons this year, a total of 97.2 million tons.
Producers say the grain stocks can still be there when the next soy harvest happens in January, while the volumes of the two commodities will finish the season in record books, according to estimates from the Government and the private sector.
The decision to retain the soy occurs elsewhere in the country, with local prices of soybeans about of lower 23%, R $69 a sack, compared to August of 2016, according to the Institute of Agricultural Economics Mato Grosso (Investigation).
The reluctance of producers to sell wiped the margins of companies such as ADM and Bunge in the last trimester, since the grain trading companies had to pay more than expected by the soybeans to honor commitments.
"I''d sell my soybeans if prices reach R $62 a sack," said Cayron Giacomelli, another producer of Mato Grosso. There were offers from R $55 in your region, and he still holds to 15 the 20% of soya harvested in the current crop.
QUICK FIX?
In two warehouses near the towns of Smile and Lucas do Rio Verde, the corn piled to the sky would open to feed something like 108,000 pigs for a year.
About 3% of the corn left out can be lost, according to the President of the Association of producers Aprosoja, Endrigo Dalcin, but the current dry weather reduces the chances of the product spoil.
The beans are a testimony to the lack of silos in Mato Grosso, where the storage deficit is estimated at 39 million tonnes, said Aprosoja.
Therefore, some manufacturers are using a quick solution and common in Argentina: the so-called "silos-bag", which consist of long plastic coatings to stock products in the field and protect them from rain and wind.
Maria Amelia Tirloni, which cultivates 5,500 acres of corn and soybeans in Tapurah, said that the problems of the State''s infrastructure puts producers in Brazil at a disadvantage.
In addition to the distance between farms and consumer markets, she says the roads are bad and insufficient.
"The issue of storage also makes producers hostages of abusive freight rates during the harvest," Tirloni said.
Tapurah, to stay away from the railroad, depends on trucks, which often run over 2,100 kilometers to the port. Anyway, the producers will have to make room for your next crop of soybeans, planted in September and harvested in January, when heavy rains could put your big production at risk.
With the second corn crop, Brazil increased exports between these months, but doubt about whether producers will be able to move your entire production now.
"This situation can affect the next crop of soybeans if the corn is not sold," Dalcin said. "We are concerned about the lack of space."