Brazil unseated the U.S. as the top soybean exporter for the first time last season and the country is poised to become the top grower this year, USDA data show. That will boost demand for potash and phosphate because sandy soils mean Brazilian farmers use more than three times as much of the fertilizer as U.S. growers, according to Plymouth, Minnesota-based Mosaic Co., North America’s second-largest fertilizer producer.
Tyson Foods said Aug. 5 that bigger global crops will reduce the cost of feeding its chickens, hogs and cattle in 2014. The Springdale, Arkansas-based company will report a 25% gain in profit to $1.02 billion in its fiscal year ending Sept. 30, according to the mean of 11 analyst estimates compiled by Bloomberg. Shares of Tyson advanced 48% to $28.70 this year and will reach $35.45 in 12 months, the average of 11 forecasts shows.
U.S. farmers are harvesting more bushels from fewer acres after Midwest rain boosted crops in August and September, while warm weather extended the growing season and helped plants put on more pods and fill them with bigger beans, said Seth Naeve, an agronomist at the University of Minnesota in St. Paul. Yields may rise to 41.6 bushels an acre, up from 39.8 bushels last year, according to the Bloomberg News survey of analysts.
“We are extremely happy with the yields this year,” said Tim Eike, 46, who grows corn and soybeans on 23,000 acres that he farms with his wife’s relatives in Pawnee, Illinois. “This year will be one of our top five. There was enough soil moisture to help the plants get through the dry weather, and yields are better than expected.”
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