Saudi Arabia raising soybean and corn imports from Brazil

Updated 29 October 2012

Saudi Arabia raising soybean and corn imports from Brazil

JEDDAH: BrazArtis, an import-export company based in Rio de Janeiro, Brazil, is set to expand its soybean and corn exports to the Middle East, a move that is aligned with growing Brazilian grain harvest and exports.
Driven by soybean and corn production, Brazilian grain harvest is estimated to exceed 180 million tons from 170 million last year.
The soybean harvest alone for 2012/13 is set to increase by 20 percent and reach 81 million tons, from 66 million last year.
Ranked as the second agricultural commodity export from Brazil, maize production is set to increase by 7 percent from 66 million tons to 70 million tons.
In the period of January to August of this year, Egypt has increased its purchases of maize by 899.4 percent, from 90,310 tons in 2011 to 902,550 tons in 2012, according to Scot Consultoria.
Saudi Arabia has increased its purchases of corn from 159,770 to 402,190 tons in the same period, an increase of 151.7 percent.
Jan Dabrowa, business development director at BrazArtis, said: “The value of the Brazilian agribusiness has reached a peak, and it is set to reach $ 100 billion in 2012. Current exports of oilseeds are being fueled by changing market dynamics that have set the stage for another successful harvest in 2013. In light of the decreased exports by Argentina and unfavorable weather conditions that affected the US crops, Brazil took up a leadership role as one of the main producer and exporter of soybeans and corn.”
On another hand, corn exports to Iran decreased by 26.9 percent from 951,890 to 695,620 metric tons, but the country still stands as one of the leading importers of Brazilian corn in the region.
The exports of soybeans in 2012 are set to reach 17.5 million tons, a 20 percent boost from 2011.
In 2013, a provision for 10 percent increase in planting and 11 percent improvement in average productivity should result in 27.5 million acres planted and potential harvest of 81 million tons of grain.
Around 48 percent of the total production, equivalent to 39 million tons of oilseed will be destined for export.
It is projected by the Brazilian Ministry of Agriculture that the agribusiness exports will reach a record of $ 100 billion in 2012. In 2010 Brazilian agricultural exports surpassed $ 76.4 billion worldwide, an 18 percent increase from 2009.
They reached a new record in 2011 by totaling $ 94.59 billion, 24 percent higher than in 2010.
Brazil’s exports span across the whole GCC region including the Kingdom, UAE, Qatar, Jordan, Bahrain, Kuwait, Lebanon, Syria and Oman.


Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

Updated 14 October 2019

Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

TOKYO: Under-pressure start-up WeWork is considering two huge bailout plans including a cash injection that could see Japanese investment titan SoftBank take control of the firm, according to reports.
The office-sharing giant had been on course for a massive initial public offering until last month when questions began to be asked over its governance and profit outlook.
The firm’s valuation plunged from $47 billion in January to less than $20 billion in September and the listing plans have been dropped, while co-founder Adam Neumann stepped down as chief executive.
With New York-based parent company We Co. not expected to push for the IPO this year, the cash-strapped firm is looking for a financial lifeline.
The Wall Street Journal, New York Times and Bloomberg News cited unnamed sources close to the talks as saying SoftBank — the US firm’s biggest shareholder — had drawn up a proposal that gives it full control of WeWork.
The move would dilute the voting power of Neumann, who remains as chairman of the company he started in 2010 and also currently maintains control a majority of voting shares.
They also reported that WeWork is looking at a deal with Wall Street giant JP Morgan to raise $5 billion in debt, with the Times saying directors of We would be meeting as soon as Monday afternoon to discuss that.
“WeWork has retained a major Wall Street financial institution to arrange financing,” the Journal reported a company spokesman as saying.
“Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”
The New York-based startup that launched in 2010 has touted itself as revolutionizing commercial real estate by offering shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.
However, the company, which lost $1.9 billion last year, has faced skepticism over its ability to make money, especially if the global economy slows significantly.