Friday 27th January 2012

A fairly quiet week for grain and oilseed exports

It was a mixed week for grain and oilseed export sales. USDA reports sales of corn and soybean meal for the week ending February 18 were smaller than expected while soybeans and wheat were within pre-report projections and bean oil was above estimates. Physical shipments of corn and soybeans were more than what’s needed weekly to meet USDA projections for the 2009/10 marketing year but wheat fell short.

Wheat came out at 375,700 tons (13.8 million bushels), were down 8% from the week ending February 11 and 26% lower than the four week average. The top buyer was Nigeria at 206,300 tons. For the 2009/10 marketing year to date, wheat sales are 715.4 million bushels, compared to 881.5 million in 2008/09. Sales of 33,300 tons (1.2 million bushels) for 2010/11 delivery were to Mexico (29,300 tons) and Japan (4,000 tons).

Corn was reported at 401,300 tons (15.8 million bushels), 59% less than the previous week and 55% below the four week average. South Korea was the leading purchaser with 230,300 tons while unknown destinations canceled on 299,900 tons. So far this marketing year, corn sales are 1.230 billion bushels, compared to 1.110 billion this time last year. Sales of 50,000 tons (2.0 million bushels) for 2010/11 delivery were to unknown destinations.

Soybeans were placed at 239,100 tons (8.8 million bushels), an increase of 17% from the prior week but a decrease of 39% from the four week average. China picked up 177,700 tons but unknown destinations canceled on 249,000 tons. At this point in the marketing year, soybean sales are 1.312 billion bushels, compared to 989.6 million a year ago. Sales of 2,900 tons (100,000 bushels) for 2010/11 delivery were to Japan.

Soybean meal was pegged at 81,900 tons, 66% under the week before and down 55% from the four week average. The top buyer was Morocco at 63,000 tons and unknown destinations canceled on 164,300 tons. Cumulative bean meal sales for the current marketing year are 7,419,100 tons, compared to 4,277,600 this time last year.

Soybean oil was reported at 40,200 tons, 14% lower than the previous week and 18% less than the four week average. The Dominican Republic was the leading purchaser at 9,700 tons. 2009/10 soybean oil sales are 1,085,700 tons, compared to 367,400 in 2008/09.

Net beef sales totaled 8,800 tons, 18% below the prior week and 30% under the four week average. The listed buyers were Mexico (4,000 tons), Canada (1,600 tons), Japan (500 tons) and South Korea (400 tons).

Indiana milk production unchanged in January

The 283 million pounds of milk produced on Indiana dairy farms in January was unchanged from a year earlier, milk cow numbers however were up 1 percent at 169,000 head.

In the 23 major producing states, milk production totaled 14.8 billion pounds, down .6 percent from January 2009. The number of milk cows on farms in the 23 major States was 8.32 million head, 4,000 head more than December 2009, but 191,000 head less than January 2009.

Indiana Milk Chart

Let the consumer choose

Commentary

The recent USDA annual outlook conference in Washington, D.C. was a bit of an eye-opener for some in attendance.  Tim Burrack who chairs the Iowa Corn Promotion Board expressed concern about what he heard at the conference – specifically USDA’s shift in emphasis toward locally grown and organic foods.

Now hold on, he didn’t say that he is opposed to farmers choosing to grow organic or consumers buying locally grown foods.  His concern is that under this new reality, traditional production agriculture which has provided a safe and low-cost food supply will suffer.

What I find to be very interesting and somewhat disturbing is the use of key words or phrases that make people feel good about their “locally produced” food purchases and guilty about “traditional” purchases. IGD uses phrases like “ethically produced foods” and “thinking morally and buying locally.”

Does that mean a consumer who does not choose to buy locally produced foods is unethical and immoral? You can bet that there are some who believe this to be true.

Perhaps “traditional agriculture” should do a better job of educating consumers about the positive impact farms of all shapes and sizes have in their local communities.

Tell your story and let the consumer choose.

AUDIO

Still plenty of opportunities in SE Asia

John Lindblom serves as Regional Director in Southeast Asia for the U.S. Soybean Export Council (USSEC), in a conversation with John, he says there are lots and lots of opportunities for U.S. soybean farmers in that part of the world.

Audio: John Lindblom, Southeast Asia (3:00 MP3)

Let consumer choose

Commentary

Last week’s USDA annual outlook conference in Washington, D.C. was a bit of an eye-opener for some in attendance. Tim Burrack who chairs the Iowa Corn Promotion Board expressed concern about what he heard at the conference, but told Ken Anderson from Brownfield Ag News that he is not really surprised.

Burrack’s concern? USDA’s shift in emphasis toward locally grown and organic foods.

Now hold on, he didn’t say that he is opposed to farmers choosing to grow organic or consumers buying locally grown foods. The Arlington, Iowa farmer says modern agriculture came under attack from many conference speakers and attendees. He explained that the direction from USDA is different than what has taken place in the first 36 years of his farming career.

Tim Burrack is a man of action, so he shared his concerns. “I just got up and told them, this is not the USDA that the people in the Midwest are familiar with.” Specifically, he told Deputy Agriculture Secretary Kathleen Merrigan, who is leading the USDA’s “Know Your Farmer, Know Your Food” program, what he thought.

Merrigan assured Burrack that USDA is big; there’s room for everybody. Burrack said he understands that that is the new reality that everyone needs to work under. His concern is that under this new reality, traditional production agriculture which has provided a safe and low-cost food supply will suffer.

At this time, the move toward locally produced food continues to grow. According to new research from food and grocery analysts IGD, almost a third of shoppers say they have specifically purchased locally produced food over the last month, double the number in 2006.

So then what becomes of that safe and low-cost food supply? I believe Burrack is on target when he says moving away from traditional agriculture will likely mean higher prices for food.

Tim Burrack was amazed at number of people – some who work for USDA and others who were just attending the USDA conference like he was – who said, “Thank you for saying what a lot of us are thinking.” At the same, Burrack says it’s apparent that those opposed to modern agriculture are feeling very emboldened by the Obama administration’s policies.

When researching cost-share opportunities through a USDA program, you’ll find that if you grow 100% organic or agree to be 100% organic in the next 3 years, your share for the cost of a high tunnel is much less than if you are a non-organic (traditional) grower.

What I find to be very interesting and somewhat disturbing is the use of key words or phrases that make people feel good about their “locally produced” food purchases and guilty about “traditional” purchases. IGD uses phrases like “ethically produced foods” and “thinking morally and buying locally.”

Does that mean a consumer who does not choose to buy locally produced foods is unethical and immoral? You can bet that there are some who believe this to be true.

When asked about food they have specifically purchased over the last month, IGD reports that shoppers responded:

• 30% said locally produced food (up from 15% in 2006)

• 27% Fair-trade products (up from 9%)

• 18% products with high animal welfare standards (up from 11%)

According to IGD research, many consumers purchase locally produced food not only to obtain the freshest produce, but because they have a strong desire to support local jobs, farms and stores. Perhaps “traditional agriculture” should do a better job of educating consumers about the positive impact farms of all shapes and sizes have in their local communities.

Tell your story and let the consumer choose.

The dollar and other export influences

Darin Newsom is Senior Analyst with DTN, he says there are a number of factors which will come into play for U.S. corn and soybean exports this year.

AUDIO: Darin Newsom talks about the markets

Gearing-up for the annual gypsy moth battle

The Wisconsin Department of Agriculture is gearing up for the annual battle with the gypsy moth. The Department plans to treat 92 sites covering approximately 228,291 acres in 20 counties to help control the spread of the destructive forest pest.  The areas involved are in Ashland, Barron, Bayfield, Buffalo, Chippewa, Clark, Crawford, Douglas, Dunn, Eau Claire, Grant, Green, Iowa, Jackson, La Crosse, Monroe, Richland, Taylor, Trempealeau and Vernon Counties.  This plan is separate from the Wisconsin Department of Natural Resources Suppression Program.

Aerial treatments will start in May when the caterpillars begin to emerge. Some sites will be treated with Btk , a naturally occurring soil bacterium and has been successfully used in gypsy moth treatments for more than 30 years. Most sites will receive two applications of Btk, about five to 10 days apart. Other sites will receive Gypchek, a product specific only to gypsy moth.

 In June and July, additional sites will be treated with mating disruptor, which has the pheromone of the female adult gypsy moth. This confuses the male gypsy moths when they’re searching for a mate and prevents reproduction.

Five public meetings will be held in March to give citizens an opportunity to learn about the program and comment on the proposed treatment plan.

The public meetings are scheduled for:

  • Madison: Tuesday, March 2, at the WI Department of Agriculture, Trade and Consumer Protection, 2811 Agriculture Drive, Room 231, 1 p.m. to 3 p.m.
  •  Prairie du Chien: Wednesday, March 3, at the Crawford County Administration Building, 225 N. Beaumont Road, Room 130, 10 a.m. to 11 a.m.
  • Viroqua: Wednesday, March 3, at the Erlandson Office Building, 318 Fairlane Drive, First Floor Main Meeting Room, 2:30 p.m. to 3:30 p.m. 
  • Altoona: Tuesday, March 9, at the Eau Claire County UW-Extension, 227 First St. W., Rooms 103 and 104, 4 p.m. to 6 p.m.
  •  Superior: Wednesday, March 10, at the Superior Public Library, 1530 Tower Ave., Library Classroom, 12 p.m. to 2 p.m.

MOSES conference underway

The 21st annual MOSES conference is going on in LaCrosse this weekend. The Midwest Organic and Sustainable Education Services Executive Director Faye Jones says this is for anyone interested in organic agriculture.

Attendees can participate in more than 60 workshops and visit over 140 exhibitors of products and services that serve the organic and sustainable farming community.

 

Keynote speakers are:

Chuck Hassebrook, Executive Director of the Center for Rural Affairs. Throughout thirty years of rural activism, Hassebrook has tirelessly championed family farming and ranching, small business, and entrepreneurial rural development.

 

Dr. Margaret Melon, Director of the Food and Environment Program at the Union of Concerned Scientists, which promotes a transition to sustainable agriculture. Included in that approach is a focus on critical evaluation of the use of biotechnology in plant and animal agriculture and assessing animal agriculture’s contribution to the rise of antibiotic-resistant disease.

 

The second Organic Research Forum is also part of the conference and offers a unique opportunity for students, scientists and farmer researchers investigating topics related to organic agriculture to engage and share their work with the conference audience.

 

New to the conference this year will be a seed swap hosted by the Organic Seed Alliance. Swapping seeds helps ensure open access to genetic resources, preserving and increasing biodiversity. Attendees are encouraged to bring seeds to share, but no seed or seed experience is required.

Jones says while everyone in agriculture had a difficult time in 2009, especially dairy producers, organic producers did fare better than conventional producers. As for the future, she sees a potential for growth across the board from the small roadside stand to the commercial row crop producer.

Further details available here:

AUDIO: Faye Jones talks about the MOSES conference

Joe Moore named IBCA Exec. V.P.

The Indiana Beef Cattle Association (IBCA) has named Joe Moore Executive Vice President. Since June, when Julia Wickard left IBCA to become State Executive Director of the Farm Service Agency (FSA) Joe has held the title “Interim” Executive Vice President.

“It is very exciting to be given the opportunity to lead such an outstanding organization which has been at the heart of Indiana agriculture for so many years. At the same time, when I consider the responsibility I have to represent the membership in a way they can be proud of and manage the health of the Association as a whole, it is very humbling” said Moore.

In addition to Moore’s announcement, IBCA also named Brian Shuter as Producer Communications and Marketing Director.

Outside markets support corn, soybeans and wheat: February 24, 2010

Soybeans closed higher on technical buying and spillover from the corn, wheat and the outside markets. Trade was mixed for most of the day with traders unwinding old crop/new crop spreads and there was no real fresh news one way or the other out during the session. The trade expects a record South American soybean crop, but is concerned about harvest delays in some areas. Also, several sources have reported more cancellations of deliverable beans ahead of Friday’s first notice day. Soybean oil was higher on spillover from crude oil was bean meal was lower on profit taking after the recent gains. The U.S. Census Bureau’s January crush report is out Thursday at 7 AM Central with the crush pegged at 170.2 million bushels, bean oil stocks seen at 3.123 billion pounds and meal stocks placed at 521,400 tons. Weekly export sales are out Thursday at 7:30 AM Central. Soybeans are placed at 200,000 to 350,000 tons, meal is seen at 100,000 to 175,000 tons and oil is pegged at 10,000 to 20,000 tons. China’s General Administration reports soybean imports for January were 4.08 million tons, up 35% from January 2009.

Corn was higher on technical and fund buying, along with spillover from the outside markets. The dollar was lower while the Dow and crude oil were higher. Also, there are early concerns about a wet spring delaying planting in some areas of the Cornbelt and the cash basis remains firm due to a lack of farmer selling. In any event, there wasn’t any real new fresh fundamental news out Tuesday. Ethanol futures were higher. Weekly export sales for corn are expected to be between 500,000 and 900,000 tons.

The wheat complex was higher in thin trade volume on short covering, technical buying and the lower dollar. Wheat’s fundamentals remain extremely negative with a large supply and poor demand for U.S. wheat. However, traders hold a huge net short position, allowing wheat to shrug off the fundamentals for the time being. A weak dollar’s nominally bullish as it reduces the price of U.S. goods on the export market, but overall, U.S. sales remain extremely slow. European wheat was mixed in quiet activity with May Paris up .2% and May London down .5%. Australia’s Bureau of Statistics reports that wheat stocks at the end of January totaled 17.02 million tons, down 4.2% from a year ago. Japan issued a tender for 30,000 tons of feed wheat and 200,000 tons of feed barley. Dow Jones Newswires report India will allow a shipment of Russian wheat to be delivered after it was held for two weeks over fumigation issues. Weekly wheat sales are estimated at 300,000 to 550,000 tons.