While much of the world has been focused on the crop-reducing drought in Russia, Romania is reporting the biggest corn crop in five years. Bloomberg reports preliminary numbers from the Agriculture Ministry show a harvest of 9.08 million metric tons of grain from 5.7 million acres, the biggest crop since the 10.4 million metric tons in 2005. The Ministry says the country should have about 2 million tons of corn to sell on international markets.
Del Monte accepts $5.3 billion takeover bid
November 26, 2010 By Leave a Comment
Del Monte Foods has agreed to a takeover by an investor group led by Kohlberg Kravis Roberts & Co. in what would be one of the year’s largest private-equity buyouts. The group is offering $19 a share in cash for the San Francisco-based canned vegetables and pet food company.
The transaction is valued at approximately $5.3 billion, including the assumption of approximately $1.3 billion in net debt. This price represents a premium of approximately 40 percent over Del Monte’s average closing share price during the past three months prior to November 18, 2010, when market rumors of a transaction began.
As part of the offer, Del Monte is permitted to accept alternative proposals from other parties through January 8, 2011. If it doesn’t, the KKR deal can be expected to close by the end of March 2011. The company will keep its corporate headquarters in San Francisco.
Del Monte currently generates about $3.7 billion in annual revenue under numerous private and brand names including Del Monte, S&W, Contadina, Meow Mix, Kibbles ‘n Bits and Milk-Bone. The Company operates 17 production facilities and six distribution centers in the U.S., as well as two food and pet technology centers in California, a Corporate Service Center in Pittsburgh. Del Monte Foods has a peak employment of 14,800 including a workforce of 5,400 full-time and 9,400 seasonal workers.
It has three food processing plants in Wisconsin: Cambria, Markesan and Plover
The strong dollar puts pressure on soybeans, corn
November 26, 2010 By Leave a Comment
Soybeans were lower Friday in slow trade, most of the loss is because of selling tied to the strong dollar. Meal and bean oil were down as well. DTN cited concern over Portugal’s debt and rising tension between North and South Korea driving the dollar higher. China’s announcement they would raise margin requirements by 10 percent on speculative accounts led to more talk that their demand may decline. However the latest export sales report, which is a week old, doesn’t yet reflect China’s purchase Wednesday of 780,000 metric tons of U.S. soybeans. South American weather could push trade higher. A good South American crop this winter is going to be bearish, while damaging weather may lead to a run-up.
Corn stayed close to even money despite the sharply higher dollar. Volume was thin. Weekly export sales were good. South Korea was this week’s largest buyer at 380,000 tons. There was a small unknown buyer, but no mention of China on the weekly corn export report. Underlying support should also continue to come from ideas both China and Russia will need to import corn in the near future.
Wheat was a little higher at the close Friday. Wheat has held up well the past week and a half with Chicago very flat and both Kansas City and Minneapolis on a small uptrend. Weekly wheat exports are good, but not spectacular. Weekly sales totals were listed at 745,200 tons. Wheat was the strongest performer on the grain floor Friday. In the coming weeks, traders will be paying close attention to global production. DTN says wheat will have a hard time withstanding another crop failure such as was seen in Russia and the Black Sea Region in 2010.
Biofuels incentives need to pass, Vilsack says
November 26, 2010 By 1 Comment
Ag Secretary Tom Vilsack is among those urging Congress to vote this year to extend tax breaks for soybean-based biodiesel and corn-based ethanol. The tax break for biodiesel expired at the end of last year.
“It is important for us to renew the biodiesel tax credit because when it was allowed to lapse we lost 50% of our biodiesel production and 12,000 jobs,” Vilsack says.
The tax inventive for ethanol is set to expire December 31st.
Two key Republican senators — from Oklahoma and from South Carolina — are pushing their fellow Republicans to allow the ethanol tax break to expire, arguing the government subsidies for ethanol have increased food prices and have been bad for the environment because ethanol-blended fuels.
Vilsack, a former two-term governor of Iowa, supports giving ethanol producers a tax break.
“It is important for us to continue to renew the ethanol credits in one form or another so that we recognize that this is a maturing industry, not a mature industry. It needs a little bit more additional help in order for it to expand nationwide which is what we are hopeful to be able to do.”
Vilsack says he expects debate about the renewable fuels tax breaks to be part of the debate in Congress about extending the Bush-era tax cuts.
-Thanks to Radio Iowa-
RFA not surprised by E15 lawsuit
November 26, 2010 By 1 Comment
The lawsuit recently filed by nine ag and food groups against the EPA on its approval of E15 in newer vehicles does not surprise Renewable Fuels Association President Bob Dineen, “These are folks that are involved in this debate because of a concern about cheap corn. They want to return to $2 corn in this country. And, I – you know, I just sort of shake my head at that.”
Dineen says there may be some legitimate issues that will have to be resolved but the debate shouldn’t be about cheap corn.
“It ought to be about ‘how do we move our nation forward in terms of energy, economic and food security?’ And, I think we can do it. I think farmers have demonstrated that they can supply all of these markets.”
Leading pork, poultry and meat groups along with the Grocery Manufacturers Association and several other groups say the EPA’s E15 approval violates the Clean Air Act and they want the decision overturned.
Dineen says while the RFA doesn’t like the “piece-meal” approach of the EPA on E-15, Dineen says it’s a step in the right direction.
Workshop comments to guide USDA
November 26, 2010 By Leave a Comment
After the final agriculture competition workshop is held next month, the USDA will begin analyzing all the workshop comments and the statements that were submitted from producers and consumers and retailers and processors and all other experts and academics in agriculture to look at, what are the areas in agriculture that we should take a closer look at in our administrative work here that we do at the department.”
That’s USDA Under Secretary John Ferrell who says public comments last year helped shape the USDA/Department of Justice workshops held across the country this year.
The final competition workshop will be December 8th in Washington, DC with the focus on margins in the agriculture supply chain.
Purdue receives grant to boost organic farming
November 26, 2010 By Leave a Comment
A U.S. Department of Agriculture grant totaling $1.2 million has been received by a team at Purdue University that will be used to boost organic farming in Indiana.
Kevin Gibson, associate professor of botany and plant pathology and leader of the project hopes the 3-year research program will allow Indiana to catch up to neighboring states when it comes to organic farming. Gibson said his team will focus on increasing the amount of information Purdue Extension educators have on organic farming practices.
“Our hope is that by working with Extension, we will be able to better serve the organic community,” he said.
The Purdue team includes; Cliff Sadof, a professor of entomology; Ian Kaplan, an assistant professor of entomology; Janna Beckerman, an associate professor of botany and plant pathology; Steve Hallett, an associate professor of botany and plant pathology; Lori Hoagland, an assistant professor of horticulture; and Eileen Kladviko, a professor of agronomy.
USDA December ag survey
November 26, 2010 By Leave a Comment
The U.S. Department of Agriculture will conduct a major agricultural survey in December.
USDA’s National Agricultural Statistics Service (NASS) will be contacting about 3,200 Indiana farm operators to gather information to be used to make state and national estimates of crop production, grain in storage and hog and pig inventories.
Sharing lesson plans with Afghan students
November 26, 2010 By Leave a Comment
Indiana’s 3-19th Agribusiness Development Team currently serving in the Khowst Province in Eastern Afghanistan has turned to Indiana’s 186 FFA chapters across the state for lesson plans the ADT unit can share with Afghan high schools.
One of the first proposed lesson plans came from Ashley Hornbrook, Agriculture and Biology instructor at Garrett High School, her proposed lesson plan for “Plant Physiology” is being considered by the 3-19th education team.
“Anytime I have the opportunity to assist with ideas for student advancement; whether here in Garrett, throughout the Midwest, or even across the world- why wouldn’t I want to make that positive influence,” said Hornbrook.
Friday midday cash livestock markets
November 26, 2010 By Leave a Comment
Cash cattle traders will be slow to return from Thursday’s big feast. Trade volume totals suggest that business is essentially done for the week. Whatever steers and heifers are still on show lists will be priced at the top of the market’s full advance, 102.00 plus live and 160.00 plus dressed. Barring a big board sell-off before the weekend break, producers will be eager to price cattle sharply higher again on Monday.
Boxed beef cutout values are higher with the choice up .62 at 161.72, and the select is up .78 at 142.34.
Feeder cattle receipts at Missouri auctions this week totaled 33,192 head. Compared to last week feeder steers under 600 pounds sold steady to 2.00 higher, over 600 pounds 3.00 to 5.00 higher, feeder heifers sold steady to 3.00 higher. Had there been enough fall moisture to provide mud, temperatures this past week would have made it frozen. Cold temperatures weren’t enough to keep producers from hauling cattle or buyers from showing up at sales even with the shortened holiday week. Feeder steers medium and large 1: 864 head weighing 578 pounds averaged 119.43 per hundredweight. 1278 steers tipping the scale at an average of 776 pounds brought 118.47 per hundredweight. 630 heifers averaging 574 pounds traded at 107.28 and 565 head weighing 779 traded at 108.91.
Barrows and gilts in the Iowa/Minnesota direct trade opened 1.77 lower at 62.73 on a carcass basis, the West was down 1.39 at 62.65, and the East is .93 lower at 60.67. Missouri direct base carcass meat price is steady from 56.00 to 58.00.
Given the decent country movement generated on Wednesday with higher hog bids, short term slaughter needs are pretty well covered. On the other hand processing margins remain excellent and packers are unlikely to risk significantly cutting off the flow of country movement with excessively unattractive bids according to John Harrington at DTN.
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