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Will Doha be downsized?

April 27, 2011 By Leave a Comment

With a threat of failure hanging over their heads, World Trade Organization delegates will discuss alternatives to the current Doha Round at their meeting in Geneva this week. Some of the ideas being presented would involve dropping the contentious issues which have held the talks up for ten years and forging an agreement out of the elements they do agree upon.

That would mean agricultural subsidies and tariffs on industrial goods, machinery and cars would not be included in any deal.

WTO Director General Paschal Lamy met with representatives of all 153 member-nations over the past couple of weeks and says downsizing Doha may be the only way to preserve the WTO as an arbiter of disputes between countries and their companies.

Launched in 2001, the Doha Round has become increasingly difficult as the U.S. and E.U. demand more access and trading equality with the growing economies of China, India and Brazil. India’s Minister of Commerce and Industry, Anand Sharma says “Developing countries (such as India) have already made enough contribution in the round so far, which has to be reciprocated (by developed countries like the U.S.)”

Filed Under: News, Top Stories, World Ag News/Trade Tagged With: , , , , ,

Senators want COOL for dairy

April 27, 2011 By Leave a Comment

Several U.S. Senators have revived a bill to extend mandatory Country of Origin Labeling (COOL) to include dairy products. COOL is currently required for meats, produce and nuts. The bill from Senators Al Franken (D-MN) Sherrod Brown (D-OH) Charles Schumer (D-NY) and Kirsten Gillibrand (D-NY) would extend the requirement to milk, cheese, butter, yogurt and ice cream.

The measure is opposed by the National Milk Producers Federation and the processor group International Dairy Foods Association. They argue required labeling could invite retaliatory action from our trading partners and could prompt food manufacturers to use other protein sources which do not require labeling instead of dairy ingredients.

Filed Under: News, World Ag News/Trade Tagged With: , , , ,

USMEF head comments on FTA progress

April 27, 2011 By Leave a Comment

The pending free trade agreements with Korea, Panama and Colombia are gaining traction. If things go well, they should be ready to go before Congress by mid-summer.

Phil Seng, president and CEO of the U.S. Meat Export Federation, says all three of the trade deals are crucial to helping the U.S. economy.

“We really hope the administration will be able to get these agreements approved, because they estimate it’s going to be 80 billion dollars as far as what that could mean to  trade with Korea–and anytime, with the state of U.S. economy, that we can actually participate in and increase trade and growth, this is significant for us,” says Seng.

And Seng says even though beef issues with South Korea haven’t been totally resolved, that shouldn’t hold up passage of the Korea FTA.

“The beef issue is still a major issue where the  Koreans are still there are at 30 months and not at all access for all ages, but I think this can be resolved in the near future so we can get the passage of this,” he says.

Administration officials say the FTAs need to be passed separately.  Seng says he would like to see them all approved at the same time.

Filed Under: News, World Ag News/Trade Tagged With: , , , , , , ,

Total cheese production up 3.6% last year

April 27, 2011 By Leave a Comment

USDA released the Annual Dairy Products Report for 2010, total cheese production last year, 10.436 billion pounds up 3.6 percent from 2009. Cheese production has increased every year since 2000.

Italian type cheese production totaled 4.42 billion pounds up 5.8 percent from 2009 and constituting 42.4 percent of total cheese production last year. California led the nation in Italian cheese production with 31.1 percent of the total made.

American type cheese production totaled 4.28 billion pounds, a 1.7 percent increase from a year ago and 41 percent of total cheese output. Wisconsin was tops in American output with 19.5 percent of total production.

Total butter production last year 1.564 billion pounds, down 0.5 percent from 2009. California accounted for 35.6 percent of the nation’s butter production last year.

Other products produced and compared to 2009:

  • Nonfat dry milk, 1.56 billion pounds, up 3.4%
  • Skim milk powder, 254 million pounds, up 14.4%
  • Dry whey, 1.01 billion pounds, up 1.2%
  • Lactose, 907 million pounds, up 25.6%
  • Whey protein concentrate, 428 million pounds, up 3.1%
  • Regular ice cream, 912 million gallons, down 0.6%
  • Low fat ice cream, 380 million gallons, down 4.9%
  • Sherbet, 49.3 million gallons, down 7.5%
  • Frozen Yogurt, 49.7 million gallons, up 8.1%
Filed Under: Dairy, News Tagged With: , , ,

Mo. governor signs revised dog breeding bill

April 27, 2011 By 1 Comment

Governor Nixon signed Senate Bill 113 Wednesday that revises the voter passed and HSUS-backed Puppy Mill ballot measure (Proposition B). The governor says he looks forward to the legislature passing Senate Bill 161, his so-called “Missouri Solution” – a deal brokered with the administration and animal welfare advocates after Senate Bill 113 passed the legislature. Governor Nixon says he’s pleased that agriculture and animal welfare groups from across the state worked together further strengthening Senate Bill 113. He says both measures uphold the will of voters who approved Proposition B by protecting the welfare of dogs, while also ensuring the future of Missouri agriculture.

Julie Harker contributed to this report

Missourinet – Nixon signs SB 113

Filed Under: Livestock, News Tagged With: , , , ,

Wheat, corn lower on liquidation, chances for improved weather

April 27, 2011 By Leave a Comment

Soybeans were modestly lower on fund and technical selling, along with spillover pressure from wheat and corn. There was no real fresh news and while there are harvest delays in South America, the trade expects a record crop and what has made it to the marketplace has reduced U.S. export demand along seasonal lines. Losses in old crop contracts were limited by the tight near term supply. Soybean meal and oil were lower on spillover from beans and the fundamental implications of a record South American crop. USDA’s weekly export sales report is due out Thursday at 7:30 AM Central. Old crop beans are pegged at 50,000 to 300,000 tons with new crop at 180,000 to 300,000, while meal is seen at 50,000 to 125,000 tons and oil is placed at 0 to 10,000 tons. The Census Bureau’s March oilseed crush numbers are out at 7 AM Central. The soybean crush is projected at 139.1 million bushels which would be down on the month and up on the year, with oil stocks at 3.288 billion pounds and meal stocks at 393,000 short tons.

Corn was lower on technical and fund selling in addition to adjustments of old crop/new crop spreads. Corn was also looking at a real lack of fresh news and at least some weather forecasts show a chance for improved planting weather. In any event, corn’s near term supply remains tight and planting is moving the slowest it has in a number of years in many key areas of the Midwest; even with a small window, it’ll take near ideal weather to speed up the planting pace. Ethanol futures were lower. Weekly old crop U.S. corn sales are expected to be between 400,000 and 800,000 tons with new crop at 200,000 to 400,000 tons.

The wheat complex was sharply lower on fund and technical liquidation. There are continued weather concerns both stateside and abroad, but at this point, they appear to be adequately priced in. There’s a chance for rain in the Southern Plains but it may be too little too late in big sections of the region and there’s a chance for colder than average weather on top of that. Ahead of the open, unknown destinations bought 100,000 tons of 2011/12 U.S. hard red winter wheat. European wheat was lower on the weather uncertainties and fund liquidation. Japan issued a sell-buy-sell tender for 67,000 tons of milling wheat and 9,000 tons of barley. Dow Jones Newswires states the head of European grain merchant Gleadell Agriculture projects the United Kingdom’s 2011/12 wheat exports at 1.4 million tons. Weekly U.S. old crop wheat sales are estimated at 100,000 to 250,000 tons and new crop is seen at 100,000 to 300,000 tons.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: , , , , , ,

Iowa telecoms seek broadband plan changes

April 27, 2011 By 1 Comment

They call it “The Great Disconnect”.

“They” are the more than 145 independent telecommunications companies that make up the Independent Telecommunications Companies Coalition in Iowa. 

“It” is the National Broadband Plan being considered by the Federal Communications Commission (FCC).

According to Tom Conry of the Farmers Mutual Cooperative Telephone Company at Harlan, Iowa, the broadband plan, as proposed, would mean a sharp reduction in the share of Universal Service Fund (USF) money received by rural independent companies. And he says that would hurt their efforts to provide improved broadband service to rural areas.

“We need the Universal Service—the Connect America funds—to be able to make it affordable for all of our customers and for all Iowans,” says Conry. “Without those, we won’t have the ability to continue services—let alone build for the new ones—as those needs arise.  So it’s very important that the FCC get it right.”

Deb Lucht is the general manager of Minburn Communications at Minburn, Iowa, which serves about 14-hundred homes in a rural area just northwest of Des Moines. Lucht says that, under the proposed plan, her company could lose nearly half of its total revenue.

“If I lose 48 to 49 percent of my revenues, there’s no way that I can afford to keep my business doors open,” Lucht says.

Potentially, the rural independent companies could be purchased by a larger company—but Lucht questions whether the new owners would make the investments necessary to improve broadband service—and keep it affordable—in rural areas.

“It would be very similar to those situations (now) where you have large companies serving metro and some rural areas—and those customers that are on the rural edges are contacting our companies all the time wanting to know if they can get service from us because they are unserved,” says Lucht, “and I think you would see that even moreso—because those larger companies don’t want to serve our high-cost areas.”

Lucht points out that 97 percent of Iowa households now have broadband available to them.  She says much of that success can be attributed to the local telecommunications firms.

“We shouldn’t be punished for what we have done very well,” she says, “and once these networks are built, it still continues to take ongoing investments to continue them—and right now, if they (the FCC) make those changes, we won’t have the money to continue supporting them.”

And Conry says that’s the “disconnect” in the National Broadband Plan—while it aims to increase broadband Internet access for all Americans, it could actually end up widening the digital divide between rural and metropolitan areas.

Link to more information at thegreatdisconnect.org

AUDIO: Deb Lucht (14 min MP3)

AUDIO: Tom Conry (8 min MP3)

Filed Under: Events/Organizations, News Tagged With: , , ,

Pork carcass cutout value sharply lower

April 27, 2011 By Leave a Comment

There was little activity in the cash cattle market on Wednesday afternoon and many believe business is done for the week. Trade volume totals look moderate at best. Nebraska looks relatively light; possibly suggesting some cattle will be carried over into next week if not traded over the next couple of days. The balance of the show lists are priced around 118.00 live and 188.00 dressed. Cattle slaughter was estimated at 129,000 head, 3,000 more than last week, and 1,000 greater than last year.

Boxed beef cutout values were lower with light demand and moderate to heavy offerings. Choice beef was down .83 at 184.33, and select was 1.00 lower at 179.61.

Chicago Mercantile Exchange live cattle contracts settled 70 to 167 points higher on short covering after the early week liquidation. The most significant buying support developed in the deferred contracts where traders are more focused on longer term lighter supply levels as they expect overall demand to continue to slowly grow. April settled 1.25 higher at 117.27, and June was up 1.25 at 113.55.

Feeder cattle followed the lead of the live pit and settled 165 to 210 points higher. The softness in the corn market added additional strength through the nearby contracts. May was 1.65 higher and settled at 130.40, and August was up 1.90 at 134.85.

Feeder cattle receipts at the Philip Livestock Auction, Philip, SD totaled 3717 head on Tuesday. Compared to two weeks ago, an accurate comparison on feeder steers cannot be made, but a lower undertone was noted. Feeder heifers sold steady, with a higher undertone noted on replacement heifers. Buyer attendance was good with moderate demand. 310 feeder steers medium and large 1 weighing an average of 736 pounds averaged 136.92. 201 heifers weighing 632 pounds brought 140.55 per hundredweight.

Lean hogs settled 5 to 87 points lower as concern continues in the market over slow pork demand at home, and a weaker outlook for cash prices in the near term.  Even if the sharp losses early in the week are still trending to a lower market move, traders appear to be coming up for air. May was down .87 at 97.75, and June was .40 lower at 96.70.

Barrows and gilts were 2.11 higher in the Iowa/Minnesota direct trade at 91.41 on the carcass basis in the West hogs were 1.58 higher at 90.88, and in the East the market closed .42 lower at 91.35. Missouri direct base carcass meat price was steady to 1.00 lower from 85.00 to 86.00.

Pork trading was slow with very light to light demand and moderate to heavy offerings. Pork carcass cutout value was down 2.38 at 92.44.

Hog slaughter was estimated at 411,000 head, 2,000 less than last week and even with last year. While hog sales were generally lower on Tuesday, country movement remains rather light. We’ve seen this pattern many times over the last 30 to 60 days — so often that packers have been forced to reconsider spending at midweek in order to cover chain speed plans.

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: ,

Beck’s break ground on phase 1 of expansion

April 27, 2011 By Leave a Comment

Beck’s Hybrids broke ground on Phase 1 of a $24.5 million expansion project at the company’s headquarters at Atlanta, Indiana on Tuesday, April 26. Dr. Kevin Cavanaugh, Director of Research at Beck’s tells Brownfield it’s another example of the Beck family’s commitment to their customers.

“Being a family owned company is very, very meaningful, and a lot of times when I talk to customers they say, yeah that’s great, but what’s that do for me?” said Cavanaugh. “I think this is one example of what that does, it’s a long term commitment by the Beck family that we are concerned and making sure that our customers can have the best products available.”

Included in Phase 1 of the expansion is a new research center, which Dr. Cavanaugh says will allow Beck’s to increase testing of products.

“We’ve put a lot of research in to our products in the past and now this just shows a lot of commitment, not just now but into the future where we will really be able to test more products and have more products available to our customers,” Cavanaugh said.

Beck’s will invest $11 million dollars in Phase 1 of their expansion, with another $14 million planned for Phase 2.

Audio: Dr. Kevin Cavanaugh, Director of Research (1:40 MP3)

Audio: Sonny Beck, President, Beck’s Hybrids (1:10 MP3)

Audio: Scott Beck, VP, Beck’s Hybrids (3:00 MP3)

Filed Under: Events/Organizations, News Tagged With: , ,

Closing Grain and Livestock Futures: April 27, 2011

April 27, 2011 By Leave a Comment

May corn closed at $7.52 and 1/4, down 14 cents
May soybeans closed at $13.78, down 4 and 3/4 cents
May soybean meal closed at $356.70, down $3.10
May soybean oil closed at 57.86, down 19 points
May wheat closed at $7.77, down 34 and 1/4 cents
April live cattle closed at $117.27, up $1.25
May lean hogs closed at $97.75, down 87 cents
May crude oil closed at $112.76, up 55 cents
May cotton closed at 174.89, down 695 points
May Class III milk closed at $16.48, up 22 cents
Dow Jones Industrial Average: 12,690.96, up 95.59 points

Filed Under: Closing Futures & Livestock Briefs, Markets Tagged With: , , , , , , , ,
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