Quality corn hybrid seeds termed vital for higher yields

Terming corn a profitable crop for farmers, agricultural experts have advised the farmers to use best quality corn hybrid seeds to increase the production, saying that private sector needs to be encouraged to introduce new seed varieties so that crop's productivity could be enhanced.

They said after the introduction of hybrid maize during the 1990s, farmers have gradually shifted to hybrid maize from traditional/open pollinated varieties (OPVs) as hybrid maize has increased production from a mere 30 maunds/acre to 80-120 maunds/acre. They said corn crop could be highly lucrative for farmers as it has higher per acre yield than other crops.

The experts said though, after the introduction of hybrid maize in Pakistan, farmers had gradually shifted to high-yielding hybrid maize but most of them fail to get the desired production because of use of substandard hybrids and old farming practices. "The adoption of best quality hybrids is also important because the weather patterns are changing and farmers desperately need such seeds as could cope with the harsh weather conditions, fit in changing crop rotations and most importantly provide the much-needed economic benefits to the farmers," they said.

The agricultural experts said this while interacting with farmers who were visiting the hybrid corn field trial site, which serves as a Dekalb Learning Centre for farmers, in Okara. The field visit of farmers was organised by Monsanto Pakistan. Around 600 corn farmers belonging to different area of Punjab. Showcasing the on-field performance of Monsanto's latest and advanced 'Deklab' corn hybrids was also one of the objectives of this field day.

Monsanto Breeding and Technology Development teams advised the farmers to select the best quality hybrid corn seeds and use the best agronomic practices to take the best, in terms of yield, out of corn hybrids. They also informed the farmers that some of Monsanto's new corn hybrids perform very well in harsh weather conditions. "Grains of some of Monsanto's new hybrids are bigger and their resistance against diseases is also high. Also, another advantage is that when the crop fully ripens their leaves remain fresh and green which can be used as fodder for animals," Monsanto's representative Asif Nazir told the farmers.

On the occasion, Monsanto Pakistan Commercial Operations Lead Muhammad Ilyas Nadeem informed the farmers that at least 8-10 years are needed to develop a corn hybrid, adding that Monsanto, after rigorous testing, brings only those products to Pakistan that fit in our conditions and benefit the farmers.

Chaudhry Shaukat, President, Kissan Board Pakistan Okara commended the efforts of Monsanto Pakistan, said the event was a very good opportunity for them to learn and understand the technology and provided insight to best agronomic solutions. They hoped that Monsanto would continue to take such initiatives in future. Quality hybrid seeds are vital for higher yields and most importantly they fetch better price. Another farmer Maqsood Ahmed Jutt, Member Farmers Associates Pakistan - Okara, lauded Monsanto Pakistan initiative for farmers and encouraged Monsanto to introduce new hybrid seeds that would also be as good as previous ones.

Copyright Business Recorder, 2014

Mexican Farmers Affected By Agricultural Subsidies From NAFTA, Other International Agreements

By Susana G. Baumann

Who pays for agricultural subsidies? Agricultural dumping between the United States and Latin American countries have swept agricultural production and prices in nearby countries while increasing displaced rural workers’ migration.

Leticia and her family came from Mexico in 2004 because their small dairy farm operation went downhill. Her father used to lease a piece of land and raise dairy cows, selling the production to Nestle Waters of North America.

“My father and other dairy farmers belonged to a small cooperative renting a bulk milk cooler. Once a week, Nestle trucks came and picked up the milk and cream to be transported to the factories,” Leticia told VOXXI in an interview. However, in 2003 Nestle dropped the price of milk they were paying to small producers and started being inconsistent with weekly pickups. Several times, the milk got spoiled because of lack of transportation.

Leticia’s family headed north the following year.

This Mexican family might never know that their story is just one of a million similar stories taking place every year due to the powerlessness of Mexican farmers to compete with the United States’ agricultural dumping.

“… NAFTA liberalized agricultural trade dramatically over a short period of time, Mexico imports most basic grains and meats almost exclusively from the United States, and Mexican farmers grow many of the crops that compete with the imports,” wrote Timothy A. Wise, Director of the Research and Policy Program at the Global Development and Environment Institute at Tufts University, in a column for Triple Crisis. Wise chairs the Institute’s Globalization and Sustainable Development Program (GDAE).

The dairy industry, an example of a subsidized industry

In the dairy industry, for instance, U.S. dairy farmers have been price-protected since the Agricultural Act of 1949, which sustained butter, cheddar cheese or nonfat dry milk at current support prices. The Act also included other multiple crops and meats.

Scheduled to end in 1999, the program was extended until 2001. The new 2002 Farm Act extended agricultural subsidies for the third time until 2007. The Act provided approximately $16.5 billion of funding for agricultural subsidies each year.

A continuation of the 2007 Act, the Food, Conservation, and Energy Act of 2008extended and increased the programs for five additional years, now at a provision of $288 billion over the five year period. This bill incorporated provisions in energy—including biofuels, a conservation reserve, nutrition and nutrition education and rural development.

In the dairy industry, for instance, the Milk Income Loss Contract (MILC) provides direct payments to producers on certain products when the actual price falls below the target level of the Boston Class I milk price—the national base price. Despite the fact that the subsidy has not been used due to higher prices in the market, the provision was included in the Farm Bill extension—with changes recently passed by the U.S. Congress in the “fiscal cliff” agreement.

Yet, the United States had carried out another provision, the Dairy Export Incentive Program (DEIP) that pays cash bonuses to dairy product exporters when U.S. prices are higher than international prices. This allows them to sell at lower prices abroad instead of forcing conditions of competitiveness, the real concept behind the idea of free markets.

Through these policies, the dairy export industry has increased commercially so much in the past decade that the subsidy is hardly used, and has been recommended to end by the International Dairy Foods Association.

The 1994 NAFTA agreement, the most important bilateral trade agreement that included dairy products, removed all dairy tariffs for trade with Mexico. However, Canada excluded dairy products in their portion of the NAFTA agreement.

These are the real reasons behind Leticia’s family loss of their livelihood.

Impact of NAFTA in combination with US agricultural subsidies

Click here for "U.S. Dumping on Mexican Producers" table

The impact of NAFTA and other international agreements in combination with U.S. agricultural subsidies expel millions of Mexicans and other rural workers from their countries of origin into the United States territory every year.

According to Wise, who carried out a comparison of farm product prices in the U.S.-Mexico trade between 1997 and 2005, Mexico was flooded with agricultural imports exported at prices below production costs.

In his research, the eight products studied included corn, soybeans, wheat, cotton, rice, beef, pork and poultry. All products showed significant increase in exports—from the lowest 159 percent in soybean to the largest in pork exports at 707 percent.

For all products, Mexican producers’ prices fell from 44 to 67 percent from early 1990’s levels, declining local production and increasing import dependency. Mexican crop production also fell except for corn and meats, which at lower prices, was rapidly adopted for consumption in the Mexican families’ diet.

“An estimated 2.3 million people have left agriculture in a country desperate for livelihoods,” said Wise. The study estimated that the cost to Mexican producers was around $12.8 billion in the nine-year period, more than 10 percent of the U.S.-Mexico agricultural trade value annually.

The other cost, the one that we, north of the border pay, is the constant migration of these displaced rural workers into the United States.

Original Atricle Here

Ukraine Increases Agricultural Export

UKRAINE - In 2012, Ukrainian agricultural export increased by nearly 40 per cent, reaching USD 17 billion, according to the Ukrainian Minister of Agrarian Policy and Food Mykola Prysyazhnyuk.

Additionally, he noted that Ukrainian agricultural industry produces twice as much as is consumed by the domestic market. Comparably, the UK produces only 60 per cent of the food consumed in the country. 

Ukrainian agricultural export in January - October 2012 included meat, fish, dairy, poultry, vegetables, vegetable oils, sugar, wine, nuts, apples, as well as 6.7 million tons of wheat worth nearly USD 1.8 billion, according to ukrstat.gov.ua. Major buyers of Ukrainian agricultural products in 2012 were the EU and CIS countries. 

In late December 2012, the Financial Times noted Ukraine's potential in wheat, barley, corn, and sunflower seeds export. Notably, in 2011, Ukraine joined the world's top three grain exporters. A year prior - in 2010 - it landed fourth on the list of the leading grain exporters, following the USA, the EU, and Canada. Moreover, Ukraine currently ranks number one in global barley exports. 

Additionally, the Eastern European country became the third largest corn supplier in the world in 2011, surpassing Brazil and being the second runner-up to the USA and Argentina. In 2012, China - the world's largest corn consumer - imported Ukrainian corn for the first time. 

Suffice it to say that in 2011, Ukraine became the world's largest sunflower exporter, according to Erste Bank. The top consumer of Ukrainian sunflower oil is India - the country acquires around one quarter of the annual Ukrainian sunflower oil export, according toUkragroconsult. 

Given Ukraine's rich grain production in 2011, the country initiated the creation of the world's grain reserve under the auspices of the United Nations to ensure more efficient price regulation on the world grain market. Ukraine aimed to form a grain reserve of 10 to 12 million tons and use it for grain interventions.

ThePoultrySite News Desk

Farm Show's 'Today's Agriculture' exhibit will teach about farm production

A crowd of farmers, bureaucrats and media gathered together for the unveiling of the Today's Agriculture exhibit at the 2013 Pennsylvania Farm Show.

The Today's Agriculture exhibit seeks to inform the everyday citizen about farming and agricultural production. It features information regarding farms that deal with dairy, beef, veal, pork, poultry, corn, soybeans and also touches on the subjects of cover crops (which are planted in between crops to improve soil workability and trap nutrients) and forested buffers (which keep nitrogen and sediment from the farm out of early streams).

The new display features an expanded crops and agronomic equipment display, a look at solar panels, an exhibit on seeds and how they are used to plant crops and feed animals, and a silo.

More of what's new at the Farm Show

"There is a growing disconnect," said Bob Stallman, chairman of the U.S. Farmers and Ranchers Alliance, of the relationship between farmers and consumers.

The exhibit at the farm show was a great way to address that gap, he said, by showcasing the truth and the facts about modern day agricultural production in a way that was easily accessible for the average person.

The public can see the Today's Agriculture exhibit in the Main Exposition hall at the 97th Pennsylvania Farm Show, which begins the morning of Jan. 5. Admission to the farm show is free, but there is a $10 parking fee. The Farm Show runs from Jan. 5 to Jan. 12.

Original Article Here

Prospect of Corn as the grain in Sindh

By Hadi Lagari

Newly established Rafhan Food manufacturing factory @ Kotri requires more than 1,50,000 tons of corn ( on 50,000 acres "one crop cycle"). They assure guarantee to buy back. The price / 40 kg they of

fer is 1100 PKR @ 10-11% moisture content, for every one percent decrease in moisture content they add 11 PKR/40 kg. With Pioneer seed company they are doing this venture. They promote two season crop spring & autumn. Spring crop yield more upto plus 4 tons/acre & Autumn crops yield less roughly under 3 tons/acre. Per acre seed cost is 6100 PKR & roughly total cost of production/crop is 30,000 to 40,000 PKR/acre. I think what they offer is not that bad.

For long term I don't think that'll be sustainable.............due to monoculturing & continuous mining of minerals from soil.

Agriculture: Corn moved higher on Brazil's crop concerns

Precious Metals: Platinum rose on South African miners’ unrest

Precious metals apart from silver rose on Friday on encouraging comments from John Williams, San Francisco Federal Reserve Bank president. John Williams said that when the Operation Twist ends in December, the Fed may extend the outright purchases of Treasuries.

Gold ended the week on the positive note, boosted by hints on further easing measures from the Fed after Operation Twist ends in December.

Silver rallied in Asian and European session on Friday but failed to hold the gains and dropped sharply during the US trading hours. 

Platinum extended previous gains on persistent supply concerns from South Africa. On Friday, Anglo American Platinum warned striking employees that in case they do not return to work the company will take legal action.

Palladium was the top-performer, moving in tandem with industrial metals. The precious metal also drew strength from hopes for additional easing in the US and weaker greenback.

Industrial Metals: Nickel reached 20-week high on lower inventories

Base metals moved higher on Friday, erasing previous losses on weak fresh PMI releases from the US, China and Eurozone. At the same time, inability of Eurozone’s leaders to agree on measures to solve spreading debt crisis weighted down on the industrial metals.

Aluminum posted mild gain despite higher inventories at the LME warehouses and softer global shares.

Copper inched up on news that refined copper output was in deficit of 473,000 tons in H1 of 2012 compared to a deficit of 131,000 tons in H1 of 2011.

Nickel topped 20-week high on stronger Euro and a 24% decline in inventories at the LME-listed warehouses. Stronger spot demand from alloy-makers also boosted the base metal.

Zinc advanced on improved spot market activity and weaker US Dollar. However, soft global equities and weak manufacturing activity data capped the upswing of the metal.

Energy: Natural gas climbed despite cooler US weather

Energy commodities were bullish on Friday amid lingering concerns over instability in Libya and falling North Sea production. Speculation that the Fed will loosen its policy further in December and weakness of the greenback also lifted energy prices.

Crude oil rose on hopes that global stimulus measures will spur demand for energy. Escalating tensions in Libya also supported the commodity price.

Brent oil added 1.26% amid declining production from the North Sea region. However, the upward trend was limited by talks of possible strategic reserves release and elevating inventories in the US.

Natural gas continued its rally despite cooler weather in the US. Meanwhile, US natural gas inventories climbed in line with expectations last week thus sending the commodity higher.

Heating oil gained 3.15%, tracking gains of Brent and crude oil. Relatively low US supplies continued to push heating oil higher.

Agriculture: Corn moved higher on Brazil’s crop concerns

Rural commodities rallied on Friday amid falling Russia’s and Brazil’s supplies. Adding to the positive mood of the commodity group, the US Dollar retreated on speculation that the Fed will ease its policy further in December.

Wheat soared after Andrei Belousov, Russia’s Economy Minister, said that Russia may restrict exports in the autumn in case domestic prices skyrocket.

Corn gained 0.30% on global supply concerns. Brazil, the third biggest world’s producer, stated that about one million tons of corn may be damaged by rains.

Sugar climbed on hopes that recent plunge in price will encourage buyers to return to markets.

Coffee was the top-performer, erasing previous losses caused by improving Colombian crops. However, coffee futures remained under heavy pressure as recent increase in prices motivates farmers to increase supplies.

EXPLANATIONS

Commodities

Gold - spot 995 fine gold

Silver - spot 999 fine silver

Platinum - spot platinum with minimum purity 99.95%

Palladium - spot palladium with minimum purity 99.95%

Aluminium - three-month forward contract on the London Metal Exchange

Copper - three-month forward contract on the London Metal Exchange

Zinc - three-month forward contract on the London Metal Exchange

Nickel - three-month forward contract on the London Metal Exchange

Crude oil - light, sweet crude oil active contract on the New York Mercantile Exchange

Brent oil - Brent oil active contract on the New York Mercantile Exchange

Natural Gas - natural gas active contract on the New York Mercantile Exchange

Heating oil - heating oil active contract on the New York Mercantile Exchange

Sugar - white sugar wheat active contract on the Chicago Board of Trade

Wheat - wheat active contract on the Chicago Board of Trade

Coffee - benchmark Arabica coffee active contract on the NYB-ICE Futures Exchange

Corn - corn active contract on the Chicago Board of Trade

Indices

Dow Jones - UBS Precious Metals Subindex Total Return - commodity group subindex composed of gold and silver; the index reflects return on underlying commodity futures price movement

Dow Jones - UBS Industry Metals Subindex Total Return - commodity group subindex composed of futures contracts on aluminium, copper, nickel and zinc; the index reflects return on fully collateralized futures positions

Dow Jones - UBS Energy Subindex Total Return - commodity group subindex composed of futures contracts on crude oil, heating oil, unleaded gasoline and natural gas; the index reflects return on fully collateralized futures positions

Dow Jones - UBS Agriculture Subindex Total Return - commodity group subindex composed of futures contracts on coffee, corn, cotton, soybeans, soybean oil, sugar and wheat; the index reflects return on fully collateralized futures positions

Chart

SMA (20) - Simple Moving Average of 20 periods

SMA (60) - Simple Moving Average of 60 periods

Correlation - a statistical measure of the linear relationship of two random variables. It is defined as the covariance divided by the standard deviation of two variables

Indicators

Daily Ranked Price Moves - daily price changes in an ascending order for positive changes and in a descending order for negative or mixed changes

Monthly Ranked Price Moves - monthly price changes in an ascending order for positive changes and in a descending order for negative or mixed changes

Original Article Here

Agriculture: Food produce speculation remains niche area

By Lucy Warwick-Ching
Crop speculation by traders is back in the spotlight after food prices rose by an average of 6 per cent globally in July and critics argue speculation heaps further pressure on the world’s poorest people.

A number of European banks have bowed to pressure and have withdrawn products that enable investors to speculate on food prices after campaigners said these investment vehicles play a significant role in pushing up prices globally.
The recent rises in agricultural commodity prices have raised concerns about supply shocks, as well as the effect on food inflation around the world over the next 12 months.

“The worst drought since 1956 in the US has sent corn yields plunging and price soaring which has forced farmers across the US to make the choice between feeding their livestock at elevated prices, and slaughtering them, as they become too expensive to keep,” says Michael Hewson, senior market strategist at CMC Markets.

“While this has sent beef prices lower, the rise in prices has also illustrated how sensitive the food chain is around the world to even the slightest supply shock.“

There are still ways for small traders to speculate on crop prices without buying the assets directly – via spread bets. Spread betting firms routinely offer prices on a range of the leading agricultural commodities, including wheat, corn, sugar, coffee, cocoa, oats and soya produce. You can either spread bet on the commodity itself, or, in some cases, on the exchange-traded product linked to it.

But it is still a niche area for investors. “Soft commodities have never been a major market for Capital Spreads’ clients,” says Simon Denham, head of the firm. “While clients do tend to like ‘volatile’ instruments, the information flow is so opaque, and the consequent price action so violent, that investors have been rather put off.”

Mr Denham adds that in the past investors have generally needed a reason to be involved – for example, if they are a producer, supplier or broker – and have tended to “need deep pockets and nerves of steel”.

Agricultural commodities tend to cost more to spread bet, than, say, equities, warn experts. To trade corn, the difference between bid and offer prices could be several times that on the FTSE 100. And the spread for something less mainstream, such as oat prices, would be even wider.

But experts say shot-term traders can benefit from the continuing price fluctuations.

“Agricultural commodity products are likely to have wild swings as they become politicised coming into the November US elections,” says Joe Rundle, head of trading at ETX Capital.

“The increased headlines will draw in a new breed of speculator who has not traditionally traded agricultural products – ETX has seen a 200 per cent increase in trading in December wheat prices. The speculators will add to the volatility in the short term as they chase the market.”

So, what has been driving prices? Part of the problem surrounding food price volatility, says Mr Hewson, and something that will continue to be so, has in part been the scarcity of available arable land. When set against rising food needs, this is likely to make future price shocks “a fact of life,” he warns.

He argues that this will be compounded by the rise of a growing middle class in emerging market economies. “The growth in countries such as Brazil, India and China will probably see demand for these food staples rise in the coming years and governments will have to make hard decisions about how they meet the needs of their populations in a world that appears to be growing rapidly, while susceptible to ever-growing extreme weather conditions,” he notes.

Predictions vary widely among experts as to which way food prices will go. For those traders still keen to take a punt the question is, which way to bet.

Matt Weller, technical analyst at GFT Markets, says that with a growing global middle class and continuing demand from agricultural crops being used as biofuels, “the long-term trajectory for soft commodities appears set to remain upward”.

But he says much of these rises are linked to institutional speculators putting pressure on prices to rise. “As such, although it may to too early to call a top to this rally, it would seem foolish to imagine that the gains can be guaranteed from this point in,” he adds.

“In fact, long-term seasonality patterns suggest that many soft commodities tend to drop over the September and October period as the supply glut around harvest time hits the market.”

However, Mr Denham argues that the temporary run up in prices dues to the possible failure of this year’s US harvests will probably not have a long-term impact on prices because, in the end, the segments with the power in the food price chain “are the processors and supermarkets, not the farmers”.

Original Article Here

China's 2013 corn imports seen sinking on high global prices

China's corn imports in 2013 may plunge more than 80 percent from this year's estimated purchases, a government think-tank said on Thursday, as soaring global prices and prospects of higher domestic production deter imports. China, the world's second largest consumer, has been influencing global corn prices over the past two years as it emerged from self-sufficiency to become the world's sixth largest importer in 2011/12. 

While US corn prices have climbed to record highs as the worst drought in half a century grips large tracts of farmland in the top exporter of grains, China is on track to produce an all-time high crop of around 197-200 million tonnes this year. China is expected to import 1 million tonnes of corn in 2013, China National Grain and Oils Information Center (CNGOIC) said in a report, which would be the lowest imports of the grain made by the country since 2009. In 2012, China is estimated to buy 5.5 million tonnes. 

"Rising US corn prices have caused some contract cancellations," the center said, adding that most of this year's imports, though much higher than a year ago, were supported by the government's purchases. CNGOIC's estimate of China's 2013 imports is not far from the 2 million tonnes estimated by the US Department of Agriculture in its monthly global demand and supply report on Wednesday. The global trade of corn is around 90 million tonnes. 

"With the rally we have had in global prices since June, it is no longer attractive to ship corn to China," said Victor Thianpiriya, agricultural commodity strategist at ANZ in Singapore. "Looks like they are going to have a reasonable crop, so they are going to have a buffer." Chicago corn prices have surged about 45 percent over the last three months in a drought-fed rally. 

Feed millers in China have been substituting expensive corn with feed wheat in order to keep a lid on rising costs of fattening animals. Corn is a key ingredient in making animal feed in China - the world's top consumer and producer of pork. China's food price cycle is driven in a large part by pork, the country's staple meat. Any increase in food prices is expected to push up inflation, one of China's biggest economic concerns given the potential for rising prices to trigger social unrest. Corn output in China is estimated to rise 2.19 percent in 2012 to 197 million tonnes, CNGOIC said this month, from a year ago. The USDA estimates China's corn output at a record 200 million tonnes. 

Copyright Reuters, 2012

UPDATE 2-No need for panic over food prices - U.N. FAO chief

* US crop report on corn sent a "very good message"

* FAO head sees no need for rapid response forum

* Maize, soybean exporters just entering planting season

By Can Sezer

ISTANBUL, Sept 13 (Reuters) - The head of the U.N. Food and Agriculture Organisation (FAO) said on Thursday there was no need for panic over global food prices, with the U.S. corn crop not as weak as feared and maize and soybean exporters just beginning planting.

FAO Director-General Jose Graziano da Silva told a conference in Istanbul he did not see a need to convene an emergency G20 forum on food prices for now.

"But this is a decision that needs to be considered from week to week. At the moment the prices are very volatile and we are following them very closely," he said.

Da Silva noted major maize and soybean exporting nations in the southern hemisphere were just beginning their planting season, meaning production was set to increase.

"This game is long run. We've just started the second part of the game," he said.

Fears of a repeat of the unrest and hunger seen in the 2007/08 food crisis emerged as the worst U.S. drought in more than half a century, and persistent dryness in other key grain-producing countries, sent corn and soybean prices to successive record highs.

But the U.S. Department of Agriculture on Wednesday cut its forecast for the country's corn crop by less than one percent, indicating the drought may have done less damage than anticipated.

The forecast raised hopes a full-blown food emergency could be averted.

"Yesterday we had a very good message from the U.S., revising their numbers. Now the corn (price) is down," da Silva said.

U.S. corn prices were trading at around $7.71 a bushel on Thursday, down close to 10 percent from a record high of $8.49 a bushel set on August 10.

The 2007/2008 crisis added 75 million to the number of chronically hungry people in the world, according to FAO estimates. Other bodies put the increase at up to 160 million.

Several members of the Group of 20 nations (G20) had said they were considering calling a meeting of its Rapid Response Forum, set up last year to respond to abnormal market conditions.

France, which presides over the G20 agriculture body AMIS, had previously said any decision on convening the forum would be made after the Sept. 12 USDA report on grains.

Da Silva said he would meet France's agriculture minister on Monday to discuss the role of speculators in surging food prices, which has been a major French concern. He noted there was much better policy co-ordination globally to ward off a crisis than in the past.

"What happened in 2008 (was that) we didn't have any mechanism to co-ordinate policy. Now we do ... we have ministers, we have AMIS, we have protocols," he said.

"Most of the talks are informal but we are providing updated information and transparency to the markets, to avoid panic and any unilateral action."

Record Argentine corn and soya output to boost global supplies

Argentina looks poised to produce record corn and soya crops in the upcoming 2012/13 season, helping offset the impact of a devastating US drought and ease global food price concerns. Private analysts say heavy rains last month and high international prices are spurring farmers to plant corn and soyabeans in Argentina, one of the world's biggest grains exporters. 

Meteorologists expect the wet weather to continue throughout this crop year thanks to the El Nino phenomenon, producing a soya harvest of up to 56 million tonnes and corn output of as much as 31 million tonnes. That would mark a 40 percent increase for soya and a 50 percent jump for corn compared with last season, when plants were battered by a drought that left many farmers in tight financial straights. 

Corn area was initially seen falling sharply this season due to such difficulties but the outlook has since improved. The Buenos Aires Grains Exchange raised its corn area forecast last week, although it still sees a 12 percent decline in acreage from the 2011/12 campaign. 

"It rained very well during all of August and moisture was replenished in nearly the entire grains-growing region. Prices continued to improve and the necessary financing materialised," said Esteban Copati, an analyst at the Buenos Aires exchange. Farmers began seeding corn in late August and they will harvest the grain starting in February or March. Soyabean planting will begin in the coming weeks, with the bulk of soya gathered in April and May. Argentina produced a record soya harvest of 52.7 million tonnes in the 2009/10 crop year and its biggest corn haul ever in 2010/11, when production reached 23.8 million tonnes, Agriculture Ministry data shows. Analysts see production topping those levels this season, helping compensate for the worst US drought in half a century, which has pushed corn and soyabean futures to record highs in the last month at the Chicago Board of Trade. 

Copyright Reuters, 2012

Agriculture department in EV intensifies white corn production

MARABUT, Samar - In support of the food staples sufficiency program, the Department of Agriculture (DA) in Eastern Visayas will intensify its white corn production program all over the region.

“We will strengthen marketing and production support services for farmers and improve postharvest facilities in corn areas,” Brenda Pepito said during the media interaction with DA-8 officials here.

Check our new look and tell us what you think.

Pepito added DA will maintain its 91,267 metric tons (MT) white corn production target for 2012. Last year’s target was at 71,642 MT.

About P11 million has been allocated by DA for its support to corn production, which include postharvest facilities.

DA-8 has already established a six-hectare area for production of quality high-protein corn seeds for distribution to interested communities willing to participate in producing their own seeds.

At the community-level, DA is supporting the community-based seed production system where local government units (LGUs) and farmers are trained to produce their own quality seeds for distribution to corn farmers for the next cropping season.

About 20,000 bags of certified seeds are expected to be distributed to 20,000 corn farmers all over the region.

Pepito also said the department will distribute village-type mobile corn mills powered by a five horsepower engine targeting upland farmers who are relatively far from existing corn mills.

DA targets to distribute 10 units of mobile corn mills that could mill 44,000 kilos of corn grains eight hours a day and could benefit 64 farmers covering 32 hectares per cropping.

Pepito also said part of the production support services for corn is to expand production areas.

At the industrial level, Eastern Visayas has about 64,000 hectares of land planted to corn with an average yield of 139 MT per hectare.

In program areas, DA expects to harvest an additional seven to eight MT per hectare given the interventions to be implemented.

Original Article Here

News Summary: Agriculture prices rise, oil falls

By The Associated Press 

THE ISAAC EFFECT: Prices for wheat, corn and soybeans rose. That was partly from Hurricane Isaac. Its rain might be welcome after a drought, but it's unlikely to have much effect on crops that have been suffering all summer. It will also cut into harvesting time in the Southeast.

THE ISAAC EFFECT, PART 2: Oil prices fell, despite Isaac's forcing some Gulf Coast rigs to temporarily shut down. Investors seemed more swayed by a government report that inventories of crude oil rose last week for the first time in a month.

NOT-HEAVY METALS: Major metals all fell slightly. Precious metals like gold and silver were down, and so were industrial metals like copper and palladium.

Original Article Here

Corn, soybeans turn mixed

By: Mike McGinnis

DES MOINES, Iowa (Agriculture.com)--After starting much higher, the CME Group soybean market has pulled back, still trading higher Friday.

At mid-session, the Dec. futures corn contract is trading 3 1/2 cents lower at $8.11 1/4. The Nov. soybean contract is trading 9 cents higher at $17.24. Dec. wheat futures are trading 5 1/4 cents lower at $8.89 per bushel. The Dec. soyoil futures contract is trading $0.10 higher at $56.87. The Dec. soymeal futures contract is trading $3.50 per short ton higher at $518.80.

In the outside markets, the NYMEX crude oil is $0.75 per barrel higher, the dollar is higher and the Dow Jones Industrials are 65 points higher.

Tim Hannagan, Alpari (U.S.) senior grain analyst, says lack of fresh news keeps lid on farm markets.

"Without any fresh news for the bulls to buy off of, corn and bean traders continue to take long profits on any rallies taking month end profits," Hannagan says. While wheat led the way lower, as key winter wheat states begin planting in Sept., look to see heavy rains the next three days and possibly more next week depending where the hurricane lands," he says.

Original Article Here

Russia exports less grain than planned

Russia will this year export less corn than planned said Agriculture Minister Nikolai Fyodorov on Thursday in the state news channel Vesti 24. He added, however, that he is strongly opposed to a total ban on exports. as Russia had introduced during the drought year of 2010. However, large customers as Egypt will receive the volume agreed upon before.

Because of the drought, the Russian grain harvest is much lower than expected at the beginning of the year, when the forecast was at 94 million tons, as much as in 2011. Later, the projection of the Russian grain production decreased to 80 million tons.

Minister Fyodorov had on Thursday again to revise down the forecast by five million tons. "Unfortunately we are changing our calculations almost daily". he said. (Source: ITAR-TASS)

Genetically Modified Organisms... The good, the bad, and the scary.

First, some definitions:
Genetically Modified Organism (GMO):  An organism (life form) whose DNA has been altered using genetic engineering.
Genetically Engineered Organism (GEO):  Another name for GMOs.
Transgenic Organisms:  A type of GMO that has DNA inserted from another species.


Jurassic Park?  Yes.  Fiction?  No.

GMOs have been around for well over 30 years.  What I want to do today is briefly give some basic information using actual GMO life forms as examples.

The Good
Genentech, in 1978, created a bacteria that could produce human insulin.  Before that time, people with insulin-dependant diabetes mellitus (a.k.a. Diabetes) had to use insulin from the pancreas of animals.  Herbert Boyer took the genes from a human that produced human insulin, and he was able to insert them into a bacteria, E. coli.  The bacteria produced mass quantities of human insulin that was easy to refine.  Currently, almost all insulin used for diabetes is produced from GMO E. coli.  To me, this is one example of the good that genetic engineering can do for humanity.  While nothing is truly "safe", this is about as safe an application as you can get, and the benefits, in my opinion, do outweigh the risks.

The Bad

Monsanto, a multinational agricultural biotech corporation, has created many types of GMO food plants.  One of the most well known is the genetically modified Roundup-Ready Canola.  Roundup is a very strong herbicide - a chemical used to kill plants.  Canola is a cultivar (developed variety) of Rapeseed, and canola plants gives us canola oil.  Monsanto makes Roundup, and a number of years ago they genetically engineered a type of canola to be resistant to Roundup.  Farmers can plant Roundup-Ready Canola, and when the weeds start to interfere with the canola's growth, the farmer can spray the fields with Roundup.  Every plant in the field exposed to Roundup dies leaving the canola to keep growing unhindered.  For years, the Roundup label stated that Roundup degrades over time, but, interestingly, this was recently taken off the label.

Since 1990, Monsanto has sued 145 farmers for "patent infringement".  Monsanto claims that farmers are using their GMO plants without paying for them.  Many of these lawsuits have involved farmers who saved a small portion of their seeds from one harvest and planted them the next growing season.  Monsanto claimed that they owned any life form that contains their Roundup Ready genes.  All these farmers lost the lawsuits.  They lost a lot of money.  Sometimes they lost their farms.  One of these farmers who refused to destroy the seeds he saved spent eight months in prison.

Probably the most well known lawsuit involved Percy Schmeiser, a Canadian canola farmer.  The details are rather fuzzy, as usually happens in a long and drawn out court case, but the farmer claims not to have planted Monsanto canola in his field.  His neighbors did.  Monsanto obtained samples of Schmeiser's canola, and they contained the genes that Monsanto had created in their labs.  The farmer claims that his neighbor's Roundup Ready Canola genes spread... as plant genes often do - it's part of botanical sexual reproduction called pollination!  The judge ruled in favor of Monsanto.  This spurred a March 2011 lawsuit involving over 60 farmers in the U.S. and Canada.  The farmers were pre-emptively suing Monsanto to protect themselves from being accused of patent infringement just in case their land ever became contaminated with Monsanto's genetically modified seeds, plants, or genes.

The Scary

Monsanto's GMO Corn has been linked to liver and kidney failure.  Monsanto's GMO corn has already been approved by the U.S. and Europe.  The International Journal of Biological Sciences article author, Gilles-Eric Seralini, wrote in a response  "Our study contradicts Monsanto's conclusions because Monsanto systematically neglects significant health effects in mammals that are different in males and females eating GMOs, or not proportional to the dose. This is a very serious mistake, dramatic for public health. This is the major conclusion revealed by our work, the only careful reanalysis of Monsanto crude statistical data."  This is current and disturbing.  Keep watching this to see where it goes.

How about "Malaria-Resistant Mosquitoes"?  Sounds wonderful when you realize that almost a million people are killed each year by mosquitos.  But what happens when these mosquitos develop a new strain of malaria?  What if that strain in a "resistant" mosquito is now resistant to all the antibiotics that we use to treat malaria?  Malaria consistently becomes resistant to our current antibiotics.  I can't imagine an antibiotic-resistant malaria... terrifying.

Universities and corporations have already created genetically engineered pigs (that produce less phosphorus), salmon (with a growth hormone to grow twice as fast), strawberries (that have fish genes to make them frost resistant; a.k.a. "fishberries"), cows (that produce human milk instead of cows milk).  These animals, plants, or combinations of the two, actually exist right now.  What happens if these genes "contaminate" wild populations of animals or plants?  What are the consequences?  The bottom line is that we just don't know. 

Arguments for GMOs

GMOs are just an extension of traditional breeding.

Not even close.  As you can see from above, you could never traditionally develop a strawberry with fish genes!

GMO plants will feed the world.

Proudly touted by GMO corporations, but also false.  A common fact understood by those in international humanitarian work is that there is plenty of food in the world to feed every human being.  It is the governments and the wars and the tribes and the people who prevent the food from getting to the hungry.  Hunger will not be solved by genes, but by people working together.

GMOs are safe.  The FDA and USDA and EPA allow them.

I won't go into a lengthy list of all the things that were previously allowed and then caused hundreds and thousands of deaths (asbestos and agent orange, anyone?)  A government agency allowing something does notmean it is safe.

Unless you are growing all your own food or you are going out of your way to research and buy only non-GMO food, then you are likely eating some GM food.  It is almost inevitable.  Almost.  I'm not going to say too much on this right now, but there are some interesting things on the horizon that may make avoiding GMOs easier.  Stay tuned.

Original Article Here

Argentina trims wheat outlook

Argentina's Agriculture Ministry trimmed its outlook for 2012/13 wheat area on Thursday to 3.7 million hectares from 3.82 million hectares a month ago, further dimming the crop's prospects. The South American country is the world's No 6 wheat exporter and the top supplier to neighbouring Brazil. But the area planted with wheat is seen shrinking by about 20 percent this season, largely due to commercial problems.

"There were practically no rains during the month of July, which made it impossible to finish seeding all the area that was initially forecast," the ministry said in its monthly crop report. Farmers complain that government intervention in grains markets has slashed the profitability of wheat, pushing them toward cultivating more corn and soya.

Argentine growers planted 4.63 million hectares with wheat in the 2011/12 crop year, producing 13.19 million tonnes. The US Department of Agriculture forecasts that Argentine wheat production will fall to 11.5 million tonnes in the 2012/13 season, down from 15 million tonnes a year earlier.

The Buenos Aires Grains Exchange said on Thursday that farmers finished planting wheat on a total of 3.6 million hectares during the last week, down from 4.6 million hectares in the prior growing season. "Just under half of that area is concentrated in Buenos Aires province, where average moisture conditions for the crop's seeding, growth and development range from good to excellent," the grains exchange said in its weekly crop progress report.

After a dry July, rains have picked up the pace in August. In its report, the local ministry held its forecast for the recently harvested 2011/12 soya crop at 40.1 million tonnes and kept its 2011/12 corn output projection at 21 million tonnes. It did not give estimates for 2012/13 corn or soyabean area in Argentina, the world's No 2 corn exporter and No 3 soyabean supplier. The Buenos Aires Grains Exchange reported that farmers were nearly done harvesting 2011/12 corn, which it estimated at 19.3 million tonnes.

"The average national yield (is estimated at) 5.51 tonnes per hectare ... making this the lowest yield in the last 12 seasons," the exchange said, citing drought-related losses to early-seeded corn. Farmers have gathered 99 percent of harvestable corn area, advancing 1.2 percentage points in the last week and beating last season's tempo by 0.7 points. The 2011/12 soya harvest is over and the government said production fell 18 percent from the prior season, also because of the drought. 

Copyright Reuters, 2012

Impact of U.S. drought on crops may be peaking, Vilsack says

By Alan Bjerga,

Aug. 17 (Bloomberg) -- The severity of the worst U.S. drought in 56 years may be peaking, while its effects on corn and soybeans, the nation’s two biggest crops, may not be known until the harvests, Agriculture Secretary Tom Vilsack said.

The steadying of weather conditions may limit food inflation next year, which the U.S. Department of Agriculture predicted last month would be 3 percent to 4 percent, Vilsack said yesterday in an interview at the Iowa State Fair in Des Moines. It may also ease pressure to relax federal requirements for the use of corn to make ethanol, he said.

“The overall impact of the drought is beginning to decline,” Vilsack said. The uneven effects of the persistent dryness, which vary from farm to farm, make any crop predictions difficult, he said. “I’m not sure we know all we need to know to understand what’s happening with this crop.”

The condition of the soybean crop improved last week for the first time this year, and corn’s good-to-excellent ratings steadied at 23 percent, as rain and cooler temperatures reduced plant stress, the USDA said this week. The drought in states excluding Alaska and Hawaii eased last week to 61.8 percent from 62.5 percent, with improvement in all categories of severity except for the worst, the U.S. Drought Monitor reported.

Persistent Drought

Drought conditions will persist in much of the Corn Belt and Great Plains states through November, the National Oceanic and Atmospheric Administration said yesterday in a report. Lower temperatures and rain forecast for parts of the Midwest won’t be enough to snap the drought that has pushed crop prices up for months, said Joel Widenor, co-founder of Commodity Weather Group LLC in Bethesda, Maryland, this week.

Corn futures traded in Chicago have surged 60 percent since mid-June, closing yesterday at $8.075 a bushel, while soybeans have jumped 24 percent, prompting the United Nations to predict higher global food costs. Tyson Foods Inc., the largest U.S. meat processor, said Aug. 6 profit will be lower after the company was forced to pay more for grain to feed animals.

Much of the damage has already been done to the corn crop, which passed through the critical pollination stage in the heart of the drought, while there’s still some hope for soybeans, which mature later in the season, Iowa Farm Bureau Federation President Craig Hill said this week in an interview.

Further Impact

Vilsack said that even as the USDA tries to ascertain the size and condition of this year’s harvests, it’s starting to look at the drought’s further impacts on the farm economy.

“Every day we learn more, every day we can evaluate more,” he said, adding that his department is starting to assess the consequences for next year’s crops, in terms of credit availability and planning.

The USDA, in a monthly report on Aug. 10, forecast a corn crop of 10.779 billion bushels, down 13 percent from 2011. The soybean harvest was pegged at 2.692 billion bushels, 12 percent smaller than last year. The harvests get under way next month.

Jose Graziano da Silva, director-general of the UN’s Food and Agriculture Organization, last week called for a suspension of U.S. ethanol-use rules to let more corn be used for food and livestock feed. Jay Carney, White House press secretary, in Iowa this week told reporters that the USDA and the EPA will be evaluating data to determine what should be done about requests for waivers from state officials and more than 175 members of Congress.

Mandated Use

A 2007 law mandates the use of 13.2 billion gallons of biofuels such as ethanol this year, rising to 13.6 billion in 2013. The measure is designed to help reduce the nation’s reliance on oil from overseas sources.

Vilsack, a former governor of Iowa, the biggest U.S. producer of corn, soybeans, pork and ethanol, said waiving the requirement may bring long-term harm to investment in biofuel production without having a major effect on food prices.

“My concern is that we send a signal to investors of perhaps, less confidence in the industry,” Vilsack said. “We need to see whether the market is responding” by rationing demand for biofuels in the face of high prices, he said.

Companies including Poet LLC and Archer Daniels Midland Co. produced 819,000 barrels (34.3 million gallons) of ethanol a day in the week ended Aug. 10, down 15 percent from a record in December. Stockpiles sank 1.1 percent to 18.4 million barrels, the lowest since Dec. 30, Energy Department data show.

At least 25 U.S. senators and 156 House members have signed letters asking Lisa Jackson, administrator of the Environmental Protection Agency, to suspend or lower mandates on how much ethanol the country must use this year and next.

Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

Original Article Here

Farm markets trade higher Friday

Mike McGinnis

DES MOINES, Iowa (Agriculture.com)--The CME Group's corn, soybean and wheat markets start higher Friday.  

At the open, the Dec. futures corn contract is trading 4 1/4  cents higher at $8.12. The Nov. soybean contract is trading 8 cents higher at $16.33. Dec. wheat futures are trading 13 cents higher at $8.75 per bushel. The Oct. soyoil futures contract opened $0.08 higher at $53.32. The Oct. soymeal futures contract opened $4.30 per short ton higher at $504.80.

In the outside markets, the NYMEX crude oil is $0.19 per barrel lower, the dollar is higher and the Dow Jones Industrials are 9 points higher.

Original Article Here