Archived Posts

News Flash: January 28, 2016

INDUSTRY


GA Ag Commissioner Urges USDA to Designate Cottonseed as “Other Oilseed”
“We are from the government, and we are here to help,” said Commissioner of Agriculture Gary W. Black Most citizens consider such a phrase satire at best and a flagrant insult at worst. Yet, falling commodity prices have stimulated a warranted plea for help from Georgia cotton producers to our friends at the United States Department of Agriculture. Valdosta Today

Commerce Ministry Pitches for Lower Duty on Oilseeds
The Commerce Ministry has sought lower import duty on oilseeds in the forthcoming Budget (2016-17) to bring it below the duties imposed on crude and refined edible oil. Its argument is that the present duty structure “disincentivises” domestic production of edible oil. “The higher duty on import of oilseeds compared to edible oil creates an inverted duty structure. We have been pursuing the matter with the Finance Ministry for some time and the anomaly in the duty structure should be corrected in this Budget if domestic manufacturing is to be encouraged,” a Commerce Ministry official told BusinessLine. Hindu Business Line

BIOFUEL


Vilsack Tells Biofuel Supporters to Market Farm Stories
Tom Vilsack has advice for Iowa farmers: Accentuate the positive. Vilsack, the former Iowa governor who now serves as U.S. Secretary of Agriculture, spoke at last week’s Iowa Renewable Fuels Summit. After a speech focusing primarily on biofuel issues, he was asked what he thought the greatest challenge was facing farmers. “I think the greatest challenge to farmers today might be themselves,” he told the audience. Iowa Farmer Today

EIA Report Shows Decline in Ethanol Production
Grains moved lower overnight as the lack of fresh news keeps a lid on this rally off of Jan 12th lows. In outside markets, S&P futures were on a positive trajectory to start the day following yesterday’s 1% loss while crude oil was also in positive territory with modest gains. Ag Web

CANOLA


Canada spring wheat area to drop, in favour of canola, durum
Canada’s farmers will pull back on spring wheat sowings this year, switching to alternative crops offering better returns, officials said, pegging canola area at the second highest on record, and durum area at an eight-year high. Canada’s farm ministry, AAFC, in its first forecasts for domestic crops for this year’s harvest, said that sowings of spring wheat – excluding the durum wheat used in making pasta – would fall by some 2% this year from the 6.88m hectares sown in 2015. Agri Money

CORN


China to cut domestic corn prices to spur demand, cut imports
China, the world’s second-largest corn consumer, will cut domestic prices to spur demand from downstream industry and reduce cheaper imports, a senior government official said on Thursday. China has instituted a crop stockpiling policy to protect its rural population from fluctuating prices and prop up incomes. But corn reserves are now at record highs. Ag Week

PALM


Australia’s Merricks Capital bullish on palm oil, soybeans
Merricks Capital says there is money to be made on the buyside in palm oil, wheat and soybean options in 2016, as these markets do not yet fully reflect the impact of supply and currency fluctuations that the Australian fund expects. Merricks, one of few Asia-based hedge funds specializing in agriculture markets, believes crop-damaging weather will open up investment opportunities in palm oil, yields for which are likely to be hit by dryness linked to an El Nino weather event. Reuters

SOYBEAN


European Parliament Committee Urges Halt on GMO Soy
Stopping European Union (EU) authorization of GMO’s was the subject of draft resolution by the European Parliament, adopted Jan. 21. A non-binding resolution which revokes authorization for three varieties of GMO soybeans, including Bayer CropScience’s FG72 soybean and for Monsanto’s MON 87708 x MON 89788 and MON 87705 x MON 89788 soybeans was passed by the European Parliament’s Environment Committee. KTIC Radio