Archived Posts

News Flash: June 26, 2014

INDUSTRY

Oilseed Outlook Cut by Oil World With Supply Still Ample

Global production of 10 major oilseeds is forecast to climb 3 percent in 2014-15 on a bigger soybean harvest, lifting stocks to a record by the end of the next season, Oil World said. Oilseed output may rise to 510.65 million metric tons from 495.64 million tons in 2013-14, the research firm said, trimming its outlook from 511.17 tons at the end of May on a smaller peanut crop. Growers across the globe may reap a record soybean crop, with U.S. farmers lifting planting by 2 million hectares to 33 million hectares, the most ever. Bloomberg

Sask. seeding 95% complete

In Saskatchewan, Producers now have 95 per cent of pulses, cereals and oilseeds seeded, despite another week of cool and rainy weather, according to the province’s Agriculture’s weekly crop report. The five-year (2009-2013) seeding average for this time of year is 90 per cent. The southwestern, west-central and northwestern regions have nearly completed seeding. The northeastern region has 97 per cent seeded, the east-central region 93 per cent and the southeastern region 91 per cent. Leader Post (Canada)

SOYBEAN

American Soybean Association Treasurer Richard Wilkins testifies on the importance of biotech trade policy for U.S. soybean farmers

Farmer and American Soybean Association (ASA) Treasurer Richard Wilkins appeared on Capitol Hill yesterday before the Senate Committee on Finance to testify about the importance of biotechnology to soybean farmers as the U.S. pursues trade agreements abroad. Soybeans are the nation’s leading agricultural export, and ASA has long taken a leading role in representing the needs of farmers in discussions of international trade. In his testimony, Wilkins addressed the need for a more consistent regulatory framework in our various partner nations, citing specifically the inconsistent and unreliable frameworks in China and the European Union. Seedquest

PALM

India’s 2014/15 edible oil imports seen up on weak domestic output

India’s edible oil imports, including palm oil, may rise 5.4 percent to 11.7 million tonnes in the year

to October 2015 as a weak monsoon hurts domestic oilseeds production, an industry expert said on Thursday. “Considering current monsoon progress, I don’t think next year there will be any meaningful growth in local edible oil supplies, but demand will rise,” Govindbhai Patel, a trade expert from India’s western city of Rajkot, said at a regional palm oil conference in Mumbai. India’s annual rains have covered half of its landmass four days behind the usual schedule, failing to recover from a late start that has slowed sowing of summer crops in a country where half of the farmland still lacks irrigation. Reuters

Palm Imports by India Seen Tumbling First Time in Four Years

Palm oil imports by India may drop for the first time in four years as record global cooking oil supplies reduce the tropical oil’s discount to soybean and sunflower oils. Shipments may decline 8.4 percent to 7.6 million metric tons in the year started Oct. 1 from 8.3 million tons a year earlier. That would be the first decline since 2009-2010, according to data from the Solvent Extractors’ Association of India. Soybean oil imports are seen 61 percent higher at 1.75 million tons, while sunflower oil imports will jump 49 percent to 1.45 million tons. Reduced purchases by India may add to palm oil stockpiles in Indonesia and Malaysia, the largest suppliers. Futures in Kuala Lumpur have slumped 15 percent from an 18-month high in March. The discount to soybean oil averaged $93.90 a ton this year from an average of $244 in 2013. Palm oil production faces the risk of an El Nino event, which can roil agricultural markets worldwide as farmers contend with drought or too much rain. “There is good supply of sunflower and soybean oil in the market and prices are very competitive compared to palm oil,” Vijay Data, president of the extractors’ association, told a conference in Mumbai today. “If there is an El Nino and palm production drops, then prices could rise making soft oils more attractive.” A moderate El Nino would reduce output by as much as 12 percent in Malaysia, according to IOI Corp. Bloomberg

CORN

U.S. Corn Reserves Expanding Most Since 2005: Commodities

A bumper harvest in 2013 means that corn stockpiles in the U.S are rising at the fastest pace in almost 10 years, according to traders and analysts surveyed by Bloomberg. Ample rains and warm weather have boosted early crop development for this season and allowed farmers to plant more than the government estimated in March, a separate survey showed. Prices will fall about 9.5 percent in six months, Goldman Sachs Group said in its forecasts. Bloomberg

CANOLA

EFSA delivers positive opinion on GM oilseed rape

The European Food Safety Authority (EFSA) has granted approval on the safety of Monsanto’s MON 88302 oilseed rape crop, which has been genetically modified to be tolerant of herbicides. EFSA’s Panel on Genetically Modified Organisms (GMO) delivered its positive scientific opinion on the application to place the MON 88302 crop on the European market for food and feed uses, imports and processing. Food Navigator