Archived Posts

News Flash: October 30, 2014

INDUSTRY

USDA to restart US oilseed crush reports in July

The USDA has announced that it plans to begin releasing a monthly US ethanol production report in February 2015, the first of several reports to be re-launched that were discontinued by the Census Bureau in 2011. In addition to the monthly ethanol data, other reports being re-launched by the USDA include a closely watched monthly soybean crush report, which will begin in July. A monthly report on the fats and oils industries will begin in July. The reports were closely followed by traders and analysts to gauge monthly consumption of grains and oilseeds. The soybean crush report measured the volume of soybeans processed each month into oil and meal, and was used as a market benchmark. The ethanol report will offer data on ethanol feedstocks, including corn, wheat and sorghum, along with statistics on production of by-products such as dried distillers’ grains, widely used in animal feed, and corn oil. Reuters

 

GMO

Biotech hui raises $8M to beat ballot initiative

A group backed by biotech companies raised more than $7.9 million to fight a Maui County ballot initiative calling for a moratorium on genetically modified organisms. Campaign Spending Commission records for the group called the Citizens Against the Maui County Farming Ban showed that Monsanto Co. spent $5.1 million and Dow AgroSciences spent nearly $1.8 million, the Maui News reported Wednesday. Other contributions include $1 million from the Council for Biotechnology Information and nearly $20,000 from the Support Agriculture Coalition Committee. Associated Press

GM regulations hold back innovation, say UK researchers

Current European restrictions on genetically modified (GM) crops could hold back crop innovation needed to ensure food security, claims a UK government-funded research body. In a new position statement, the Biotechnology and Biological Sciences Research Council says the EU’s precautionary approach to GM technologies could have huge costs, inhibiting potentially important crop developments in the face of rising agricultural demand – as well as costs associated with testing for the presence of GM material in imports. “While it is important to guard against the notion of a simple “technological fix” to the many challenges facing agriculture, it is equally important to reap the benefits of available and emerging technologies where they can contribute effectively,” the paper said. Food Navigator

 

PALM

Mistry Predicts Palm Oil Rally as ’Worst Over’ on Output

Palm oil may rally as much as 10 % by March as declining output in the world’s top producers depletes inventories, according to Dorab Mistry, director at Godrej International Ltd. Futures may climb to 2,500 ringgit ($765) a metric ton, Mistry said, abandoning forecast for a slump to 1,900 ringgit first made on Sept. 15. Palm oil may trade in a range of 2,100 ringgit to 2,300 ringgit in the next several weeks, he said in remarks prepared for a conference in Kuala Lumpur. Prices settled at 2,263 ringgit on Bursa Malaysia Derivatives this week, the highest at close since Aug. 4. Palm entered a bear market in July as expanding supplies from Indonesia and Malaysia and forecasts for a record U.S. soybean production widened a glut in cooking oils. That’s helped push global food costs to the lowest level since 2010. Reserves may peak by end October and decline through the first half of 2015, Mistry said. “I believe the worst is over for oilseed farmers and plantations,” said Mistry, who’s traded palm oil for more than three decades. “After 10 December, I expect futures to rise steadily as production declines begin to bite and stocks decline. However, given the current macro economic outlook, I do not expect a bull market.” Bloomberg

 

CANOLA

New canola seed varieties for 2015

A look through the new canola seed varieties submitted by seed companies reveals a focus on disease resistance. Most of the new varieties are blackleg resistant. Some also offer sclerotinia tolerance, fusarium wilt resistance, or clubroot resistance. Disease resistance is likely to remain front and centre in canola. Clubroot grabbed headlines this summer, as plant pathologists confirmed a new clubroot pathotype in the Edmonton area that could break resistant canola varieties. Blackleg is also an ongoing threat. There are 15 new canola varieties that will be on the market for the first time in 2015. Grain News (Canada)

 

SOYBEAN

Soybeans Gain on Brazil Drought as Wheat Rises on Russia

Soybeans rose for a third day amid speculation that drought in Brazil will reduce planting. Brazil’s Mato Grosso region on average had 8.4 centimeters (3.3 inches) less rain in the 60 days through Sept. 27 than normal. The country may produce 89 million metric tons of soybeans in 2014-15, analyst Oil World reported yesterday, cutting its outlook by 3 million tons on signs farmers will plant less than expected. Soybeans for January delivery rose 1to $10.41 this week, the highest level since Aug. 22, and are up 12 percent in October. Brazilian farmers had planted soybeans on 12.5 percent of the estimated area compared with 26 percent a year earlier, crop forecaster Safras & Mercado reported Sept. 27. Hot and dry conditions have discouraged farmers from sowing, though, according to Oil World. Bloomberg