January 23, 2006
ASA Weekly: Soy DNA genome mapped; ADM-Monsanto agreement; Freight update
USDA and the Department of Energy to map soy DNA Genome
Two US federal government departments have joined forces to decode the DNA of the soybean in an effort to boost its use. The sequencing of the soybean genome is the first project resulting from a new agreement between the Departments of Energy and Agriculture to share resources and coordinate the study of plant and microbial genomics.
The soybean genome is about 1.1 billion base pairs in size, less than half the size of the corn genome. The DOE Joint Genome Institute, the lead facility in the project, is supported by the Department of Energy Office of Science, in support of the mission for clean energy generation and environmental characterization and cleanup.
ADM agrees to process Monsanto low-linolenic soybeans
Monsanto and Archer Daniels Midland Company (ADM) have announced that ADM will process Monsanto's Vistive low-linolenic soybeans in 2006 at its facility in Frankfort, Indiana, and will market the low-linolenic soybean oil for use by the food industry. According to Monsanto, Vistive low-linolenic soybeans will reduce the need for partial hydrogenation of soybean oil, helping food companies reduce the presence of trans fatty acids (trans fats) in their products.
For the 2006 growing season, ADM will be contracting with growers in Indiana for up to 40,000 acres of Vistive soybean production. ADM will pay a premium to producers who grow Vistive soybeans under contract.
Vistive soybeans, developed through conventional breeding, contain less than 3 percent linolenic acid compared with the 8 percent found in traditional soybeans. The result is said to be more stable soybean oil, with less need for hydrogenation.
Transport update
US freight rates across the various modes were mixed during December according to the Bureau of Labour Statistics. Truck rates retreated for the third consecutive month, down less than one percent from November. However, truck rates ended the year 4 percent higher than 2004.
For 2005, the truck index was up 6 percent year over year. Rail rates were mostly unchanged in December, up ever so slightly from November but 13 percent higher from the previous year. Rail rates during 2005 averaged 10 percent higher than 2004. Barge rates during December were 1 percent higher than November and 39 percent higher year over year. The 2005 barge rate index was 18 percent higher than 2004.
The ocean freight spread between the Gulf and PNW to Japan was the lowest it has been since June 2004 at US$12.25 per tonne for the week ending January 13. The spread narrowed as the Gulf-to-Japan rate has dropped 6 percent since the New Year started, while the PNW to Japan is down nearly 2 percent since the start of 2006.
Ocean freight rates have been under pressure for a bulging fleet of vessels with a 2006 order book that will rival 2005's 361 deliveries. Demand for tonnage has slowed as holidays around the globe are holding back business while contract pricing for iron ore and coal have yet to be settled.
Hot, dry weather damages Parana crops
Brazil began harvesting its soybeans last week, in what is expected to become part of a 57.9 million tonne crop. However, some farmers in Parana are reporting that dry weather could reduce the state's production by 10 percent.
Parana is expected to harvest 11.7 million tonnes of soy in the 2005-06 crop. "It's been more than 10 days since the south and southwestern part of Parana has seen any significant rainfall," said Dirlei Monfio, an agronomist at the state's Secretary of Agriculture. "And crops are definitely starting to feel the pain." Monfio released a report last week that said 5 percent of the state's soy crop was in "poor condition."
There is some disagreement over the potential Parana crop loss. Monfio said he did not agree with agronomists from Parana's largest cooperative, Coamo Agroindustrial, who said that 10 percent of their crop would be ruined because of dry, hot weather since January 1. "I think we are going to see a reduction in this crop size out of Parana," Decezar Vernizi, crop manager at Coamos office in Campo Mourao, told Dow Jones Newswire.
|
U.S. & South America Soybean/Products Balance | |||||||||
|
United States |
Argentina |
Brazil | |||||||
|
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. | |
|
2003/04 |
2004/05 |
2005/06 |
2003/04 |
2004/05 |
2005/06 |
2003/04 |
2004/05 |
2005/06 | |
|
Soybeans |
thousand tonnes | ||||||||
|
Carryin |
4,853 |
3,059 |
6,954 |
1,630 |
2,046 |
2,181 |
3,231 |
2,453 |
715 |
|
Production |
66,778 |
85,013 |
82,820 |
33,000 |
39,000 |
40,500 |
50,500 |
51,000 |
58,500 |
|
Imports |
151 |
152 |
109 |
540 |
530 |
485 |
364 |
400 |
425 |
|
Crush |
41,631 |
46,160 |
46,811 |
25,072 |
27,800 |
29,100 |
29,172 |
28,175 |
29,675 |
|
Exports |
23,946 |
30,011 |
27,759 |
6,500 |
9,800 |
10,000 |
19,571 |
22,180 |
25,750 |
|
Other |
3,146 |
5,099 |
4,297 |
1,552 |
1,795 |
1,810 |
2,899 |
2,783 |
3,000 |
|
Usage |
68,723 |
81,270 |
78,867 |
33,124 |
39,395 |
40,910 |
51,642 |
53,138 |
58,425 |
|
Carryout |
3,059 |
6,954 |
11,016 |
2,046 |
2,181 |
2,256 |
2,453 |
715 |
1,215 |
|
Soymeal |
thousand tonnes | ||||||||
|
Carryin |
200 |
191 |
155 |
347 |
354 |
560 |
763 |
532 |
200 |
|
Production |
32,953 |
36,938 |
37,116 |
19,807 |
21,806 |
22,900 |
22,920 |
22,200 |
23,395 |
|
Domestic use |
28,590 |
30,448 |
31,116 |
700 |
850 |
950 |
8,784 |
8,850 |
9,250 |
|
Net Exports |
4,372 |
6,526 |
5,928 |
19,100 |
20,750 |
22,050 |
14,367 |
13,682 |
14,050 |
|
Usage |
32,962 |
36,974 |
37,044 |
19,800 |
21,600 |
23,000 |
23,151 |
22,532 |
23,300 |
|
Carryout |
191 |
155 |
227 |
354 |
560 |
460 |
532 |
200 |
295 |
|
Soybean oil |
thousand tonnes | ||||||||
|
Carryin |
676 |
488 |
771 |
99 |
74 |
100 |
150 |
93 |
95 |
|
Production |
7,748 |
8,781 |
9,011 |
4,513 |
5,115 |
5,354 |
5,258 |
5,120 |
5,371 |
|
Domestic use |
7,651 |
7,910 |
8,142 |
140 |
145 |
155 |
2,710 |
2,848 |
2,870 |
|
Net exports |
285 |
588 |
583 |
4,398 |
4,944 |
5,224 |
2,605 |
2,270 |
2,516 |
|
Usage |
7,936 |
8,498 |
8,725 |
4,538 |
5,089 |
5,379 |
5,315 |
5,118 |
5,386 |
|
Carryout |
488 |
771 |
1,057 |
74 |
100 |
75 |
93 |
95 |
80 |
|
USDA Export Sales (tmt) - Week of 12 January 2006 | ||||||||
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
Belgium |
Soybeans |
6.70 |
106.30 |
|
Dom. Rep. |
Soymeal |
14.40 |
94.60 |
|
China |
Soybeans |
499.00 |
5136.00 |
|
Hong Kong |
Soymeal |
0.70 |
6.30 |
|
Colombia |
Soybeans |
11.00 |
65.70 |
|
Japan |
Soymeal |
1.60 |
109.90 |
|
Costa Rica |
Soybeans |
34.40 |
99.90 |
|
Korea, Rep. |
Soymeal |
0.30 |
0.40 |
|
Denmark |
Soybeans |
2.70 |
47.00 |
|
New Zealand |
Soymeal |
0.20 |
23.90 |
|
Egypt |
Soybeans |
35.70 |
318.70 |
|
Nicaragua |
Soymeal |
0.10 |
19.20 |
|
France |
Soybeans |
1.30 |
60.20 |
|
OPAC Is. |
Soymeal |
0.40 |
3.30 |
|
Germany |
Soybeans |
1.90 |
196.50 |
|
Panama |
Soymeal |
2.10 |
50.50 |
|
Indonesia |
Soybeans |
9.40 |
493.20 |
|
Philippines |
Soymeal |
67.60 |
172.60 |
|
Israel |
Soybeans |
40.40 |
57.10 |
|
Salvador |
Soymeal |
2.00 |
35.50 |
|
Japan |
Soybeans |
92.70 |
1092.00 |
|
Tunisia |
Soymeal |
6.00 |
21.10 |
|
Malaysia |
Soybeans |
19.20 |
95.30 |
|
Canada |
Soyoil |
0.80 |
8.90 |
|
Mexico |
Soybeans |
3.80 |
1285.70 |
|
Kuwait |
Soyoil |
0.30 |
0.80 |
|
Netherlands |
Soybeans |
67.70 |
578.00 |
|
UAE |
Soyoil |
0.10 |
0.80 |
|
Philippines |
Soybeans |
0.20 |
44.20 |
|
|
|
|
|
|
Spain |
Soybeans |
1.50 |
158.30 |
|
|
|
|
|
|
Taiwan |
Soybeans |
5.00 |
667.70 |
|
Export Sales Totals (tmt) | |||
|
Turkey |
Soybeans |
2.00 |
284.10 |
|
Commodity |
Outstanding Sales |
Accum. Exports |
New Sales |
|
Canada |
Soymeal |
33.60 |
323.90 |
|
Soybeans |
4,148.80 |
11,296.90 |
448.00 |
|
Colombia |
Soymeal |
12.40 |
112.00 |
|
Soymeal |
1,300.20 |
1,607.50 |
68.90 |
|
Cuba |
Soymeal |
14.10 |
30.60 |
|
Soyoil |
75.30 |
98.50 |
0.30 |
