January 29, 2008

 

ASA Weekly: Brazil faces boycott for soy planting in Amazon regions

 
 

International environmental organization The World Wildlife Fund (WWF) has called for a boycott of Brazilian soy due to its advanced soy plantations into Pantanal wetlands and Amazon region.  According to WWF CEO Carter Roberts, the Amazon will become among the top seven emitters of greenhouse gases in the world unless the world has policies that recognize the value of standing trees and forests.

 

The Brazilian Vegetable Oils Industry Association (Abiove), in response, said it will double the number of areas inspected this year in Brazil's Amazon region as part of its soy moratorium. Independent technical teams will inspect 633 deforested areas in coming weeks, the largest number of which are in the Amazon Biome area of Mato Grosso, Brazil's leading soy producing state, the association said.

 

The inspections are part of the Brazilian soy moratorium wherein major companies such as Archer Daniels Midland and Bunge have agreed to not purchase beans from areas deforested after 2006. The technical specialists will determine whether soy have been grown in these deforested areas, said Abiove.

 

Funding problems not stopping US soy rust monitoring

 

US soy rust monitoring efforts are likely to face a funding challenge since USDA's Risk Management Agency (RMA) last summer indicated it was pulling its funds, amid a restructuring of its research budget.

 

"Since that time, and after many meetings and discussions, we have found a way to continue for 2009....[C]osts will be covered from a variety of public and private sources," said University of Kentucky plant pathologist Don Hershman, former chairman of the Pest Information Platform for Extension and Education (PIPE). The basic issue is that a long-term funding line has never been developed for this project, said Jim VanKirk, director of the USDA's Southern Region Integrated Pest Management Center in Raleigh, N.C., and current PIPE chairman.

 

PIPE is the official parent program of the anti-rust activities undertaken by USDA's Cooperative State Research, Extension and Education Service (CSREES). Most notably, the PIPE administers the USDA's public soy rust Web site and helps to fund season-long monitoring of soy rust and soy aphids by university plant disease specialists.

 

New allocations for PIPE may be US$300,000 to $500,000 from RMA, approximately US$150,000 from CSREES, and US$364,000 from the soy checkoff, said VanKirk. The soy checkoff is funded by a percentage of producer soy sales and spent on such things as marketing, production technology and development of new uses for the crop.

 

However, despite the financial hardships, PIPE leaders say that specialists battling against rust, soybean aphid and other legume diseases under the PIPE umbrella are still developing strategies for continuing operations.

 

"Many state soy checkoff boards are subsidizing soy rust monitoring activities in their respective states," said Hershman. "So with all of these resources cobbled together, we are able to run the programs for 2009. That is why you are seeing continued reporting and the Web site is still active."

 

APHIS Introduces Biotechnology Quality Management System

 

USDA's Animal and Plant Health Inspection Service (APHIS) has introduced a trial of the biotechnology quality management system. The system is part of continued efforts to enhance compliance with the regulatory requirements for field trials and movements of certain genetically modified (GM) organisms.

 

APHIS has accepted five volunteer participants into the pilot project: Bayer CropScience, BASF Plant Science, JR Simplot Plant Science, Pioneer Hi-Bred International and the University of Nebraska at Lincoln. The participants will develop, implement and maintain a quality management system within their organization to proactively manage the movement and field release of regulated GM organisms.

 

As part of the process, they will:

  • Work to identify vulnerabilities in their processes for working with GM organisms;
  • Develop or revise standard operating procedures that address vulnerabilities;
  • Properly train personnel on the standard operating procedures; and
  • Undergo a third-party audit to determine effectiveness of their quality management system.
Soy complex lower as soyoil follows declining petroleum markets
 
The soy complex closed lower on January 22 with the deferred soy and soymeal contracts under the most pressure as soybean oil largely mirrored the declines in the petroleum markets. Diminishing Argentine crop prospects are supportive along with strong Chinese purchases of US soy, but demand outside of China is extremely weak and there was more optimism for rain in Argentina. March bean futures closed down US$3.12, finishing at US$371.84; May lost US$3.58, closing at US$374.60; and July was down US$4.04, ending at $377.54. March meal decreased US$2.43 closing at US$350.75; May was US$2.98 lower, finishing at US$350.75; and July meal closed down US$4.41, ending at US$351.85. March soyoil was US$9.26 lower, finishing at US$739.20; May was down US$9.26, closing at US$747.36; and July lost US$9.26, closing at US$755.74.
 
U.S. & South America Soybean/Products Balance
 
United States 
Argentina
Brazil
Actual
Estimate
Proj.
Actual
Estimate
Proj.
Actual
Estimate
Proj.
2006/07
2007/08
2008/09
2006/07
2007/08
2008/09
2006/07
2007/08
2008/09
Soybeans
thousand tonnes
 Carryin
12,229
15,617
5,580
334
1,876
945
2,252
3,110
3,830
 Production
86,770
72,824
79,486
48,800
46,200
50,500
59,000
61,000
59,000
 Imports
246
269
191
2,336
3,025
2,700
108
100
150
 Crush
49,198
49,024
46,675
35,962
35,180
36,700
31,511
31,955
31,500
 Exports
30,428
31,598
28,576
12,132
13,400
14,900
23,805
25,450
25,000
 Other
4,002
2,508
4,422
1,500
1,576
1,600
2,934
2,975
3,025
 Usage
83,628
83,130
79,673
49,594
50,156
53,200
58,250
60,380
59,525
   Carryout
15,617
5,580
5,584
1,876
945
945
3,110
3,830
3,455
Soymeal
thousand tonnes
 Carryin
285
314
267
2,003
1,144
1,200
863
1,563
1,878
 Production
39,058
38,322
36,959
27,856
27,607
28,700
24,420
24,760
24,410
 Domestic use
31,184
30,078
29,484
619
634
660
11,520
12,180
12,600
 Net Exports
7,845
8,291
7,470
28,096
26,917
28,013
12,200
12,265
12,075
 Usage
39,029
38,369
36,954
28,715
27,551
28,673
23,720
24,445
24,675
   Carryout
314
267
272
1,144
1,200
1,227
1,563
1,878
1,613
Soybean oil
thousand tonnes
 Carryin
1,365
1,399
1,126
487
310
301
300
341
406
 Production
9,294
9,329
8,868
6,917
6,709
7,017
6,050
6,130
6,040
 Domestic use
8,420
8,313
8,165
580
1,045
1,167
3,550
3,895
3,998
 Net exports
840
1,289
907
6,514
5,673
5,800
2,459
2,170
2,050
 Usage
9,260
9,602
9,072
7,094
6,718
6,967
6,009
6,065
6,048
   Carryout
1,399
1,126
922
310
301
351
341
406
398
 

USDA Export Sales (tmt) - Week of 15 January 2009

Country

Commodity

New Sales

Accum. Exports

 

Country

Commodity

New Sales

Accum. Exports

China

Soybeans

765.70

9570.30

 

Honduras

Soymeal

7.50

39.20

Colombia

Soybeans

2.50

5.70

 

Israel

Soymeal

8.90

48.20

Egypt

Soybeans

3.30

259.70

 

Japan

Soymeal

12.20

47.40

Indonesia

Soybeans

7.50

471.80

 

Mexico

Soymeal

32.40

467.40

Japan

Soybeans

22.40

967.00

 

Panama

Soymeal

7.60

51.20

Korea, Rep.

Soybeans

1.00

181.70

 

Philippines

Soymeal

41.80

121.10

Malaysia

Soybeans

2.00

2.10

 

Salvador

Soymeal

6.30

29.60

Mexico

Soybeans

70.40

1156.70

 

Trinidad

Soymeal

2.70

9.40

Morocco

Soybeans

22.50

61.80

 

Barbados

Soyoil

0.80

1.10

Netherlands

Soybeans

57.40

616.30

 

Canada

Soyoil

8.10

11.40

Philippines

Soybeans

1.50

18.70

 

Mexico

Soyoil

4.40

32.80

Spain

Soybeans

18.30

337.50

 

Nicaragua

Soyoil

0.60

7.20

Syria

Soybeans

40.00

138.30

 

 

 

 

 

Taiwan

Soybeans

97.00

721.50

 

 

 

 

 

Thailand

Soybeans

67.10

135.80

 

Export Sales Totals (tmt)

Tunisia

Soymeal

20.00

0.00

 

Commodity

Outstanding Sales

Accum. Exports

New Sales

Vietnam

Soymeal

2.80

14.90

 

Soybeans

7,518.10

16,050.10

1,324.90

Canada

Soymeal

15.30

316.30

 

Soymeal

1,222.80

2,184.20

210.80

Dom. Rep.

Soymeal

22.40

90.40

 

Soyoil

104.80

130.50

7.60


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