August 21, 2006
ASA weekly: Biofuel plans; Argentina-Monsanto soy battle
New biodiesel refineries and state support for biofuel plants
The Associated Press reports that an Iowa company plans to build a dozen biodiesel refineries in the United States by 2010, creating about 500 jobs. Renewable Energy Group Inc says it has raised $100 million toward the plants, which will increase its biodiesel production to 640 million gallons annually.
Five of the biodiesel plants will be in Iowa. The company will own some of the new plants as well as build and manage others for clients. Locations and a total cost for the plants have not been determined.
The refineries will use soybeans or animal fat for biodiesel. New plants will vary from 30 million gallons to 60 million gallons per year. A 30 million-gallon plant costs about $40 million, and a 60 million-gallon plant costs up to $65 million to build.
Meanwhile, Illinois is providing $25 million in grants and other aid to companies building five ethanol and biodiesel plants in the state, according to governor Rod Blagojevich. The plants will spur about $334 million in private investment, produce 225 million gallons of biofuels each year using corn and soybeans, and create almost 150 jobs, he said.
Biodiesel blends of 11 percent or higher and 85 percent ethanol blends are exempt from state sales tax.
The US burned about 62 billion gallons of diesel fuel last year, but only about 75 million gallons of biodiesel was used. However, that is up significantly from 1999, when only 500,000 gallons of the soybean-based fuel was burned.
Argentina says the EU supports its legal battle over use of Monsanto seeds
The Bureau of National Affairs reports that Argentina said the European Union sided with it on its legal dispute with Monsanto, which has been blocking Argentine shipments of GM soybeans and soy by-products to Europe in a bid to collect unpaid royalties.
"In an official statement, the EU's Directorate General for Internal Market and (Financial) Services confirmed the Argentine government's interpretation that soymeal derived from genetically modified seed imported by the European Union does not infringe Monsanto's patents," Argentina's Economy Ministry said in a statement.
Monsanto has managed to have courts seize Argentine soybeans and soy by-products in Spain, Britain, Denmark and the Netherlands as part of its legal battle. Monsanto's Roundup Ready seed has patent protection in Europe but not in Argentina.
While the company says it did try to obtain but was denied copyright protection, the government says the firm failed to comply with all legal requirements on deadline. And, a widespread black market in Argentina means that an estimated 80 percent of the GM soybean seeds come from replanted seed, and not from original seed purchased from Monsanto, according to the company.
Argentina expects 40.5 million tonnes soy
Argentina produced a record 40.5 million tonnes of soybeans in 2005-06, up 5.7 percent from the 38.3 million tonnes produced a year earlier, the Agriculture Secretariat reported.
Area planted increased to 15.3 million hectares, up 6.5% from the 14.4 million hectares planted in 2004-05, the Secretariat said.
Area is seen up partly because dry weather prevented many farmers from sowing corn or wheat and those fields were planted with soybeans.
Farmers also planted more soy because of its higher price compared with other crops. USDA has forecast Argentina's 2005-06 soybean output at 41.3 million tonnes.
July NOPA crush exceeds expectations
The National Oilseed Processors Association (NOPA) last week said its members crushed 3.88 million tonnes of soybeans in July.
The figure was above the average trade estimate of 3.73 million tonnes and well above the 3.57 million tonnes NOPA reported for the month of June. Cumulative crush for the year is reported at 38.1 million tonnes compared to 37.6 million tonnes reported through July 2005.
Soyoil stocks increased to 1.22 million tonnes, up from 1.15 million tonnes in June. The average of trade estimates projected stocks at 1.18 million tonnes.
|
U.S. & South America Soybean/Products Balance | |||||||||
|
|
United States |
Argentina |
Brazil | ||||||
|
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. | |
|
2004/05 |
2005/06 |
2006/07 |
2004/05 |
2005/06 |
2006/07 |
2004/05 |
2005/06 |
2006/07 | |
|
Soybeans |
thousand tonnes | ||||||||
|
Carryin |
3,059 |
6,960 |
15,502 |
1,657 |
810 |
673 |
3,400 |
1,535 |
1,147 |
|
Production |
85,013 |
83,999 |
83,824 |
39,000 |
40,500 |
41,300 |
53,000 |
55,700 |
56,000 |
|
Imports |
152 |
108 |
109 |
779 |
800 |
860 |
408 |
428 |
450 |
|
Crush |
46,160 |
46,675 |
47,627 |
29,010 |
29,551 |
30,700 |
29,730 |
28,200 |
28,500 |
|
Exports |
30,011 |
24,494 |
29,665 |
10,000 |
10,250 |
9,800 |
22,798 |
25,700 |
25,500 |
|
Other |
5,093 |
4,396 |
4,326 |
1,616 |
1,636 |
1,652 |
2,745 |
2,616 |
2,324 |
|
Usage |
81,264 |
75,565 |
81,618 |
40,626 |
41,437 |
42,152 |
55,273 |
56,516 |
56,324 |
|
Carryout |
6,960 |
15,502 |
17,817 |
810 |
673 |
681 |
1,535 |
1,147 |
1,273 |
|
Soymeal |
thousand tonnes | ||||||||
|
Carryin |
191 |
155 |
227 |
1,350 |
877 |
594 |
753 |
896 |
546 |
|
Production |
36,938 |
36,708 |
37,816 |
22,907 |
23,340 |
24,330 |
22,917 |
22,071 |
22,565 |
|
Domestic use |
30,448 |
30,300 |
30,935 |
537 |
573 |
602 |
8,735 |
9,350 |
9,550 |
|
Net Exports |
6,526 |
6,336 |
6,881 |
22,843 |
23,050 |
23,796 |
14,039 |
13,071 |
12,970 |
|
Usage |
36,974 |
36,636 |
37,816 |
23,380 |
23,623 |
24,398 |
22,774 |
22,421 |
22,520 |
|
Carryout |
155 |
227 |
227 |
877 |
594 |
526 |
896 |
546 |
591 |
|
Soybean oil |
thousand tonnes | ||||||||
|
Carryin |
488 |
771 |
1,265 |
660 |
542 |
431 |
293 |
128 |
126 |
|
Production |
8,781 |
9,101 |
8,970 |
5,404 |
5,496 |
5,850 |
5,588 |
5,400 |
5,415 |
|
Domestic use |
7,910 |
8,142 |
8,618 |
408 |
433 |
488 |
3,059 |
3,136 |
3,210 |
|
Net exports |
588 |
465 |
519 |
5,114 |
5,174 |
5,400 |
2,694 |
2,266 |
2,200 |
|
Usage |
8,498 |
8,607 |
9,137 |
5,522 |
5,607 |
5,888 |
5,753 |
5,402 |
5,410 |
|
Carryout |
771 |
1,265 |
1,098 |
542 |
431 |
393 |
128 |
126 |
131 |
|
USDA Export Sales (tmt) - Week of 10 August 2006 | ||||||||
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
Canada |
Soybeans |
0.20 |
199.30 |
|
Japan |
Soymeal |
13.90 |
343.20 |
|
China |
Soybeans |
60.00 |
9531.60 |
|
Mexico |
Soymeal |
42.90 |
1277.70 |
|
Colombia |
Soybeans |
4.80 |
189.50 |
|
Nicaragua |
Soymeal |
0.40 |
54.70 |
|
Denmark |
Soybeans |
5.40 |
97.00 |
|
Philippines |
Soymeal |
5.60 |
426.70 |
|
Egypt |
Soybeans |
8.50 |
540.40 |
|
Salvador |
Soymeal |
1.00 |
116.70 |
|
Indonesia |
Soybeans |
9.00 |
1167.60 |
|
Saudi Arabia |
Soymeal |
17.00 |
102.10 |
|
Mexico |
Soybeans |
82.90 |
3418.90 |
|
Australia |
Soyoil |
1.10 |
1.10 |
|
Morocco |
Soybeans |
25.40 |
244.50 |
|
Costa Rica |
Soyoil |
0.30 |
27.10 |
|
Philippines |
Soybeans |
6.00 |
102.20 |
|
|
|
|
|
|
Taiwan |
Soybeans |
59.00 |
1741.80 |
|
|
|
|
|
|
Canada |
Soymeal |
10.00 |
995.20 |
|
Export Sales Totals (tmt) | |||
|
Chile |
Soymeal |
26.30 |
154.80 |
|
Commodity |
Outstanding Sales |
Accum. Exports |
New Sales |
|
Colombia |
Soymeal |
18.00 |
315.10 |
|
Soybeans |
1,732.70 |
24,496.70 |
257.50 |
|
Honduras |
Soymeal |
4.00 |
110.60 |
|
Soymeal |
953.50 |
5,486.30 |
132.70 |
|
Hong Kong |
Soymeal |
1.20 |
16.10 |
|
Soyoil |
22.70 |
289.90 |
0.90 |
|
Thursday Spot and Futures Prices, 17 August 2006 | ||||
|
Item |
Location |
Sep |
Dec |
Jan |
|
Soybeans ($/mt) |
Central Ill./Chicago |
202.64 |
207.42 |
212.10 |
|
FOB Gulf (Basis) |
224.69 |
232.40 |
238.56 | |
|
CIF Gulf Coast (Basis Chicago) |
224.69 |
232.40 |
238.56 | |
|
Board Crush Margin |
$/mt |
27.58 |
24.62 |
23.05 |
|
|
Sep |
Oct |
Dec | |
|
Soybean Meal 48%, HiPro ($/mt) |
Central Ill./Chicago |
176.92 |
178.13 |
180.45 |
|
FOB Gulf (Basis) |
204.48 |
204.59 |
205.80 | |
|
West Coast (Basis) |
227.62 |
226.63 |
226.74 | |
|
Soybean Meal 44% ($/mt) |
Central Ill./Chicago |
176.92 |
178.13 |
180.45 |
|
FOB Gulf (Basis) |
193.45 |
193.56 |
194.78 | |
|
West Coast (Basis) |
216.60 |
215.61 |
215.72 | |
|
Soybean Oil, Crude ($/mt) |
Central Ill./Chicago |
548.06 |
553.13 |
560.85 |
|
FOB Gulf (Basis) |
526.02 |
531.09 |
538.80 | |
|
|
Beans |
Meal |
Oil | |
|
1 year ago prices |
Chicago, $/mt |
224.04 |
201.43 |
496.23 |
