August 24, 2005

 

ASA Weekly: FDA considering allowing health claims on soy products; Senator Durbin to request drought aid
 

 

FDA considering allowing health claims on soy products

 

The Food and Drug Administration (FDA) is considering a petition to grant soy products a qualified health claim for possible prevention of breast, colon and prostate cancers.

 

Unlike full-fledged health claims, qualified health claims are based on emerging research that suggests, but doesn't prove, a health benefit. Nuts, olive oil and omega-3 fatty acids are some of the foods and dietary supplements that have received qualified claims in recent years.

 

Soy protein has already earned one full-fledged FDA health claim for heart benefits.

 

Since 1999, low-fat, low-cholesterol products containing at least 6.25 grams of soy protein per serving¡ªequal to about a half cup of tofu or a cup of soy milk¡ªcan carry a label that says, "Diets low in saturated fat and cholesterol that include 25 grams of soy protein a day may reduce the risk of heart disease."

 

Since that claim went into effect, consumption of soy protein has more than doubled in the US. If the new health claim is granted and soy consumption again doubles, industry sources project that US soy intake could reach 4.5 grams a day.
 

Senator Durbin to request drought aid

 

Senator Dick Durbin (D-Ill.) said recently that when the Senate returns in September, he will seek disaster aid to help farmers in the state hit hard by drought this season.

 

Durbin said that the options he will pursue include both a disaster program and the possible addition of supplemental disaster relief to the agriculture appropriation bill.

 

"The situation in Illinois is so bad from top to bottom, it's something I will definitely work for," Durbin said after looking at crops near McLean, Illinois.

 

USDA last month declared all but one of Illinois' counties agricultural disaster areas, making producers eligible for low-interest loans.

 

Drought hampers river transportation; New locks to be considered by Congress

 

As the worst drought since 1988 stresses crops across parts of the Midwest, low-water levels are turning parts of the Mississippi and Ohio rivers into virtual sandbars, causing towboats and barges to run aground and thus delaying shipments of some agricultural goods.

 

The delays also are threatening construction projects throughout the region and increasing transportation costs to some international markets, commodity analysts and barge-shipping officials said.

 

Recent rain has eased crop progress in some areas. "These rains right now will help the soybean crop," said Dave Lehman, managing director of commodities at the Chicago Board of Trade.

 

For the 2005-06 crop year starting in September, the soybean output in the US is expected to be 75.96 million tonnes, according to the USDA's latest forecast Aug 12. Average yield is estimated at 2.6 tonnes a hectare, compared with last year's 2.86 tonnes a hectare.

 

Meanwhile, after decades of controversy, study and debate, the question of what to do about the navigational logjams on the Illinois and Mississippi Rivers is now in the hands of the Senate.

 

At issue is whether the US$3.6-billion cost to speed up shipping with seven new locks while ecologically restoring the two rivers is justified. The proposed project would be one of the costliest waterway improvements in US history and is generating waves of arguments across the Midwest's two major rivers and in the halls of Washington.

 

Despite mounting opposition, the House in mid-July voted 406-14 to approve the plan. The Senate is expected to tackle the issue when it reconvenes this year. Besides US$1.8 billion for new locks, the plan includes about US$1.58 billion for ecological restoration of both rivers in the next 15 years and US$235 million of upgrades to upstream locks.

 

The rivers have historically been the transportation backbone for shipping soybeans, grain, corn and other Midwest commodities worldwide.

 

But expansion critics, including some environmentalists and taxpayer groups, say building new locks is a waste of federal money. Barge traffic is down by over a third in the last 15 years, thanks to burgeoning rail and truck transport and competition overseas from South American exports, they say.

 

                                 US & South America Soybean/Products Balance

	US			Argentina			Brazil
	Actual	Estimate	Proj.	Actual	Estimate	Proj.	Actual	Estimate	Proj.
	2003-04	2004-05	2005-06	2004-05	2005-06	2006-07	2004-05	2005-06	2006-07
Soybeans	thousand tonnes
Carryin	4,853	3,059	7,886	1,630	2,046	4,341	3,129	2,086	1,058
Production	66,778	85,484	78,653	33,000	39,000	39,000	50,500	51,000	62,000
Imports	151	136	82	540	590	485	350	470	200
Crush	41,631	45,994	45,994	25,072	26,800	27,500	29,172	29,634	32,309
Exports	23,946	30,209	30,890	6,500	8,700	9,400	19,571	19,542	22,936
Other	3,146	4,590	4,031	1,552	1,795	2,010	3,150	3,322	3,575
Usage	68,723	80,793	80,915	33,124	37,295	38,910	51,893	52,498	58,820
Carryout	3,059	7,886	5,706	2,046	4,341	4,916	2,086	1,058	4,438
Soymeal	thousand tonnes
Carryin	200	191	227	347	354	529	763	469	425
Production	32,953	36,536	36,501	19,807	21,172	21,725	22,920	23,730	25,459
Domestic use	28,590	30,118	30,527	700	850	950	8,784	9,400	9,900
Net Exports	4,372	6,382	5,974	19,100	20,147	20,914	14,430	14,374	15,434
Usage	32,962	36,500	36,501	19,800	20,997	21,864	23,214	23,774	25,334
Carryout	191	227	227	354	529	390	469	425	550
Soybean oil	thousand tonnes
Carryin	676	488	769	99	74	100	150	93	90
Production	7,748	8,716	8,648	4,513	4,824	4,950	5,258	5,448	5,816
Domestic use	7,651	7,847	8,006	140	145	155	2,710	2,785	2,920
Net exports	285	588	585	4,398	4,653	4,820	2,605	2,666	2,896
Usage	7,936	8,435	8,591	4,538	4,798	4,975	5,315	5,451	5,816
Carryout	488	769	826	74	100	75	93	90	90

    

                                   USDA Export Sales (tmt) - Week of 11 August 2005

Country	Commodity	New Sales	Accum. Exports		Country	Commodity	New Sales	Accum. Exports
Colombia	Soybeans	4.3	152.1		Nicaragua	Soymeal	1	37
Indonesia	Soybeans	61.5	950.5		Venezuela	Soymeal	12	115.2
Japan	Soybeans	38.4	2966.1		Hong Kong	Soyoil	0.1	11.8
Mexico	Soybeans	41.9	3304.1		Indonesia	Soyoil	0.1	0.3
Taiwan	Soybeans	4.3	1505		Israel	Soyoil	0.1	0.5
Canada	Soymeal	9.7	872		Mexico	Soyoil	0.1	160.7
Colombia	Soymeal	2.8	200.8
Honduras	Soymeal	0.7	99.7		Export Sales Totals (tmt)
Hong Kong	Soymeal	0.4	9.9		Commodity	Outstanding Sales	Accum. Exports	New Sales
Jamaica	Soymeal	6	79.6		Soybeans	1,561.9	27,675.2	195.7
Mexico	Soymeal	26.2	981.6		Soymeal	769.7	4,249.4	54.5
New Zealand	Soymeal	4.2	47.7		Soyoil	35.5	351.0	2.0