September 13, 2005

 

ASA Weekly: Brazil approves use of home-produced GMO seeds for 2005-06; US farmers to receive disaster assistance

 

 

Brazil approves use of home-produced GMO seeds for 2005-06

Brazil's government will allow farmers to use home-produced genetically-modified soybean seeds in the coming 2005-06 season (October-September), the Agriculture Ministry said last week. 

 

However, the use of GMO seeds produced on farms will be illegal during the 2006-07 season, it added. "The measure, announced by Minister Roberto Rodrigues, was taken to alleviate the problems of Rio Grande do Sul farmers," said the statement.

 

Farmers in Rio Grande do Sul lost approximately 70 percent of their crop in 2004-05 to the worst drought in 50 years. As a result, there are insufficient seeds for the coming season. The coming year will be the first in which Brazilian farmers can use commercially produced GMO soybean seeds.

 

The production of soybeans seeds for home use is a traditional practice in Brazil. However, companies such as Monsanto have successfully sued a number of home-producing farmers for breaking patents over the past year.

 

In the statement, the Agriculture Ministry acknowledged that producing seeds on the farm breaks a number of laws.

  

US farmers to receive disaster assistance

 

Congress will provide financial aid to farmers hit by Hurricane Katrina and other weather losses, such as drought in the Midwest, says Senate Agriculture Committee Chairman Saxby Chambliss.

 

Reuters reports that Chambliss also said he expects a delay in work on US$3.1 billion in agriculture budget cuts because of the focus on mammoth hurricane damage.

 

Chambliss said he met USDA Secretary Mike Johanns last week to discuss losses from Katrina and other causes.

 

In the Midwest, he noted, drought "has been ongoing throughout most of the year."

 

He added that, "we haven't had time to calculate what the losses are", but with the harvest at hand, accurate figures would be available in coming weeks.

  

Transportation update

 

Agriculture shipments have restarted along the lower Mississippi River, though obstacles such as lack of labour, diesel fuel, electric power and transportation remain.

 

The Port of New Orleans terminal operators have been in touch with their workers and expect to mobilise their labour pools by the middle of this week. Port President and CEO Gary LaGrange have set a goal for the Port to work its first commercial cargo ship by Sept 14.

 

Adding to farmers' need for access to the Port of New Orleans is the fact that ending stocks of both corn and soybeans on Sept 30 are forecast to be at relatively high levels.

 

Last June, when USDA last reported the position of U.S. stocks, soybeans stored in all positions on Jun 1, 2005, totalled 19.1 million tonnes, up 70 percent from Jun 1, 2004. These figures indicate that both farmers and commercial elevator operators will likely want to move soybeans out of storage facilities soon in preparation to accept this year's harvest.

 

Meanwhile, deep draft vessels are again navigating on the Lower Mississippi River after being restricted for nearly one week after Hurricane Katrina passed over the area.

 

The Army Corps of Engineers and Coast Guard will allow vessels with a draft (the amount of the vessel below the waterline) of 39 feet or less to navigate from the mouth of the Mississippi River to Baton Rouge, La. (normal draft limit is 45 feet). Also, the Coast Guard will permit two-way traffic.

 

Restoring navigation on the river is important is essential to restart grain and soybean exports through the Center Gulf. The peak export period for the Center Gulf is about to get underway as crop harvests start in the Corn Belt.

 

However, not all grain export elevators are operational either because of damage or because of a lack of power and employees. Most mid-stream facilities are operating, or will be soon.

 

The Center Gulf handles nearly 60 percent of all US grain and soybean exports annually, about three-quarters of all corn exports, and about 70 percent of all soybeans.

 

Since 1995, Center Gulf grain and soybean exports averaged more than 5.17 million tonnes during September, or about 8 percent of annual exports through the Center Gulf.

 

Exports through the Center Gulf during the September/November quarter represent about 28 percent of annual Center Gulf exports.

 

There was no export inspections recorded for the Center Gulf for the week that ended September 1 after totalling 887,000 tonnes the previous week while averaging 816,000 tonnes the previous four weeks.

 

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	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 01 September 2005
Country	Commodity	New Sales	Accum. Exports		Country	Commodity	New Sales	Accum. Exports
Barbados	Soybeans	2	0		Venezuela	Soybeans	35	0
Belgium	Soybeans	231.5	0		Algeria	Soymeal	16	98.4
Canada	Soybeans	31.2	0.4		Canada	Soymeal	5.3	933
China	Soybeans	687	0		Colombia	Soymeal	0.9	200.8
Colombia	Soybeans	2	0		Hong Kong	Soymeal	0.1	4
Denmark	Soybeans	59.5	0		Japan	Soymeal	2.1	368.4
Egypt	Soybeans	129	0		Mexico	Soymeal	36.8	1055.3
Guatemala	Soybeans	31.6	0		UAE	Soymeal	0.1	0.1
Indonesia	Soybeans	120.8	0		Canada	Soyoil	1.2	29.1
Israel	Soybeans	48	0		Hong Kong	Soyoil	0.1	12
Japan	Soybeans	633.1	0.7		Mexico	Soyoil	0.8	165.4
Korea, Rep.	Soybeans	227.5	0		Saudi Arabia	Soyoil	4.9	1.5
Mexico	Soybeans	551.6	13.1
Netherlands	Soybeans	92	0		Export Sales Totals (tmt)
Philippines	Soybeans	71.4	0		Commodity	Outstanding Sales	Accum. Exports	New Sales
Taiwan	Soybeans	169.3	0		Soybeans	3,966.60	14.2	3,980.80
Trinidad	Soybeans	6	0		Soymeal	438.6	5,635.50	77.6
Turkey	Soybeans	20	0		Soyoil	32.2	409.8	6.5
Note: New marketing year for soybeans began September 1, 2005