March 19, 2007

 

ASA weekly: New Brazil ag minister; India delays GM soybean import policy; US farm bill could get WTO moving

 

 

GM soybean producer likely to become next agriculture minister for Brazil

 

The president of Brazil's largest soybean seed company, Odilio Balbinotti, will likely become Brazil's new Agriculture Minister, according to a report from Dow Jones Newswires. Balbinotti owns Sementes Adriana, the largest individual seed company in Brazil and a licensed maker of Roundup Ready soybeans.

 

Balbinotti also is a congressman from the Brazilian Democratic Movement (PMDB), representing the state of Parana, the top soy-producing state behind Mato Grosso. Sementes Adriana is based in Mato Grosso.

 

Soy farming has made Balbinotti a millionaire, according to the report. He owns one of the most modern private biotechnology labs in Latin America. He also owns about 25,000 hectares of farmland, well above what his counterparts in Parana own.

 

However, Balbinotti is not without controversy--he is currently being investigated for falsifying documents and consumer fraud in Mato Grosso. He says the charges are unfounded.

 

"He's someone who knows Brazil's biggest farm business. He knows soy. He knows ranching. We have a lot of hope for this guy," Antenor Nogueira, president of the National Agriculture Confederation told Dow Jones in the report. 

 

If approved, he would be replacing Luis Guedes Pinto, the temporary Agriculture Minister. Pinto stepped in for Roberto Rodrigues in mid-2006.

 

India announces GM soybean import declaration policy will not be implemented until December 2007

 

India's restrictions on imports of genetically modified soyoil will not be implemented until December 31, 2007 according to a statement from the federal government. The restrictions were due to be implemented on soyoil imports from April 1, 2007. This is the third deferment in the implementation of rules for GM soyoil imports in less than a year.

 

Last year, India made it compulsory for all genetically modified imports to carry a "declaration" of their genetic status.  Under the policy, any imported food or feed product that contains GM material will only be allowed in the country with the approval of the government's Genetic Engineering Approval Committee.

 

The edible oil industry has expressed concern that the new policy could delay soyoil imports, which are mostly made from GM soybeans.    

 

US farm bill and WTO agreement may be linked

 

The Bush administration's farm bill proposal will aid in getting the stalled Doha round of world trade talks going, even before it passes, US Agriculture Secretary Mike Johanns said last week.

 

The administration hopes that Congress passes the farm bill--Cwhich must be reauthorised this year--by the time it takes its August recess. But the administration's 65 proposals, which include a number of provisions that could make US policies more acceptable to WTO members, could help get the talks moving, said Johanns. 

 

In provisions aimed in part at making US programmes more compatible with the WTO, USDA is proposing to convert a current programme of payments to farmers that is based on prices into one based on farmers' revenues, reduce the adjusted gross income limit for commodity subsidy payments from $2.5 million to $200,000 and revise marketing assistance loans for corn, wheat, cotton, rice, soybeans and other crops to reduce what some people say is the market-distorting effects of the current program.

 

The round of trade talks is facing a tight deadline because President Bush's trade promotion authority, which allows him to submit trade deals to Congress for an up-or-down vote without amendment, is set to expire June 30. The administration says it needs the authority to be able to successfully complete the talks and reach bilateral trade deals. But extending the authority promises to be a major battle, with Democrats and labor unions against it, and Republicans and major business and trade groups supporting it.

 

U.S. & South America Soybean/Products Balance

United States 

Argentina

Brazil

Actual

Estimate

Proj.

Actual

Estimate

Proj.

Actual

Estimate

Proj.

May-04

Jun-05

Jul-06

May-04

Jun-05

Jul-06

May-04

Jun-05

Jul-06

Soybeans

thousand tonnes

 Carryin

3,059

6,960

12,229

2,434

514

579

3,400

1,440

514

 Production

85,013

83,368

86,770

39,000

40,500

44,000

53,000

55,000

56,000

 Imports

152

92

109

708

900

950

353

60

100

 Crush

46,160

47,320

48,444

29,560

32,600

36,000

29,730

28,200

27,300

 Exports

30,011

25,778

29,937

10,548

7,200

7,350

22,798

25,450

26,700

 Other

5,093

5,093

4,521

1,520

1,535

1,566

2,785

2,336

2,024

 Usage

81,264

78,191

82,902

41,628

41,335

44,916

55,313

55,986

56,024

   Carryout

6,960

12,229

16,206

514

579

613

1,440

514

590

Soymeal

thousand tonnes

 Carryin

191

156

285

1,350

1,187

1,549

870

640

490

 Production

36,936

37,414

38,484

23,347

25,487

28,400

22,928

21,850

21,435

 Domestic use

30,446

30,097

30,754

537

575

650

9,162

9,950

10,200

 Net Exports

6,525

7,188

7,743

22,973

24,550

27,600

13,996

12,050

11,400

 Usage

36,971

37,285

38,497

23,510

25,125

28,250

23,158

22,000

21,600

   Carryout

156

285

272

1,187

1,549

1,699

640

490

325

Soybean oil

thousand tonnes

 Carryin

488

771

1,370

660

542

659

293

248

450

 Production

8,781

9,250

9,147

5,404

6,200

6,800

5,708

5,403

5,233

 Domestic use

7,910

8,144

8,641

408

458

709

3,059

3,319

3,385

 Net exports

588

507

656

5,114

5,625

6,100

2,694

1,882

2,000

 Usage

8,498

8,651

9,297

5,522

6,083

6,809

5,753

5,201

5,385

   Carryout

771

1,370

1,220

542

659

650

248

450

298

 

 

USDA Export Sales (tmt) - Week of 08 March 2007

Country

Commodity

New

Accum.

 

Country

Commodity

New

Accum.

Sales

Exports

 

Sales

Exports

Canada

Soybeans

4.9

95.3

 

Hong Kong

Soymeal

0.5

10.2

China

Soybeans

103.3

9138.6

 

Indonesia

Soymeal

0.9

25.8

Colombia

Soybeans

8.5

165.1

 

Japan

Soymeal

2.3

162.7

Costa Rica

Soybeans

16

132.4

 

Morocco

Soymeal

0.5

55.7

Egypt

Soybeans

70.3

561.8

 

Nicaragua

Soymeal

0.9

31.7

Germany

Soybeans

65.2

1054.1

 

Panama

Soymeal

24

61.3

Malaysia

Soybeans

24.3

162.1

 

Trinidad

Soymeal

5.4

12.2

Mexico

Soybeans

190.6

1958.3

 

Turkey

Soymeal

15

95.3

Morocco

Soybeans

25.1

178

 

Costa Rica

Soyoil

0.4

14.8

Netherlands

Soybeans

64

1252.8

 

Guatemala

Soyoil

0.9

15.3

Panama

Soybeans

2.5

3.5

 

Mexico

Soyoil

0.3

38.6

Turkey

Soybeans

14

417.7

 

 

 

 

 

Canada

Soymeal

143.2

569.1

 

Export Sales Totals (tmt)

Colombia

Soymeal

10.6

142.6

 

Commodity

Outstanding

Accum.

New

Cuba

Soymeal

11

46.4

 

Sales

Exports

Sales

Dom. Rep.

Soymeal

26.7

183.3

 

Soybeans

4,587.10

21,533.30

451.8

Guatemala

Soymeal

46.8

135.8

 

Soymeal

1,814.10

3,069.90

276.9

Honduras

Soymeal

8

58.8

 

Soyoil

43.3

317.2

2.3

 

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