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 |
|
| ||||||
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 | ||||
|
Soybeans |
4.9 |
95.3 |
|
|
Soymeal |
0.5 |
10.2 |
|
Soybeans |
103.3 |
9138.6 |
|
|
Soymeal |
0.9 |
25.8 |
|
Soybeans |
8.5 |
165.1 |
|
|
Soymeal |
2.3 |
162.7 |
|
Soybeans |
16 |
132.4 |
|
|
Soymeal |
0.5 |
55.7 |
|
Soybeans |
70.3 |
561.8 |
|
|
Soymeal |
0.9 |
31.7 |
|
Soybeans |
65.2 |
1054.1 |
|
|
Soymeal |
24 |
61.3 |
|
Soybeans |
24.3 |
162.1 |
|
|
Soymeal |
5.4 |
12.2 |
|
Soybeans |
190.6 |
1958.3 |
|
|
Soymeal |
15 |
95.3 |
|
Soybeans |
25.1 |
178 |
|
|
Soyoil |
0.4 |
14.8 |
|
Soybeans |
64 |
1252.8 |
|
|
Soyoil |
0.9 |
15.3 |
|
Soybeans |
2.5 |
3.5 |
|
|
Soyoil |
0.3 |
38.6 |
|
Soybeans |
14 |
417.7 |
|
|
|
|
|
|
Soymeal |
143.2 |
569.1 |
|
Export Sales Totals (tmt) | |||
|
Soymeal |
10.6 |
142.6 |
|
Commodity |
Outstanding |
Accum. |
New |
|
Soymeal |
11 |
46.4 |
|
Sales |
Exports |
Sales | |
Dom. Rep. |
Soymeal |
26.7 |
183.3 |
|
Soybeans |
4,587.10 |
21,533.30 |
451.8 |
|
Soymeal |
46.8 |
135.8 |
|
Soymeal |
1,814.10 |
3,069.90 |
276.9 |
|
Soymeal |
8 |
58.8 |
|
Soyoil |
43.3 |
317.2 |
2.3 |