April 23, 2007
ASA weekly: Early April hard freeze may limit Asian rust threat in south-eastern US; Cargill produces renewable plastics from soybeans; Floods damage Argentina's crops; House agricultural chairman gives farm bill update
Early April hard freeze may limit Asian rust threat in south-eastern US
The record cold spell that hit the south-eastern United States early in April may be seen as a benefit to the soybean crop. Scientists believe the cold weather may reduce the threat that Asian soybean rust fungus will spread this year and some plant pathologists are confident the cold weather killed the fungus in parts of the south-east.
"We had a record-breaking frost Easter morning, with temperatures in the panhandle below freezing for several hours," University of Florida plant pathologist James Marois told USDA recently.
USDA said the exact impact of the frost on rapidly growing kudzu - the primary over-wintering host for Asian rust - is still not fully known. However, USDA did say the early April freeze: "¡Could reduce the build up and potential spread of soybean rust for several weeks. Prior to this frost event, warmer temperatures had increased the growth of kudzu throughout the south-east." Some states are reporting extensive damage to kudzu leaves, with South Carolina estimating more than 50 percent of kudzu leaves in the state were killed by the freeze.
Cargill produces renewable plastics from soybeans
A Cargill biorefinery in Blair, Nebraska, has begun producing what could be the next big thing in farming: a new generation of renewable chemicals, according to an article in the Wall Street Journal.
High oil prices have bolstered the economic rationale for making plastics, foam and lubricants from plants such as soybeans and corn. The commodities are showing up in carpets, disposable cups, salad bags, AstroTurf, candles, lipstick, socks, surfboards, cooling fluid in utility transformers, and even the body panels of Deere & Co. harvesting combines.
There has also been growing demand from retail giants such as Wal-Mart Stores Inc., newly sensitive to environmental pressure, for packaging made from renewable plastic. The item notes that the diversion of yet more farm products toward the energy and industrial sectors could stretch demand and send commodity prices sky high. Other problems remain: For many manufacturers, adjusting equipment to use renewable chemicals made by Cargill and others is cost-prohibitive.
Floods may have damaged up to 2 million tonnes of Argentina's crop
Argentina's soybean farmers may lose more than 2 million tonnes of output after rains damaged crops, according to Jorge Weskamp, president of the Rosario Board of Trade.
Rains in central Argentina have already damaged about 1 million tonnes to 2 million tonnes of soybeans, and may harm more if showers persist, the official told Bloomberg News. Argentina may fall short of expectations for a record soybean crop this year as rains flood arable land in Santa Fe province, said Weskamp.
Santa Fe province, which accounts for 30 percent of the country's soybean output, is Argentina's second-biggest soy producing province after Cordoba. Santa Fe has already received 750 millimetres of rain so far in 2007, compared with an average 950 millimetres for the whole year, said Hugo Fontanetto, an analyst at the National Agriculture Technology Institute. As much as 600 millimetres of rain fell during a three-day period, he said.
House agricultural chairman gives farm bill update
House Agricultural Committee Chairman Collin Peterson said Apr 19 he is working with House leaders on budget issues relative to the next farm bill. Peterson said in a teleconference that he was working with House leaders to find potential spending offsets for agriculture funding in the budget resolution.
Peterson commented that a farm bill developed under the current budget baseline for agriculture spending is "saleable" in his district, but that his recent visit to fruit and vegetable production areas in California revealed a farm bill based on the current baseline would "not be very popular" with growers in that sector.
Commenting specifically on issues related to the soybean sector, Peterson said he thinks the American Soybean Association "has a point in this rebalancing" (higher loan and target prices for soybeans) and that his committee staff is reviewing the proposal.
Regarding a suggestion by Senate Agricultural Committee Chairman Tom Harkin to phase out direct payments and funnel those dollars to other areas for agricultural spending, Peterson said that no existing programme should face cuts to pay for others initiatives in the farm bill.
As for timing of the farm bill, Peterson said he would hold off on offering his "chairman's mark" for the farm bill until after the budget resolution is finished. Peterson added that he could not rule out the addition of a competition title via work on the farm bill at either the subcommittee or full committee level. Peterson also noted that some of the proposals on competition would "do more harm than good."
Palm oil industry has unrealistic expectations for biodiesel market
The global palm oil industry will be headed for disappointment if it is expecting 2007 to be a year of substantial biodiesel exports to Europe, an Italian biodiesel producer told Dow Jones Newswires.
Michele Falciola, president of Mythen SpA, said palm oil is likely to continue playing only a small part in the European biodiesel market for now, as the region is already struggling with overcapacity and still views the quality of fuels made from foreign oils with much skepticism.
All the optimistic talk that has been circulating in the palm oil market about millions of tonnes being used for biodiesel, that has in turn lifted prices to eight-year highs, may therefore be misguided, he said.
"The overcapacity of biodiesel in Europe is becoming pathological," Falciola commented. "Malaysian and Indonesian manufacturers that have expressed their desire to export most of their palm oil-based biodiesel to Europe, therefore, appear almost naive."
US & 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 |
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 12 April 2007
| New | Accum. | New | Accum. | |||||
|
Country |
Commodity |
Sales |
Exports |
|
Country |
Commodity |
Sales |
Exports |
|
China |
Soybeans |
17 |
10280.9 |
|
Indonesia |
Soymeal |
3.1 |
29.9 |
|
Colombia |
Soybeans |
1.5 |
198.7 |
|
Japan |
Soymeal |
0.4 |
190.7 |
|
Costa Rica |
Soybeans |
8 |
163.1 |
|
LW WWI |
Soymeal |
0.6 |
1.6 |
|
Egypt |
Soybeans |
9.8 |
675.3 |
|
Mexico |
Soymeal |
16.2 |
758 |
|
Indonesia |
Soybeans |
6.1 |
901.7 |
|
Panama |
Soymeal |
5.2 |
80.7 |
|
Japan |
Soybeans |
60.5 |
2021.7 |
|
Philippines |
Soymeal |
9.9 |
223.4 |
|
Mexico |
Soybeans |
122.1 |
2400.5 |
|
Vietnam |
Soymeal |
3.5 |
2.1 |
|
Philippines |
Soybeans |
0.5 |
61.2 |
|
Canada |
Soyoil |
0.2 |
19.8 |
|
Syria |
Soybeans |
1.2 |
241.6 |
|
Guam |
Soyoil |
0.1 |
0.1 |
|
Taiwan |
Soybeans |
54.9 |
1296 |
|
Hong Kong |
Soyoil |
0.1 |
19.4 |
|
Canada |
Soymeal |
7.7 |
697.9 |
|
Saudi Arabia |
Soyoil |
0.1 |
1.5 |
|
Colombia |
Soymeal |
4.4 |
170.3 |
|
Trinidad |
Soyoil |
0.2 |
3 |
|
Cuba |
Soymeal |
1.2 |
54.1 |
|
Export Sales Totals (tmt) | |||
|
Dom. Rep. |
Soymeal |
10 |
224.9 |
|
|
Outstanding |
Accum. |
New |
|
Ecuador |
Soymeal |
20 |
51.5 |
|
Commodity |
Sales |
Exports |
Sales |
|
Guatemala |
Soymeal |
3.8 |
175.2 |
|
Soybeans |
3,200.50 |
24,384.60 |
283.5 |
|
Guyana |
Soymeal |
2.4 |
8.3 |
|
Soymeal |
1,681.00 |
3,723.80 |
103.9 |
|
Honduras |
Soymeal |
1.2 |
66.2 |
|
Soyoil |
42.7 |
338.3 |
0.9 |
