September 4, 2007

 

ASA weekly: USB/ASA launch new international marketing plan; China steps up inspections of US and Argentine soybeans

 

 

USB/ASA launch new international marketing plan
 

The United Soybean Board (USB) and American Soybean Association (ASA) have formulated a new international marketing strategy. Under the plan, which was approved at the recent US Soy Industry Strategic Planning Conference in Chicago, international marketing efforts will be focused on a product-based strategy. Previous efforts had been concentrated on marketing to specific countries or geographical regions.

 

This new product-based marketing strategy will be broken down into three categories: commodity soybeans, value-enhanced soybeans and global issues management.

 

The commodity soy-marketing category will consist of overseas customers who are interested in buying bulk amounts of US soybeans for use in such areas as aquaculture or livestock and poultry production. The value-enhanced category will focus marketing efforts on customers interested in US soybeans that have been produced to have superior traits.

 

The global issues marketing category will focus on gaining market access for products that are not yet accepted in certain markets. This will be accomplished through continued development of relationships with foreign countries to highlight the benefits of buying US soybeans. Global issues such as sustainability, biotechnology acceptance and transport issues are also to be addressed through this new marketing category.

 

In related news, representatives of the American Soybean Association and associations of Brazilian and Argentine soy farmers launched what is being called the International Soybean Growers Association.

 

Brazil, Argentina and the US, which together account for 80 percent of global soybean production, will join forces in marketing efforts to open international markets for soy products, according to Ricardo Arioli, president of the Mato Grosso Soy Growers Association, Brazil's largest grouping of soy farmers.

 

According to Arioli, the new association's first joint endeavor will be a combined strategy to reinforce the image of soy products in developing markets, with a focus on India.

 

China steps up inspections of US and Argentine soybeans

 

Several soybean cargoes from the United States and Argentina have met with increased checks at Chinese ports amid tighter inspections. Some exporters feel the tighter soy inspections are "political" and in reaction to stronger trade restrictions in Argentina on some Chinese products, and the fact that the US recently recalled multiple toys produced in China.  Last week, quarantine authorities said they would strengthen their supervision over soybean imports to ensure quality and safety.

 

Argentina's lead trade official said he does not believe there will be any lasting backlash on soy shipments from his country. However, following Argentina's restrictions announcement, Beijing expressed concern and said it would act accordingly in defense of its interests.

 

Argentina imposed higher tariff and customs duties on a list of goods that are having a negative impact on several domestic industries including tyres, foot wear, bicycles, auto parts, leather goods, toys, textiles, electronics and tools, most of which China is a world leading producer. Last week, the Argentine press speculated about possible countermeasures China would or could adopt, more specifically on the soybean shipments.

 

Industry officials and traders said quarantine authorities (CIQ) were inspecting soybeans more thoroughly than before, delaying discharges of US and Argentine cargoes, though none was yet rejected. According to Reuters, some buyers had to put the soybeans into a warehouse and wait for an approval before crushing the beans.

 

USDA: 2007 US net farm income expected to be record high 
 

For 2007, USDA forecasts US net farm income to be US$87.1 billion, up US$28.1 billion from 2006 and US$29.7 billion above its 10-year average of US$57.4 billion. This tops the previous record (in 2004) of US$85.9 billion for net farm income. Cash expenses will rise 8.5 percent to a record US$222.6 billion, and gross cash sales will jump 16 percent to a record US$276.4 billion, USDA said.

 

The value of all US crop production this year is forecast to rise 14 percent to US$136.2 billion from 2006. Specifically, the average price of soybeans is seen 36 percent higher. The value of production from cattle, hogs, chickens and eggs is expected to increase 18 percent to a record US$140.2 billion, USDA said.

 

Direct government aid to farmers is forecast to fall 14 percent to US$13.6 billion from a revised US$15.8 billion last year and down from a record US$24.4 billion in 2005.

 

Payments to farmers averaged US$16.9 billion over the last 10 years, USDA said. The government in February had forecast aid of US$12.4 billion for this year. Net cash farm income, which does not include costs such as depreciation and changes in the value of inventories, will be a record US$85.9 billion this year, up from US$67.9 billion last year, according to USDA's forecasts.

 

Census releases latest US biodiesel production data  

 

US biodiesel production in June was 132,518 tonnes, down from 139,598 tonnes in May whereas in June 2006, some 76,706 tonnes were produced, US Census' data showed. This brought cumulative biodiesel production in the first six months of 2007 to 650,232 tonnes, up from 293,321 tonnes for the corresponding 2006 period.

 

However, the 2007 figures include all fats and oils consumed for biodiesel production while the data for last year are based on once-refined soyoil only. Hence, these figures are not comparable. Biodiesel production from virgin soyoil in 2006 was 71,777 tonnes.

 

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	6,960	12,229	15,660	514	672	2,816	1,638	2,252	2,578
Production	83,368	86,770	71,448	40,500	47,200	47,000	57,000	59,000	61,000
Imports	92	109	109	1,013	1,800	1,800	40	100	50
Crush	47,324	48,852	48,988	32,740	35,600	38,750	28,756	29,300	29,300
Exports	25,579	29,937	27,760	7,130	9,700	10,300	24,770	26,500	29,200
Other	5,288	4,659	4,477	1,485	1,556	1,600	2,900	2,974	3,000
Usage	78,191	83,448	81,225	41,355	46,856	50,650	56,426	58,774	61,500
Carryout	12,229	15,660	5,992	672	2,816	966	2,252	2,578	2,128
Soymeal	thousand tonnes
Carryin	156	285	272	671	1,132	1,132	640	694	744
Production	37,416	38,575	38,859	25,737	28,035	30,519	22,300	23,175	22,735
Domestic use	30,114	30,981	31,525	584	600	640	10,173	10,745	11,100
Net Exports	7,173	7,607	7,334	24,692	27,435	29,564	12,073	12,380	11,770
Usage	37,287	38,588	38,859	25,276	28,035	30,204	22,246	23,125	22,870
Carryout	285	272	272	1,132	1,132	1,447	694	744	609
Soybean oil	thousand tonnes
Carryin	771	1,365	1,388	95	92	121	248	250	331
Production	9,248	9,217	9,267	6,085	6,622	7,220	5,521	5,740	5,625
Domestic use	8,147	8,460	9,027	424	656	775	3,222	3,421	3,510
Net exports	507	734	619	5,664	5,937	6,470	2,297	2,238	2,187
Usage	8,654	9,194	9,646	6,088	6,593	7,245	5,519	5,659	5,697
Carryout	1,365	1,388	1,009	92	121	96	250	331	259

 

USDA Export Sales (tmt) - Week of 23 August 2007

Country	Commodity	New	Accum.		Country	Commodity	New	Accum.
		Sales	Exports				Sales	Exports
Canada	Soybeans	2.1	129.6		Slovakia	Soymeal	0.2	0
Japan	Soybeans	21	3114.5		Trinidad	Soymeal	3.3	20.6
Malaysia	Soybeans	24	310		Algeria	Soyoil	14	11.5
Philippines	Soybeans	0.4	71.9		Canada	Soyoil	0.7	32.3
Taiwan	Soybeans	27.2	1892.2		Dom. Rep.	Soyoil	2.9	11.3
Colombia	Soymeal	1.4	276		Nicaragua	Soyoil	1.2	14.1
Dom. Rep.	Soymeal	2.4	371.7		Export Sales Totals (tmt)
Hong Kong	Soymeal	0.4	16.3		Commodity	Outstanding	Accum.	New
Indonesia	Soymeal	0.9	66.5			Sales	Exports	Sales
Jamaica	Soymeal	2.1	95.4		Soybeans	1,245.80	29,870.70	-82.5
Japan	Soymeal	1.1	316.9		Soymeal	862.4	6,032.90	-202.4
OPAC Is.	Soymeal	0.4	4.7		Soyoil	96.8	528.7	-4.9