Crop News Weekly: Soybean Auction Unsuccessful

August has arrived and weather concerns continue to plague many farmers from coast-to-coast. Not all the problems are the same of course. There's been too much rain in Arkansas and too little in Texas, and both have resulted in heavy crop losses. If the losses continue to mount, it could have an effect on markets for all producers. Surprisingly, and of good fortune, no tropical storms have assailed America's coast this year so far, but growers are reminded we are just now reaching the peak of the tropical season. Weather, like taxes, is inevitable. Let's hope it's not too harsh in your neighborhood.

If you're looking for the latest in news and issues, then get started below. As humorist Will Rogers once said, "...when it comes to business, we're full of it". Happy reading.

China attempted to auction 500,000 tons of soybeans this week. The idea is to sell soybeans out of stored reserves at more than the market price. They were unsuccessful and received no bids on the beans.

The attempted sale indicates that China has all the stored soybeans they need and export demand will decrease. However, China bought 150,000 tons at the end of the week.

China imported nearly 5 million tons of soybeans in July.

The Chinese stock market dropped 5.5 percent this week.

India has stopped soy meal exports and has imported soy oil. - Ray Nabors, Heartland Ag Network

During July 22 Senate Agriculture Committee hearings on cap and trade legislation it became quickly apparent that major questions have yet to be answered by proponents.

Even with Agriculture Secretary Tom Vilsack presenting a fresh study showing the impact of cap and trade on agriculture would be negligible, senators from both parties were reluctant to buy what the Obama administration was selling.

The new analysis claims if cap and trade is adopted, net farm income would take a 1 percent hit in the short-term to just over 7 percent in later decades.

However, that lost income would be made up by cap and trade program returns estimated at $1 billion annually from 2015 to 2020. That figure could swell to $20 billion annually by 2040 to 2050. - David Bennett, Farm Press Editorial Staff

Retail food prices at the supermarket decreased slightly for the third consecutive quarter, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 food items that can be used to prepare a meal was $46.29, down about 2 percent or $1.12 from the first quarter of 2009. Of the 16 items surveyed, 10 decreased, five increased and one remained the same in average price compared to the prior quarter.

Russet potatoes, boneless chicken breasts, eggs, sliced deli ham and whole milk declined the most in price and together account for most of the decrease in average price of the overall marketbasket. Russet potatoes dropped 29 cents to $2.76 for a 5-pound bag; chicken breasts dropped 28 cents to $3.10 per pound; eggs decreased 16 cents to $1.34 per dozen; sliced deli ham and whole milk dropped 14 cents to $4.80 per pound and $3.01 per gallon, respectively.

Other items that decreased in price were: ground chuck, down 12 cents to $2.82 per pound; sirloin tip roast, down 11 cents to $3.88 per pound; flour, down 9 cents to $2.42 for a 5-pound bag; bacon, down 7 cents to $3.19 per pound; and toasted oat cereal, down 5 cents to $2.86 for a 9-oz. box.

A newly discovered gene may be the key to producing fuel ethanol more efficiently from trees, and the University of Florida researchers who identified it have received a prestigious federal grant to investigate further.

The gene, which helps regulate wood growth and the composition of wood fiber, could also lead to improved tree varieties for pulp and paper.

Matias Kirst and Gary Peter, plant geneticists with UF’s Institute of Food and Agricultural Sciences, lead the team. They received one of seven 2009 Plant Feedstock Genomics for Bioenergy grants-a program from the U.S. Department of Agriculture’s Cooperative State Research, Education and Extension Service, and the U.S. Department of Energy’s Office of Science. - Tom Nordlie, University of Florida

Buddy Alders and George King have a lot of energy when it comes to farming and ranching. It is their passion, and now, thanks to new technology, it has the potential to be a substantial source of income.

On June 5, 2009, Alders and King, with the support of an investment group, broke ground in Leona, Texas, to build the first cellulose biogas plant in the United States. This history-in-the-making, green business venture is quickly launching Alders and King into megawatt stardom in the farming industry.

Their plan is to harvest sorghum and process it at the biogas plant. The biomethane produced when the sorghum is processed is piped to generators that burn the gas to produce the electricity — one megawatt to be exact. - Dee Ann Littlefield, USDA-NRCS

The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) has released new satellite images depicting agricultural land cover for the 2008 crop year.

The images, referred to as the Cropland Data Layer (CDL), identify geospatial crop locations in three U.S. regions: the Mid-Atlantic and, for the first time, the Southeast and Southwest.

The CDL information is a useful tool for projects ranging from monitoring crop rotational patterns, land use change and environmental modeling, to water resource and carbon emission management. Agribusinesses and farmers, as well as government, researchers and academic institutions, use the CDLs to study pesticide risk, epidemiology, transportation, fertilizer usage and potential, market data analysis and carbon dioxide fluxes. - Southeast Farm Press

“It’s simple. The sale of $22 million worth of U.S. sorghum to Mexico in three months would not have happened without the investments of Council members,” said Chris Corry, U.S. Grains Council senior director of international operations for Rest of the World, in regards to an ongoing effort by the Council to revive a once robust sorghum market in Mexico.

Starting in April, special funding from the Council’s sorghum members has allowed a series of teams of Mexican importers and buyers to travel to the United States for a firsthand look at U.S. sorghum production and transportation. Among the Mexican team participants was Arturo Basulto, purchasing manager for feed grains and oilseeds at Inter Industrias del Sureste, S.A. in Yucatan, Mexico. Basulto participated in several of the initiatives, each time contracting sales of U.S. sorghum for the Yucatan state. So far, Basulto has assisted in the tendering of 80,000 tons (3.1 million bushels) of U.S. sorghum as a result of this initiative. He indicated plans to purchase 31,000 tons (1.2 million bushels) of U.S. sorghum per month through November. - Southwest Farm Press

Drought losses for Texas crop and livestock producers has reached $3.6 billion and could exceed $4.1 billion by the end of the year, according to the Texas AgriLife Extension Service.

Texas AgriLife Extension Service also reported that livestock losses have topped $974 million since November 2008, an increase of more than $400 million since March 2009.

"Texas ranchers are continuing to deal with scorched pastures, record-setting high temperatures and empty water tanks as the drought continues to take its toll," said Texas and Southwestern Cattle Raisers Association (TSCRA) President Dave Scott, a rancher from Richmond, Texas. "TSCRA is working with federal and state agencies to ensure that assistance is available for producers who want to participate." - Southwest Farm Press

Heavy rain over the last two weeks has accelerated Southern rust, and with about a third of the fields untreated, Arkansas’ corn growers have been urged to scout fields for the disease.

“Based on the number of calls that I’ve received this week, there are a large number of late-planted corn acres that have not been scouted or treated,” said Scott Monfort, Extension plant pathologist for the University of Arkansas Division of Agriculture.

Southern rust is a fungus that can reduce yields. The fungus spores typically cannot survive winter in temperate climates, but can be blown into Arkansas by weather systems.

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