AgFax Grain Review: Corn Rootworm Resistance Regulations; Floods Hit Argentina Soybeans

Production

  • Alison Rice reports for AgWeb.com that projected prices for corn and soybeans were announced on Tuesday. “For the majority of the Corn Belt, the approved Projected Price for corn is $4.15 and the volatility factor is .20,” and “For soybeans, the Projected Price is $9.73 with a volatility factor of .16.” These are down significantly from last year and will result in lower crop insurance guarantees.
  • Jacob Bunge of the Wall Street Journal reports on GeneticLiteracyProject.com that the EPA has proposed regulations on the planting of rootworm resistant corn varieties as the pests develop resistance to the toxins meant to control them. EPA is concerned that growing resistance levels will lead growers to use more synthetic chemicals to control the pests that could be damaging to the environment. “The EPA’s proposal would require seed companies to limit some Midwestern farmers’ practice of sowing fields with corn year after year in areas harboring resistant rootworms.”

Markets/Trade

  • AgriMoney.com reports that the Australian commodities bureau, Abares, has forecast a decline in wheat and soybean prices in 2015-16, though the bureau expects a recovery in corn prices. With record high soybean stocks expected Abares has forecast a drop in prices to a 9-year low, while a decline in production, particularly in Europe, along with an increase in demand is seen as raising corn prices as high as $4.90 a bushel.
  • AgriMoney.com reports that Brazil is expected to increase the pace of its soybean marketing this month due to constraints in available storage space. The combination of low crop prices and a weakening Real, Brazilian farmers have been holding onto their crop longer than usual in hopes of capitalizing on the depreciation against the benchmark U.S. dollar. However on farm storage is limited, and as the harvest picks up pace farmers are expected to begin selling more of their crop. USDA’s Brasilia bureau currently estimated Brazil’s soybean production at 93 million tonnes, 1.5 million tonnes below the official USDA forecast.
  • Pablo Rosendo Gonzalez reports for Bloomberg that torrential rains are expected to lower Argentina’s soybean production this season. The Pampas, Argentina’s main soybean growing region which accounts for half of the nation’s production, has been drenched by the highest rainfall in 50 years. In the last month the region has received as much rain as it did in half a year during 2014, with floods damaging areas, delaying harvest, and raising incidents of fungus related diseases. It is impossible to estimate how much damage has been done to the crop, but significant economic losses will occur.
  • Krishna Das and Mayank Bhardwa report on GeneticLiteracyProject.com that Monsanto is expected to submit final trial results for GMO corn to Indian law makers later this year, potentially leading to India’s first commercial GMO food crop. After a 5 year de facto ban, the government has encouraged open field trials of GMO crops in order to improve farms’ productivity.

Ethanol

  • P. Scott Shearer reports on NationalHogFarmer.com that 2 Senators have introduced the “Corn Ethanol Mandate Elimination Act of 2015” to get Congress to repeal the ethanol mandate from the RFS. The Senators claim ethanol is responsible for increased food and gasoline prices, as well as being harmful to car engines and the environment.



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