Exports cause rise in agriculture trade surplus
The Agriculture Department reported Tuesday the U.S. farm trade surplus for 2001 rose to $13.9 billion -- up from $12 billion last year.
Officials said the $1.9 billion increase is almost entirely due to an increase in exports, which increased by $2.1 billion.
Total farm exports for the 2001 fiscal year of $53 billion and total imports of $39 billion compare with $50.9 billion for exports and $38.9 billion for imports during the 2000 fiscal year.
Exports of wheat, corn, rice and tobacco experienced drops from October 2000 to September 2001, while exports of cotton, soybeans and other coarse grains rose during the same time period.
Exports of high-value products increased for the second year in a row, lifting the total U.S. farm export value by $2.1 billion to $35.3 billion.
Export gains were greatest for hides and skins, feeds and fodders, poultry, sugar and tropical products, tree nuts, fruits and dairy products.
The biggest gains in livestock products and poultry were to Mexico, Russia and China, and in feeds, horticulture and tropical products to Mexico, the Middle East and Southeast Asia.
Cotton and linters exports were up $271 million and 154,000 tons. Cotton prices were 11 percent lower compared to 2000 because U.S. and world production increased.
U.S. cotton exports rose to India and South Korea, along with to Mexico.
The agriculture department report indicated imports were up $106 million due to larger purchases of animals and red meats, vegetables and malt beverages.
Imports of nuts and tropical products such as coffee, cocoa, rubber and gums were all down compared to 2000 because of lower prices.
But the strength of the U.S. dollar caused total imports to increase and imports from Canada, Mexico, Australia and New Zealand were significantly higher during 2001.
Agriculture progress key for WTO new round
Trade ministers for Singapore and New Zealand say progress in negotiations on agriculture issues will have to be made before overall talks by the World Trade Organization can move forward.
Earlier this month, the organization agreed to begin a new round of global trade talks to lower tariffs on many industrial and agricultural goods, with talks expected to last through 2005.
Subsidies for the production and export of agricultural goods, especially those maintained by the European Union, are at the core of the agricultural trade issue.
The World Trade Organization's agriculture committee is scheduled to meet Dec. 3-7 in Geneva, and a formal round of talks is expected to start in January.
France failed to respond quickly to mad cow disease
Documents seized earlier this year by an investigating magistrate in Paris show French officials failed to react quickly enough to mad cow disease, which has devastated livestock throughout Europe.
Documents are being used to support arguments made by families of two people who died from a human variant of the disease and Le Figaro newspaper published the findings.
The newspaper reported government officials were aware of the risk of transmitting the disease from cows to humans as early as 1990 but did not adopt serious prevention measures until six years later.
The disease has been a concern for more than a decade but it triggered a panic across Europe during the past year. Scientists believe people can contract a disease by eating beef from infected cows.
Corn growers want trade promotion authority
The National Corn Growers Association said Tuesday it wants Congress to approve a measure granting Trade Promotion Authority to the president.
With such authority, the president would be able to negotiate trade agreements with foreign governments without having to submit them to Congress for approval. Critics say the measure would give too much power to the president.
The measure is pending before the Senate and supporters say requiring congressional approval on each trade agreement becomes too burdensome, resulting in the U.S. losing trade opportunities.
The St. Louis-based corn growers group notes the United States is only party to two of about 130 preferential trade and investments agreements that exist in the world today.
Researchers develop 'redder than red' cranberries
University of Wisconsin researchers have developed a hybrid cranberry that is redder than red.
Growers usually get a premium price for cranberries that have a deep red coloration. The new hybrid, known as HyRed, contains at least twice as much red pigment as Stevens, the variety most Wisconsin growers have wanted in recent years.
Researchers say the new HyRed should give Wisconsin growers a marketing edge they haven't always had in the past. Wisconsin has a shorter growing season than do the cranberry growers in eastern states. So they often have had to harvest their crop before it became fully red. The new HyRed begins turning red in August and increases in color at a greater rate than Stevens. It also is expected to produce high yields in successive years.
Wisconsin is the nation's leading cranberry growing state. This year's anticipated 3 million barrel harvest should be more than 50 percent of the U.S. crop.
(by E.W. Kieckhefer)
Grains up on CBOT
Grains futures were up at the close Tuesday on the Chicago Board of Trade.
Soybean futures were higher due to short covering following Monday's sell off.
Corn futures were up on beliefs the market was oversold and short covering.
Wheat futures were up on short covering, overcoming concerns the Agriculture Department's crop progress report showed increases in the quality of the hard red winter wheat crop.
Oats futures were up due to the influence of other commodity activity.
The prices:
Soybeans: Jan 4.44 up 2 3/4, Mar 4.45 up 1 3/4, May 4.48 up 1 1/4, Jul 4.53 up 1 1/4.
Corn: Dec 2.03 3/4 unch, Mar 2.15 3/4 up 1/4, May 2.23 1/4 unch, Jul 2.29 3/4 unch.
Wheat: Dec 2.79 1/2 up 2 1/2, Mar 2.86 1/4 up 1/2, May 2.88 1/2 up 1, Jul 2.89 3/4 unch.
Oats: Dec 2.12 1/2 up 5 1/4, Mar 1.99 up 2 3/4, May 1.86 up 3/4, Jul 1.64 3/4 off 2 1/4.
