Veneman to tout U.S. ag in Asia
Agriculture Secretary Ann Veneman will leave the United States Tuesday for a one-week trip to Japan and China to discuss expanded cooperation on agriculture-related trade.
Veneman will meet with agricultural ministers from Australia, Canada, Japan and the European Union when she attends the 5th Quint Agricultural Minsterial, being held in Nara, Japan.
She will attend events to promote the export of U.S. beef and other products. Veneman also will lead a discussion on the importance of technologies for genetically modified crops to improve global food and agriculture.
"Our goal is to continue to reduce and phase out all forms of export subsidies, substantially improve market access and reduce trade-distorting domestic support that not only hurts American farmers, but hinders competition around the world," Veneman said.
After the conference, Veneman will be in China to meet with officials to discuss agricultural trade relations between the two countries.
Those will include China's obligations as a member of the World Trade Organization, expanded trade cooperation, and scientific research and exchange.
She also will speak to the American Chamber of Commerce before returning to Washington on July 30.
"Our meetings in China will focus on broadening bilateral cooperation in trade and the importance of China's entrance into the (World Trade Organization)," Veneman said.
"Given China's importance to U.S. food and agricultural exporters, we will continue discussions on trade compliance, the promotion of scientific research and biotechnology," she said.
This week's trip will mark the first time Veneman has been to either country since she became Agriculture secretary last year.
China is the fifth largest export market for U.S. agricultural products at $2.2 billion, while Japan is the leading market for U.S. food and farm products -- purchasing more than $11 billion in agricultural, fish and forestry products last year.
Rice:
The U.S. Rice Producers Association wants United States officials to pressure Mexico to change rules that discourage the sale of rice grown in the United States to the Latin American nation.
The Houston-based association met recently with the Agriculture Department and the U.S. Trade Representative's office to discuss what they perceive as a lack of progress in negotiating on the issue.
The association previously had met with officials in the U.S. embassy in Mexico City, where officials say a delegation from Washington will travel to Mexico later this month to try to settle the issue.
"We are monitoring the situation along with the office of the U.S. Trade Representative and are confident that we will find a solution to the problem as we work with the" association, Agriculture Under-Secretary J.B. Penn said.
Lawsuits:
Officials with agriculture-related interests want Congress to approve laws putting restrictions on the filing of class-action lawsuits.
The lobbying effort consisted of farm-related groups visiting lawmakers in their Capitol Hill offices. It was organized by the U.S. Chamber Institute for Legal Reform and the Food Marketing Institute, which wants a measure that makes it easier to move lawsuits from local to federal courts.
The bill desired by the groups, which is pending before the Senate, also includes a Plaintiff's Bill of Rights that would restrict legal fees paid to attorneys who handle the class-action lawsuits.
Cereol purchase:
Bunge Ltd. officials said Monday they will purchase Cereol SA of France for $830 million.
The Wall Street Journal reported the deal will increase White Plains, N.Y., Bunge's capacity to process soybeans in the U.S. and in Europe. It would make the combined company significantly more competitive with Archer Daniels Midland Co. of Decatur, Ill., which currently is the leader.
Currently, Archer Daniels Midland controls about 26.4 percent of the soybean processing capacity, while the new Bunge effort would control 23.5 percent.
Crop progress:
The National Agricultural Statistics Service reported Monday 51 percent of the corn crop is silking, compared to 24 percent last week, 52 percent at this time last year and 53 percent average for the past five years. Forty-two percent of the crop is in excellent or good condition, with 33 percent fair and 25 percent poor or very poor.
For soybeans, 59 percent of the crop is blooming, compared to 39 percent last week, 59 percent last year and 60 percent the past five years. Of that, 16 percent is setting pods, compared to 6 percent last week, 19 percent last year and 18 percent the past five years. Forty-three percent is excellent or good, with 35 percent fair and 22 percent poor or very poor.
For cotton, 91 percent of the crop is squaring, compared to 85 percent last week, 91 percent last year and 91 percent the past five years. Of that, 59 percent is setting bolls, compared to 41 percent last week, 64 percent last year and 57 percent the past five years. Fifty-four percent is excellent or good, with 32 percent fair and 14 percent poor or very poor.
For spring wheat, 92 percent of the crop is headed, compared to 80 percent last week, 94 percent last year and 91 percent the past five years. Thirty-eight percent is excellent or good, with 34 percent fair and 28 percent poor or very poor.
For barley, 91 percent of the crop is headed, compared to 78 percent last week, 94 percent last year and 91 percent the past five years. Fifty percent is excellent or good, with 35 percent fair and 15 percent poor or very poor.
For rice, 35 percent of the crop is headed, compared to 24 percent last week, 39 percent last year and 29 percent the past five years. Sixty-six percent is excellent or good, with 29 percent fair and 5 percent poor or very poor.
For oats, 95 percent of the crop is headed, compared to 91 percent last week, 95 percent last year and 95 percent the past five years. Of that, 21 percent is harvested, compared to 7 percent last week, 9 percent last year and 13 percent the past five years. Forty percent is expected excellent or good, with 30 percent fair and 30 percent poor or very poor.
For winter wheat, 86 percent of the crop is harvested, compared to 81 percent last week, 82 percent last year and 82 percent the past five years.
For peanuts, 80 percent of the crop is pegging, compared to 71 percent last week, 77 percent last year and 75 percent the past five years. Sixty-three percent is excellent or good, with 29 percent fair and 8 percent poor or very poor.
For sorghum, 35 percent of the crop is headed, compared to 30 percent last week, 43 percent last year and 36 percent the past five years. Of that, 18 percent is coloring, compared to 16 percent last week, 19 percent last year and 18 percent the past five years. Twenty-eight percent is excellent or good, with 39 percent fair and 33 percent poor or very poor.
Grains:
Grain futures were higher at the close Monday on the Chicago Board of Trade.
Hot and dry weather conditions that hit the Midwest during the weekend were more intense than anyone had forecast, prompting speculation of serious crop damage and reduced yields, pushing prices higher on all commodities.
Also helping soybean prices was a higher-than-anticipated total for export sales.
The prices:
Soybeans: Aug 5.93 3/4 up 18 1/2, Sep 5.70 1/2 up 17 1/2, Nov 5.55 up 18, Jan 5.54 up 16 3/4.
Corn: Sep 2.46 up 11 1/4, Dec 2.56 up 11 1/4, Mar 2.60 up 9 1/2, May 2.63 1/4 up 9 1/2.
Wheat: Sep 3.39 3/4 up 9, Dec 3.48 3/4 up 8 3/4, Mar 3.53 3/4 up 8 1/2, May 3.44 up 6.
Oats: Sep 1.80 1/2 up 5 1/2, Dec 1.79 1/2 up 5 3/4, Mar 1.79 3/4 up 5 1/4, May 1.80 1/2 up 6.
