Thursday May 3 Ag News

Keasling is Heuermann Lecturer Tuesday

"The Bold Future of Alternative Energy" is the topic when native Nebraskan Jay Keasling, a pioneer in synthetic biology, concludes the first year of the new Heuermann Lecture series in the Institute of Agriculture and Natural Resources at the University of Nebraska-Lincoln.

Keasling, CEO of the Joint BioEnergy Institute in Emeryville, Calif., will speak at 2:30 p.m. Tuesday, May 8, in the Hardin Hall Auditorium on UNL's East Campus, 33rd and Holdrege.

A 2 p.m. reception in the Hardin Hall lobby precedes the lecture.

Keasling and colleagues have engineered a strain of Escherichia coli bacteria to produce biodiesel fuel from biomass such as switchgrass without the need of enzyme additives. Now they are seeking ways to make their discovery economically competitive in the quantities needed.

Keasling is the recipient of the 2010 Presidential Green Chemistry Challenge Award from the U.S. Environmental Protection Agency, the inaugural Biotech Humanitarian Award from the Biotechnology Industry Organization for his discovery using synthetic biology to fight malaria, and numerous other awards.

Heuermann Lectures focus on providing and sustaining enough food, natural resources and renewable energy for the world's people, and on securing the sustainability of rural communities where the important work of producing food and renewable energy occurs. They are made possible through a gift from B. Keith and Norma Heuermann of Phillips, long-time university supporters with a strong commitment to Nebraska's production agriculture, natural resources, rural areas and people.

More information on the lectures is available at http://heuermannlectures.unl.edu.



What Makes the Federation of State Beef Councils Tick?

The organization and purpose of the Federation of State Beef Councils will be examined by a panel during a special edition of NCBA’s Cattlemen to Cattlemen, airing May 15, at 8:30 p.m. EST.          

Panelists for the program, which is carried by RFD-TV, include Craig Uden, Federation chair and Nebraska cattle feeder; Ann Wittmann, executive director of the Wyoming Beef Council (WBC); Dianne Kirkbride, a WBC director representing the range cattle sector; and Todd Johnson, vice president of Federation Services for NCBA. Program host, Kevin Ochsner, will moderate the one-hour program.    

“We welcome this opportunity to talk directly to our fellow producers about the Federation and how it works to make the most of their checkoff investment,” Uden explained. “It’s important we clarify how we fit into the checkoff process and answer questions our neighbors may have.”  

The program will be re-broadcast on RFD-TV Wed., May 16 at 10:30 a.m. EST and Sat., May 19 at 9 a.m. EST. All episodes are available on the program’s web site at www.cattlementocattlemen.org.



The Andersons Finalizes Purchase of Iowa Ethanol Plant

The Andersons, Inc., Maumee, Ohio, announced it has completed the purchase of an ethanol facility in Denison, Iowa, now known as The Andersons Denison Ethanol LLC.

The operations consist of an ethanol production facility with an adjacent 2.7 million bushel grain terminal, previously owned by Amaizing Energy Denison LLC and Amaizing Energy Holding Company, LLC, with direct access to two Class 1 railroads in Iowa.

"As our first ethanol plant west of the Mississippi, this purchase provides us with geographic diversity," says Neill McKinstray, President, Ethanol Group. "We are looking forward to expanding our ethanol production, marketing and services in one of the highest corn production regions in the U.S. and offering our grain marketing and risk management services to our growers."

The Andersons Denison Ethanol LLC has been organized to provide investment opportunity for The Andersons as well as outside investors. The Andersons will manage the operations, and provide grain origination, risk management, and DDG and ethanol marketing services.

The ethanol plant in Denison, Iowa, is the fourth ethanol facility in which The Andersons has an investment and serves as manager. The other ethanol facilities are located in Albion, Mich., Clymers, Ind., and Greenville, Ohio.



CME Group Adds Ethanol to Expanded CBOT Grain and Oilseed Trading Hours on CME Globex

CME Group, the world's leading and most diverse derivatives marketplace, today announced it will expand electronic trading hours for its CBOT Denatured Fuel Ethanol futures and options on CME Globex in line with recently announced plans to expand CBOT grain and oilseed trading hours. Pending CFTC certification, CME Group customers will have expanded market access to a variety of CBOT futures and options on CME Globex 22 hours per day.   

Effective May 20, 2012, for trade date May 21, 2012, electronic trading hours for CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and Ethanol futures and options plus all related calendar spread options and inter-commodity spread options will be extended to:
-    Sunday to Monday, 5:00 p.m. to 4:00 p.m. CT
-    Monday to Friday, 6:00 p.m. to 4:00 p.m. CT.

Daily settlements will continue to be based on market activity at or around 1:15 p.m. CT each day. Additionally, open-outcry trading hours will continue to operate from 9:30 a.m. to 1:15 p.m. CT Monday to Friday. 

Editor Note:  The start date for expanded trading hours was announced earlier this week to take effect on May 13 and 14, 2012.  However, CME has decided to push that back one week.




CME Group Receives 90-Day Extension for Margin Changes to August 5, 2012

CME Group today requested and received a 90-day extension for implementing margin changes announced yesterday in order to comply with CFTC Regulation 39.13(g)(8)(ii), as it applies to customers that are exchange members (member-customers) and omnibus accounts.

During the extension period, CME Clearing will work with the CFTC to address member-customer concerns.  Additionally, CME Group will keep member-customers informed during this period and provide adequate notice of any changes to margin requirements.

With the extension, CME Clearing now will be required to enforce this rule as it applies to member-customers and omnibus accounts on August 5, 2012.



ACE responds to API E15 infrastructure concerns

The Senior Vice President for the American Coalition for Ethanol, Ron Lamberty, today responded to recent concerns raised over the sale of E15 blends raised by the American Petroleum Institute (API).

“In an election year, I suppose we shouldn’t be surprised to see Big Oil “go negative” on E15,” said Lamberty. “But it is surprising to see them going after pumps and tanks, because most of that equipment has been tested – for decades - using at least 15% ethanol. Underwriters Laboratories (UL) listing for petroleum equipment requires that they pass dozens of tests using fuel that contains 15% ethanol and their listing for tanks and piping defines “alcohol-gasoline mixtures” as any level of ethanol or methanol up to and including 100%.”

Lamberty, who owns and operates a Sioux Falls convenience store, added “The pumps I have at my station were manufactured by a company whose warranty included E15, and my tanks and lines are compatible with “gasoline ethanol blends. My biggest infrastructure problem with E15 is that the API-member oil company that supplies my station won’t let me sell it.”

“The EPA spent three years testing E15 before it was approved for public sale. The companies that manufacture petroleum storage and dispensing equipment have clearly outlined which equipment is compatible with E15. If people have concerns about ethanol and fuel handling equipment, we would prefer they get their information from the people that built it – not the people who continue to sling mud at ethanol and E15 in a thinly-disguised attempt to maintain their stranglehold on our fuel supply.” Lamberty said.



Vilsack Urges Petroleum Companies to Increase Adoption of American Made Renewable Energy

Agriculture Secretary Vilsack today called on petroleum companies to help increase the percentage of ethanol in America's gas tanks in order to reduce dependence on foreign oil, boost job creation and promote development of renewable energy from farm-produced feedstocks. Recent Environmental Protection Agency (EPA) action approved the use of E15 a fuel blend that is 15 percent ethanol and 85 percent gasoline, up from the current 10 percent blend level.

"The availability of E15 will increase America's energy security and spur additional job creation," Vilsack said. "The Obama Administration has an 'all-of-the-above' to promoting domestic energy security, and increasing the percentage of ethanol to be blended with gasoline will help boost economic growth while lessening the nation's dependence on foreign oil."

EPA's recent decision to allow the blending of up to 15 percent ethanol in gasoline represents one of several steps needed from federal, state and industry to commercialize E15 gasoline blends.

The Renewable Fuel Standard, a long-term renewable fuel mandate established by Congress requires the use of 36 billion gallons of renewable transportation fuel by 2022. Advanced, low-carbon renewable fuels such as cellulosic biofuel must make up 21 billion gallons of this mandate. Achieving this mandate will help speed the transition to cleaner, more secure sources of energy in the transportation sector, helping our nation address the challenges of climate change, dependence on oil, and job creation. Increasing the amount of ethanol that is allowed to be blended in the fuel supply of cars to 15 percent is an important step in the effort to reach this goal.

"When we get to 36 billion gallons, that's going to be mean that we will be importing fewer barrels of oil," said Vilsack. "That means that the wealth that we are currently transferring into those countries that don't necessarily agree with us and are from an unstable part of the world can be redirected into creating rural opportunities and jobs."

To enable widespread use of E15, the Obama Administration has set a goal to help fueling station owners install 10,000 blender pumps over the next 5 years. In addition, both through the Recovery Act and the 2008 Farm Bill, the U.S. Department of Energy (DOE) and U.S. Department of Agriculture have provided grants, loans and loan guarantees to spur American ingenuity on the next generation of biofuels. Before it can be sold, manufacturers must first take additional measures to help ensure retail stations and other gasoline distributors understand and implement labeling rules and other E15-related requirements.

With a focus on helping the country reach 36 billion gallons by 2022, USDA, in collaboration with DOE and EPA, developed the Growing America's Fuels strategy. This plan will help ensure that dependable supplies of feedstock are available for the production of advanced biofuels to meet legislated goals and market demand, as well to enhance rural economic sustainability. Toward that end, USDA is supporting the establishment of five Regional Biomass Research Centers and has published a Biofuels Production Roadmap addressing regional variations in feedstock availability and biorefinery locations. In addition, USDA continues to implement bioenergy programs from the 2008 Farm Bill.

At Secretary Vilsack's direction, USDA is working to develop the national biofuels industry producing energy from non-food sources in every region of the country. Working with private and government partners, USDA is supporting research into innovative energy technologies and processes, helping companies build biorefineries – including the first ever commercial-scale cellulosic ethanol facilities – and supporting farmers, ranchers, and businesses taking risks to pursue new opportunities in biofuels.

Creating new markets for the nation's agricultural products through biobased manufacturing is one of the many steps the Administration has taken over the past three years to strengthen the rural economy. Since August 2011, the White House Rural Council has supported a broad spectrum of rural initiatives including a $350 million commitment in SBA funding to rural small businesses over the next 5 years, launching a series of conferences to connect investors with rural start-ups, and creating capital marketing teams to pitch federal funding opportunities to private investors.



Argentina Soy Potential Slides as Yields Disappoint

Prospects for Argentina's soy crop continue to dim and production is unlikely to top 41 million metric tons, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday.

The forecast is down 2 million tons from the exchange's estimate last week. Just two weeks ago the exchange was predicting 2011-12 soybean production of 44 million tons.

"The yields we're seeing aren't measuring up to expectations," said Buenos Aires exchange crop analyst Esteban Copati.

Argentina leads global soyoil and soymeal exports and ranks third in soybean exports behind Brazil and the U.S. Global soy prices have been shooting up in recent weeks due to the mediocre crops from both Argentina and Brazil.

Early in the season, many analysts predicted Argentina's 2011-12 soybean output topping the 49 million metric tons grown last season but drought in December and January hit the crop and led many farmers to put off soybean planting until late January. As a result, the short growing season for much of the crop and early cold snap trimmed potential output.

With about two-thirds of the harvest complete, farmers are seeing soy yields averaging 2.6 to 2.8 tons per hectare when 2.9 to 3.1 tons had been expected, Copati said.



Global 2011-12 Soybean Output To Fall 9.5% To 240M Tons - FAO

Global soybean output is estimated to decrease by 9.5% to 240 million metric tons in 2011-12, one of the steepest year-on-year declines on record, the United Nations food body said Thursday, as lower plantings and poor yields in the U.S. exacerbates exceptionally dry weather in South America.

The latest estimates for South America's soy crop indicate a year-on-year fall of more than 14%, the Food and Agriculture Organization said, after the region's three main producers--Brazil, Argentina and Paraguay -- saw yields decimated by bad weather ushered in by the La Nina phenomenon.

With confirmation of such major crop failures in South America, the Rome-based body said global production of oilcrops is bound to be insuffcient to satisfy the anticipated growth in demand for oils and meals in 2011-12.

The FAO said this would result in a sizeable drawdown in global inventories and a sharp drop in global stock-to-use ratios, pointing to continued price ?rmness in the oilseed complex. Indeed, the possibility that soybeans will again face strong competition for land from corn in 2012-13 -- notably in the U.S. -- is lending additional support to prices, the FAO said.

However, it cautioned that it is still too early to provide supply and demand projections for oilseeds in 2012-13, although the current season's tight supply and demand situation and historically high international prices should act as an incentive for oilseed plantings.



USDA’s May 10, 2012, World Agricultural Supply and Demand Estimates Report To Incorporate Changes

The May 10 World Agricultural Supply and Demand Estimates (WASDE) report, which will be released at 8:30 a.m., will present USDA’s initial assessment of U.S. and world crop supply and demand prospects and U.S. prices for the 2012/13 marketing year. It will also present the first calendar-year 2013 projections of U.S. livestock, poultry, and dairy products.

Changes to the WASDE soybean and products and milk supply and use tables will include the following:     

-   On page 15 (example on next page), in the U.S. Soybeans and Products Supply and Use (Domestic Measure) table, the separate breakouts for Methyl Ester and Food, Feed, and Other Industrial under the Domestic category are eliminated. Replacing these is a single category labeled Domestic Disappearance. The projection for Methyl Ester is discontinued because reliable data measuring the use of soybean oil for this purpose are no longer available.
-   Also on page 15, under the Soybean Meal section, Domestic is replaced with Domestic Disappearance. This is a label change only.
-   On page 28, in the World Soybean Supply and Use table, Major Importers is adjusted to include Vietnam as part of Southeast Asia.
-   On page 29, in the World Soybean Meal Supply and Use table, China and Eastern Europe are removed from Major Importers. Japan is added to Major Importers. Southeast Asia is listed separately under Major Importers and is modified to include Vietnam.
-   On page 30, in the World Soybean Oil Supply and Use table, Pakistan is removed from Major Importers. North Africa (which includes Algeria, Egypt, Morocco, and Tunisia) is added to Major Importers.
-   On page 33, in the U.S. Milk Supply and Use table, import and export estimates are adjusted to reflect changes in the tariff lines and conversion codes used to compute milk-equivalent aggregations for both milk fats and skim solids.



AGCO Enjoys Higher Quarterly Sales, Profits

AGCO reported net sales of $2.3 billion for the first quarter of 2012, an increase of 26.5% compared to net sales of $1.8 billion for the first quarter of 2011.

Reported and adjusted net income per share were $1.21 for the first quarter of 2012. These results compare to reported and adjusted net income per share of $0.81 for the first quarter of 2011. Excluding unfavorable currency translation impacts of 4.3%, net sales in the first quarter of 2012 increased approximately 30.8% compared to the same period in 2011.

"AGCO's strong performance in the first quarter produced record sales and earnings," stated Martin Richenhagen, Chairman, President and Chief Executive Officer. "We capitalized on improved demand in key Western European markets and continued market strength in North America while executing against our important margin improvement initiatives. Margin expansion in the first quarter was led by the Europe/Africa/Middle East (EAME) and North American regions."

Richenhagen says EAME's first quarter operating margins exceeded 11% and North American operating margins improved over 500 basis points compared to the first quarter of 2011.

For North America, industry unit retail sales of tractors were up modestly compared to the same period in 2011. Industry retail sales of combines were down substantially from robust levels in the prior year. Record farm income in 2011 and the expectation of continued favorable farm economics resulted in the strength in retail sales of high horsepower tractors.



Neogen Acquires Igenity From Merial

Neogen Corporation (Nasdaq: NEOG) announced today that it has acquired the assets of the Igenity animal genomics business from Merial Limited. Igenity will operate as a part of Neogen's GeneSeek subsidiary, which already has a significant place in the worldwide animal genomics business.

Igenity has been in use in the United States and several other countries for nine years, and already has provided cattle producers with the tools to make significant improvements in cattle genetics. In the past, GeneSeek conducted the genetic testing of samples for Igenity, and Igenity then used that information with its extensive bioinformatics system to identify the animal's positive or negative traits. The Igenity business will be moved to GeneSeek's operations in Lincoln, Neb. Terms of the acquisition were not disclosed.

"After working as the laboratory partner for Merial's Igenity program for the past several years, we have been very pleased to aid in the expansion and improvement of the bioinformatics models that allow cattlemen to select the right individuals for their breeding programs and cattle feeders to select the desired feedlot cattle for quality beef in the market place," said James Herbert, Neogen's chief executive officer and chairman. "Although GeneSeek will continue its multifaceted animal genomics business, the Igenity program will allow us to carry very specific and easy-to-use information to the commercial beef producers and processors around the world."

Although the Igenity program has extended beyond beef production to dairy and other traits, the majority of the activity for the past few years has been aimed at improving beef production and profitability on a worldwide basis. Igenity also maintains significant business in Canada, United Kingdom and Brazil. Igenity began the program to fill a void in beef cattle genetic development to help its animal health customers improve the performance of their animals and their profitability. Now that the program has found widespread use, Merial felt its mission had been accomplished and it was an appropriate time to pass the program to a firm specializing in animal genetics.

GeneSeek serves as the laboratory partner for the leading breed registries in both beef cattle and dairy cattle. The company also works closely with the largest swine breeders worldwide, sheep breeders around the world, including Australia and New Zealand, and also is the major player in testing to verify canine parentage.

The Igenity program has commercialized the bioinformatics to detect a number of cattle diseases that have been found to be genetically transmitted. Results from these tests allow cattle producers to make certain that genetic carriers are not used in ongoing breeding programs. One major breed association is approaching total eradication of a disease that is specific to that breed as a result of this testing. There are approximately seven known genetic disorders in beef cattle, which are part of the Igenity program.

The Igenity program allows cattle producers to select bulls at a young age based on their potential as a good sire. The program also allows for the selection of females that will have good mothering ability and at the same time produce calves with quality traits such as tenderness, marbling, rib eye steak size, and other carcass qualities.

Neogen Corporation develops and markets products dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete line of diagnostics, veterinary instruments, veterinary pharmaceuticals, nutritional supplements, disinfectants, and rodenticides.