Wednesday October 3 Ag News

FCStone Predicts 10.824 BB 2012 US Corn Crop; Pegs Ave. Corn Yield at 123.9 BPA

U.S. farmers will harvest 10.824 billion bushels of corn and 2.849 billion bushels of soybeans in 2012, according to projections made by commodity brokerage firm INTL FCStone.  INTL FCStone released its Oct. 1 U.S. production estimates late Tuesday, increasing its outlook for the U.S. corn and soy production from its previous estimate. The projections were made using an average corn yield of 123.9 bushels per acre and an average soybean yield of 38.2 bushels an acre.  The production and yield estimates were up from September estimates of corn production at 10.607 billion, using a yield of 121.4 bushels an acre, and soy output at 2.739 billion, using a yield of 36.7 bushels an acre.

Industry analysts remain concerned about crop potential, but crop declines are less threatening after government forecasters increased the amount of soybean supplies carried over into the 2012-11 marketing year on Friday.  Traders are waiting for the U.S. Department of Agriculture to update its output forecasts Oct. 11 to see whether the government will confirm higher yield and production prospects.

In September, the USDA put the U.S. corn crop at 10.727 billion bushels, using a 122.8 bushel an acre yield, and soybean output at 2.634 billion, using a 35.3 bushel an acre yield.  Last year, corn output measured 12.358 billion bushels and soybean production came in at 3.056 billion.   USDA is scheduled to release updated figures Oct. 11 at 8:30 a.m. EDT.



Phadke Is Oct. 10 ARD 'Big Idea Seminars' Speaker

Roopali Phadke, associate professor, environmental studies, Macalester College, St. Paul, Minn., is the second of five speakers in the Agricultural Research Division's new "Big Idea Seminars."  Phadke will speak at 4 p.m. Oct. 10 at the Nebraska East Union on UNL's East Campus on "Visual Impacts of Windpower on Communities." A reception will precede the event at 3:30 p.m.  Phadke will discuss her work developing landscape symposia on wind energy development in four states, including Wyoming and Minnesota.  With her strong background in public and environmental policy she will suggest how Nebraskans might think about impacts on the visual and open quality of their landscape.

The "Big Idea Seminars" series in the Institute of Agriculture and Natural Resources at UNL covers a broad area of research topics and is meant to bring together collaborations between faculty members across all of UNL.  Phadke is one of five speakers in the first seminar series titled "Scenery as a Natural Resource," which was organized by Richard Sutton, professor in agronomy and horticulture at UNL.

This seminar series will help raise awareness of the visual landscape for the academic research community and as a resource affecting the quality of life for all Nebraskans.  Among the collaborators are the College of Architecture, School of Natural Resources and Department of Agronomy and Horticulture.  The next seminar will be Oct. 24. For more information about this and future speakers and seminars, visit the ARD's Big Idea Seminars website at bigideaseminars.unl.edu.



Smith Receives National Manufacturing Award

Congressman Adrian Smith (R-NE) accepted the National Association of Manufacturers Award for Manufacturing Legislative Excellence today at the Nebraska Business and Industrial Products Show in Grand Island.

“I am honored to receive this award,” said Smith.  “Nebraska is an agriculture state and a manufacturing state.  The Third District alone is home to more than 300 manufacturing facilities employing nearly 27,000 people.  In this economy it is essential we remove red tape on our manufacturers, and work to make sure our exports are competitive abroad.”

“Manufacturers today compete in a global marketplace,” said NAM President and CEO Jay Timmons.  “It is critical that Washington creates policies to keep us competitive and maintain our mantle of economic leadership.  Congressman Smith understands this and has consistently supported the pro-manufacturing agenda through his votes in Congress.”

The National Association of Manufacturers is the largest manufacturing association in the United States, representing manufacturers in every industrial sector and in all 50 states.



NOMINATIONS SOUGHT FOR IOWA SOYBEAN ASSOCIATION LEADERSHIP AWARDS

Nominations are now being sought by the Iowa Soybean Association (ISA) for five awards recognizing soybean growers and those who have demonstrated commitment and leadership in agriculture.

“We are pleased to offer ISA's second annual awards,” says ISA President Mark Jackson, a farmer from Rose Hill. “They provide the association an opportunity to recognize farmer leaders in all stages of their careers, as well as partners who have supported Iowa soybean farmers and their customers.”

Awards will be presented in five categories: Legacy of Leadership, Rising Star, Environmental Leader, New Leader and Friend of the Iowa Soybean Association.

The Legacy of Leadership is given to an Iowa soybean farmer who has demonstrated a passionate and relentless commitment to growing the soybean industry in Iowa.

The Rising Star award recognizes the son or daughter of an ISA member who’s actively involved in promoting agriculture through involvement in local, state and national activities and organizations and who is preparing to continue ag studies in college. Eligible nominees are 14-18 years of age (high school students or students who have just graduated from high school).

The Environmental Leader award is presented to an ISA member and soybean farmer who has demonstrated a commitment to installing and maintaining practices that improve environmental sustainability. The farmer who receives this honor will be nominated for the American Soybean Association Conservation Legacy Award.

The New Leader Award will be awarded to a district soybean leader who has been involved in his/her District Advisory Council for two years or less, has shown outstanding involvement and possesses the skills and talents to do great things for the soybean industry and agriculture.

The Friend of the Iowa Soybean Farmer award will be given to an elected leader, media representative or other ISA partner who has supported Iowa Soybean farmers through his/her actions and efforts.

All nominations must be in writing and received no later than Friday, Nov. 16, 2012. No self nominations or nominations made via the telephone will be accepted.

Find the form at www.iasoybeans.com/awards/ or call 800-383-1423 for a print copy.

Nominations can be submitted by mail to Lindsey Haley, Iowa Soybean Association, 1255 SW Prairie Trail Pkwy, Ankeny, Iowa 50023, or by emailing to lhaley@iasoybeans.com.

Award recipients will be selected by a taskforce of the ISA board of directors, and the awards will be presented during the Second Annual Iowa Soybean Association Awards Banquet on Tuesday, Dec. 11, 2012.

To learn more about ISA, visit its website at www.iasoybeans.com.



Crude Supplies Shrank by 500K Barrels

The nation's crude oil supplies declined last week, the government said Wednesday.  Crude supplies dropped by 500,000 barrels, or 0.1 percent, to 364.7 million barrels, which is 8.4 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.  Analysts expected an increase of 1.5 million barrels for the week ended Sept. 28, according to Platts, the energy information arm of McGraw-Hill Cos.

Gasoline supplies grew by 100,000 barrels, or 0.1 percent, to 195.9 million barrels. That's 8.3 percent lower than year-ago levels. Analysts expected gasoline supplies to be unchanged.  Demand for gasoline over the four weeks ended Sept. 28 was 2.5 percent lower than a year earlier, averaging 8.7 million barrels a day.

U.S. refineries ran at 88.2 percent of total capacity on average, up 0.8 percentage point from the prior week. Analysts expected capacity to be unchanged.

Supplies of distillate fuel, which include diesel and heating oil, shrank by 3.7 million barrels to 124.1 million barrels. Analysts expected distillate stocks to fall by 400,000 barrels.

Bullish EIA Ethanol Data
The Energy Information Administration reported ethanol inventories were drawn down 451,000 bbl or 2.3% to 18.808 million bbl, while implied demand rose 2,000 bpd or 0.2% to 821,000 bpd.  Most of the stock draws were in the East Coast and the Midwest. Plant production also continued lower, and fell 24,000 bpd or 3.0% to 785,000 bpd, which is down 9% compared to a year-ago level.



USDA Dairy Products August 2012 Highlights

Total cheese output (excluding cottage cheese) was 884 million pounds, 2.6 percent above August 2011 and 0.5 percent above July 2012.  Italian type cheese production totaled 370 million pounds, 1.9 percent above August 2011 and 0.5 percent above July 2012.  American type cheese production totaled 354 million pounds, 4.5 percent above August 2011 but 0.7 percent below July 2012.  Butter production was 129 million pounds, 3.5 percent below August 2011 and 3.1 percent below July 2012.

Dry milk powders  (comparisons with August 2011)
Nonfat dry milk, human - 106 million pounds, down 7.8 percent.
Skim milk powders - 40.3 million pounds, up 4.3 percent.

Whey products  (comparisons with August 2011)
Dry whey, total - 89.1 million pounds, up 11.8 percent.
Lactose, human and animal - 85.6 million pounds, up 3.0 percent.
Whey protein concentrate, total - 34.9 million pounds, down 0.9 percent.

Frozen products  (comparisons with August 2011)
Ice cream, regular (hard) - 74.4 million gallons, down 5.5 percent.
Ice cream, lowfat (total) - 40.6 million gallons, down 6.0 percent.
Sherbet (hard) - 3.77 million gallons, down 13.7 percent.
Frozen yogurt (total) - 6.54 million gallons, down 1 percent.



National Farmers Organization supports senators’ call for USDA Dairy Federal Order review

From New England and the Great Lakes states, through the midwest to the Pacific, the story from dairy farmers is much the same. Producers are short hay and dairy rations because of the drought. And, when they can find it, the prices they are forced to pay is making many teeter on the edge of insolvency.

“We’re hearing from producers across the country about feed cost price jumps and high transportation costs,” said National Farmers Ag Policy Analyst Gene Paul. And that is creating a great deal of financial pain and hardship.

That’s why the organization is supporting a move by six U.S. Senators requesting Secretary of Agriculture Vilsack investigate whether or not dairy farmers can stay in business at the minimum milk price floor set by the Federal Milk Marketing Orders.

Led by U.S. Senator Bernie Sanders, the investigative request centers on the Federal Milk Marketing Orders, a system administered by USDA that establishes minimum pricing rules for raw fluid-grade milk in 10 U.S. regions, excluding California.

According to USDA figures, the imbalance in production costs with milk prices is  a -$8.65. And National Farmers Paul says that current prices for fluid milk are not reasonable, when higher feed prices are factored in.

“We think it’s time to take a look at the Federal Order minimum price levels USDA sets for the sale of raw fluid-grade milk to processors. Although milk prices and feed costs always fluctuate, it’s the margin between the two that counts.



Corn Will Drive Monsanto 2013 Growth

Monsanto Co. said growth in corn and soybean seed sales volumes in 2012 outpaced the broader expansion in U.S. planted acreage.  mThe company's U.S. market share increased 1% in both corn and soybeans, said Brett Begemann, Monsanto's president and chief commercial officer.  The St. Louis-based company said corn will drive its growth in 2013. Begemann said that it should see a price increase of between 5% and 10% for U.S. corn seed as farmers seek out its premium products.

The company's chief financial officer added that more of the U.S. seed volume will be reflected in the first quarter than in years past. The first quarter, like the fourth quarter, is typically slower for the company due to the seasonal nature of seed sales.

Monsanto is expecting farmers to plant about 96 million corn acres in 2013, in line with this year's plantings, and sees 2013 soybean acres increasing from the 76.1 million acres planted this year.  Begemann added that the company was confident in its ability to meet seed demand for 2013, despite damage from the worst drought in decades. He said the supply situation is similar to last year, when the corn seed crop was damaged by heat and storms.

Monsanto reported its fourth-quarter loss widened versus a year ago.



Schott Retires from National Corn Board Following Years of Distinguished Service

As the 2013 fiscal year begins, the National Corn Growers Association's Corn Board has thanked past Chairman and President Bart Schott for his service and leadership. Schott, who served as president during the 2011 fiscal year, will continue to work on behalf of his fellow corn growers through NCGA's Commodity Classic Joint Venture Committee.

The Off the Cob podcast series sat down with Schott to discuss the Corn Board's accomplishments during his tenure, to reflect on what he learned through his experiences and to ask his advice for farmers considering volunteering for leadership roles.

Looking back to his time as president of the Corn Board, Schott noted that the past three years have brought a wide range of issues to the forefront.

"It seems like every year brought with it new challenges and situations," he explained. "Personally, I look back and think more about the wins, of which there were many."

Focusing on the successes that came to fruition during his presidency, Schott recounts many achievements that benefit corn farmers today.

"For two and a half years, I have been a part of the U.S. Farmers and Ranchers Alliance," he began. "The formation and execution of this idea come to mind first when I think of our accomplishments because I have been able to watch it grow and flourish. Now, USFRA acts as an important vehicle helping farmers and ranchers come to the national debate on food and farming. USFRA really brings all of agriculture together for a dialogue with consumers."

Giving a large amount of credit to current NCGA Chairman Garry Niemeyer and the 2012 Corn Board for the free trade agreements reached during the last fiscal year, Schott spoke proudly of the work done to expand export markets for U.S. corn.

"We worked very hard on the free trade agreements with Colombia, Panama and Korea during my time as president," he went on to explain. "We also worked with the U.S. Grains Council on the DDG dumping issue raised by China with the World Trade Organization, even traveling there to meet with China's Minister of Trade."

Schott noted that the discussions with China not only improved communications between the parties but also provided a clearer picture of the growing demand for this quality feed ingredient.

Discussing topics from the international respect for NCGA that he discovered through his experiences to the importance of giving back to one's industry, Schott deemed his service on the Corn Board as one of the most important accomplishments in his professional life.

"I took my responsibilities seriously, remaining constantly aware that I was only one of our country's 300,000 corn growers," Schott summarized.