Wednesday January 9 Ag News

NDA SPONSORS TENTH ANNUAL POSTER CONTEST

Nebraska Department of Agriculture (NDA) Director Greg Ibach today announced the beginning of the 10th annual NDA Agriculture Week in Nebraska Poster Contest.  The contest is open to all Nebraska youth currently in first through sixth grades.  This year’s theme is “Nebraska Agriculture: What Farmers Do.”

“Agriculture is our state’s number one industry, and it is important for our youth to understand the role farmers and ranchers play in our everyday lives” said Ibach.  “This contest gives teachers a prime opportunity to discuss agriculture and help students better understand where their food comes from.”

The entry deadline for the contest is March 1, 2013.  The winners will be announced during National Ag Week (March 17-23).  The contest is broken down into three age divisions:
·         First and second grade students
·         Third and fourth grade students
·         Fifth and sixth grade students

Winning entries will be featured on the NDA web site and potentially in promotional materials and other publications.  Contest rules and official entry forms are available online at www.agr.ne.gov/kids.  Contest questions can be directed to Christin Kamm at (402) 471-6856 or by e-mail at christin.kamm@nebraska.gov.




NCBA Applauds USDA on Final Animal Disease Traceability Rule
  
With the publication of the final Animal Disease Traceability (ADT) rule in the Federal Register today, the National Cattlemen’s Beef Association (NCBA) compliments the U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) on creating a final rule that includes many of the comments submitted by NCBA on behalf of cattle producers across the country.

“We are encouraged that many of the priorities of cattlemen and women have been included in this final rule,” said NCBA Chief Veterinarian Dr. Kathy Simmons. “USDA APHIS listened to the voices of livestock producers when drafting this rule and the final product is one that will help reduce the number of animals involved in an investigation, reduce the time needed to respond and decrease the cost to producers.”

The final ADT rule establishes general regulations for improving the traceability of U.S. livestock moving interstate. The final rule follows a process in which NCBA and other livestock and agriculture stakeholders participated in a comment phase. Now that it has been published, the rule becomes effective Mar. 11, 2013.

Under the rule, unless specifically exempted, livestock moved interstate must be officially identified and accompanied by an interstate certificate of veterinary inspection or other documentation, such as owner-shipper statements or brand certificates. The final rule accepts the use of brands, tattoos and brand registration as official identification when accepted by the shipping and receiving states or tribes. Backtags will be accepted as an alternative to official eartags for cattle and bison moved directly to slaughter.

Most important to cattle producers, according to Simmons, is the announcement by USDA APHIS that a separate rulemaking process will take place for beef cattle under 18 months of age. Currently, the final rule allows beef cattle under 18 months of age, unless they are moved interstate for shows, exhibitions, rodeos or recreational events, to be exempted from the official identification requirement.

“Cattlemen and women are dedicated to raising healthy cattle, and the implementation of the ADT rule further reinforces the commitment by the livestock industry and government to ensuring that the United States continues to supply our country and the world with safe, high quality beef,” said Simmons. “NCBA encourages USDA APHIS to continue working with industry leaders on this and all animal health issues.”



USDA to Begin Noon-time Crop Reports on January 11

The U.S. Department of Agriculture today reminds data users that the National Agricultural Statistics Service (NASS) and World Agricultural Outlook Board (WAOB) will begin issuing several major USDA statistical reports at 12:00 p.m. EDT beginning on Friday, January 11, 2013. USDA previously released these crop reports at 8:30 a.m. EDT. USDA statistical reports with the noon release time are: World Agricultural Supply and Demand Estimates, Acreage, Crop Production, Grain Stocks, Prospective Plantings, and Small Grains Summary. The time for livestock reports currently released at 3:00 p.m. will not change.



Weekly Ethanol Production for 1/04/2013

According to EIA data, ethanol production averaged 826,000 barrels per day (b/d) — or 34.69 million gallons daily. That is up 19,000 b/d from the week before. The four week average for ethanol production stood at 822,000 b/d for an annualized rate of 12.60 billion gallons.

Stocks of ethanol stood at 19.9 million barrels. That is a decrease from last week and the lowest in five weeks.

Imports of ethanol showed 52,000 b/d, down from last week.

Gasoline demand for the week averaged 336.4 million gallons daily, the lowest rate in a year (since the week ended 1/13/2012.)

Expressed as a percentage of daily gasoline demand, daily ethanol production was 10.31%, the highest since mid-June 2012. Notably, refiner/blender input of ethanol fell to its lowest point — 714,000 b/d — since EIA began tracking weekly data in June 2010.

On the co-products side, ethanol producers were using 12.524 million bushels of corn to produce ethanol and 92,184 metric tons of livestock feed, 82,183 metric tons of which were distillers grains. The rest is comprised of corn gluten feed and corn gluten meal. Additionally, ethanol producers were providing 4.3 million pounds of corn oil daily.



U.S. Oil Production Expected to Rise 25 Percent

U.S. crude oil production is expected to rise by the largest amount on record in 2013, the Energy Information Administration said on Tuesday, and is set to soar by almost a quarter over the next two years. The EIA, the independent statistical arm of the Department of Energy, said U.S. crude oil production would grow by 900,000 barrels per day (bpd) in 2013 to 7.3 million bpd. The agency's forecast in the monthly Short-Term Energy Outlook is 300,000 bpd higher than its estimate in December.

While the rate of increase is seen slowing slightly in 2014 to 600,000 bpd, the total jump in U.S. oil production to 7.9 million bpd would be up 23 percent from the 6.4 million bpd pumped domestically in 2012.

The rapid increase underscores how improvements in horizontal drilling and hydraulic fracturing technology--commonly referred to as 'fracking'--have transformed the United States energy market in the last five years, allowing producers to tap shale oil from tight rock formations.

The latest forecast from the EIA is the first to include 2014.

If the agency's projections prove accurate, U.S. crude oil production will have risen by a massive 40 percent between 2011 and 2014. It will be almost 50 percent higher than at the beginning of the decade, bolstering the argument of those who say North America could be energy independent by the end of the decade.

Meanwhile, global oil demand is forecast to rise by 900,000 bpd in 2013 to 90.1 million bpd led by fast-developing countries like China and India and is seen rising by a further 1.4 million bpd in 2014.



Breakfast Blitz Contest Launches

Fuel Up to Play 60 and America’s milk processors have partnered on a Breakfast Blitz contest to make $250,000 in grants available to schools across the country to help give kids greater access to a healthy breakfast.  Participation in the contest, which runs now through Feb. 17, 2013, involves entering milk UPC codes on MilkMustache.com.  For each UPC code entered, a person can vote for a local school to win one of 250 $1,000 Fuel Up to Play 60 grants, as well as earn a chance to win prizes, including a trip to Super Bowl XLVIII in 2014.

The Fuel Up to Play 60 program, launched by the National Dairy Council and the National Football League and in collaboration with the USDA, is available in schools nationwide and encourages kids to eat healthy and be active for 60 minutes a day.  Given the documented connection between eating breakfast and improved performance in school, and the fact that children who skip a morning meal rarely make up for missed nutrients later in the day, the strategy of eating a nutrient-rich breakfast is key to the Fuel Up to Play 60 playbook.  Grants awarded through the Breakfast Blitz will be used to support school breakfast programs.

The 2010 Dietary Guidelines identifies milk as the number one source of three of the four nutrients as lacking in the American diet – calcium, potassium and vitamin D.  “When you consider its nutrient contributions, it is easy to see how milk – white or flavored - at breakfast can really help kids tackle their days,” says Midwest Dairy Council registered dietitian, Stephanie Cundith.  “Through the Breakfast Blitz, families can fuel active, successful days for everyone in the house, as well as help make this possible for more students in schools.”

Other contest prizes include free milk for a year or NFL merchandise.  For full contest details, and to learn more about Fuel Up to Play 60 and dairy nutrition, visit DairyMakesSense.com or MilkMustache.com.



More Brazil Corn Exports Expected

Brazilian crop agency Conab made only small changes Wednesday to its forecasted production of key grains such as soybeans and corn, though it further raised its outlook for corn exports from last year's crop.

Conab said Brazil's outgoing shipments of corn during the 2011-12 marketing year, which ends Feb. 28, should reach a record 21.5 million metric tons, against last month's forecast of 20.5 million tons. Farmers have been exporting corn at an unprecedented clip in recent months following last year's record crop, as high prices lure them to the international market.

For the upcoming 2012-13 soybean and corn crops, which farmers will harvest in the coming weeks and months, Conab made few changes to its forecast.

The agency increased its estimate for soybean production to 82.68 million tons from 82.63 million tons a month ago. Conab now sees corn output at 72.19 million tons, up from 71.94 million tons forecasted in December.



Commodity Classic Early Registration Discount Ends January 20

Commodity Classic is less than two months away, and growers are encouraged to take advantage of the lowest rate by registering before the early discount deadline of midnight, Jan. 20. Registering early will save attendees up to $50. Hotels are currently available, but are booking up fast. Free shuttle service is available to and from all Commodity Classic housing hotels. To take advantage of the early registration discount, register now and reserve rooms at www.CommodityClassic.com.

Soybean, corn, wheat and sorghum growers attending Commodity Classic Feb. 28 - March 2 in Kissimmee, Fla., will benefit from a wide variety of educational sessions, networking opportunities and a trade show with more than 1,000 booths displaying the newest technology, equipment, ideas and innovations in agriculture.

“If you want to know what’s next in agriculture, this is the place to be,” said Commodity Classic co-chair Bob Worth. “The sky’s the limit in 2013 for growers who attend Commodity Classic with the solid foundation they’ll build after learning about the issues and advancements affecting their operation this year.”

Commodity Classic’s educational sessions will help producers be better at what they do, including how policy and regulations affect their bottom line and how new technology and innovation can impact profitability and production.

Commodity Classic is the nation’s largest farmer-led, farmer-focused convention and trade show, presented annually by the National Corn Growers Association, American Soybean Association, National Association of Wheat Growers and National Sorghum Producers. The event offers a wide range of learning and networking opportunities for growers in the areas of production, policy, marketing, management and stewardship—as well as showcasing the latest in equipment and technology. For more information, visit www.CommodityClassic.com.



Cargill reports second-quarter fiscal 2013 earnings

Cargill today reported net earnings of $409 million in the fiscal 2013 second quarter ended Nov. 30, compared with $100 million in the same period a year ago. In the first six months, earnings totaled $1.38 billion compared with $336 million in the prior year. Second-quarter revenues rose 6 percent to $35.2 billion, which brought first-half revenues to $69 billion.

“Cargill posted a solid second quarter, with earnings balanced and diversified across the breadth of the company,” said Greg Page, Cargill chairman and chief executive officer. “The steps we’ve taken over the past months to focus attention on what our customers value most, change how we work, instill more cost discipline and invest in growth are paying off in the current year. Most importantly, these changes are key to delivering sustainable growth year in and year out.”

Earnings rose in four of the company’s five business segments in the second quarter, and were up in all five through the first six months. The origination and processing segment was the largest contributor to Cargill’s second-quarter results. Strong global trading and risk management results in more fundamentally driven markets and an improved margin environment in oilseed processing in several regions boosted earnings well above the year-ago level.

The agriculture services segment also recorded increased earnings, due in part to improved operating results in animal nutrition. Although the business faced rising feed ingredient costs, performance was enhanced by the integration of Provimi, which has brought more nutritional expertise, technology and products to the portfolio since the company was acquired by Cargill late in calendar 2011. The North American farm services businesses benefited from large grain shipments in Canada, but the impact of drought-reduced crops in the Midwest held U.S. results below the year-ago level.

Earnings in the food ingredients and applications segment were down slightly from the year-ago quarter. The segment is made up of two groups of businesses: food ingredients and animal protein. Combined earnings in food ingredients were down moderately from last year’s strong performance. The slippage was mostly related to excess capacity in the North American ethanol market and the return of profits in some product lines to more normalized levels. The animal protein businesses posted a combined profit compared with a loss last year when processing margins in the U.S. beef industry were sharply negative. Most of the meat businesses benefited from improved volumes or margins in the current period, even though results were tempered by higher raw material or livestock feeding costs.

The risk management and financial segment turned around last year’s second-quarter loss, the latter a period when financial markets were stressed by debt turmoil in the U.S. and Europe. The segment’s asset management activities were well positioned to benefit from stronger financial markets and improved investor sentiment in the current period. The segment’s energy businesses were essentially flat with last year on a combined basis.

Earnings rose in Cargill’s industrial segment, although deicing salt production volume lagged typical levels due to the inventory carryover from last year’s mild North American winter.

Cargill continues to invest to better serve customers around the world. Following two fiscal years in which capital spending was tilted toward acquisitions, the company’s current capital investments are weighted toward new, expanded and modernized facilities that support the growth objectives of customers and the company. “We have a record $2.4 billion of large projects under construction in 13 countries,” said Page. “As these facilities come on line, they strengthen Cargill’s supply chain, risk management and innovation capabilities. We want our customers and stakeholders to think of Cargill first when they are looking for a solution or an opportunity. These investments help us better serve their needs and become the partner of choice.”



Monsanto Report Higher Quarterly Profits, Sales

Monsanto Co.'s fiscal first-quarter profit nearly tripled on sales of corn seed to South America and climbing herbicide prices. The world's largest seed company has traditionally reported a quiet first quarter, as most U.S. customers are inactive, but Monsanto's growth in South America is now making it a year-round business. Monsanto said corn seed sales jumped 27% in the quarter versus a year ago, due largely to South America.

The company also said that U.S. sales were ahead of last year's pace, and it boosted its 2013 earnings guidance. The St. Louis-based company now sees earnings of $4.30 to $4.40 a share, up from its previous view of $4.18 to $4.32.

The company doesn't typically alter guidance so early in the year, but it has "better line of sight than in a typical year," Chief Executive Hugh Grant told investors in a conference call. He said the quarterly results came in stronger than initially expected.

"It's strength that comes from across our business portfolio, so the key areas that we're looking to drive our performance are firing on all cylinders," he said.

Shares rose to their highest level in more than four years after the company easily beat market expectations for both earnings and revenue. They were up 2.8% to $98.60 in midday trading Tuesday on the New York Stock Exchange. As of Monday's close, the stock was up 4.7% over the past three months. Now Reporting

While farmers across the U.S. corn belt suffered from poor yields last year because of drought, that has driven up prices for corn and soybeans, and along with it seed demand, in the U.S. and South America.

Monsanto had said it expected to realize a 5% to 10% increase in corn prices for 2013 as farmers seek premium, better-performing seeds within the company's portfolio.

In South America, which is rapidly adopting genetically modified seeds, the company benefited both from increased volumes and from higher selling prices, as farmers "trade up" to new seed products that have more than one genetically modified trait.