UnitedSoybean

2009 Corn, Soybeans, And The Question Of Profitability

Interesting article in 'From the Farm Gate.'

Your profitability for the 2009 corn and soybean crop may depend on when you purchased crop inputs, last fall or this spring. As we head toward the March 31 USDA Prospective Plantings report, many farmers, particularly with high cash rent, may find few opportunities to avoid a year filled with red ink on the balance sheet.

Whether you booked seed, fuel, anhydrous ammonia and other fertilizer last fall or this spring, the prospects for profitability are not assured. And even with a bounce in the market after the planting intentions report, there may not be enough pricing opportunity to offset the higher costs of production. That is the bottom line in the new crop budgets calculated by Gary Schnitkey, Farm Management Specialist at the University of Illinois.

The Farm Gate

Iowa soybean mission to China hears some quality complaints

Members of an Iowa Soybean Association trade mission to China are hearing some complaints about the quality of U.S. soybeans this past year.

Claudia Chong works for the American Soybean Association’s international marketing office in Shanghai. “People sometimes will receive the U.S. bean with a higher FM than expected,” Chong says, “and also the lower protein than they expected.”

Iowa growers explained to Chinese buyers that 2008 protein levels were lower than normal due to challenging growing conditions.

Brownfield story

Obama keeps cap-and-trade in budget proposal

President Obama remains confident that a cap-and-trade system to cut carbon emissions will be included in a budget plan amid skepticism that it would work. In his prime time news conference this week, Obama said the House and Senate committees are working on moving forward a “strong energy package” that will include the market based system.

Ag Secretary Vilsack told National Farmers Union members earlier this month that he had to fight hard to make sure agriculture is involved in the process, “So we are at the table every week meeting with the EPA, meeting with the Department of Interior, meeting with HUD...”

Brownfield story

Weekly corn sales top 1 million tons

It was a fairly good week for grain and oilseed export sales. According to the USDA, corn, soybean meal and soybean oil sales for the week ending March 19 were larger than expected, while wheat and soybeans were within estimates. Still, demand for grains and oilseeds remains mixed - good for soybeans and products thanks to a tight world supply, pretty much neutral for corn - the supply is large, but demand tends to pick up when futures are under $4 per bushel - and demand for wheat is poor due this year's record world crop.

Brownfield story

Iowa soybean growers on China trade mission

 ISA president John Heisdorffer says their goal is to build new relationships and strengthen existing ones.

“Our mission is to keep those lines open to these Chinese buyers,” Heisdorffer says. “They are our best customer. We have to take care of them if we want to keep those relationships.”

Also participating in the China trade mission is Iowa Secretary of Agriculture Bill Northey.

Brownfield story with link

Legislation may ease ag trade with Cuba

Legislation introduced this week may ease trade restrictions with Cuba. Kansas Congressman Jerry Moran is the prime sponsor of the measure that removes barriers to sales of U.S. agricultural products to the Communist island nation, according to a news release from Congressman Moran's office.

Moran’s bill clarifies that a seller will receive payment when a Cuban purchaser takes possession. The legislation also makes it easier for U.S. exporters to get travel licenses to Cuba for meetings and will allow Cuban officials to obtain visas to attend meetings and make inspections.

The bill also allows direct payments between Cuban and U.S. financial institutions, cutting the time it takes for U.S. exporters to be paid.

Brownfield story

Analysts see more beans, less corn and wheat

The average of all analysts' estimates for corn is 84.548 million acres, compared to 85.982 million last year. Soybeans are seen at a record 79.251 million acres, up more than 3.5 million from a year ago. All wheat acreage is pegged at 58.856 million acres, compared to 2008's 63.147 million. Spring wheat's expected to be around 13.639 million acres, compared to 14.135 million last year and durum is placed at 2.622 million, compared to 2.731 million a year ago.

Brownfield story

LaHood, Farm Bureau want Mexican truck program reinstated

Transportation Secretary Ray LaHood says he wants the Mexican truck program reinstated as soon as possible.

LaHood met with lawmakers to discuss their concerns with the program, which allowed Mexican trucks access to U.S. highways. Ending the program gave Mexico the opportunity to impose punitive tariffs under NAFTA.

Meanwhile, the American Farm Bureau has sent a letter to President Obama urging resolution of the issue. Farm Bureau says it backs a cross-border trucking program with Mexico.

Nebraska soybean leader focused on animal rights movement

The president of the Nebraska Soybean Association—Debbie Borg of Allen—says she is encouraged by how the ag industry is responding to the animal rights movement.

“The groundswell of people that are concerned about this, I think, is growing every day,” Borg says, “and it’s a matter of getting the information to them or being able to point them in the right direction of quality, sound science—and the truth about what HSUS really does.”

Brownfield story with audio

Allendale expects bigger soybean plantings, smaller corn and wheat

Ahead of the USDA's prospective planting update on March 31, Allendale Inc. sees soybean acreage up from 2008, with declines for corn and wheat. Allendale has soybeans at a record 80.439 million acres, up more than 4 million from last year. Corn is pegged at 85.406 million acres, down less than a million from a year ago but still the third largest in the past sixty years. Wheat planting is expected to be the third smallest in thirty years at 57.977 million acres.

Brownfield story