Commodity prices are higher
In the middle of October and in the harvest season, the prices of coarse cereals are still rulling higher than normal.
Reports received from various markets indicate fewer arrivals. Bajra (Pearl Millet) arrivals have started in markets of Rajastha, but arruvals are small, indicating higher prices of $135 – 138 per MT. Arrivals of Jowar (Grain Sorghum) have started in Gujarat, Maharashtra, Karnataka and Andhra Pradesh, but smaller amounts. Arrivals of Maize (corn) have started in Andhra Pradesh, but in smaller quanitities. Average prices of yellow corn is $124 - $127 per MT. Spot prices in Nizamabad and Davangere were $124 and $123 per MT.
The farmers in the United States are harvesting the second largest corn crop on record, according to the World Agricultural Supply and Demand Estimates (WASDE report) released by the USDA on Wednesday, October 12. The forecast for U.S. corn production is higher than the previous estimates. The current estimates project the crop size to be 275.79 MMT, higher by 5.56 MMT from Sept 2005 estimates. The report projects that increased supply will be partially absorbed by growth in domestic feed usage (149.23 MMT) and increases in food and industrial uses.
The report also projects the world production of corn at 668.18 MMT in 2005 of which 464.03 MMT will be utilized in feed. The ending stocks will be lower at 111.88 MMT as against last year’s 126.26 MMT.
Chinese corn crop is expected to be 126 MMT of which 100 MMT will be used in feed. China is expected to export about 3 MMT and the ending stocks are expected to be lower by 10.8 MMT at 25.6 MMT from last years 36.4 MMT.
The detailed report can be downloaded from the following link.
http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2005/wasde10.pdf
The price of corn in US is under pressure due to higher production reports. Dec corn closed at $2.034 per bushel ($80.05 per MT). March corn closed at $2.1625 per bushel ($85.11 per MT).
Biotech crops can help environment (from Grainnet.com)
A study released on Oct 11, 2005 states “"Since 1996, adoption of biotech crops has contributed to reducing greenhouse gas emissions from agriculture and decreased pesticide spraying,". The adoption of biotech as a tool has helped decreasing the pesticide spraying and environmental footprint associated with pesticide use by 14%, the report says.
The study, "GM crops: the global socio-economic and environmental impact -- the first nine years 1996-2004," reported that biotech crops contributed to significantly reduced greenhouse gas emissions from agricultural practices.
Among the results:
• Farmers reduced fuel consumption by cutting down on the use of machines to apply chemicals and till the soil, saving a total 475 million gallons of fuel
• By not burning this fuel, and by reducing ploughing that allows carbon to escape from the soil, growers cut overall carbon dioxide emissions that could have an impact on global warming. The reduction was equivalent to eliminating 22 billion pounds of carbon dioxide from the atmosphere, which is equivalent to removing 5 million cars from the road for one year. This is one-fifth of cars registered in the United Kingdom
• reduced the volume of pesticide spraying globally by 6 percent since 1996, equivalent to a decrease of 380 million pounds according to the study. That's equivalent to eliminating 1,514 rail cars of pesticide's active ingredient.
• Farm incomes grew by more than $ 27.5 billion, including an $ 8 billion benefit to growers in Argentina. from a combination of enhanced productivity and efficiency gains. This increase in farm income is equivalent to adding 3 percent to 4 percent to the value of global production of the four main biotech crops.
The largest environmental gains from changes in pesticide spraying have been from biotech soybeans and cotton, which have reduced the associated environmental footprint by 19 percent and 17 percent, respectively.
According to the study, the industrialized nations of the United States and Canada, as well as the developing nations of China, South Africa and Argentina, experienced the greatest reductions in the environmental impact of crop production.
"As the world is increasingly focused on the need to reduce greenhouse gas emissions, it is clear biotech crops are already making an important positive contribution to achieving this goal," the report said.
In addition to environmental gains from biotech crops, substantial net economic benefits at the farm level have been realized.
• Herbicide-tolerant soybeans have generated the greatest gains at more than $17 billion in increased income, while biotech cotton farmers improved their income by $6.5 billion in the past nine years.
• Growers in the United States and Argentina have reaped the greatest rewards, each gaining approximately $10 billion in the past nine years, while farmers in China have experienced a $4 billion income increase from planting biotech cotton.
In addition to the significant measurable benefits, valuable indirect benefits that are more difficult to quantify can be credited to biotech crop adoption.
These include increased management flexibility, facilitating reduced tillage practices, reduced production risk and improved crop quality.
More than 8.25 million farmers in 18 countries around the world have adopted biotech crops, and 90 percent of those are resource-poor producers located in developing countries.
This study was compiled based largely on extensive analysis of existing farm-level economic impact data on biotech crops and additional primary analysis of the environmental impact from base data.
While the study showed advantages in US, Argentina, China, India and other developing countries which have adopted biotech crop’s, new reports suggest France has a about 1000 hac of land under biotech corn. Report is several of the newspapers suggest lack of communication between the authorities, farmers and public at large. Most believe this corn will be exported to Spain as biotech corn is growth their and used, but there is no ban on sale in France. Detailed report can be seen at the following link
http://www.fas.usda.gov/gainfiles/200509/146130886.pdf
Bio-security, hygienic processing and Bird Flu
The danger of bird flu lurks around the corner. Though India has no reports of the virus, vigilance is the key. This is the season of migratory birds and farmers in the areas will have to be extra cautious and step up bio-security measures. Using foot baths, sprays and not allowing unwanted people in the sheds would be one way.
Following the threat in Asia, it is perceived that the key to stopping bird flu will be in the rural belts where birds and humans are in much closer contact and wild birds and domestic birds share the land and water. It is a cheek to beak thing in most rural backyard poultries.
An outbreak in these backyard chickens can ruin not only the small farmers, but also large corporations who have large investments.
India, so far is not affected, but it will be necessary to educate the small farmers on bio-security measures and making sure birds are housed inside. It will be one way to minimize the risk.
Indeed, chicken farming in countries such as Vietnam and Cambodia is a haphazard affair compounded by wide ignorance of the danger bird flu poses and the way migratory birds can keep reseeding the virus in areas previously cleared of the disease. The same situation can happen in the backyards of India.
Of the chicken produced in the country (India), only 5% is processed hygienically. In all major and minor towns, on main streets backyard birds (desi) and broilers live side by side in cages waiting for the customer. The birds are dressed (processed) by hand for the customer.
Even in Thailand, which has a vastly more developed poultry industry than its neighbors have, millions of chickens are farmed in still less-than-secure conditions. Eighty percent of birds [in Thailand] are processed safely, but it is the 20% that is causing more worry to the health officials.
It is only in South East Asia’s countryside, where 66 people have died after contracting the virus since late 2003, including 12 in Thailand, health and agriculture experts are concentrating on techniques for safer chicken farming to head off the disease and prevent a pandemic.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
October 15, 2005
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