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Livestock & poultry cash market comparisons, 1/29/20

Livestock and meat ($)

Jan. 29

Jan. 22

6 mos. ago

Year ago

Steers, Choice, carcass, 550-700 lb., cwt., Omaha

213.52

214.96

213.54

217.40

Steers, Choice, 1,050-1,200 lb., cwt. southern Plains

NA

121.50A

114.00A

123.00

Feeder steers, 600-700 lb., cwt., Oklahoma City

 143.00A

 149.375A

 149.50A

150.50A

Lean hogs, carcass, Iowa-Minn. 167-187 lb.(1)

62.33

62.08

80.48

56.89

Feeder pigs, 40 lb. national direct delivered(2)

65.45

65.91

50.11

71.45

SEW pigs, 10 lb., national direct delivered (per head)

59.15

60.73

35.36

60.96

Choice beef, cutout, cwt.

213.35

215.32

213.54

215.39

Pork loin, 185 lb. 51-52% lean, cutout, cwt.(3)

68.84

70.65

74.49

67.48

Hog corn ratio

14.59

13.88

20.00

14.15

Steer corn ratio

32.80

33.33

26.06

34.17

Poultry and eggs (cents)

 

 

 

 

Chickens, Grade A, fresh lb. Chicago

83.29a

85.83a

79.50a

NA

Hen turkeys, Grade A, frozen, lb., Chicago

95.50Aa

95.50Aa

89.50Aa

NA

Young tom turkeys, Grade A. frozen lb. Chicago

95.50Aa

95.50Aa

89.50Aa

NA

Eggs, Grade A, large, doz., Chicago

77.50

61.50

42.50

115.50

NA: not available.          A: average.       a: offered         b: sales

(1) Replaces live hogs; live hogs are 0.755 of quote.
(2) Replaces Sioux Falls, 50-60 lb. (2/26/07)
(3) National FOB plant, replaces national daily carlot.
Livestock, meat, poultry and egg prices from USDA.

Grain & ingredient cash market comparisons, 1/29/20

Major feed ingredients

Jan. 29

Jan. 22

6 mos. ago

Year ago

Corn No. 2, Chicago, bu., processor bid*

3.97A

4.02A

4.275A

3.73A

Corn No. 2, Chicago, bu., terminal bid*

3.75A

3.81A

3.875A

3.535A

Milo, Kansas City, cwt.

NA

NA

NA

NA

Soybeans, Chicago, bu., processor bid

8.845A

9.04A

8.52A

8.75A

Soybean meal, 48% Decatur bid

297.10A

298.90A

303.00A

310.10A

Cottonseed meal, Memphis, ton

250.00

225.00

220.00

235.00

Canola meal, Minneapolis, ton

211.10

234.10

227.70

241.80

Linseed meal, solvent, Minneapolis

NA

310.00

260.00

215.00

Meat and bone meal, Chicago, ton

250.00

250.00

228.00

270.00

Fish meal, menhaden, Atlanta, ton

1,400.00

1,400.00

NA

NA

Corn gluten meal, 60%, Chicago, ton

525.00

525.00

395.00

498.00

Distillers dried grains, Chicago, ton

153.00

153.00

135.00

140.00

17% dehy. alfalfa pellets, Kansas City, ton

328.00

328.00

330.50

230.00

Millfeeds, midds, Minneapolis, ton

NA

NA

NA

NA

Molasses, cane, Houston, ton

151.25

147.50

137.50

127.50

Dried citrus pulp, Atlanta, ton

NA

NA

NA

NA

Whey, whole, Chicago, cwt.

35.38

34.50

35.00

47.00

Rolled oats, Minneapolis, ton

545.00

545.00

550.00

562.00

Barley, Los Angeles, cwt.

NA

NA

10.77

10.40

Feeding wheat, Kansas City, bu.

NA

5.30

4.60

4.85

*Chicago corn and soybean prices for latest and previous week are the middle of the range of to-arrive bids; soybean meal prices are midrange of processor quotes. Chicago corn and soybean prices provided by USDA Market News. Six months, year ago comparisons are all spot cash. Based on prices reported by Feedstuffs' market reporters.

A: average

NA: not available

Ingredient market prices, 1/29/20

market

The following prices, which include delivery, were obtained Jan. 29 from feed and grain vendors in the U.S. and Canada. The prices represent current trading values but are not guaranteed. Second column shows the amount of change since the previous week. Prices of certain products can vary depending on the processing method used. U.S. short tons, 2,000 lb. N-Nominal. N/A-Price not available. Click to download.

OILSEED PRODUCTS

 

 

(dollars per ton)

 

 

Soybean meal

 

 

(high-protein)

 

 

Atlanta

330.00

10.00

Boston

N/A

-

Buffalo

N/A

-

Chicago

298.00

-1.00

Delmarva

N/A

-

Fayetteville NC

335.00

15.00

Ft. Worth

328.60

-5.90

Kansas City

286.10

1.00

Los Angeles

332.00

1.00

Memphis

N/A

-

Minneapolis

268.20

-

Okeechobee

346.00

-4.00

Portland

334.30

0.75

San Francisco

332.00

1.00

Twin Falls

N/A

-

Soybean meal

 

 

(low-protein)

 

 

Atlanta

N/A

-

Boston

N/A

-

Buffalo

N/A

-

Chicago

286.00

-1.00

Delmarva

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Los Angeles

314.00

2.00

Memphis

N/A

-

Minneapolis

N/A

-

Okeechobee

N/A

-

Portland

N/A

-

San Francisco

314.00

2.00

Soybean hulls

 

 

Atlanta

215.00

5.00

Buffalo*

N/A

-

Chicago

165.00

-15.00

Fayetteville, NC

200.00

-10.00

Ft. Worth*

70.00

-10.00

Los Angeles

196.00

-3.00

Minneapolis

130.00

-

Okeechobee

220.00

-5.00

San Francisco

196.00

-3.00

Twin Falls

N/A

-

* unpelleted

 

 

Whole cottonseed

 

 

Atlanta

190.00

-

Buffalo

N/A

-

Chicago

235.00

5.00

Delmarva

N/A

-

Fayetteville NC

180.00

-

Ft. Worth

N/A

-

Los Angeles

335.00

-1.00

Lubbock

N/A

-

Memphis

215.00

-

Okeechobee

198.00

-

Portland

375.00

-5.00

San Francisco

335.00

-1.00

Twin Falls

N/A

-

Cottonseed meal

 

 

Atlanta

N/A

-

Chicago

275.00

-

Delmarva

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

300.00

22.50

Los Angeles

N/A

-

Lubbock

N/A

-

Memphis

250.00

25.00

Okeechobee

N/A

-

San Francisco

274.00

2.00

Cottonseed hulls

 

 

Atlanta

245.00

20.00

Chicago

160.00

-

Fayetteville NC

275.00

20.00

Ft. Worth

N/A

-

Okeechobee

255.00

20.00

Los Angeles

N/A

-

Lubbock

N/A

-

San Francisco

N/A

-

Canola meal

 

 

Buffalo

N/A

-

Minneapolis

211.10

-23.00

Los Angeles

274.00

-2.00

Montreal

N/A

-

Portland

N/A

-

San Francisco

274.00

-1.00

Twin Falls

N/A

-

Vancouver

N/A

-

Sunflower seed meal

 

 

Fargo

175.00

5.00

Minneapolis

205.00

-

Linseed  meal

 

 

Atlanta

N/A

-

Chicago

270.00

-

Fargo

245.00

-15.00

Fayetteville NC

N/A

-

Ft. Worth

281.00

-15.00

Kansas City

N/A

-

Minneapolis

N/A

-

Safflower meal

 

 

Los Angeles

N/A

-

San Francisco

193.00

-

ANIMAL BYPRODUCTS

 

 

(dollars per ton)

 

 

Meat and bone meal

 

 

(ruminant)

 

 

Buffalo

N/A

-

Chicago

250.00

-

Delmarva

320.00

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

225.00

-

Los Angeles

210.00

-

Memphis

N/A

-

Minneapolis

N/A

-

Portland

190.00

2.50

San Francisco

210.00

-

Meat and bone meal

 

 

(porcine)

 

 

Fayetteville NC

N/A

-

Los Angeles

248.40

-

Memphis

N/A

-

Minneapolis

N/A

-

Flash-dried blood meal

 

 

(ruminant)

 

 

Fayetteville NC

N/A

-

Los Angeles

950.00

75.00

Memphis

N/A

-

Minneapolis

N/A

-

Flash-dried blood meal

 

 

(porcine)

 

 

Fayetteville NC

N/A

-

Memphis

N/A

-

Minneapolis

N/A

-

Poultry byproduct meal

 

 

(feed grade)

 

 

Atlanta

225.00

-

Fayetteville NC

N/A

-

Ft. Worth

210.00

-

Kansas City

N/A

-

Los Angeles

N/A

-

Memphis

N/A

-

Poultry byproduct meal

 

 

(pet food grade)

 

 

Memphis

N/A

-

Fayetteville NC

N/A

-

Hydrolized feather meal

 

 

Atlanta

270.00

-

Delmarva

275.00

-

Fayetteville NC

N/A

-

Ft. Worth

275.00

-

Kansas City

N/A

-

Los Angeles

N/A

-

Memphis

N/A

-

Minneapolis

N/A

-

Menhaden fish meal

 

 

Atlanta

1400.00

-

Buffalo

N/A

-

Chicago

1425.00

-

Fayetteville NC

N/A

-

Ft. Worth

1395.00

-

Kansas City

N/A

-

Memphis

N/A

-

Minneapolis

N/A

-

Twin Falls

N/A

-

Blended tuna meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

Anchovy  meal

 

 

Los Angeles

N/A

-

San Francisco

N/A

-

ANIMAL FAT, GREASE

 

 

(cents per pound)

 

 

Prime Tallow

 

 

Chicago

31.50

-

Ft. Worth

N/A

-

Los Angeles

27.50

1.25

San Francisco

N/A

-

Yellow grease

 

 

Buffalo

N/A

-

Chicago

21.00

-

Delmarva

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

23.50

-

Kansas City

N/A

-

Los Angeles

26.50

1.25

Memphis

N/A

-

Minneapolis

N/A

-

San Francisco

N/A

-

Choice white grease

 

 

Chicago

25.00

-

Minneapolis

N/A

-

Bleachable fancy tallow

 

 

Buffalo

N/A

-

Chicago

31.00

-

Ft. Worth

31.00

-

Los Angeles

N/A

-

Minneapolis

N/A

-

San Francisco

N/A

-

Vegetable-animal blend

 

 

Ft. Worth

24.00

-

Los Angeles

N/A

-

Minneapolis

N/A

-

San Francisco

N/A

-

Poultry grease

 

 

(feed grade)

 

 

Delmarva

25.50

-1.00

Fayetteville NC

N/A

-

Memphis

N/A

-

Poultry grease

 

 

(pet food grade)

 

 

Memphis

N/A

-

Fayetteville NC

N/A

-

GLUTEN, HOMINY

 

 

(dollars per ton)

 

 

Corn gluten meal

 

 

Buffalo

N/A

-

Chicago

525.00

-

Kansas City

N/A

-

Los Angeles

N/A

-

Corn gluten feed

 

 

Buffalo

N/A

-

Chicago

158.00

3.00

Fayetteville NC

190.00

-

Kansas City

201.00

-

Okeechobee

200.00

-15.00

Twin Falls

N/A

-

Wahpeton

N/A

-

Hominy feed

 

 

Atlanta

190.00

-

Boston

N/A

-

Buffalo

N/A

-

Chicago

118.00

-

Fayetteville NC

190.00

-10.00

Kansas City

N/A

-

Los Angeles

192.00

-

Okeechobee

190.00

-5.00

San Francisco

192.00

-

Twin Falls

N/A

-

BREWERS, DISTILLERS

 

 

(dollars per ton)

 

 

Brewers dried grains

 

 

Chicago

N/A

-

Kansas City

N/A

-

Malt Sprouts

 

 

Chicago

140.00

-

Milwaukee

N/A

-

Winona, Minn

N/A

-

Distillers dried grains

 

 

Atlanta

215.00

-

Boston

N/A

-

Buffalo

N/A

-

Chicago

153.00

-

Fayetteville NC

220.00

-

Kansas City

N/A

-

Los Angeles

208.00

-5.00

Minneapolis

155.00

-

Okeechobee

233.00

3.00

Portland

212.50

1.00

San Francisco

208.00

-5.00

Twin Falls

N/A

-

Brewers yeast

 

 

(dollars per pound, sacked)

 

 

Chicago

0.70

-

Milwaukee

N/A

-

Minneapolis

N/A

-

ALFALFA

 

 

(dollars per ton)

 

 

Dehydrated pellets

 

 

(17% protein)

 

 

Central Neb.

N/A

-

Buffalo

N/A

-

Chicago

290.00

-

Kansas City

328.00

-

Los Angeles

N/A

-

Minneapolis

N/A

-

Toledo

N/A

-

San Francisco

N/A

-

Suncured pellets

 

 

(15% protein)

 

 

Atlanta

N/A

-

Ft. Worth

N/A

-

Kansas City

244.50

-

Los Angeles

N/A

-

Portland

340.00

-

San Francisco

N/A

-

WHEAT MILLFEEDS

 

 

Shorts

 

 

Chicago

115.00

-

Ft. Worth

N/A

-

Los Angeles

181.00

-3.00

Millrun

 

 

Los Angeles

175.00

-

Portland

193.00

-2.00

San Francisco

143.00

-9.00

Twin Falls

N/A

-

Bran

 

 

Buffalo

N/A

-

Chicago

135.00

-

Los Angeles

176.00

-3.00

Minneapolis

N/A

-

Middlings

 

 

Buffalo

100.00

-5.00

Chicago

115.00

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

97.50

-4.00

Los Angeles

179.00

-3.00

Memphis

155.00

-3.00

Minneapolis

N/A

-

Okeechobee

N/A

-

DAIRY BYPRODUCTS

 

 

(dollars per hundredweight)

 

 

Dried skim milk

 

 

Ft. Worth

138.50

11.75

Minneapolis

127.00

-0.50

Dried buttermilk

 

 

Ft. Worth

115.00

0.50

Minneapolis

115.50

-

Whole whey

 

 

Chicago

35.38

0.88

Ft. Worth

35.63

-0.62

Kansas City

N/A

-

Minneapolis

35.38

0.38

Whey protein concentrate

 

 

Ft. Worth

100.88

0.13

Milwaukee

100.88

0.13

Lactose

 

 

Ft. Worth

30.00

-2.00

Minneapolis

30.00

-2.00

OATS, RICE PRODUCTS

 

 

(dollars per ton)

 

 

Rolled oats

 

 

Chicago

425.00

-

Kansas City

N/A

-

Minneapolis

545.00

-

Crimped oats

 

 

Chicago

385.00

-

Kansas City

N/A

-

Minneapolis

443.00

-

Pulverized oats

 

 

Chicago

125.00

-

Minneapolis

143.00

-

Reground oat feed

 

 

Chicago

85.00

-

Kansas City

N/A

-

Minneapolis

77.00

-

Oats

 

 

(dollars per bushel)

 

 

Buffalo

N/A

-

Minneapolis

N/A

-

Portland*

N/A

-

(*per ton)

 

 

Rice bran

 

 

Atlanta

N/A

-

Ft. Worth

180.00

-10.00

Freeport

105.00

-

Kansas City

N/A

-

Memphis

N/A

-

San Francisco

138.00

-8.00

Stuttgart, Ark.

115.00

10.00

Rice millfeeds

 

 

Atlanta

N/A

-

Ft. Worth

99.00

-

Freeport

40.00

-

Kansas City

N/A

-

Memphis

N/A

-

Stuttgart, Ark.

40.00

-

Rice hulls

 

 

Ft. Worth

75.00

-

Kansas City

N/A

-

DRIED PULP

 

 

(dollars per ton)

 

 

Citrus pulp pellets

 

 

Atlanta

N/A

-

Fayetteville NC

N/A

-

Okeechobee

N/A

-

Los Angeles*

N/A

-

*(sold wet)

 

 

Beet pulp pellets

 

 

Atlanta

N/A

-

Boise

N/A

-

Chicago

220.00

-

Fayetteville NC

N/A

-

Kansas City

N/A

-

Minneapolis

N/A

-

Portland

228.00

-

Saginaw

N/A

-

Beet pulp shreds

 

 

Mpls (sacked)

N/A

-

Los Angeles*

N/A

-

San Francisco

N/A

-

Twin Falls

N/A

-

*bulk, wet

 

 

GRAINS

 

 

Barley feed

 

 

Kansas City (bu.)

N/A

-

Los Angeles (cwt)

N/A

-

Portland (ton)

201.50

-

San Francisco (cwt)

N/A

-

Feed wheat

 

 

Atlanta (bu.)

N/A

-

Fayetteville NC (bu.)

N/A

-

Kansas City (bu)

N/A

-

Los Angeles (cwt)

N/A

-

San Francisco (cwt)

N/A

-

Corn

 

 

(dollars per bushel)

 

 

Atlanta

N/A

-

Boston

N/A

-

Buffalo

N/A

-

Chicago

4.01

-0.01

Delmarva

4.13

0.03

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Los Angeles*

9.96

-0.01

San Fran (rail)*

9.96

-0.01

San Fran (truck)*

N/A

-

Memphis

3.99

-0.18

Minneapolis

3.50

-0.07

Okeechobee

N/A

-

Portland (per ton)

185.27

-0.48

(*per cwt)

 

 

Milo

 

 

(dollars per bushel)

 

 

Atlanta

N/A

-

Fayetteville NC

N/A

-

Ft. Worth

N/A

-

Kansas City

N/A

-

Los Angeles*

9.36

-0.02

Memphis

N/A

-

*(per cwt.)

 

 

Ground grain screenings

 

 

(dollars per ton)

 

 

Ft.  Worth

N/A

-

Kansas City

N/A

-

OTHER

 

 

(dollars per ton)

 

 

Almond hulls

 

 

Los Angeles

150.00

-1.00

San Francisco

128.00

-

Bakery feed

 

 

Atlanta

179.00

-

Buffalo

N/A

-

Fayetteville NC

N/A

-

Memphis

N/A

-

Minneapolis

175.00

-5.00

Feed urea

 

 

Buffalo

N/A

-

Ft. Worth

N/A

-

Los Angeles

N/A

-

Minneapolis

N/A

-

Salt

 

 

Kansas City

N/A

-

Los Angeles

50.00

-

Cane molasses

 

 

Ft. Worth

N/A

-

Houston

151.25

3.75

Kansas City

197.00

5.00

Los Angeles

N/A

-

Memphis

N/A

-

Minneapolis

207.00

5.00

New Orleans

150.00

5.00

San Francisco

N/A

-

1-29-2020 Ingredient Market

Click "Download" button for a PDF.

FCC pours $20b into rural broadband efforts

Pekic/iStock/Getty Images Laptop in rural wheat field with broadband internet

The Federal Communications Commission (FCC) took its single biggest step to date to close the digital divide by establishing the new Rural Digital Opportunity Fund to efficiently fund the deployment of high-speed broadband networks in rural America through action approved on Jan. 30. Through a two-phase reverse auction mechanism, FCC will direct up to $20.4 billion over 10 years to finance up to gigabit-speed broadband networks in unserved rural areas, connecting millions more American homes and businesses to digital opportunity.

Without access to broadband, rural Americans cannot participate in the digital economy or take advantage of the opportunities broadband brings for better education, health care and civic and social engagement. In recent years, the commission said it has made tremendous strides toward increasing the availability of broadband in rural America, but more work remains to be done, and the Rural Digital Opportunity Fund is a key part of FCC’s continuing efforts.

FCC said the first phase of the Rural Digital Opportunity Fund will begin later this year and will target census blocks that are wholly unserved with fixed broadband at speeds of at least 25/3 Mbps. This phase would make available up to $16 billion to census blocks where existing data show that no such service is available whatsoever. Funds will be allocated through a multi-round reverse auction like that used in the 2018 Connect America Fund (CAF) Phase II auction. The staff’s preliminary estimate is that about 6 million rural homes and businesses are located in areas initially eligible for bidding in the Phase I auction.

The Rural Digital Opportunity Fund auction will prioritize networks with higher speeds, greater usage allowances and lower latency. To support the deployment of sustainable networks in this auction, the auction will prioritize bidders committing to provide fast service with low latency. FCC anticipates that this will encourage the deployment of networks that will meet with needs of tomorrow as well as today. Bidders must also commit to provide a minimum speed that's more than double what was required in the CAF Phase II auction.

Phase II of the program will make available at least $4.4 billion to target partially served areas -- census blocks where some locations lack access to 25/3 Mbps broadband -- using the granular, precise, broadband mapping data being developed in FCC’s Digital Opportunity Data Collection, along with census blocks that were not awarded in the Phase I auction.

The Connect America Fund has successfully distributed resources to help bridge the digital divide, and that success will be carried forward in the new Rural Digital Opportunity Fund, FCC added. Both programs, supported by the Universal Service Fund, are part of the commission’s ongoing commitment to provide rural America with the same opportunities available in urban areas.

2020 IPPE attracts 32,000 attendees

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The turnout for the 2020 International Production & Processing Expo (IPPE) has been great, approaching 32,000 poultry, meat and feed industry attendees from all over the world. This year saw an 8% increase in the number of buyers. In addition, the show has more than 573,000 sq. ft. of exhibit space and 1,376 exhibitors. Final numbers will be released after the registration database has been audited for duplications. Sponsored by the U.S. Poultry & Egg Assn., the American Feed Industry Assn. and the North American Meat Institute, IPPE is the world's largest annual poultry, meat and animal food industry event of its kind.

“We are excited about the energy displayed by this year’s attendees and exhibitors. The expanded trade show floor, including the new BC-Hall, and attendee and exhibitor numbers continue to complement IPPE’s unparalleled education sessions, invaluable networking opportunities and extensive exhibits showcasing the latest innovative technology, equipment and services for our industries,” the three organizations stated.

The large trade show floor remains the central attraction. Exhibitors are displaying the most current technology in equipment, supplies and services used by industry companies in the production and processing of meat, poultry, eggs and animal food products. Numerous companies are showcasing their new products at IPPE, with all phases of the animal food, meat and poultry industries represented, from live production and processing to further processing and packaging. The new BC-Hall is part of more than 600,000 sq. ft. of space for networking and attendee activities, including the Fuel Market Food Court, Poultry Museum and activities at the Event Zone.

The comprehensive education program schedule complements the exhibits by informing industry management about the newest issues affecting the industries. The 2020 lineup includes more than 200 hours of educational sessions, ranging from meat and poultry quality to biosecurity as it pertains to foreign animal disease to processing for antibiotic-free production.

Other featured events include the International Poultry Scientific Forum, the Latin American Poultry Summit, Beef 101 and Pork 101 Workshops, Pet Food Conference, TECHTalks program and publisher-sponsored programs, all of which have made IPPE the place to be in 2020.

EPA again confirms safety of glyphosate

EPA again confirms safety of glyphosate

The U.S. Environmental Protection Agency offered a favorable conclusion about the safety of glyphosate in its Interim Registration Review Decision, which is based on the agency’s expert review over a 10-year period. It reaffirms that the extensive body of science continues to support the safety of herbicides containing glyphosate and that this active ingredient is not carcinogenic.

The findings come as glyphosate is in litigation crosshairs, with class action lawsuits claiming that the chemical is to blame for cancer.

“The EPA concludes that the benefits outweigh the potential ecological risks when glyphosate is used according to label directions,” the interim decision noted.

The agency concluded that there are no dietary risks of concern for any segment of the population, even with the most conservative assumptions applied in its assessments (e.g., tolerance-level residues, direct application to water and 100% crop treated). The agency also concluded that there are no residential, non-occupational bystander, aggregate or occupational risks of concern.

EPA found insufficient evidence to conclude that glyphosate plays a role in any human diseases. Since the last EPA review of the epidemiological literature, two studies regarding the association between glyphosate exposure and non-Hodgkin’s lymphoma were identified for detailed review by the agency; however, these studies did not affect the agency’s assessment, EPA said.

During a discussion at the Ohio Agribusiness Assn. meeting on Jan. 30, Bill Reeves, Bayer regulatory policy and scientific affairs manager, said the interim decision is “another important document that really helps to demonstrate the confidence we have in this molecule like we do.”

Reeves said the courts have not allowed some of the scientific evidence to be entered into the record for jurors. He said 15-20 million pages of internal emails have been construed together in a way to convey that “Monsanto was up to no good.” He added that it can be very challenging to show a jury the conflicts in science behind what all health agencies have found, absent the findings of the International Agency for Research on Cancer, which said that glyphosate could be carcinogenic.

In an email statement, Liam Condon, member of the board of management of Bayer AG and president of the crop science division, said, “EPA’s latest decision on glyphosate-based herbicides adds to the overwhelming consensus among leading expert health regulators worldwide for more than 40 years that these products can be used safely and that glyphosate is not carcinogenic.”

He added, “Glyphosate-based herbicides are one of the most thoroughly studied products of their kind, which is a major reason why farmers around the world continue to rely on these products not only for effective weed control but also to minimize tillage farming practices, reduce greenhouse gas emissions, preserve more land for native habitats and provide enough food to meet the needs of a growing population worldwide. EPA’s science-based, in-depth assessment by its expert team reflects a gold standard for scientific rigor that is respected by regulators and scientists across the globe.”

Glyphosate is a relatively inexpensive herbicide to apply in agricultural situations, with the cost of applications to most crops ranging from  $1 to $13 per acre. Glyphosate products are registered for use in agriculture, including horticulture, viticulture and silviculture, as well as for non-agricultural sites, including commercial, industrial and residential areas.

Current glyphosate-resistant field crops are soybeans, corn, cotton, canola, alfalfa and sugar beets. Many of these crops, such as corn, cotton, soybeans and sugar beets, have exceptionally high percentages of their acreage treated with glyphosate (approximately 90% of acres treated in each crop). Genetically engineered (transgenic), glyphosate-resistant varieties of these crops can be sprayed over the top with minimal or no crop phytotoxicity, and glyphosate may also be used as a pre-plant burndown in many of these crops. On average, 84% of glyphosate applied in agricultural settings, in terms of pounds, is applied to soybeans, corn or cotton per year.

CFTC advances position limits rule

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ACTING CHAIR MADE PERMANENT: Senate confirmed Rostin (Russ) Behnam to serve as chairman of the Commodity Futures Trading Commission by a voice vote December 15, 2021.

For nearly a decade, the Commodity Futures Trading Commission (CFTC) has grappled with setting limits on speculative positions in agricultural and energy futures markets. On Thursday, CFTC voted to approve a proposed rule on speculative position limits in futures and derivatives markets.

These limits would cap positions that speculators — but not people with real hedging needs — can take in the futures markets on products such as wheat, corn, soybeans, cotton and cattle or energy sources like oil and natural gas. Prior proposals faltered in large part because they did not offer flexibility to the farmers, ranchers and end users of the products that the futures markets are meant to serve.

The commission has grappled with position limits for a decade. A 2011 proposal was finalized but struck down by a court because of concerns over its legal justification. Subsequent proposals in 2013 and 2016 were never finalized, following pushback from market participants about access to bona fide hedge exemptions. CFTC chairman Heath Tarbert said the latest proposal is the culmination of 10 years of effort across the tenures of four chairmen.

Tarbert said the proposal is designed to ensure that any market participant with a genuine need to exceed position limits can do so. The exception to the position limits rule is as important as the rule itself. By making what is known as the “bona fide hedge” exemption to position limits flexible, CFTC said its goal was to ensure that the nation’s farmers and ranchers can continue to do what they do best: feed America and much of the world.

CFTC is proposing that speculative limits are necessary for those futures contracts that are physically delivered and where the futures market is important in the price discovery process for the underlying commodity. CFTC has proposed limits on 25 physically delivered futures contracts, covering the vast majority of trading volume and open interest in physically delivered derivatives. In addition to the nine grain futures contracts currently subject to federal limits, this includes the largest energy, metal and other agricultural futures contracts.

Tarbert said in a statement of support for the proposal, “Limiting speculative positions can reduce the likelihood of chaotic price swings caused by speculative gamesmanship. In effect, position limits should help ensure that prices in our markets reflect real supply and demand.”

Tarbert said the CFTC proposal would end the “risk management” exemption that has allowed banks, hedge funds and trading firms to take large and purely speculative positions in agricultural markets.

He explained that the spot month levels proposed are reasonably calibrated. “They are based on the current rule of thumb that limits should be no more than 25% of the deliverable supply of the referenced commodity in order to prevent corners and squeezes that everyone can agree are bad for the market,” Tarbert said.

For a farmer who needs to hedge the price risk on crops that are still in the ground, a bank with a risk management exemption may be the only willing buyer. To mitigate the impact of eliminating the risk management exemption, CFTC raised the non-spot month limits for the grain contracts. This should allow a broader set of market participants to provide liquidity and help farmers hedge their crop risk as far in advance as they need, Tarbert said.

The final decision was not approved unanimously, with two dissenting CFTC commissioners: Dan Berkovitz and Rostin Benham.

“The proposal would create an uncertain and unwieldy process, with the commission demoted from head coach over the hedge exemption process to Monday-morning quarterback for exchange determinations,” Berkovitz said in his dissenting statement.

“The proposal would greatly increase position limits in many physical delivery agricultural, metals and energy commodities in spot and individual non-spot months, with no opportunity to monitor for or guard against adverse market impacts,” Berkovitz added. “Although I am pleased that the proposal would no longer recognize risk management exemptions as bona fide hedges for physical commodities, the higher limits allowed under the proposal could accommodate substantially more speculative positions, with potentially adverse impacts on markets. There is solid evidence that the financialization and growth of commodity index investments can raise commodity prices and negatively affect end users in the real economy.”

Benham said, “The commission lacks experience in administering spot month limits for 16 of the 25 core referenced futures contracts and lacks familiarity with both common commercial hedging practices for the 16 contracts and the proliferation of the use of the dozen or so self-effectuating enumerated hedges and spread exemptions (also largely self-effectuating) being proposed. While prior drafts of the proposal admitted this as recently as two weeks ago, the commission determined to change course and quickly let go of the line. The commission’s decision to essentially give up primary authority to recognize non-enumerated bona fide hedges and to rely on the exchanges to collect and hold relevant cash market data for the commission’s use only after requesting it seems both careless and inconsistent with congressional intent.”

Senate Agriculture Committee ranking member Debbie Stabenow (D., Mich.) said the rule falls short. “When Wall Street speculators meddle in our markets, consumers pay the price. Almost 10 years have passed since Congress directed the CFTC to curb excessive speculation that has caused Americans to pay too much at the pump. Unfortunately, this proposal fails to add necessary protections for consumers and our markets. I urge the commission to strengthen the rule.”

Meanwhile, House Agriculture Committee ranking member Michael Conaway (R., Texas) was more supportive of the proposal, saying, “I am encouraged that it offers a robust process for hedgers to access the risk management tools they need and that it is grounded in limiting harm from real market disruptions. Our derivatives markets need certainty, and a reasonable position limits rule can offer that. I am cautiously optimistic that this rule can accomplish that."

Weekly Export Sales – Corn beats four-week average by 99%

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The latest export sales report from USDA, covering the week ending January 23, offered a mixed bag of results. Corn emerged as the most bullish factor in today’s report, climbing 23% higher week-over-week and topping the prior four-week average by 99%. But wheat sales dipped 7% from a week ago, with soybeans tumbling 41% lower week-over-week.

Corn found 48.6 million bushels in old crop sales, plus another 5.7 million bushels in new crop sales, for a total of 54.3 million bushels. That beat out all trade guesses, which ranged between 24.8 million and 51.2 million bushels. Several countries – including Colombia, Mexico, Japan and Guatemala – each took more than 4 million bushels last week. Cumulative totals for the 2019/20 marketing year remain worrisome, however, with just 413.7 million bushels. That total remains 45% lower than a year ago.

Corn export shipments also climbed noticeably higher last week, with 28.6 million bushels. That bested the prior week’s tally by 74% and the prior four-week average by 44%. Mexico (10.9 million), Colombia (9.5 million) and Japan (3.5 million) accounted for the bulk of the total volume last week.

Soybean exports were far less impressive last week, coming in at 17.3 million bushels, which was 41% lower week-over-week and 11% below the prior four-week average. The tally was also on the low end of trade guesses that ranged between 14.7 million and 40.4 million bushels. China accounted for about three-fourths of the total, with 13.3 million bushels. Cumulative totals for 2019/20 are still 43% ahead of last year’s pace, at 935.4 million bushels.

Soybean export shipments fared better, with 45.2 million bushels, trending 17% higher than a week ago and 11% above the prior four-week average. China was the No. 1 destination, with 20.5 million bushels. Japan, Saudi Arabia, Spain and the Netherlands rounded out the top five.

Wheat export sales slipped 7% week-over-week but still climbed 49% above the prior four-week average after reaching 23.7 million bushels. Bangladesh was the No. 1 destination, with 6.1 million bushels. Japan, Mexico, Guatemala and unknown destinations filled out a diverse top five last week. Cumulative totals for 2019/20 remain 26% above last year’s pace, with 577 million bushels.

In contrast, wheat export shipments sputtered to a marketing-year low, with 8.0 million bushels. Mexico (2.7 million) and Japan (2.2 million) accounted for most of the total, with Indonesia, Thailand and Peru rounding out the top five.

Click here for more export sales highlights from USDA.

FDA announces funding for antimicrobial research

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The U.S. Food & Drug Administration has expanded its fiscal 2019 funding opportunity and is announcing a new fiscal 2020 funding opportunity and request for applications (RFA) for studies that can generate data to help establish more targeted durations of use for certain medically important antimicrobial drugs approved for use in the feed of food-producing animals, according to a notice.

From March 2 to April 1, 2020, FDA’s Center for Veterinary Medicine (CVM) will accept research applications for the fiscal 2020 grant program, which could fund up to $2 million to generate evidence to support the establishment of more appropriately targeted and defined durations of use for one or more of the new animal drug applications identified on the list of affected approved animal drug applications.

The agency noted that the number of awards for this funding opportunity is contingent upon FDA funding availability and the number of suitable applications. Fiscal 2020 grant recipients may receive a maximum of $500,000 -- twice the amount previously offered in fiscal 2019 -- in order to allow more versatility in the range of submission types the agency is willing to accept.

“Updating the dosage regimens of the affected approved animal drug products is a significant scientific and technical challenge. Changes to the use conditions of these products will be based on science and available evidence, and the FDA believes this RFA will help generate such information,” the notice said.

As FDA continues to develop an approach for defining targeted durations of use, the agency said it remains committed to engaging and seeking input from a variety of stakeholders.