US Soybean Farmers Partner with Paraguayans to Build Demand (Soya Tech 06/27/06): Looking for new ways to build demand for US soybeans and soy products, US soybean grower-leaders recently met with Paraguayan farmers to discuss ways to increase to market potential and farmer profitability. The meeting resulted in a farmer-based agreement called the Global Grower Development Agreement signed by the United States Soybean Export Council (USSEC) and the Paraguayan Chamber of Cereals and Oilseeds Exporters (CAPECO) and Paraguayan Soybean, Oilseeds, and Cereals Producer Association (APS). The agreement calls for a focus on the Republic of India market with the ability to add other markets at a later date. The US does not currently export to India but is optimistic about growth projects and new opportunities for increased demand. US grower-leaders have also explored the idea of partnership activities with Brazil and Argentina. The Global Grower Development Agreement calls for activities to promote the development and use of the soybean complex as a valuable commodity to advance the interests of producers, processors and users through product and market development support. Joint educational activities are schedules for as early as this fall.

Storm Alberto Resuscitates Soybean Rust Outbreak in US (CBOT 6/28/06): The first tropical storm of the season, Alberto, resuscitated the outbreak of Asian Soybean Rust in the United States. A University of Georgia researcher reported that the infected plants appear to be a new infection, possibly brought north by Alberto. The direction of the storm was northeast, therefore researchers believe any spores from Florida and the Southeast would have landed on the Eastern Seaboard. The disease has been confined so far to 22 US counties in Alabama, Florida, Georgia, and Texas.

2006 US Winter Wheat Crop of Higher Quality (CBOT 6/27/06): While wheat harvest is just over half complete, US Wheat Associates have released preliminary results that suggest that the 2006 crop is of higher quality than normal. The report shows that this season?s soft red winter and hard red winter wheat crops are drier, heavier and cleaner than last year as well as contain higher amounts of crude protein. However, falling numbers and farinograph stabilities (baking quality tests) proved only acceptable as levels are below 2005. Total wheat production is forecast at 1.264 billion bushels, down 16% from 2005.

World Grain Output Meets Rising Long-Term Demand (CBOT 6/27/06): Rabobank stated Tuesday that world grain production will be able to meet increasing long term demand but prices may be required to increase in the short and medium terms. Increased farming technology and area in production are responsible for thought responsible. The bank stated production would be adequate, even taking into account rising ethanol demand. Estimated corn production in 2006-07 will fall short of the estimated demand, resulting in a prediction that world stocks to use ratio will be at its lowest in 30 years.

Study Shows Global Warming May Not Lead To Greater Crop Yields (Chicago Tribune, 6/29/06): Scientists, backed with laboratory research, have long thought that increased carbon dioxide in the atmosphere would be a benefit for food crops such as corn, wheat, and soybeans; enough to offset the plant damaging effects of higher temperatures and decreased rainfall. A new recently released study suggests that any increase in yields due to increase carbon dioxide is minimal or non-existent. The study included field tests in Illinois and other spots around the world. Corn yields showed no increase at all when subjected to conditions meant to mimic the atmosphere in 2050. Soybeans and wheat showed increases half of predicted results. Now researchers are calling for more research into plant varieties that can withstand all the environmental onslaughts of global warming while lawmakers consider regulating carbon dioxide as an air pollutant.

Last updated 07/03/06