world briefs
Production
CHICAGO, Ill. (Reuters) — American farmers are unlikely to market corn and soybeans straight off the combine this fall because weakness in the futures market and crumbling basis levels mean prices are below many farmers’ expectations.
But the downturn has not killed farmers’ hopes for a fall rally, some analysts said.
As heavy rains gave way to favourable growing weather, Chicago Board of Trade November soybean futures have fallen 17 percent from their summer peak. Prices bottomed out at the lowest September price for the new-crop soybean futures contract since 2006.
Read Also
Stock dogs show off herding skills at Ag in Motion
Stock dogs draw a crowd at Ag in Motion. Border collies and other herding breeds are well known for the work they do on the farm.
December corn futures were down 19 percent from their summer peak.
At current prices, most farmers are likely to take a loss on any corn or soybeans they sell as production costs outstrip what is being offered on the cash market.
Farm Support
BRUSSELS, Belgium (Reuters) — The European Commission has announced a $980 million package of measures to provide relief for farmers stung by slumping prices.
The drop in prices has been triggered partly by the loss of exports to Russia because of European Union sanctions against the country.
The crisis has triggered a wave of protests, which culminated recently with nearly 5,000 farmers and more than 1,000 tractors arriving in Brussels, where an emergency meeting of the EU’s Agriculture Council was being held.
The package was discussed by the EU’s Agriculture Council, which consists of farm ministers from member states. Some details have not yet been finalized.
The plan allows member states to advance some payments to farmers, and the commission said it was working closely with the European Investment Bank to design financial instruments where repayments were linked to commodity prices.
Outlook
MOSCOW, Russia (Reuters) — Russian farmers are on track to increase winter grain plantings for the 2016 crop spurred by higher domestic prices, says the SovEcon agriculture consultancy.
Domestic grain prices in Russia, one of the world’s top wheat exporters, have been supported by a weakened ruble caused by lower oil prices and western sanctions related to the Ukraine crisis.
“The increase in prices for agriculture inputs has been lagging the growth in domestic ruble prices for grain,” said Andrey Sizov, head of SovEcon.
“All in all, farmers are doing relatively well now.”
Domestic prices for third-class wheat have risen 35 percent year on year to US$150 per tonne. The ruble has weakened by 44 percent against the U.S. dollar.
Export f.o.b. prices have fallen by around a quarter and were at $181 per tonne in early September.
Animal Health
HARARE, Zimbabwe (Reuters) — Zimbabwe has banned the movement of cattle in the southern part of the country near the South African border after an outbreak of foot-and-mouth disease.
Zimbabwean farmers and communities living near wildlife parks are at risk of the disease, which led to the country losing its quota to export 9,100 tonnes of beef to the European Union in 2001.
Foot and mouth is a highly contagious and often fatal disease that affects domestic livestock such as cattle, pigs, goats and sheep and can be transmitted from wild buffalo.
Deputy agriculture minister Paddy Zhanda said the government was vaccinating all cattle in the affected and neighboring areas.
