Brazil recently paved the way for imports of U.S. corn following a short corn crop, according to industry sources. Regulators in Brazil last week met and authorized outstanding biotech products needed to open Brazil for U.S. corn exports. The U.S. Grains Council says Brazil has faced a significant shortfall in its current corn crop, particularly in its second winter crop; with an estimated 16 million metric tons less produced this year than the last growing season. This has halved exports and prompted imports from regional producers Argentina and Paraguay. To date, the United States has not been able to fill the demand due to lack of approvals of some biotech products used by U.S. farmers. However, the Grains Council says last week’s move by Brazil opens the doors for U.S. corn. Still, imported corn may be limited to specific use in Brazil, restricting the export potential.

Trade negotiators for the U.S. and the European Union left scheduled talks in New York last week with little progress made regarding the Trans-Atlantic Trade and Investment Partnership. U.S. negotiators even rejected an EU request for three days of agriculture talks. The National Pork Producers Council, which supports TTIP, said the group is skeptical of father progress of the trade deal based on the stubbornness of the EU on various issues. The 28-country bloc is willing to eliminate tariffs on nearly all goods, for example, but the EU announced it is unwilling to remove tariffs on beef, poultry and pork. The EU has indicated it would allow some market access for “sensitive” products, including meat if the United States agrees to the EU’s demands on reciprocal access and on protections for products labeled with geographical indications. NPPC says the future of TTIP is now more uncertain. Last month, EU trade ministers expressed doubts about getting the trade deal completed before the end of the Obama administration and several called for a pause in negotiations. No talks are scheduled beyond October.

Hog prices have fallen far below breakeven levels and there are worries about the number of hogs headed to market in the fall. A Purdue University report says the numbers may exceed packer plant capacity and a recent USDA September Hog and Pig report didn’t help the situation as numbers are three percent higher this year. Animal numbers in the heaviest categories were up four percent. The number that brought the greatest concern in the September report was packer head counts were up by eight percent. Slaughter capacity is about two percent higher than the headcounts over the past couple of weeks, but the USDA expects slaughter numbers to ease by the end of the year. If those USDA predictions are correct, packers should have enough capacity. Two new processing operations are scheduled to open in Iowa and Michigan in 2017, increasing slaughter capacity by another six percent. The recent squeeze on slaughter capacity has meant stronger packer margins. The increased capacity next year should reduce packer margins and provide higher prices at the farm level. However, that doesn’t help this fall and winter as losses are expected to be as large as they’ve been since 2012. Experts say expected losses in 2017 may lead to ideas of shrinking the breeding herd, and that could lead to higher prices returning in 2018.

The advocacy group Food Policy Action is weighing in on the presidential election for the very first time. Politico’s Morning Agriculture Report says the group is endorsing Hillary Clinton for president, saying she has a record of supporting food policies that increase access to healthy foods, supports fair labor conditions for farm workers, and supports more sustainable agriculture practices. The group says, “Unlike Clinton, Republican nominee Donald Trump has been on record supporting policies that would hurt our food system, including his objections to consumer transparency, his objections to vital safety net programs for seniors and families, as well as his plans to dissolve the Food and Drug Administration.”

Cargill’s largest contributor to adjusted operating earnings in the first quarter was the Animal Nutrition and Protein Division. The beef business led the way in profitability, which was helped by higher numbers of cattle in the supply chain as well as consumer demand for more beef. The poultry-based divisions, along with turkey and egg businesses, were more profitable than they were in the previous year. Animal nutrition product sales grew in Asia and North America, contributing to the strong growth as well. Aqua Feed sales were down in some countries due to weather-related incidents. The segment’s new aqua nutrition unit offset part of the impact with its overall sales strength. Cargill wants to grow its protein portfolio, so it purchased Five Star Custom Foods, which specializes in cooked protein products for food service and food manufacturing sectors.

Monsanto reported net sales down ten percent and profits 42 percent lower in Fiscal Year 2016. Monsanto had net sales of $2.6 billion dollars in fiscal year 2016, with net sales for the full fiscal year at $13.5 billion. Full net sales were down year-over-year thanks to currency challenges and price declines in agricultural productivity. Seeds and genomic net sales were $1.6 billion in the fourth quarter, and totaled $10 billion for the year. Ag productivity sales were $997 million for the quarter and for the fiscal year were $3.5 billion. The company’s expenses were flat year-over-year on an as-reported basis. Expenses increased primarily due to $280 million in PCB litigation. Research and Development costs decreased slightly due to currency and transformation cost savings. Monsanto reported a net loss of $191 million in the fourth quarter of 2016 compared to a net loss of $495 million at the same time last year. Net income for 2016 was $1.3 billion, compared to $2.3 billion in income the year before.