Later this month, when USDA releases its first crop estimates based on producer plans, the commodity markets will take notice.  In fact, the department reports the impact of data on corn prices has magnified since 2006, with monthly and annual production data releases, and particularly with quarterly grain stocks reports, now resulting in market price changes of ten or more cents in a majority of cases.

Paul Bertels, vice president of production and utilization for the National Corn Growers Association, says – when examined, the data clearly demonstrates a marked increase in commodities market volatility. While many factors certainly impact cash markets on a given day, Bertels says, – the correlation is too strong to ignore

According to USDA, from 1994 through 2006, the market price shifted by ten or more cents on only 18 percent of the days following report release.  From 2007 to present, the impact of data release has become significantly more dramatic with a ten or more cent price shift in 64 percent of these cases. Also, the quarterly grains stocks report has its effect on prices.  Between 1994 and 2006, the market reacted by shifting up or down in a nearly equal number of instances.  Since 2007, the impact was almost two times as likely to be negative.

Courtesy: NAFB News

The U.S. Energy Information Agency is estimating the average retail cost of gasoline to be $3.79 per gallon in 2012 and $3.72 per gallon in 2013. Some areas of the country can see gas priced at well over 4-dollars per gallon into the foreseeable future. The National Corn Growers Association reports there is one factor that, when removed, can drive the cost of gas in your tank significantly higher – and that is domestic, renewable ethanol.

NCGA President Garry Niemeyer, a corn grower in Illinois, says – this is not the time to be reducing our production and use of ethanol, but increasing it, by moving forward quickly with the E15 blend and by building more flex-fuel cars and trucks – and the infrastructure to support them.

Meanwhile, Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, asked lawmakers this week to think of consumers paying more for gasoline as Congress decides how much money to give his agency. According to Gensler, if his agency’s funding were cut, – it would struggle to employ new market surveillance tools to target inappropriate activity. The CFTC is in charge of ridding commodity markets of fraud and manipulation.

Courtesy: NAFB News

Speaking at Ohio State University Thursday, President Obama announced that up to 35-million dollars over three years will be provided to support research and development in advanced biofuels, bioenergy and high-value biobased products. The projects funded through the Biomass Research and Development Initiative will help cut America’s oil imports, develop clean alternative energy technologies, and protect American families and businesses from the ups and downs of the global oil market.

Ag Secretary Tom Vilsack says – this funding represents the kind of innovation we need to build American-made, homegrown biofuels and biobased products that will help to break our dependence on foreign oil and move our nation toward a clean energy economy. Energy Secretary Steven Chu says – investing in next-generation biofuels helps boost the competitiveness of the U.S. biofuels industry, supports economic development in rural communities, and creates skilled jobs for American workers.

The dollars will support feedstock development, biofuels and biobased products development, and biofuels development analysis.

Courtesy: NAFB News

Acting Under Secretary for Farm and Foreign Agricultural Services Michael Scuse leads nearly 40 American businesses on a U.S. Department of Agriculture trade mission to China starting today and ending March 28. The mission trip aims to help American businesses strike new deals, strengthen business ties, expand their markets, and support jobs for Americans. Joining Scuse on the trip are leaders from six state departments of agriculture, including Iowa, Oklahoma, North Carolina, Illinois, Kansas and South Dakota. This is the largest USDA trade mission to date.

According to Scuse, – China and the United States share a special relationship, and we embrace this opportunity to demonstrate that our U.S. farmers, ranchers, and producers are reliable suppliers of the highest-quality food and agricultural products. At the same time, USDA and our federal partners will continue to aggressively work to expand export opportunities and reduce barriers to trade.

Courtesy: NAFB News

Charlotte Baker, a spokeswoman for House Energy and Commerce Committee Chairman Fred Upton, says House Republicans are working on legislation to ensure Congress and the American people have a clear understanding of the impact of EPA’s rules on gas prices before the administration can finalize certain regulations. An environmentalist says the various rules in the House GOP’s crosshairs might include EPA’s planned “Tier III” vehicle emissions and fuel standards, which are aimed at curbing ozone, particulate matter and other types of pollution.

Administration officials argue that it’s inaccurate to blame White House policy for pump prices. But, according to Baker, – there is no doubt EPA’s rules will impact transportation fuel prices, but we still don’t know exactly how much more consumers and businesses will be paying at the pump.

Baker says – it would be imprudent for EPA to move forward with these rules without first conducting a proper assessment of the cumulative costs and benefits.

Courtesy: NAFB News

The National Pork Producers Council reports the United States and the Philippines have reached an agreement that resolves many of the long-standing trade issues between the two countries.

The agreement includes assurances that confiscations would end immediately, Veterinary Quarantine Certificates would not be used to restrict imports and the “test and hold” system would immediately revert to random sampling. Also, the Philippine Department of Agriculture has agreed to eliminate the requirement for pre-wrapping and thawing of frozen meat prior to sale, to make meat temperature the complying factor for sale and to allow the cutting/portioning of meat outside the container.

NPPC projects that the removal of the current pork import restrictions will potentially turn the Philippines into a major market for U.S. pork products.

Courtesy: NAFB News

Agricultural producers across the southern portion of the United States, 14 states in all, experienced varying degrees of drought conditions last year, with Oklahoma and Texas receiving the brunt of the heat and lack of precipitation. Agricultural experts with The Samuel Roberts Noble Foundation in Ardmore, Texas are warning farmers and ranchers to – be careful with your pastures. Despite recent rainfall, ramifications of the drought are still being felt throughout the Southern Great Plains.

James Rogers, Ph.D. and assistant professor, says – livestock producers should be aware that the roots of forage plants have weakened, making them even more susceptible to any additional drought damage. Even if favorable growing conditions return in 2012, Rogers warns, – producers should keep stocking rates reduced to give forages a chance to generate leaf growth and regenerate lost root mass.

Additionally, weakened pastures provide opportunity for weeds to come sooner and in greater numbers this spring. To prevent infestation, Rogers recommends producers begin scouting for weeds early and apply the appropriate herbicide for the target species if necessary.

Courtesy: NAFB News