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15/08/12: Reuters analysis of US drought; wheat prices rise; new logo for Gavilon

Hello, 

Forget drought, 'demand rationing' is corn's new master, says Reuters.  Read more...

Wheat prices rise after biggest three-day loss in 13 months.  Read more...

US commodity management firm, Gavilon unveils new logo and branding.  Read more... 

(Image credit: Getty Images via @daylife)

US Grains Council commentary of USDA’s August WASDE Report

In its monthly agricultural supply/demand update the U.S. Department of Agriculture on August 10 again lowered the outlook for U.S. corn production, reflecting the continued deterioration of this year's crop due to the once-in-a-lifetime drought that affects most of the U.S. corn belt.

The latest USDA projection lowers U.S. corn production to 274 million metric tons (10.8 billion bushels), down almost 40 million tons (1.6 billion bushels) from last year, and the lowest since 2006. World corn production is estimated at 849 million tons (33.4 billion bushels), down 27 million tons (1.1 billion bushels) from last year, but 19 million tons (748 million bushels) higher than 2010/2011 due to higher production from China, Brazil and Argentina.

With this large reduction in U.S. corn supplies, higher prices are expected to ration demand during the coming year. USDA projects that total world corn use will decline about 7 million tons (275.6 million bushels) from last year, while U.S. total use will drop 25 million tons (984.2 million bushels) — feed use down 12 million tons (472.4 million bushels), corn use for ethanol down 12.7 million tons (500 million bushels), and exports down 6.3 million tons (248 million bushels). USDA expects world corn imports to decline by almost 7 million tons (275.6 million bushels), while non-U.S. feed use will continue to grow, up 13 million tons (511.8 million bushels) from last year to 405 million tons (15.9 billion bushels).

From a broader perspective, world coarse grain feed use (including mainly corn, sorghum and barley) will be essentially unchanged from last year at 660 million tons, compared with 658.5 million tons in 2011/12.

Countries will respond to the tight corn supplies and higher prices in the coming year in different ways according the USDA estimate. For example, Japan and South Korea imports are projected be unchanged from 2011 to 2012. China's corn imports likely will decrease by 3 million tons (118.1 million bushels) due partly to a record domestic corn harvest of 200 million tons (7.9 million bushels), which is up 7 million tons (275.6 million bushels) from last year.

Globally, all corn users will face the challenge of higher prices and the need for increased efficiency, careful risk management and creative marketing strategies during the coming year. As the projections for U.S. corn use demonstrate, the high prices will ration demand in all markets and in all sectors (feed, food and fuel). Also, the relatively smaller decline in U.S. exports compared to domestic use reflects the resilience of global feed demand.

Despite the decreases projected for U.S. corn production, the United States remains open to trade. In the coming year it will be vital that all exporting countries follow the U.S. example: Open markets, transparent market information and careful planning can help us all work through the coming year.

Farming Today This Week, BBC Radio 4: barley

Last Saturday I happened to be up at 6.30 am.  Bleary eyed and definitely feeling my best, I flicked on the radio and was lucky enough to catch Farming Today This Week on BBC Radio 4.   The programme was a barley special and included lots on interesting information about the barley supply chain.  The relationship between farmers, millers and maltsters was particularly fascinating and really shed light on the various demands and pressure son each stage of the chain

If you're in the UK, you can listen again here but hurry, it'll only be online for a few more days.

BBC Radio 4 mug (2009) (Photo credit: radiothings.com)

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14/08/12: Muyang R&D institute; USDA revise maize production; mycotoxin sampling advice from HGCA; new FFI website

Hello, 

• Muyang R&D institute opened after 'structural readjustment'.  Read more...

• USDA revises its US maize production figures down to 274Mt from 329Mt in July.This represents a 27 percent fall in production from the June figure of 375Mt.  More information...

• Accurate sampling essential to determine extent of on-farm mycotoxins.  Grain samples used for mycotoxin testing can only ever be as good as the sampling procedure used, warns HGCA.  Download worksheet and farmers guide here. 

• The Flour Fortification Initiative launches a new website.  The revamped site is designed to help viewers find resources for planning, implementing, and monitoring flour fortification programmes with ease.  Click here to view.

Description unavailable (Photo credit: pennstatelive)

Event News: WPC 2016 and VIV China 2016 enter strategic partnership

On Monday August 6, 2012, the representatives of WPSA China Branch, CAAV, VNUE E and BT signed an agreement regarding the Strategic Partnership for the organisation of WPC 2016 and VIV China 2016 in Beijing. 

WPC 2016 will take place in the China National Convention Center (CNCC), September 5-9. VIV China will be held at the New China International Exhibition Center (NCIEC), September 6-8. The signing ceremony took place at WPC 2012 in Salvador, Brazil. All four partners foresee in this Strategic Partnership a winning co-operation to unite poultry scientists and businessmen worldwide in Beijing in September 2016.

The XXV World’s Poultry Congress (WPC 2016) will be held in Beijing during September 5-9, 2016. This congress is co-hosted by the China Branch of the World’s Poultry Science Association (WPSA-CN) and the Chinese Association of Animal Science and Veterinary Medicine (CAAV).

VIV China 2016 will be held in Beijing during September 6-8, 2016. VNU Exhibitions Europe, the Head Quarters of VIV Worldwide, and its Chinese partner Beijing Tech Convention and Exhibition Center organise this exhibition.

During the signing ceremony at WPC 2012 in Salvador, Ning Yang, Ph.D., President, China Branch of WPSA and Ruwan Berculo, Project Manager VIV, officially announced this exclusive co-operation. Ning Yang comments: “The exhibition has become an important activity as part of the World’s Poultry Conferences. In VIV China we have found our preferred partner to establish a high-quality international exhibition”. Ruwan Berculo adds: “At VIV, we value the opportunity to bring Business and Science together, which is in the interest of a bright future for the global Poultry industries. Our Strategic Partnership with WPC 2016 forms a true highlight in the mission to strengthen our events”.

Although it is still 4 years away from now, WPSA-CN, CAAV, VNUE E and BT have already defined an extensive program of activities to ensure that WPC 2016 and VIV China 2016 will become one combined event for all players in our industry. Over the course of time, more detailed information will become available.