‘EXTREME’ DROUGHT SHRINKS SLIGHTLY IN MIDWEST... According to the National Drought Monitor, “extreme” drought covers 33.2% of the Midwest, compared to 35% last week. The monitor notes that last week’s cooler and wetter conditions resulted in some improvements, with the best rains recorded from northeast Kansas into southern Iowa and into central Illinois and northwest Indiana.
However, the monitor notes conditions were mostly dry across the Plains, although areas of Kansas, extreme southeast Nebraska and portions of Oklahoma recorded precip that approached 4 inches in places. But in the Dakotas, the drought expanded. Click here to view related maps.
CHINA SELLS 401,419 MT OF SOYBEANS UP FOR AUCTION... Crushers in China purchased 401,419 metric tons (MT) of soybeans from the government’s auction today at a lower price than on the global market. This signals crushers are seeking cheaper alternatives (but read on).
Meanwhile, China continues to be a top buyer of U.S. soybeans. For the week ended Aug. 23, China purchased 230,000 MT for 2012-13 and “unknown destinations” (a portion of which will likely be switched to China at some point) came in at 352,000 MT. So far for 2012-13 China has booked over 11.0 MMT of soybeans and has outstanding sales of around 1.7 MMT on the books with just a few days left in the 2011-12 marketing year. All this points to still-strong demand from the country. Click here for the weekly export sales report.
ISU SAYS AFLATOXIN DETECTED, BUT NOT EXPECTED TO BE WIDESPREAD... Iowa State University extension specialists note several reports of aflatoxin in southern Iowa and a few in central Iowa, but so far, the problem doesn’t appear to be widespread. However, the notice states that fields are at risk for aflatoxin given the hot, dry conditions during the growing season. If you detect aflatoxin (easily identified as an olive green powdery mold that usually occurs at the ear tips) call your insurance adjuster. Corn will only be adjusted in the field. Click here for an explanation of loss adjustment procedures for aflatoxin.
MAJOR FARM BILL DIFFERENCES REMAIN... Whenever forward-progress on the farm bill resumes, several major differences will need to be hashed out between the Senate and House versions. One of these is food stamp funding. While the pending House farm bill would cut food stamp funding by $16.1 billion over 10 years, the Senate-passed farm bill would cut only $4 billion. Some lawmakers have indicated a $10-billion cut could be a compromise level, but no such agreement has been made or officially offered, sources advise.
Another difference between the two farm bill approaches is the House bill offers a farmer choice for a safety net that includes a reference/target price approach, while the Senate does not include such an option.
Meanwhile, Washington Consultant Jim Wiesemeyer notes that in his recent travels he has noticed farmers appear “far more interested in other topics than the next farm bill, with the one exception being some livestock producers asking why Congress provides a major farm income safety net for crops but not them.” Jim also says some are questioning why Stabenow is pushing more aid for fruit and vegetable growers when they already have protection available via some crop insurance programs. Click here for more.
