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ASIA FREIGHT –RATES SEEN UP ON DEMAND, PORTS BACKLOG
Asian Panamax rates for dry bulk cargo rose this week on a seasonal rise in
demand for grain cargoes, higher bunker fuel prices and a backlog of stocks at Japanese and South Korean ports, brokers said on Tuesday. "We saw some inquiries from Japan for mineral shipments," said
a shipping agent in Seoul. "With these inquiries, Panamax rates have risen further on expectation of active U.S. grain exports in the months ahead" as a bumper crop is seen likely in the United States.
Spot Panamax rates for U.S. Gulf/Japan were $24.25-$24.50 per tonne, against $23.75-$24.00 per tonne last week, he said.
U.S. Gulf/Japan Panamax rates for October shipment were $25 a tonne, against $24.75-$25.00 last week and rates for November shipment were $25.25 a tonne, he
added. Port congestion and the rise in bunker fuel prices also supported the freight market, said another broker. Backlogs at ports cut vessel availability and raised costs in the regional market, he
said.
In Japan, discharging of grain cargoes has been delayed about one week since early August due to a backlog in port silos as a result of slow feed sales, Tokyo
grain traders said. Prices for bunker fuel 380-cst were quoted at $152/154 per tonne on Monday in Singapore, up from $149/150 a week earlier and $139 at the start of the month.
The timecharter rate for hiring modern Panamax vessels to transport cargo from the Atlantic to East Asia was unchanged from last week at more than $12,250 a day
plus $260,000 ballast bonus, another trader said. Such rates from the U.S. Gulf to East Asia were $12,000 a day, up from $11,500-$11,750 last week, he said.
Spot timecharter rates for the Pacific round for modern Panamaxes rose to $11,750 per day from $11,250 a week ago, he said. Freight rates to South Korea
and Taiwan are expected to be about $0.25-$0.50 a tonne less than spot and forward rates on the U.S. Gulf/Japan route, they said.
On Friday, the Baltic Panamax Index rose seven points to 1,594 and the Baltic Handy Index was up 10 points at 1,134, while the Baltic Capesize Index was off one
point at 2,197. The London freight market was closed on Monday for a national holiday.
WHEAT INDUSTRY ASKS CONGRESS TO LEVEL THE GLOBAL PLAYING FIELD
Declaring that "the importance of the USDA export programs
for U.S. wheat cannot be overstated," a representative of the U.S. wheat industry today called on Congress to level the global playing field in the development of export markets.
Speaking on behalf of wheat growers, Minnesota wheat farmer Bruce Hamnes told a Senate subcommittee that "American agriculture cannot compete against
foreign governments," and laid out steps that Congress needs to take in a global marketplace that is "characterized by heavily subsidized and protected competition."
Over 100 million metric tons of wheat is traded globally, and the U.S. wheat industry, which exports nearly 50% of production, has a global market share of 28%,
making America the world's largest wheat exporter. But U.S. wheat growers face increasingly stiff competition from Canada, Australia, the European Union and Argentina.
"Flexible, effective, and fully funded export programs are critical to our long-term success," Hamnes told the panel.
Pointing out that as historical support was eliminated under "Freedom to Farm," use of agricultural export programs remained stagnate and in some
cases decreased as "U.S. farmers were sent out into the world market to survive without their traditional 'tools' of support. Well-funded export programs, which are a necessary part of the equation, were not
reinforced," Hamnes said, despite increased promotion activity by competing countries. "As we embark on debates surrounding a new farm bill, export programs that give American farmers and ranchers the
tools to survive in the 'new economy' must not be overlooked or taken for granted."
Asking Congress to "correct this oversight," Hamnes called for increased funding and an "unshakable commitment to provide American agriculture
with the proper tools to develop markets and promote agricultural goods."
"The Foreign Agricultural Service and the Animal Plant Health Inspection Service must be funded at levels that allow for adequate personnel and programs to
meet the demands of opening and expanding world markets," Hamnes said. "The export of American agricultural products is possible because of a large group of dedicated people in USDA who depend on you for
their funding, and to whom the industry is indebted. They make the export programs work."
To "counter unfair trade practices" the wheat industry also asked Congress to direct the Secretary of Agriculture to direct unexpended Export
Enhancement Program (EEP) funds to export market development activities. EEP is a program that helps U.S. farmers challenge unfair trading practices of subsidizing countries, especially the European Union, but by
1996 the U.S. voluntarily stopped administering the EEP for wheat sales, despite the fact that EU subsidies for wheat and wheat flour exports are still used.
Hamnes also reiterated the wheat industry's call for sanctions reform. Even though President Clinton eased the embargo against Cuba, there was a major catch.
The sanctions, which are stipulated by law, do not allow products to be sold to the Cuban government; the five flour mills in Cuba are owned by the government. Ergo, no U.S. wheat can be sold into Cuba. "
Other actions Congress should take, Hamnes said, include passing "Fast Track" negotiating authority, providing responsible oversight of the WTO
negotiating process and, most importantly right now, granting Permanent Normal Trade Relations for China.
"If Congress fails to grant China Permanent Normal Trade Relations in a timely and honorable manner we can expect to see very few, if any, sales in the
future," Hamnes declared. "There is no issue more important to the future of the industry than finalizing this process."
Hamnes offered his testimony to the Senate Agriculture Committee's Subcommittee on Production and Price Competitiveness, speaking on behalf of U.S. Wheat
Associates, the industry's export market development organization; the Wheat Export Trade Education Committee, the trade policy and lobbying organization representing the wheat industry on trade issues; and the
National Association of Wheat Growers, representing U.S. wheat growers whom, by combining their strengths, voices, and ideas are working to ensure a better wheat industry for today and tomorrow.
Contact: Barbara Spangler, Exec. Dir., WETEC, 202-547-2004
Dawn Forsythe, Dir. Public Affairs, USW, 202-463-0999
NDSU EXPANDS BIOTECHNOLOGY RESEARCH
North Dakota State University is entrenched in biotechnology research – a controversial
science that has cost U.S. farmers some international business. Finish the article published by the Forum at: http://www.in-forum.com/pub/08292000/35990.shtml
DISEASE DAMAGE ON CORN, SOY YIELDS NOT ENOUGH TO IMPACT YIELDS
Crop specialists indicate that although Midwest corn and soybean
fields have disease, it is not enough damage to impact yields.
"Maybe instead of extra high yields we're looking at high yields," University of Illinois plant pathologist Don White said. "But there's no way
to say for sure until harvest."
Some counties in Iowa have scattered SDS (sudden death syndrome) which appears as yellow pockets in soybean fields and causes early death of the plant.
Purdue University plant patholgist, Ellsworth Christmas, stated that what disease he has seen doesn't appear to affect yields statewide.
Because of an infestation of bean leaf beetles, more Midwestern states are claiming some damage. The beetle attacks the soybean pod and opens the plant to other
diseases. It appears that the rise in beetle attacks have been increasing over the past few years.
ARE NEW GRAIN BINS AND DRYERS ALWAYS A GOOD INVESTMENT?
A new dryer or grain bin is often a good investment, but that's not true
for every grain producer, even though the US Department of Agriculture has put a farm storage loan program in place. The program has stimulated a lot of interest in grain drying, handling, and storage facilities,
notes Bill Wilcke of the University of Minnesota. Finish the article published by the Farm and Ranch Guide at: http://www.farmandranchguide.com/display/inn_news/Regional%20N
ews/news07.txt
EARLY SPRING WHEAT HARVEST BETTER THAN EXPECTED
The US spring wheat harvest is progressing well ahead of average thanks to some
favorable weather conditions. Yield and quality are also better than expected in most of the early harvest. Finish the article published by the Farm and Ranch Guide at http://www.farmandranchguide.com/display/inn_news/Markets/marke
ts01.txt
USDA RELEASED CROP PROGRESS REPORT 08/28/00
http://usda.mannlib.cornell.edu/reports/nassr/field/pcr-bb/2000/
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