3 BIG THINGS TODAY, MARCH 30

WHEAT FUTURES LOWER OVERNIGHT; EASTERN PLAINS, SOUTHERN MIDWEST LIKELY WETTER THIS SUMMER.

1. WHEAT FALLS ON LARGE GLOBAL OUTPUT, CHANCE OF SOUTHERN PLAINS RAIN

Wheat futures declined overnight as investors focus on large global supplies and the possibility of rain in the Southern Plains this week.

World wheat production is pegged at 751.1 million metric tons, up from 735.3 million last year, and stockpiles are forecast at a shade under 250 million tons, easily topping the prior year’s 240.3 million, according to the U.S. Department of Agriculture.

Showers are expected in northern Texas near the Oklahoma border late Thursday into Friday, according to Commodity Weather Group. Still, a fourth of the hard red winter wheat crop in the Southern Plains will miss the rain. Little or no precipitation has fallen in the area in at least a month, National Weather Service maps show.

Wheat futures for May delivery fell 2½¢ to $4.24 a bushel overnight on the Chicago Board of Trade. Kansas City wheat lost 2¾¢ to $4.35½ a bushel.

Soybean futures declined 1¾¢ to $9.99¾ a bushel in Chicago. Soy meal lost $1 to $324.80 a short ton, and soy oil added 0.02¢ to 33.16¢ a pound.

Corn futures declined a tick to $3.61 a bushel on the CBOT.

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2. CWG FORECAST SHOWS RISKS IN FOURTH OF CORN BELT; WETTER EASTERN, SOUTHERN MIDWEST

The eastern Plains, southern Midwest, and Delta regions of the U.S. will be wetter than previously expected this summer, Commodity Weather Group said in a monthly seasonal outlook.

A weak or moderate El Niño weather matter will occur this summer, which will moderate the cool northeastern Pacific and bring broad warmth to the rest of the ocean, including a key region near the Baja Peninsula, CWG said in its report.

That will put about a fourth of the Midwest Corn and Soybean Belts at risk for below-average summer rain, but it may not be as hot in the region, which will help crops, the forecaster said. The southeast is most at risk for notable yield threats, CWG said.

The best chance for frequent rains are in the Northern Plains, while a wet start to the summer is already threatening the soft wheat harvest.

The northern third of Canada wheat and canola country is at risk for rain deficits, as are parts of the southern U.S. should the storm stream dip south, CWG said.

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3. STORM FORECAST TO BRING RAIN TO SOUTHERN PLAINS, POSSIBLE TORNADOES IN SOUTHERN MIDWEST

A storm is brewing in the Rockies that is expected to bring much-needed rain to the Southern Plains later this week, the National Weather Service said in a report on Wednesday.

“Severe weather will be possible on Thursday and Thursday night across the Texas and Oklahoma panhandles,” the NWS said. “A couple of things like timing and coverage could change between now and Thursday, but it does appear that thunderstorms could develop late afternoon and early evening and sweep across the panhandles rather quickly.”

The weather system that’s forming likely will bring rain, but also hail, to much of the High Plains on Thursday and Friday. By the end of the week, the area near the Arkansas, Louisiana, and Texas borders will likely see rain, strong winds, large hail, and possibly tornadoes, the agency said.

BRAZIL'S AGRIBUSINESS LEADERS SEE BRIGHT FUTURE

AG ECONOMY REMAINS A COUNTRY LEADER

The Brazilian economy has gone through rough times but is now showing signs of recovery for 2017, and agribusiness is set to be the first to emerge from the slump.

“Agriculture was the only segment of the Brazilian economy to stay in the black in 2015 and 2016. This achievement is thanks to producers, companies, research, and the tireless search for new technologies that help produce more and produce better,” said Jorge Espanha, president of Merial Animal Health.

Data released by the Confederation of Crops and Livestock (CNA) and by the Center for Advanced Studies in Applied Economics (CEPEA) revealed that the gross domestic product (GDP) of Brazilian agribusiness grew 2.71% from January to July 2016 compared with the same period the previous year.

This shows that the political and economic difficulties did not sway producers, who relentlessly believed and invested in their businesses. “Agribusiness has been one of the strengths of the economy, despite the macroeconomic instability. It’s a sector that maintains the GNP,” said Rodrigo Bonato, sales director of John Deere Brazil.

In the third quarter of 2016, the Agribusiness Confidence Index (ICAgro) was up 4.2 points over the previous quarter. According to the Federation of Industries of the State of São Paulo (Fiesp) and the Organization of Brazilian Cooperatives (OCB), who are responsible for the study, this is a record-high rating and confirms the optimism of the sector. See the predictions by the representatives of agribusiness for 2017.

JORGE ESPANHA, PRESIDENT OF MERIAL ANIMAL HEALTH BRAZIL
The balance for the year is positive despite the difficulties. In 2016, finished cattle and milk production stood out, with profitable price rates for most of the year. Beef, pork, and chicken had positive performances, with growth in volume and revenue. Looking forward, a decline in national consumption of proteins, unemployment, and inflation must also be taken into account. Beef consumption for example, which reached almost 40 kg per capita/year in 2013, now stands at 28 kg. In this scenario, consumption per capita of chicken has remained over 40 kg while the figure for pork is 15 kg.  We are betting on recovery of the Brazilian economy for consumption levels to bounce back. Cattle farming is one of the most productive activities in the country. Brazil has over 210 million head of cattle, raised on 167 million hectares. Average production rates are a little over 1 AU (animal units per hectare). This proportion can be doubled. Investment in health, nutrition, and genetics is vital.

RODRIGO BONATO, SALES DIRECTOR FOR JOHN DEERE-BRAZIL

I’d like to point out an important advance: We are seeing a revolutionary opportunity for tropical agriculture in Brazil, with increasing adoption of crop growing, cattle raising, and forest integration. Brazil currently has 11.5 million hectares under this system. We can use the provision of sun and water wisely, achieving productivity in harmony with the environment.
The challenge now is to combine technology with economic operations and assertive management. Technologies such as precision agriculture, integrated systems connectivity, systemized grain planting and cleaning, and deployment of data in farm administration are some examples of innovations. The evolution will be connecting the office with the machines, the machines talking to each other, and the data returning from the field to the computer in real-time, allowing improvements to be made in real time. Our vision is to continue offering machines that are less iron and more intelligence.”

ARIEL MAFFI, VICE PRESIDENT OF RUMINANTS FOR DSM

The current political and economic phase in Brazil calls for greater efficiency in the meat and milk production chains. Regarding livestock, producers have responded positively to the challenges of rising costs of some supplies; those who remained attentive to the use of technology in the field have increased yields and profitability. In 2016, one of the major milestones was the opening up of the U.S. market to Brazilian beef. Although volumes are low, this represents an important event in that many countries follow in the footsteps of the North Americans with solid prospects for the opening up of further new markets. For 2017, the meat market has capacity for expansion on both local and international levels, particularly with the use of ingredients that increase the yield and quality of the finished product. There is scope for a large production increase in this area by adopting technologies.

EDUARDO ESTRADA, HEAD OF CROP SCIENCE DIVISION OF BAYER BRAZIL

I believe technology will be an increasingly important ally, especially in the area of digital farming, which offers new opportunities to support farmers in decision-making based on data, leading to efficiency and management gains. For Bayer, 2016 was an important year. We globally announced the purchase of Monsanto, a move set to bring significant benefits. For 2017, our main objective is to offer integrated solutions, contributing to higher yields.

GUSTAVO JUNQUEIRA, PRESIDENT OF THE BRAZILIAN RURAL SOCIETY

We should expect a tough year ahead, with tighter access to credit, but we shall find solutions for this situation and continue helping Brazil. The challenge is knowing how we can continue expanding agriculture within a structure in which the State will be less present with fewer benefits and less financing coming from the government. We will have to cut financial and bureaucracy costs to get access to cheaper capital. Thus, Brazil needs to review the rules governing agricultural financing. Another point is the opening up of new markets – 2017 is a year that will see an expansion in international trade. We have the competence, we are improving the quality of our products, and this will make us more competitive. We have new technologies. What we really have to do is transform producers into farm entrepreneurs. This involves education, guidance, and planning.

LAERCIO GIAMPANI, DIRECTOR-GENERAL OF SYNGENTA BRAZIL

The shortage of credit available to producers has forced them to review their investments in technology. It is important to note that despite the unfavorable scenario, Syngenta has maintained its investments in research & development. We launch eight soybean varieties annually, all providing major increases in yield. We can report an increase in the market for seeds because we have invested in this, with a focus on achieving gains in yield and profitability for producers. We believe there will be more favorable weather and economic conditions and expect growth in business. The level of investment in biotechnology is set to increase, stimulating the seeds market. And our planning factors in this issue.

LAIR HANZEN, PRESIDENT OF YARA BRAZIL AND SENIOR VP OF YARA INTERNATIONAL

This year exceeded expectations for the fertilizer segment. Up to October, according to data from the National Association for Fertilizer Spreading, fertilizer sales hit record highs nationwide, with volumes up by around 10% on 2015. Our perspective is very good, chiefly owing to the trading relationship that remains attractive for producers. The forecast is that the coming year shall remain favorable with an increase in global demand for food. It is hard to envisage world food production without Brazil. According to the Food and Agriculture Organization (FAO) of the United Nations, in less than 10 years Brazil will become the largest food producer on the planet, ahead of the U.S. In order to fulfill this mission, we need to upgrade production in the Brazilian fields, harvesting more from each pocket of land. Fertilizers are currently responsible for almost half of world food production. Therefore, we recognize that our mission here is essential and shall continue investing to support Brazilian agribusiness.

FÁBIO MEIRELLES ANALYZES

THE PERFORMANCE OF AGRIBUSINESS

The president of the Federation of Agriculture and Livestock of São Paulo State (Faesp), Fábio Meirelles is one of the most emblematic voices in Brazilian agribusiness. Representing the entity since 1975 with numerous achievements to his name, such as the creation of Senat, Meirelles’ trajectory melds with the history of São Paulo agriculture. In an exclusive interview with Successful Farming Brasil, Meirelles goes over what we can expect from the sector in 2017.

SF – What are the prospects for agribusiness in 2017?

FM – It’s really hard to map out perspectives from one year to the next in this current stage. There are 13 million unemployed in Brazil. This is a calamity, a difficult situation. But, amid this critical phase, the only sector working at the same levels as before is agriculture. It is active, especially in São Paulo state. The positive outlook we have is that we won’t stop producing. With losses or otherwise, we’ll carry on working, won’t abandon the land and shall produce. The country is only not facing worse problems because we produce our own food, whereas in 1964 everything was imported.

SF – What is your assessment of the Harvest Plan?

FM  – The Harvest Plan is of huge importance, it defines the rules underpinning Brazilian agribusiness. What we can’t have is lack of budget or delay in releasing funds. Unfortunately, this is taking place not only in agriculture but across the whole economic sector.

SF – Does agribusiness need new public policies?

FM – We always back policies that can boost production and increase yields. Yet, clearly, the government will examine the risks, the budget, and its own needs.

SF – What have been the achievements of Brazilian agribusiness?

FM – In the past, coffee was the national driving force. A single product sustained Brazil’s development. But a magnificent evolution took place. This evolution was so fantastic that we built up a new agriculture and livestock system and animal and plant health system. Soybeans are very important, as are corn, sugarcane, and coffee. Agriculture and livestock is saving the day.
   We are the world’s biggest water conservers. Crop-cattle raising integration is a reality. We currently have around 90 million hectares of farmable land. This is because cattle-raising has passed 50 million hectares over to agriculture without loss. Today, production (beef cattle] can move from 1.3 head per hectare to 3 head for cattle-raising.

SF – And ambitions for the future?

FM – We have to strengthen our agri-industry. We can no longer sell our product by the ton, we have to sell it by the gram. This means that we have to continue to add value to agricultural and livestock products. Rather than take tomatoes to sell in the city, growers can refine products like tomato sauce on the farm itself. I advocate processing of produce and creating conditions conducive for easier sale.

SF – What is your view regarding producers’ level of expertise?

FM – Senar has issued almost 4 million certificates in São Paulo. Farmers are far more intelligent and capable than you might think. The man from the field is wise. He has the expertise. He created the agriculture and livestock farming structure. We cannot overlook the value of men from the field, they have great pride in their profession.

Economic diversification through agriculture yields positive results -Presidency

The Federal Government has stated that its efforts to revamp the economy through agriculture, have started yielding positive results.

Senior Special Assistant on Media and Publicity to the President, Garba Shehu, who made this claim in Abuja affirmed that increase in the volume of rice production and processing across the country was already saving the country a lot of foreign exchange.

Shehu noted that due to the country’s growing rice production stimulated by the Central Bank of Nigeria’s decision to deny foreign exchange for rice importation,  “parboiled rice mills’’ in some Asian countries were shutting down production.

“Five of such mills in Thailand servicing Nigeria have stopped production due to the withdrawal of our patronage,” he said.

The presidential spokesperson informed that government was watching with keen interest the growing investment in rice milling by the private sector and would continue to encourage the Ministry of Agriculture on such efforts geared towards increased productivity.

Also speaking on increased involvement in agriculture, Garba expressed that the revitalisaton of the agricultural sector was bringing about other socio-economic changes in the country.

“A recent survey in two urban areas in Jigawa state, the capital Dutse and Kiyawa showed that jobless young men are migrating from motorcycle taxi, achaba to farming. In Kiyawa, it takes a long wait to catch a motorcycle taxi because they are rapidly disappearing. The young men are moving to the farms. These are development issues in the country that our media should pay attention to”, he said.

He however informed that President Muhammadu Buhari will not be launching the Presidential Fertiliser Initiative next week as was being speculated. This he noted was to allow the production processes take a have a solid foundation before the launching.

Production of the first batch is expected to be completed by the end of March.

Photo Tell: AfDB President, Akinwumi Adesina, Awarded Honorary Doctor of Science and Management at FUTA’s 28th convocation

  

CHI FARMS KICKS OFF TRAINING FOR 1000 FISHFARMERS

Chi Farms Ltd has successfully concluded the training and certification of a pilot group of smallholder fish farmers. A group of 22 women was trained in ‘Best Practices in Professional Fish Farming’ at one of Chi Farm’s catfish hatchery sites in Sagamu, Ogun State.

The Aquaculture Client Focus Team of Chi Farms trained the women in areas such as pond preparation, water management, record keeping and fish farming as a business.

Chi Farms also signed Partnership Agreements with all fish farmers to assure supply of high quality catfish juveniles, quality fish feed, and continous technical support. Furthermore, the pilot group will cooperate with the agriculture team of Diamond Bank Plc. that provides working capital finance for the farmers.

The pilot group are the first 22 farmers out of 500 farmers in the South and 500 farmers in the North of Nigeria that Chi Farms will partner with under a USAID supported technical assistance program. The objective of the program is to contribute to food security in Nigeria by increasing the local production of affordable food.

Dr. Johannes Flosbach from Chi Farms states: “We have visited hundreds of fish farmers in the last months and observed that most of them have pond infrastructure available. Yet, most of the ponds are not in use because farmers are short of working capital, or possibly do not have the professional knowledge to manage catfish farming in a profitable matter.”

As part of the program, Chi Farms will also buy back table size catfish from associated farmers and make it available in major markets. “The quantities of catfish we produce and supply to local markets under this program will measurably increase availability and affordability of food” says Martin Middernacht, Executive Director at Chi Farms Ltd.

The project is supported by the United States Agency for International Development (USAID). In return Chi Farms has committed to conducting significant investments into the expansion of its feed milling and catfish hatchery capacities.

3 BIG THINGS TODAY, MARCH 29

SOYBEANS LOWER IN OVERNIGHT TRADING; ETHANOL OUTPUT, STOCKS DOWN SLIGHTLY WEEK-OVER-WEEK

1. SOYBEANS LOWER OVERNIGHT AS RAIN IN BRAZIL IMPROVES PROSPECTS

Soybeans were lower in overnight trading as rainfall in parts of South America boosts crop prospects.

Mato Grosso and Goias states in Brazil are expected to see regular showers and thunderstorms in the next several days, forecasters said. While that may slow fieldwork, it will improve soil moisture for the second-season corn crop.

Growers in Brazil are expected by the U.S. Department of Agriculture to produce a record 108 million metric tons of soybeans this year. That's up from an outlook for 104 million tons just a month earlier. 

Soybean futures fell 4 ¼ cents to $9.95 ½ a bushel on the Chicago Board of Trade. Soymeal lost 90 cents to $322.60 a short ton and soy oil declined 0.23 cent to 33.29 cents a pound.

Corn futures fell ¾ cent to $3.58 a bushel on the CBOT.

Wheat futures for May delivery rose ¼ cent to $4.22 ½ a bushel in Chicago, and Kansas City wheat was unchanged at $4.32 ½ a bushel.

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2. ETHANOL PRODUCTION, STOCKPILES FALL WEEKLY, STILL AT LOFTY LEVELS

Ethanol production in the week that ended on March 17 fell modestly, according to the Energy Information Administration.

Output totaled 1.044 million barrels a day, on average, down from 1.045 million a week earlier, the EIA said in a report. Though it’s down week-over-week, output is up from the prior four-week average.

Ethanol production has backed off from the record high of 1.055 million barrels a week set in early February but are still at historically lofty levels.

Stockpiles of the biofuel also declined, falling to 22.6 million barrels from 22.8 million a week earlier, according to the EIA. As with production, the weekly decline belies the fact that inventories are at high levels historically.

Still, the week-over-week drop in production and large amounts of stockpiles isn’t good news for corn growers in the Midwest who rely on ethanol plants to buy more than a third of their crop each year.

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3. STORM FORECASTS IFFY ON SOUTHERN PLAINS RAIN SET TO START THURSDAY

Storms are expected to bring rain and lightning to much of southwestern Kansas and the Oklahoma and Texas panhandles starting today, but the outlook is somewhat fuzzy.

The National Weather Service, on one map, shows storms are expected from 4 p.m. this afternoon until 1 a.m. tomorrow morning. Along with thunderstorms, hail and strong winds are expected.

Interestingly, much of the region is in a red flag warning – when wildfires spark easily due to overly dry conditions – high wind watches or fire-weather watches.

The NWS said thunderstorms are possible but the threat of severe weather is low, so rain will likely miss most counties in the region.

MAXIMIZE NITROGEN EFFICIENCY, UPTAKE AND PROFITABILITY

Spring rain can dramatically increase nitrogen loss through leaching by pushing nitrogen lower into the soil profile. 

Instinct® and N-Serve® nitrogen stabilizers reduce leaching and extend nitrogen availability in the soil for up to eight weeks. By lengthening the time nitrogen is in the soil, Instinct and N-Serve can help your customers achieve an average revenue increase of $21 per acre.*

In most cases, these two products extend nitrogen availability six to eight weeks during critical growth points in a corn plant’s development.  

In addition to the yield and economic benefits of using Instinct or N-Serve, there are also important environmental advantages of keeping nitrogen in the soil and out of waterways. Field trials show that the active ingredient in Instinct and N-Serve effectively increase soil nitrogen retention by 28 percent while decreasing leaching into groundwater by more than 16 percent.** 

N-Serve has been used with confidence to maximize anhydrous ammonia applications for more than 40 years. Instinct, introduced in 2007, provides growers with a versatile alternative by effectively stabilizing other forms of nitrogen, including urea, UAN and liquid manure. 

To calculate the profit your customers can achieve with an application of Instinct and N-Serve, visit MaxInMaxOut.com or contact your Dow AgroSciences sales representative.  

*Assuming $3/bu. corn and based on 20 Dow AgroSciences internal field trials from 2015, resulting in an average of 7 bu./A yield increase.

**Wolt, J.D. 2004. A meta-evaluation of nitrapyrin agronomic and environmental effectiveness with emphasis on corn production in the midwestern USA. Nutr. Cycl. Agroecosyst. 69:23–41. doi:10.1023/B:FRES.0000025287.52565.99.

®Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow. Instinct is not registered for sale or use in all states. Contact your state pesticide regulatory agency to determine if a product is registered for sale or use in your state. Do not fall-apply anhydrous ammonia south of Highway 16 in the state of Illinois. Always read and follow label directions. 

Face the future with courage -Adesina counsels graduands

President of the African Development Bank Group, Dr. Akinwumi Adesina has urged graduating students of Federal University of Technology Akure (FUTA) to face the future with courage and determination.

He gave this advice at the Institutions’ 28th convocation ceremony which held last weekend. Adesina encouraged the students while making mention of some of the difficulties he encountered with respect to the choice of a career path.

He went further to buttress the importance of agriculture in the scheme of things in the country and the world at large “agriculture is more important than medicine. My Father called my son who was a doctor. He does call me doctor so when he mentioned the name, I answered but he said, ‘not you, I mean the real doctor.’ Then I told him, ‘even as a doctor, you will still have to eat three times a day before taking your medications’” he said.

The AfDB boss enjoined the graduating students to imbibe the spirit of simplicity, servanthood and resilience. “Whatever you have set your heart to do, close your ears, pray to God and forge ahead. Always, be a billboard that God can advertise himself through” he enjoined.

Dr. Akinwumi was awarded an honorary doctorate degree by the University at the convocation ceremony.

Abakaliki rice is the best in the world – US Ambassador

United States Ambassador to Nigeria, Stuart Symington has endorsed Abakaliki rice as one of the best brands in the world.

The Ambassador who paid a visit to Abakaliki Rice mills in Ebonyi state had commended the efforts of the state government on the level and quality of production while also encouraging the good work.

”Your rice is the best anywhere in the world and we commend the governor for putting his government to work in Ebonyi state”, he said.

Symington however called for sustained developmental efforts in the state to promote greater Agricultural and mining activities.

“The first critical step involves upgrading economic fortune of the state and also setting up opportunities in the area that would welcome investors to the place thereby making it possible for investment” he noted.

He also advised the government to sustain the current peace and security in the state as no meaningful development can flourish in a rancour environment.

The Governor of Ebonyi state, David Umahi commended the Ambassador for his visit and also solicited his assistance in attracting investors to the state,

Umahi assured the investors of a very healthy environment.

NIMET PREDICTS LIVESTOCK DISEASE OUTBREAKS

Livestock population especially in the northern part of the country may suffer water stress and outbreak of heat-related diseases this year, particularly in the early months due to the expected warmer-than-normal conditions predicted by the Nigerian Meteorological Agency (NiMet) in the 2017 Seasonal Rainfall Prediction (SRP).

The new Director-General (DG) of NiMet, Prof. Sani Abubakar Mashi, said the expected heat stress is likely to persist throughout the year.

Prof. Mashi advised farmers to arrange for alternative sources of water for their livestock during the period.

“The relevant authorities should also encourage farmers to adopt international best practices in animal husbandry through provision of ranches and fodder for livestock as well as ensuring controlled grazing of animals to reduce clashes among farm owners and herdsmen,” the DG noted.

He, however, pointed out that this year, herders may be able to take to grazing in the northern part of the country and may have feed available for longer time due to higher than normal rains.

It was also predicted that “food production is expected to be less than normal due to shorter growing season length over large parts of the country.”

Crop farmers across the country, especially in the north, were advised to plant early maturing and drought resistant varieties to avoid the dangers of the predicted longer days of dry spells.

The Special Adviser to Katsina State Governor on Agriculture, Dr. Abba Y. Yakubu, advised farmers, state governments and other stakeholders to heed the veritable scientific predictions of NiMet to ensure food security in the nation.

SOURCEDaily Trust