2 Canada, the U.K., CETA, Brexit, Trade and Hedging Markets | WP

"That might surprise some people, who assume the U.K. does almost all of its trade with the EU, but in fact the U.K. is reliant on the EU for less than half of its exports.

…In another interesting fact, the U.S. is the U.K.’s number one nation-to-nation trading partner, more important than German or France by a considerable amount.

…The U.K. has also been keen to see the still-stumbling EU-US free trade talks proceed, but now that the U.K. has opted for Brexit, it’ll probably switch its attention to getting a U.K.-US deal as soon as possible.

…European politicians often like to fulminate against British demands for special treatment within the EU, and they might want to try to exact some vengeance on the U.K. if it opts for a “hard Brexit.”

…Sure, it’ll be unfortunate if the Europeans play hardball, but the UK buys more from the EU than it exports to the EU, so it can play hardball right back at them. Some say the British are living in deep denial about the damage likely to come from Brexit, but I think it’s more likely to be a self-confidence based on seeing the EU’s problems up close, and from an understanding that the EU is far from being the U.K.’s only export option. in fact, it is a slightly declining market for the U.K.

…The British can contemplate having half their export trade complicated by Brexit because they still have 50 percent unaffected, and perhaps likely to become much larger outside EU restrictions on trade.

…There is lots of pressure across the EU to get the deal approved, especially since it took five years to negotiate and has been awaiting ratification for a couple of years. … But the EU has a sclerotic political/bureaucratic system, and if you think the willingness of insiders to push it through will be enough, think for a minute what happened in Canada during the Meech Lake mess.

…Ten years from now the EU’s share of British exports might be less than one-third, and that wouldn’t be bad for Britain.

That should give Canada impetus to get a deal with the U.K. done ASAP, and encourage us to redouble our efforts to build trade deals with other non-U.S. countries."

Canada, the U.K., CETA, Brexit, Trade and Hedging Markets | WP

3 Canola Rally Stalls, Pressured by Falling US Crop Futures, Lower Crude | WP

"Canola closed a little lower Thursday, the first loss since the rally began on Oct. 3, weighed down by falling U.S. crop markets and weaker crude oil values.

In the morning the November contract climbed as high as $508.80 per tonne before reversing and closing at $501.70.

The Saskatchewan crop report said there was almost no progress in the past week but the forecast is moving toward drier weather and warmer temperatures although showers are still possible.

…Such stimulus would weigh down on the euro even as expectations rise that the U.S. Federal Reserve will increase interest rates in December.

…Limiting the losses were weekly U.S. crop export sale numbers that came in stronger than expected.

Crude oil fell on profit taking and the stronger U.S. dollar after jumping higher on Wednesday on tighter than expected weekly U.S. oil stocks.

…Light crude oil nearby futures in New York were down $1.17 to US$50.43 per barrel."

Canola Rally Stalls, Pressured by Falling US Crop Futures, Lower Crude | WP

Markets, Quote & Charts Link | WP

5 Embrapa and InterCement Develop Project to Use Forage Plants for Energy | AgroNews

"Aligning with the growing global demand for energy, the Brazilian Agricultural Research Corporation (Embrapa), in partnership with InterCement, is developing a project to evaluate the use of biomass from forage plants for energy generation in the cement production process.

…InterCement has 40 cement and grinding plants and its installed capacity is over 47 million tons/year. InterCement is among the 10 largest international cement companies in the world and is a leader in the markets of Portugal, Argentina, Mozambique and Cape Verde. It is also a deputy leader in Brazil and Paraguay and holds a prominent position in South Africa and Egypt.

…They seek to replace traditional fossil fuels and increase the use of a co-processing and a firing system of industrial and municipal waste and the use of renewable energy sources.

…As a result, InterCement and Embrapa, through various studies, seek to assess the capacity of the biomass of three species of tropical forage grasses to become alternatives in the power generation process.

…According to the studies, among the benefits of tropical grasses are the large amount of biomass produced by some species, low demand for inputs and easy adaptation to different types of soil and climate.

…The cooperation project aims to increase energy production, job creation and incomes, thus increasing the supply of technologies, products and services related to the business of biofuels with the reduction of environmental impact.

…The project has been developed on a pilot scale in the experimental area of Embrapa Cerrados in Planaltina, Federal District, and in InterCement’s plant in Cezarina, Goiás."

Embrapa and InterCement Develop Project to Use Forage Plants for Energy | AgroNews

1 Brazil: Nufarm Obtains Brazil Product Extensions | AgroNews

"Nufarm has obtained the registration of its agrochemicals Dimax® 480 SC (Diflubenzuron), Kaiso® 250 S (Lambda-cyhalothrin) and Tenaz® 250 SC (Flutriafol) in Brazil. The products are now being authorized for use on traditional crops such as yam, hardwoods, passion fruit, peppers, cabbage and tomatoes, in the Northeastern region of Brazil.

"The extension of registration of these products will allow farmers who do not have sufficient phytosanitary support to protect their crops from plagues and diseases,” summarized Jeander Costa, agronomist and executive manager of Trade Marketing at Nufarm.

…According to Costa, the authorization to use these products will contribute to the improvement in the quality of agricultural production in areas like Pernambuco and Paraíba, as well as in the regions of Arapiraca (Alagoas), Feira de Santa and Jabaquara (Bahia), Itabaiana (Sergipe) and Serra de Ibiapaba (Ceará).

According to the executive, Dimax® 480 SC is mostly used for the control of caterpillars, while Kaiso® 250 S helps in the wide-spectrum control of plagues.

…Costa added that the three products, which have receive extension of registration, have been employed with success over the past years on crops such as cotton, citrus, coffee, fruits and soybeans in the major agricultural areas of Brazil.

4 Commission’s Lentil Reports Irk Processor | WP

"The Canadian Grain Commission published a report stating that of the 416 lentil samples it had analyzed as of Oct. 11, 28 percent graded No. 1, 35 percent No. 2, 26 percent extra 3 and 11 percent No.

…He estimates four to six percent of the crop will make the top grade based on what he has seen come through the company’s facilities.

He said the commission’s sample size is too small and because the program is voluntary it is not representative of what’s out in the country.

…Daryl Beswitherick, program manager of quality assurance standards with the CGC, agreed that it is a small sample size but that doesn’t mean it is inaccurate.

…Beswitherick noted that typically the earlier harvested crop is of better quality, so the percent of No. 1 could fall as the harvest proceeds.

He also pointed out that lentils are typically traded as No. 2 or better, so it doesn’t really matter how much of the crop makes the No. 1 grade.

…Beswitherick acknowledged that the pulse industry does not use the commission’s grain grading services as much as it once did be-cause it often conducts business using specifications outside of the CGC’s grading specifications.

…In its Sept. 12 crop report, Sask-atchewan Agriculture estimated four percent of the crop would be No. 1, 42 percent No. 2, 43 percent extra 3 and No. 3 and 11 percent sample.

“I suspect those lentil grades that we got Sept. 12 will stay pretty true throughout the rest of the harvest here with maybe a few percentage points moving be-tween grades,” said Daphne Cruise, regional crops specialist with the province.

If anything, she thinks the quality will worsen because there was still 28 percent of the lentil crop left in the field on Sept. 12 and that later-harvested crop will be of poorer quality.

…Simpson said the lentil market has bottomed out and is heading higher as buyers come to grips with Canada’s poor quality crop and an Indian kharif crop, harvested in October or November, that isn’t as good as once believed."

Commission’s Lentil Reports Irk Processor | WP

6 EPA Bows to Chemical Industry in Delay of Glyphosate Cancer Review | AgroNews

"The Environmental Protection Agency was slated to hold four days of public meetings focused on essentially one question: Is glyphosate , the world’s most widely used herbicide and the lynchpin to Monsanto’s fortunes, as safe as Monsanto has spent 40 years telling us it is?

But oddly, the EPA Scientific Advisory Panel (SAP) meetings, called to look at potential glyphosate ties to cancer, were “postponed” just four days before they were to begin Oct. 18, after intense lobbying by the agrichemical industry. The industry first fought to keep the meetings from being held at all, and argued that if they were held, several leading international experts should be excluded from participating, including “any person who has publicly expressed an opinion regarding the carcinogenicity of glyphosate”.

As the meetings drew near, CropLife America, which represents the interests of Monsanto and other agribusinesses, specifically took issue with at least two scientists chosen for the panel, alleging the experts might be unfavorably biased against industry interests.

…Croplife also argued that because Infante was the “only epidemiologist on the glyphosate SAP” he would have enhanced influence in the evaluation of epidemiological data about glyphosate and cancer.

…His resume includes a stint at the National Institute for Occupational Safety and Health where he conducted epidemiological studies related to carcinogens, and he has served as an expert consultant in epidemiology for several world bodies, including the EPA and the World Trade Organization.

According to sources close to the situation, Infante remains a panelist as of this week, but there is no certainty when the meetings might be rescheduled, and what the panel membership might look like when they are rescheduled.

…It seems more than a little hypocritical that those scientists are presented as credible by the industry, but scientists like Infante and Portier are said to be unfit to advise EPA because of suspected bias. … He has participated in over 60 other SAP meetings and has served on expert and advisory panels for the National Institutes of Health, National Institute of Environmental Health Sciences, the National Toxicology Program, and the World Health Organization Food and Agriculture Organization.

Portier also would not comment about the industry concerns about him, the postponement or changes to the makeup of the SAP, other than to say that as of today, he remains on the panel."

EPA Bows to Chemical Industry in Delay of Glyphosate Cancer Review | AgroNews

7 EU Env Ministers Urge Pesticides Use Reduction to Protect Pollinators | AgroNews

"EU environment ministers urge all Convention on Biological Diversity (CBD) parties, relevant organisations and stakeholders at all levels to take action to protect pollinators and their habitats in order to mitigate and stop their decline, including in order to avoid related financial losses and including through strategies to avoid or reduce the use of pesticides harmful to pollinators.

The ministers concern about the current and future state of pollination and pollinators, in particular wild pollinators, which are fundamental for the conservation of biological diversity and the maintenance of natural terrestrial ecosystems and key ecosystem services, such as food production."

EU Env Ministers Urge Pesticides Use Reduction to Protect Pollinators | AgroNews

8 Europe Accounts for Almost a Quarter of Global Pesticide Market | AgroNews

“Today Europe accounts for almost a quarter of the growing global pesticide market, with the vast majority of products applied in the agricultural sector. The three main classes – herbicides, fungicides and insecticides – are used to protect plants from weeds, fungi and insects. Their application rates vary depending on farmers’ training and on the crops’ characteristics. Grapes, for example, are a fungicide-intensive crop, and tulips – widespread in the Netherlands – are pesticide-intensive due to their value and high pest pressure.

Pesticide Champs 20161021

…In the early 90s, new EU regulations led to the withdrawal of various compounds, some of which were replaced by more effective products used at lower dosages, leading in some countries to a slight reduction in the volume of pesticide used. Across Europe, various incentives encourage low-pesticide farming: Sweden and Norway both introduced targeted tax schemes in the 1980s, followed by France and Denmark in the late 2000s, though with limited effectiveness. … Another rival to pesticides’ success, organic agriculture, amounted to 5.4 per cent of the total agricultural area in 2014, an increase of 2.3 per cent from the previous year.

Europe Accounts for Almost a Quarter of Global Pesticide Market | AgroNews

9 Grains Extend Headway, Amid Talk of Fund Buying | AM Markets | Agrimoney

“Benson Quinn Commodities, for instance, saying that gains in soybean prices ”seemed to be more macro in nature“, flagged signs of ”funds coming to the commodity sector as signs of rising US inflation along with China hitting its growth target in third quarter reporting GDP of 6.7%".

…If the rise in prices was just down to funds closing the substantial short bets that funds held in futures and options (a level which hit a record two weeks ago), that would be reflected in a drop in open interest, ie the number of live contracts.

But in wheat, while open interest in futures has fallen a bit, the decline is of a modest 5,000 lots or so over the week to last night’s close, while for wheat options, opening interest has seen a gain of more than 20,000 contracts.

…In soybeans, for the record, in which hedge funds already had a substantial net long position, open interest in futures is up some 25,000 contracts, and in options by a little over 5,000 lots.

…In early deals on Thursday, corn futures boosted their own technical credentials by – in rising 0.2% to $3.58 ¼ a bushel for December delivery, as of 09:30 UK time (03:30 Chicago time) – trading above their 100-day moving average for the first time in more than three months.

Meanwhile, demand signals remain supportive too, with weekly US ethanol data released on Wednesday showing production last week soaring 36,000 barrels a day to 998,000 barrels a day, while inventories dropped 351,000 barrels to an 11-month low of 19.04m barrels nonetheless.

…At Futures International, Terry Reilly said that with US soybeans “half harvested, many of the beans are flowing to the Gulf, pressuring basis, and providing opportunities for China and major importers to snap up as much as they can, which is slowing corn [exports]”.

…A greater insight into US exports will be known later, when the US Department of Agriculture unveils weekly export sales data expected to come in at 700,000–900,000 tonnes for corn, besides 1.0m–1.30m tonnes for soybeans.

…Still, Kuala Lumpur palm oil futures retreated a bit on profit-taking, by 0.5% to 2, 718 ringgit a tonne, while Chicago soyoil futures for December eased by 0.2% to 35.34 cents a pound, while remaining among their highest levels for two years.

…The results of the tender – the last one of which, last week, revealed that US wheat was among the world’s cheapest – will be known later, and came just hours after Egypt’s supply minister said the country had sufficient wheat reserves for five months.

…Chicago wheat for December stood up 0.5% at $4.22 ½ a bushel, although this remained an underperformance compared with Kansas City hard red winter wheat for December, which gained 0.7% to $4.28 ¼ a bushel.

Grains Extend Headway, Amid Talk of Fund Buying | AM Markets | Agrimoney

10 Wet Weather Continues to Delay Saskatchewan Harvest | WP

"Wet weather in Saskatchewan continued to delay harvest, and some crops may have to stay over winter, according to the province’s latest crop report.

About 81 percent of crops have been combined, far behind the 97 percent five-year average for this time of year, Saskatchewan Agriculture’s weekly Crop Report said.

…Harvest is farthest along in the southeastern part of the province, with 90 percent of the harvest in the bin as of Oct.

…Eighty-five percent of the crop is combined in the southwest, 79 percent in the east-central region, 73 percent in the west-central region, 78 percent is combined in the northwest and 80 percent is combined in the northeast, the report said.

Many fields are still wet and some producers say the ground will have to freeze before combines will be able to start rolling again.

…Key growing regions in the province saw precipitation of 15 to 35 millimetres, with areas in the northeast and northwest reporting snow as well in the past week."

Wet Weather Continues to Delay Saskatchewan Harvest | WP