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Baltic Exchanges freight index sets record highs
The Baltic Exchanges freight index, which tracks rates to ship dry commodities, rallied to new eight-month highs recently.

The index gauges the cost of shipping commodities such as iron ore, grain and fertilizer. Cheaper imports of iron ore have spurred demand from China, which has led to congested ports and rising shipping rates.

The increased shipping rates are a bearish factor for U.S. commodity exports. But analysts do not expect shipping costs to continue to shoot higher. An oversupply of vessels, weak global demand for commodities and the recession are all expected to temper any further gains this year.
Source: Doanes Agricultural Report; Vol. 72, No. 23-1; June 5, 2009

Ag exports forecast at $96 billion for 2009
The forecast for fiscal year 2009 agricultural exports is $96 billion, down from $115 billion in FY 2008, according to the Agriculture Department’s Economic Research Service (ERS). The ERS report notes that fierce competition remains in global grain markets with the grains sector accounting for nearly all the expected annual decline in bulk commodity shipments.

The forecast for FY 2009 agricultural imports is $81 billion, $2 billion higher than the FY 2008 total. A prolonged and severe recession and weak consumer spending has reduced import growth to the slowest rate in many years, according to ERS.

World trade volume is expected to drop between 6 percent and 9 percent, as the recession continues throughout the developed world.
Source: AFBF; Executive Newswatch; May 29, 2009

Wind meter at your fingertips
There is now a wind meter application that can be downloaded to your iPhone for only 99 cents. It gives you real time wind readings of 3 to 28 mph right where you are, not approximated off nearby anemometers. Visit www.windapp.com for more information.
Source: Doanes Agricultural Report; Vol. 72, No. 25-1; June 19, 2009

U.S. farmers rank low on global subsidy scale
Research by Texas Tech University’s Cotton Economics Research Institute (CERI) shows that all countries, regardless of size, protect their agricultural producers and generally far more than the United States.

According to CERI, the U.S. falls near the bottom on the use of tariffs. A country-by-country and commodity-by-commodity breakdown of foreign agricultural subsidies and tariffs reveals some of America’s biggest competitors in the developing world have much higher tariff protection, while developed nations in the European Union and Japan outpace the U.S. in producer income supports.
Source: AFBF; Executive Newswatch; June 12, 2009

McDonald’s involved in egg-laying hen study
McDonald’s will participate with leading animal welfare scientists, academics, non-government organizations and egg suppliers in a commercial-scale study of housing alternatives for egg-laying hens in the U.S., including cage-free housing.

The announcement brought mixed reactions from animal rights and animal welfare groups. The Humane Society of the United States said it is simply a stall tactic by McDonald’s. The American Humane Association, a participant in the study, said such research is very much needed to determine if differences do indeed exist in laying hen production systems in regard to the welfare implications of birds.

In addition to animal welfare, the study will also look at environmental, food safety and economic issues related to laying hen production systems.
Source: AFBF; Executive Newswatch; May 28, 2009

New export terminal to be built in Northwest
Bunge North America has entered into a joint venture with ITOCHU and STX Pan Ocean to build and operate an export grain terminal in Longview, Wash.

This will be the first such facility built in the U.S. in over 20 years. It will handle grain, oilseeds and protein meals. The Pacific Northwest is the second largest export corridor in North America.
Source: Doanes Agricultural Report; Vol. 72, No. 23-1; June 5, 2009