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ASA: Neonicotinoid Seed Treatments Critical for Certain Soybean Operations

In comments submitted to the U.S. Environmental Protection Agency today, the American Soybean Association (ASA) disagreed with the conclusions of a recent report from EPA that calls into question the efficacy of neonicotinoid seed treatments in soybean operations.

In the association’s comments, ASA President and Brownfield, Texas, farmer Wade Cowan pointed out that “…soybean producers use neonicotinoid seed treatments where they are needed and effective, and don’t use them where not.” Cowan also argued that recent research from Mississippi showing approximately 90 percent adoption of neonicotinoid seed treatments signals that the technology does work for farmers in certain areas.

In the comments, Cowan noted that neonicotinoid seed treatment use is tailored to a very specific set of circumstances, and in those settings, that particular technology is critical, “Farmers balance the efficacy of different treatments based on their individual farms, and experience shows that farmers who purchase seed treatment for soybeans do so because it reduces or eliminates the need for application of additional inputs after the soybean seedling has emerged,” he said. “Seed treatments both protect the soybeans from insects in the soil after planting as well as protecting the seedlings as they emerge. A below-ground insect infestation has no rescue options except replanting, and in the northern growing regions, replanting is not often an option.”

 

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Agricultural and Economic Briefing: USDA Reports, Global Tensions, and Market Reactions

Welcome back to our channel for a detailed update on key developments affecting the agricultural sector and broader economic landscape. Here's what's on the agenda today:

USDA Crop Production and WASDE Reports The USDA is set to release its monthly Crop Production and WASDE reports today at 11:00am CST. These reports will reflect the updated new crop US corn and soybean balance sheets, incorporating data from the June Planted Acreage report which showed a significant increase in corn acreage. While no major adjustments to US corn and soybean yield projections are expected, the focus will be on potential changes to global supply and demand. The reports are anticipated to bear a mostly bearish tone, especially concerning corn prices.

Geopolitical Developments in Ukraine Ukraine's recent detention of a foreign cargo ship on the Danube River, suspected of carrying stolen Ukrainian grain from Russian-occupied Crimea, has escalated tensions. This incident has stirred concerns about potential Russian retaliatory actions during Ukraine's crucial grain export season. Wheat futures saw a sharp rise following the news, highlighting the sensitive interplay between geopolitical events and commodity markets.

US Drought Conditions and Agricultural Impact Recent USDA drought monitor data indicates mixed conditions across the US Corn Belt and High Plains, with many areas receiving beneficial rainfall and experiencing cooler-than-average temperatures. However, conditions have worsened in parts of western Illinois and northeast Missouri. These evolving weather patterns are critical for crop development stages and will continue to influence market dynamics.

US Crop Export Sales Corn export sales showed an increase last week, with Colombia being the largest buyer. However, soybean sales were relatively weak, with the Netherlands as the primary buyer. The varied performance in crop export sales reflects shifting global demand and market conditions, which traders closely monitor for strategic insights.

Economic Indicators and Market Reactions In a surprising economic update, consumer prices declined for the first time in four years last month, with the CPI falling 0.1% in June. This decline, coupled with the slowest annual inflation increase since March 2021, has significantly influenced market expectations, with the probability of the Federal Reserve beginning rate cuts in September now standing at 89%.

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