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Challenging Science and Sanity

By Greg Henderson



 

Last month the livestock industries cheered as the first shipment of U.S. beef in 14 years landed in Shanghai. The reopening of the Chinese market offers tremendous opportunities for American cattlemen, but also serves as a reminder of the challenges antiscience arguments can present to all of agriculture. China closed its market to U.S. beef because of a single cow confirmed with bovine spongiform encephalopathy (BSE) in 2003. Despite assurances from American officials about the science and safeguards that would prevent BSE from entering the human food supply, the Chinese government kept the ban in place far too long.
 
BSE, however, is just one of the challenges to the science and sanity of modern food production. By the end of this year, Dairy Herd Management editor Jim Dickrell says few dairy processors will accept milk produced with recombinant bovine somatotropin (rBST), the protein produced through biotechnology. The decades-old technology helps dairymen produce more milk with less inputs, reducing dairy’s carbon footprint.
 
Yet, the use of the rBST technology will fade into history, Dickrell says, “driven there by ignorance, misinformation and fear.”
 
“Proponents tried to explain but could never completely convince naysayers about the benefits of the technology and how it could provide more dairy products at lower cost without jeopardizing food safety or cow health,” Dickrell says. “Opponents, both within and outside the industry, played on consumer fears of ‘Frankenfoods’ and, worse, what it might do to children’s growth and development.”
 
A first-world problem for sure. American consumers seem willing to forego the use of such technology even if it means paying more for dairy products.
 
Where does such science-denying silliness stop? Walk down the meat isle at any grocery store and you’ll see there’s no limit to buzzword labels food marketers use to lure uneducated consumers: organic, all natural,
GMO free, grass fed, cage free, cruelty free, hormone free, antibiotic free, the list goes on.
 
This year chicken companies have tripped over each other in an effort to assure consumers they’re either producing all their birds without antibiotics, or they’ve set a date to be antibiotic free in the near future. Grocery cases are already stocked with branded chicken products that tout “hormone free” and “antibiotic free.”

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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!