Ag Headlines, Friday November 20th, 2015

Monsanto Expecting Corn Prices to Rise in 2016

Monsanto executives this week said the company expects corn prices to rise in 2016. However, they added the majority of its growth will come from new products and expanding its reach to new markets, according to Reuters. Monsanto held investor meetings earlier this week. The company expects corn prices will recover to $4.50 a bushel in the next 8 to 12 months from less than $4 currently. That comes just a week after USDA cut its price outlook for the marketing year by 15 cents a bushel to a range of $3.35 to $3.95 a bushel. That forecast comes as corn prices are amid a steep downturn, as with other commodities, sitting at multi-year lows. Eighty percent of Monsanto's earnings over the next three to four years are expected to be from innovation such as newly developed products. The remaining 20 percent is tied to the price of commodities like corn and soybeans.

FDA Denies Petition for Mandatory GE Labeling

The Food and Drug Administration has denied a petition from the Center for Food Safety for mandatory labeling of food with genetically modified ingredients. The announcement Thursday also included guidance issued for food companies who choose to label food derived from genetically engineered salmon and crops, according to the Hagstrom Report. FDA Associate Commissioner for Policy Leslie Kux wrote “Your petition does not provide a sufficient basis for FDA to rescind or otherwise deviate from its 1992 policy,” in a letter to the Center for Food Safety. Further, FDA said “the petition does not provide evidence sufficient to show that foods derived from genetically engineered plants, as a class, differ from foods derived from non-GE plant varieties in any meaningful or uniform way.” Meanwhile, the guidance on the labeling of foods from genetically engineered crops is final. Although companies can always voluntarily add labeling to their products as long as it’s truthful and not misleading, these guidances provide recommended actions for those who may wish to add information about whether the foods contain ingredients from GE source, according to the FDA.

Thanksgiving Meal Cost up Slightly Compared to Last Year

An American Farm Bureau price survey shows a 70 cent increase in price for a Thanksgiving Day meal compared to 2014. Farm Bureau’s 30th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $50.11. AFBF Deputy Chief Economist John Anderson said retail prices seem to have stabilized for turkey, which is the centerpiece of the survey. The big ticket item – a 16-pound turkey – came in at a total of $23.04 this year. That’s roughly $1.44 per pound, an increase of less than 9 cents per pound. That increase is due to high pathogenic avian influenza. However, HPIA did not have a dramatic impact on turkey prices, according to Anderson. The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10. Items that declined modestly in price were mainly dairy items. The average cost of the dinner has remained around $49 since 2011. This year’s survey totaled over $50 for the first time.

NAFB News