Ag Headlines, Friday September 4, 2015

China Poses Thereat to Global Growth

The International Monetary Fund warns slower growth in China represents a threat to global economic growth.  BBC reports China's slowdown appears to have bigger repercussions for other countries than had been expected.  The recent troubles in China have sent the price of some commodities sliding lower.  The IMF said that the problems could lead to a "much weaker outlook" for global growth.  Chinese stock markets have been falling since mid-June, and the government unexpectedly devalued the Yuan last month.  Many believed the move was an attempt to make Chinese exports more competitive.  US Treasure Secretary Jacob Lew warned China against manipulating its currency to give its exporters an unfair advantage.  The IMF called on China to keep reforming its economy despite the recent pitfalls and noted concern about the impact of global growth should the U.S. Federal Reserve raise interest rates later this year.

Farm Groups Urge National Adoption of WOTUS Injunction

The U.S. Cattlemen's Association joins the list of organizations urging national adoption of the injunction filed in North Dakota last week over the "Waters of the U.S." rule.  The EPA claimed last week the injunction only applied to the 13 states included in the North Dakota lawsuit because other courts denied an injunction in separate lawsuits.  USCA President Dannni Beer said "all producers deserve the same treatment and consideration under the over-arching rule."  Separate lawsuits were filed by 27 states, along with industries from petroleum to construction and agricultural groups after the final rule was posted to the Federal Register.  As the Lawsuits consolidate, they provide three arguments for vacating the rule, according to the University of Nebraska-Lincoln.  The lawsuits allege that the finalized WOTUS rule exceeds the intended purposes of the Clean Water Act, the final rule wasn't given a comment period and the EPA may have inappropriately worked with environmental activists to lobby for the rule and support the agency's agenda.

Syngenta to Buy Back Shares Valued at $2 Billion 

Syngenta will buy back more than $2 billion worth of company shares and sell a vegetable seeds business.  The moves follow the company's efforts to fend off Monsanto's attempted takeover of Syngenta.  Bloomberg reports the Swiss-based Syngenta will return "significant levels of capital" to shareholders through the buyback program expected to start in the coming weeks.  The shares have recently gained as much as 3.5 percent.  However, Syngenta's stock fell 18 percent after Monsanto abandoned its takeover attempt last month.  Beyond that, part of the shareholder base supported the takeover attempt.  the up-for-sale vegetable seeds unit generated $663 million in sales last year, and may fetch three to six times that figure.

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