Farm News, Friday August 19, 2016

Monsanto Allowing Bayer Limited Access to its Books

Monsanto has allowed Bayer AG a glimpse into the St. Louis, Missouri-based seed company’s books amid ongoing merger talks. Sources familiar with the talks told Reuters this week Monsanto and Bayer have yet to sign a non-disclosure agreement, but Monsanto has granted Bayer a “limited drip of information.” A non-disclosure agreement would allow Bayer to conduct due diligence on Monsanto in reconsidering its offer to acquire the company. The sources also say Bayer has no appetite to put a deal at risk by going hostile, although added talks were "difficult." Monsanto CEO Hugh Grant told investors this week that Monsanto remains in discussions with Bayer and other parties about “potential strategic transactions.” Monsanto has rejected two potential bids from Bayer thus far, the latest being worth $64 billion.

Lower Meat Prices Stall Food Inflation

Consumer food prices in the U.S. were unchanged in July, thanks largely to declining meat costs. The Labor Department reports the consumer price index for meats, poultry, fish and eggs purchased at the grocery store dropped 0.6 percent last month, following a 0.7 percent decrease in June. Over the previous 12 months, meat, poultry, fish and egg prices together have fallen 5.6 percent. The decline has contributed to a decrease of 1.6 percent in the index for all food consumed at home over that time span, according to Meatingplace. In July, the index for food at home fell 0.2 percent, its seventh decline in the past nine months. Prices for dairy, cereal and bakery products fell last month, while fruits, vegetables and nonalcoholic beverages turned higher.

Louisiana Flooding Destroys $14 Million of Rice

With more than 20 inches of rain in southwest Louisiana since last week, early estimates are that flooding has destroyed $14 million worth of the state’s rice crop. That estimate remains “fully speculative,” however, as the full scope of damage will not become clear until the water recedes. Louisiana Agriculture Commissioner Mike Strain says “once the water recedes we'll begin doing analysis” along with federal officials. The U.S. Rice Federation says about 80 percent of the southwest Louisiana crop had been harvested before the flooding, but of the 20 percent still in the field, 20 percent of that would likely be lost due to the flooding. None of the rice mills in the state have reported flood-related disruption.

Source:  NAFB News