International Ag News, Thursday June 30, 2016

European Commission Extending Glyphosate License

The European Commission is extending its approval of the herbicide ingredient glyphosate. The Commission will extend the license for 18 months, a move that was earlier proposed to allow time for more research on glyphosate. The Commission announced the extension after several rounds of failed talks within the European Union. The license was set to expire June 30th (today) without action. Expiration would have barred the use and sale of glyphosate throughout the EU and require a phase-out of products containing glyphosate. American Soybean Association President Richard Wilkins says the extension “gives U.S. farmers and exporters the assurance that they will at least have access to the European market for that period of time.” Some fear the ban of glyphosate could lead to export issues between the U.S. and the EU.

Mexico Could Pass Japan as Top U.S. Corn Importer

Pro Farmer’s First Thing Today reports buying patterns for U.S. corn have shifted, with U.S. corn export sales to Mexico helping to offset light purchases by more traditional buyers like South Korea. Mexico is well positioned to take over the top buyer role of U.S. corn from Japan as Japan is on pace to buy the second smallest amount of U.S. corn since 1999. Data from the U.S. Department of Agriculture shows that South Korea's purchases through mid-month are also the second lowest in a decade. The data also highlights how the rise of suppliers like Ukraine and Brazil has shifted global grain flows. There is also concern the recent boost in demand among Asian buyers could stall due to Britain's vote to exit the European Union and its impact on the currency market.

EU Promises Review of Any Bayer-Monsanto Merger

The European Union's antitrust agency this week says it will conduct a strict review of Bayer AG's proposed $62 billion purchase of Monsanto and similar mergers by rivals. Dow Jones reports the comments are unusually early and come before the EU has received formal notification of a deal. In a letter to the European Parliament, an antitrust official told lawmakers “our final decision must strictly and impartially apply European merger control rules.” In a review of a potential deal, the EU will consider the impact of a merger on prices, the variety of available seed products along with research and innovation. The European Commission has the power to block deals or demand the parties submit remedies, such as divesting assets, to ease any competition concerns. Monsanto said this week the company is still in discussions with Bayer and other companies regarding "alternative strategic options,” while also announcing lower-than-expected sales for the sixth straight quarter. Monsanto rejected the initial proposal by Bayer earlier this year.

Source;  NAFB News