DJ CBOT Corn Review: Up Slightly Amid Pre-Holiday Positioning

CHICAGO, Dec 22, 2008 (Dow Jones Commodities News via Comtex) --
By Ian Berry Of DOW JONES NEWSWIRES

Chicago Board of Trade corn futures inched slightly higher Monday in light, pre-holiday trade, with weak demand limiting any bullish sentiment, analysts said.
March corn ended up 1 cent to $3.81 3/4, May corn was up 1 cent to $34.92 and July corn settled up 1 1/2 cents to $4.02 1/2 per bushel.

Prices had been a couple cents lower for most of the day before mounting a mild rally late. The market tends to gain in the days leading up to Christmas and the day after, and some traders "will try to pick up on some of these statistical tendencies to try and pick up a few pennies here and there," said Arlan Suderman, analyst for Farm Futures.

Some analysts said China's reported purchase of 20 million metric tons of corn was likely supportive, although not a clear factor in Monday's trade. Analysts questioned its long-term impact.

"It seems like the higher Chinese market is what gave it its support on the open," said Chad Henderson, analyst for Prime Ag Consultants. "But when the dust settles on it all, it just looks like they're trying to support their domestic prices. It does nothing to alleviate the glut of grain on the world market."

After climbing $1 from its recent low, lingering weak demand has kept corn from climbing any higher, analysts added. Demand in exports, ethanol and feed is all weak, they said.

You have the corn farmers saying 'man, I don't want to give my corn away at $3.50 cash,' and you've got the hog farmers saying 'look, I'm losing money on $3.50 corn,'" Henderson said.

Volume is expected to be light all week because of the Christmas holiday.
The trade continues to eye weather in South America, which some analysts say is supportive because of dry crops. Others say the region appears to be getting enough rain.

CBOT oats futures ended flat. March oats closed at $2.19 per bushel and May oats closed at $2.28.

Ethanol futures were lower. January ethanol ended down $0.011 to $1.559 per gallon and March ethanol ended down $0.010 to $1.570.

-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com
(END) Dow Jones Newswires
12-22-08 1545ET
Copyright (c) 2008 Dow Jones & Company, Inc.

Avipel Corn Seed Treatment to Repel Birds Gets EPA Approval in Minnesota

NEW CASTLE, Del., Dec 18, 2008 /PRNewswire via COMTEX/ -- Arkion Life Sciences has received US EPA approval to market Avipel(R) Corn Seed Treatment in Minnesota for the 2009 planting season. The Section 18 application filed by the State of Minnesota is effective December 5, 2008, through July 30, 2009. Arkion's proprietary bird repellent Avipel(R), formerly known as Avitec, protects both field and sweet corn seed against foraging cranes.

According to Ken Ballinger, Arkion Life Sciences has been a pioneer in the development and commercialization of several formulations of bird repellent and bird management technologies. Arkion's patented formulations of anthraquinone have been effectively repelling geese with FlightControl(R) Plus and repelling birds from structures through the Airepel Humane Bird Management business.

This is the fourth year Minnesota has been approved for this Section 18 and allows Minnesota farmers to treat up to 625,000 acres of corn seed during the season. Avipel(R) Corn Seed Treatment is non-lethal to birds but highly effective in repelling them. Various organizations have supported Arkion's development of bird repellents including The International Crane Foundation (ICF), The United States Humane Society and the Audubon Society. ICF spearheaded the cause to find a solution to the growing conflict between farmers and the cranes eating their planted seed. "We have been working since 2000 to find a way to support the growing crane population and, at the same time, save our farmers' crops and Avipel(R) is the solution," said Jeb Barzen, ICF spokesperson in Baraboo, WI.

Arkion(R) has three major businesses: Bio-Technical Resources (Manitowoc, WI) develops and improves processes and products based on fermentation technology for contract customers as well as internal needs; hyperimmune eggs with markets in human and animal nutrition; and bird repellent applications for crop, structure and turf protection.

SOURCE Arkion Life Sciences
Copyright (C) 2008 PR Newswire. All rights reserved

Evogene and Biogemma Show Increased Corn Yield in Field Trials

Corn Containing Evogene-Discovered Genes Show Significant Yield Increases Under Both Normal and Drought Conditions

REHOVOT, ISRAEL and PARIS, Dec 09, 2008 (MARKET WIRE via COMTEX) -- Evogene Ltd. (TASE: EVGN) and Biogemma SAS today announced results of field trials for corn hybrids containing a number of genes predicted by Evogene to increase yield and drought tolerance. The field trials, conducted in several sites in the United States and in Israel, demonstrate that corn hybrids containing certain of these genes displayed significant yield increases under both normal and drought conditions compared to control corn hybrids under the same conditions. Evogene and Biogemma intend to expand their efforts to further evaluate the best performing of these genes in corn through additional field trials during 2009, aimed at selection of the most suitable candidates for the next phase of development towards commercialization.

The field trials for which results are now being reported were conducted as part of a collaboration initiated in 2006 between Evogene and Biogemma to develop corn with improved yield and tolerance to drought conditions. This collaboration is financially supported by the Eureka, a pan-European network for market-oriented industrial R&D.

Included in the field trials were Evo133 and Evo137, two genes predicted by Evogene in 2003 to improve yield and drought through the use of its computational technology platform, the 'ATHLETE,' and subsequently validated in model plants. These genes were introduced and expressed in corn utilizing Biogemma's technologies. These positive results in corn follow Evogene's announcement of December 2007 of field trial results for Evo133 demonstrating significant yield improvements in tomato plants under both normal and drought conditions.

Ofer Haviv, Evogene's President and CEO, stated, "We are extremely pleased by these successful results from this first field trial of Evogene-discovered genes in one of the most important crops worldwide for both food and alternative energy uses. Also, in addition to the potential value represented by these genes for corn and other crops, this is a significant milestone for our company in the validation of the ability of our unique in silico discovery platform -- the 'ATHLETE' -- to accurately predict and select genes associated with important traits of interest in agbio. Therefore, we enthusiastically look forward to continuing our joint efforts with Biogemma in corn and with our other partners, as we move forward with both further gene discovery and the validation of Evogene discovered genes in important target crops."

Pascual Perez, CEO for Biogemma, stated, "We are very happy with these first year field trials showing important preliminary results for yield improvement under normal and drought conditions. Next year's experiments which will be done in more geographic locations are looked with high interest. Our corn genetic transformation pipeline and its specific proprietary technologies has allowed Biogemma to quickly and properly assess Evogene's leads in different hybrid backgrounds within two years of the initiation of our fruitful collaboration. When the collaboration was initiated in 2006, combining Biogemma's and Evogene's expertise seemed extremely promising and we see today that the good complementary skills, the two companies' know how and IP portfolio open the way to develop commercial improved corn for our shareholders. Biogemma will continue to rely on its efficient transgenic platforms for corn and wheat, to give value to the genes discovered on our genomic platforms or developed in partnerships."

About Evogene

Evogene is a world leading developer of improved plant traits. The company's proprietary product development platform combines state of the art computational gene discovery technology (The 'ATHLETE'), plant and field validation capabilities and unique selection systems. Evogene's current programs focus on the improvement of key plant traits, such as yield and stress tolerance, and the improvement of plants specifically for biofuel uses. Evogene has collaboration and licensing agreements with world leading companies in the agro-biotech and alternative energy industries. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange (TASE: EVGN). For additional information, please visit Evogene's website at www.evogene.com.

About Biogemma

Biogemma is a leading biotech company in Europe involved in Genomics applied to Field crops. Result of the merger of the biotech activity of three major seed business companies, Vilmorin Company (Limagrain Group), Euralis and RAGT and with the help of two financial institutions Sofiproteol and Unigrain with the support of the technical agency Arvalis , the company is developing R&D programs with its partners, in field crops (Corn, Wheat, Sunflower and Rapeseed), focused on yield improvement, biotic and abiotic stresses and specialty grain compounds.
This press release contains "forward-looking statements." These statements include words like "may," "expects," "believes," "scheduled," "potentially" and "intends," and they describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Evogene Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Contact Information
Evogene:
Liat Cinamon
PR & IR Executive
E-mail: Email Contact
Tel: +972-8-931-1933

Biogemma:
Pascual Perez
Chief Executive Officer
E-mail : Email Contact
Tel: +33 1 55 34 94 00

South Korea Replacing Some Corn Imports with other Grains

South Korea, which is the third-largest importer of corn, said it'll probably cut corn imports and replace them with less expensive grains like wheat.

As a result, this year's corn imports from the U.S. could fall by up to 1 million tons from last year's levels.

"Overall corn imports for feed use in 2009 will be similar to this year's level at best and are more likely to fall below the level as feed makers switch to cheaper wheat products," Min Byong-ryol, who represents South Korea for the U.S. Grains Council.
In 2007, South Korea imported 6.7 million tons of corn for feed over the first 10 months of the year. So far in 2008 they've acquired 6.5 million tons of feed corn in the first 10 months.

Min added feed corn purchases should be around 8 million tons overall, with the U.S. accounting for 7.5 million by the end of the year.

Corn used for food will also drop significantly, as less expensive sweeteners like sugar are used by food processors. Corn used for food is under 20 percent of South Korea's total corn imports.

So far this year corn imports for food are down by 19 percent over the first 10 months of the year, coming in at 1.25 million tons.

With fertilizer costs more than doubling from four years ago, it's projected that next year corn acreage planting should drop from 94 million to 86 million. Much of that will be planted in soybeans, which require far less fertilizer input than corn.

VeraSun Energy Requests Permission to Void Corn Contracts with 10-day Notice

Farmers are up in arms over the request by VeraSun Energy for a Delaware judge to give them permission to void corn contracts with a notice of 10 days.

The arguments by farmers was the action would take away their ability to sell corn to other potential buyers, while at the same time essentially killing expected revenue.

Because farmers have a contract with VeraSun, they would have to legally hold the corn until the they find out if VeraSun was continuing the contract, hindering them from lining up another buyer until a notice is officially received.

I don't have much sympathy for the farmers in this situation, as the farmers didn't mind lining their pockets with taxpayer subsidies for corn-based ethanol. When all you do is continue to beg at the government trough, and not become good at business, this is the risk you'll always take.

With the filing of the bankruptcy in Delaware, any agricultural organization or farmer would probably have to travel to the state to get legal counsel recognized by the government there. As of early Friday there hadn't been any objections filed in the case. Claiments had until 4 p.m. Friday to file.

On the 2nd of December the request by VeraSun will be reviewed at a hearing.

The entire ethanol fiasco needs to be abandoned, as it is a grotesque failure that continues to be one of the most idiotic wastes of time, energy and money.

For the quarter ending September 30, VeraSun reported a net loss of $476.1 million.

Update: AgFeed Industries, Inc. Reports Record 3rd Quarter Financial Results, Revises 2008 Earnings Guidance

NEW YORK, Nov 13, 2008 /Xinhua-PRNewswire via COMTEX/ -- AgFeed Industries, Inc. (FEED) , the largest commercial hog producer and the largest premix feed company in China, today announced record financial results for the quarter ended September 30, 2008:

-- Revenue grew year over year by 316% to approximately $49.4 million from $11.9 million
-- Gross Profit increased 279% year over year to $12.3 million from $3.2 million
-- Comprehensive Income increased by 279% to $8.5 million for the third quarter of 2008 from $2.3 million for the third quarter of 2007
-- Income from Operations of $9.3 million, an increase of 353% from 2007 period
-- Net Income of $8.2 million, up 296% from 2007 Q3 Net Income of $2.1 million and 110% from 2008 Q2 Net Income of $3.9 million
-- Earnings per Share of $0.25, up 222% from 2007 Q3 Earnings per Share of $0.08
-- Revises 2008 earnings estimate downward
-- Strategic discussions with leading global genetic companies



Record 3rd Quarter Revenue

AgFeed recorded increased revenues in its hog production and premix feed production businesses Revenue from premix feed sales was $12.4 million, up from $11.9 million in the third quarter of 2007 and $12.2 million in the second quarter of 2008. Revenue from hog production was $37.0 million in the third quarter of 2008, up from $23.4 million in the prior quarter. The increase in premix feed sales was due to expanded independently owned, exclusive AgFeed retail distribution store sales (now more than 900 stores), broadened commercial hog farm direct sales channels, coupled with the effects of two previously implemented price increases in their premix feed products. Expanding customer recognition of the quality "AgFeed" brand name products continues to stimulate revenue growth. The increase in revenue from hog sales was, in part, due to the successful integration of recently acquired producing hog farms. AgFeed sold more than 150,000 hogs during the quarter, up significantly from production in the prior quarter.

Record 3rd Quarter Earnings

AgFeed reported premix feed related income from operations of $2.6 million, compared to $2.2 million in the corresponding quarter of 2007 and $1.7 million from the immediately preceding quarter. These results reflected 20% net income margins and were in line with the Company's expectations. Strong premix feed earnings performance was driven by efficient cost management, increased economies of scale on raw material purchases, and long term annual supply agreements entered in early 2008 for key raw materials. Reported hog sales related income from operations for AgFeed were $6.9 million, up slightly from the prior quarter. AgFeed's income from hog operations for the quarter is reflective, in part, of the successful integration of 28 hog farms acquired since late 2007. The anticipated synergistic benefits derived from acquired hog farms, including increased operating efficiencies, economies of scale, advanced disease control initiatives and centralized cash/accounting management have exceeded the Company's initial targets.

Earnings Guidance

AgFeed's business is being negatively impacted by, among other factors, a decrease in the price of hogs, a surge in the supply of swine, and the overall economic downturn in China and worldwide. We are conscientiously maintaining efficient cost of production. Additionally, the Company has made a strategic determination to scale back its planned expansion of the hog farm business during the current economic downturn.

As a result of these factors, the Company believes that its previous 2008 earnings guidance of adjusted net earnings per share guidance of between $1.10 and $1.20 per share is no longer accurate. Management believes that adjusted earnings per share should range from $0.55 to $0.65 for 2008. AgFeed believes that its premix feed production will remain steady and that it is on course to produce approximately 650,000 hogs on an annual basis. Due to the current volatility in the markets in China and worldwide, the Company has chosen not to provide earnings guidance beyond 2008, and retracts the guidance it had previously provided for 2009.

Management Comments

Our record results were driven primarily by volume increases, offset by the results of a surge in the market supply of swine, peak pricing of key raw ingredients and a consumption slowdown that compressed margins.

Our board and management remain totally committed to enhancing shareholder value through solid earnings growth and good corporate governance. We will continue to execute our business plan in a favorable business environment in which we see our strong operating efficiencies and increased economies of scale benefiting our financial performance. Our management's agreement to enter into share lock up agreements is a reflection of our total commitment to the interest of our public shareholders.

We operate in a generally favorable market environment. China produces approximately 600 million hogs annually, making it the largest market for pork in the world. More than 1.2 billion Chinese consume pork as their primary source of meat. 65% of all meat consumed in China is pork. Chinese consumers consume more pork each year than the rest of the world combined. We are geographically positioned to take advantage of the most favorable segment of this market. Our hogs are sold in some of the wealthiest regions in China -- Shanghai and Guangdong -- where some of the highest hog prices in China are captured due to the large local population and its high income levels as well as deep pork consuming cultures. Historically, hog prices in our target markets have been approximately 5.5% higher than China 's national average prices. Our hog farms are strategically located to effectively access this market. Our hog farms are in Shanghai, Guangdong, Guangxi, Jiangxi, Fujian and Hainan provinces, neighboring provinces to our consumer markets. These geographic locations represent more than 67% of China 's total annual hog production. AgFeed is a market leader in these regions.

Additionally, we have a feed cost efficiency advantage. Our feed manufacturing plants are located in the same regions as our hog farms, permitting significant cost savings on raw material purchases from which greater economies of scale are realized, thanks to our integrated feed to hog production model.

AgFeed management has a realistic understanding of our business through the last 13 years of our successful corporate history. We have highly skilled founders/managers who are industry experts. We believe the pork consuming Chinese population of approximately 1.2 billion people will continue to demand fresh pork on a daily basis. Additionally, it is our belief that China's rapid urbanization, and the reduction in backyard hog production, will present long- term opportunities for commercial production systems to develop and grow. AgFeed intends to continue to capitalize on this situation to position AgFeed as a quality, low cost producer of premix feed and hogs going forward.

AgFeed Completes Acquisition of Previously Announced Commercial Hog Farms

In late October 2008, AgFeed completed the acquisition of all of the equity interest in two commercial producing hog farms located in the Guangxi Province, PRC. These farms have an aggregate annual hog production capability of approximately 29,000 hogs, with existing facilities for additional expansion.

Commodity Prices Relevant to Our Premix Feed Business

The current quarter has seen corn and soybean meal prices begin to decline. Corn represents about 70% of our total feed component in swine diets. Corn costs in China have moved up slightly with world markets but have dropped recently, declining approximately 11% from the average price for the first six months of 2008. Our increased economies of scale on raw material purchases resulted in a price discount of approximately 4.8% on our overall raw materials costs, compared to market prices in general. With expected increases in seasonal consumption along with seasonal supply pressure AgFeed believes that it may see improving margins in our premix feed business in the coming months.

Efficient Hog Farm Management Process

AgFeed believes that a combination of local hog farm management and centralized operations is efficient to the overall success of its hog farm business. As a result, the Company has maintained on-site operational management and staff of each of its commercial hog farms following acquisition and has established a pre-determined set of corporate operating efficiency standards, which is applicable to all farms. The Company further has established centralized systems for all operations to further maximize operating efficiency, including: accounting and internal control; raw material purchasing; disease prevention and bio-security response teams; and sales and marketing operations. This management system has been successfully implemented in the past and will continue to be utilized going forward in our hog farm operations.

Hog Genetics Program

AgFeed intends to implement a hog genetics program. We believe a quality hog genetics program utilizing the right genotypes could reduce hog production cost from our current cost levels. AgFeed is currently in strategic discussions with several leading global hog genetics companies in an effort to further this goal.
About AgFeed Industries, Inc.

NASDAQ Global Market listed AgFeed Industries ( www.agfeedinc.com) is a US company with its primary operations in China. AgFeed has two profitable business lines -- premix animal feed and hog production. AgFeed is China's largest commercial hog producer in terms of total annual hog production as well as the largest premix feed company in terms of revenues. China is the world's largest hog producing country that produces over 600 million hogs per year, compared to approximately 100 million hogs in the US. China also has the world's largest consumer base for pork consumption. Over 65% of total meat consumed in China is pork. Hog production in China enjoys income tax free status. The pre-mix feed market in which AgFeed operates is an approximately $1.6 billion segment of China's $40 billion per year animal feed market, according to the China Feed Industry Association.

SAFE HARBOR DISCLOSURE NOTICE: The information contained in this earnings release and the attachments is as of November 13, 2008. The Company assumes no obligation to update any forward-looking statements contained in this earnings release or the attachments as a result of new information or future events or developments.
This earnings release and the attachments contain forward-looking information about the Company's financial results and estimates, business plans and prospects that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. Among the factors that could cause actual results to differ materially are the following: the availability and prices of live hogs, raw materials, fuel and supplies; food safety; livestock disease; live hog production costs; product pricing; the competitive environment and related market conditions; operating efficiencies; interest rate and foreign currency exchange rate fluctuations; access to capital; the cost of compliance with environmental and health standards; actions of the PRC government; governmental laws and regulations affecting our operations, including tax obligations; the ability to make effective acquisitions at the prices we expect and successfully integrate newly acquired businesses into existing operations; the success of our research and development activities, changes in generally accepted accounting principles; uncertainties related to general economic, political, business, industry, regulatory and market conditions; any changes in business, political and economic conditions due to the threat of terrorist activity; and other risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and in its subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward-looking statements because actual results may differ materially from those expressed in, or implied by, the statements. Any forward-looking statement that the Company makes speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.


AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007

September 30, December 31,
2008 2007
(unaudited)
ASSETS

Current assets:
Cash and cash equivalents $15,565,123 $7,696,209
Other current assets 34,800,935 10,381,719
Total current assets 50,366,058 18,077,928

Long term assets 74,285,990 4,992,336

Total Assets $124,652,048 $23,070,264

LIABILITIES AND
STOCKHOLDERS' EQUITY

Total current liabilities $11,325,350 $3,569,738

Convertible note, net 3,152,734 -

Total Liabilities 14,478,084 3,569,738

Minority interest 1,957,197 -

Stockholders' Equity
Total stockholders' equity 108,216,767 19,500,526

Total Liabilities and
Stockholders' Equity $124,652,048 $23,070,264



AGFEED INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007


Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)

Net Revenue $49,426,274 $11,888,283 $97,208,685 $23,757,731

Cost of Revenue 37,124,058 8,645,218 70,438,683 16,961,534

Gross profit 12,302,216 3,243,065 26,770,002 6,796,197

Operating expenses 2,991,817 1,185,701 6,962,328 2,540,418

Income from
operations 9,310,399 2,057,364 19,807,674 4,255,779

Non-operating
income (expense) (828,031) 17,515 (5,910,313) 18,822

Income before
minority interest
and provision for
income taxes 8,482,368 2,074,879 13,897,361 4,274,601

Minority Interest
in Subsidiaries (64,309) - (425,403) -

Income before
provision for
income taxes 8,418,059 2,074,879 13,471,958 4,274,601

Provision (benefit)
for income taxes 201,904 (295) 414,993 (40,756)

Net income $8,216,155 $2,075,174 $13,056,965 $4,315,357

Weighted average
shares
outstanding:
Basic 33,267,815 27,026,756 31,049,732 25,778,831
Diluted 33,557,457 27,194,479 31,377,267 25,799,624

Earnings per
share:
Basic $0.25 $0.08 $0.42 $0.17
Diluted $0.24 $0.08 $0.42 $0.17


Contact:

U.S. Contact:
Arnold Staloff
Independent Board Member
AgFeed Industries, Inc.
Tel: 212-631-3510

Corporate Contact:
Summer Xie
Corporate Communications
AgFeed Industries, Inc.
Tel: 011-86-13767051503
Email: info@agfeedinc.com

Gerry Daignault
Chief Operating Officer
AgFeed Industries, Inc.
Tel: 615-480-7847
Email: gdaignault@agfeedinc.com



SOURCE AgFeed Industries, Inc.


Copyright (C) 2008 PR Newswire. All rights reserved

Bunge Acquires Corn Dry Milling Assets From J.R. Short Milling

ST. LOUIS, Nov. 14 /PRNewswire-FirstCall/ -- Bunge North America, the North American operating arm of Bunge Limited (NYSE: BG), announced that it has purchased the assets that J.R. Short Milling Company used in its traditional corn dry mill operations as well as the assets to operate its specialty product line. The purchase does not include J.R. Short's pellet division. Financial terms of the acquisition have not been released.

"This purchase enables us to balance our operations in a core North American business, corn dry milling, so that we now have two locations in the western half of the U.S. and two in the eastern half," said Todd Bastean, vice president and general manager, Bunge Milling. "This additional plant enables Bunge to better serve our existing customers and reach out to new customers with an expanded line of products."

Bunge expects to keep a majority of the employees currently working at the plant.

The plant in Kankakee, Ill., becomes Bunge Milling's fourth U.S. location. Other Bunge Milling plants are located in Danville, Ill., Atchison, Kan., and Crete, Neb.

About Bunge North America

Bunge North America (www.bungenorthamerica.com), the North American operating arm of Bunge Limited (NYSE: BG), is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the livestock, poultry, food processor, foodservice and bakery industries. With headquarters in St. Louis, Missouri, Bunge North America and its subsidiaries operate grain elevators, oilseed processing plants, edible oil refineries and packaging facilities, and corn dry mills in the U.S., Canada and Mexico.

About Bunge Limited

Bunge Limited (www.Bunge.com, NYSE: BG) is a leading global agribusiness and food company founded in 1818 and headquartered in White Plains, New York. Bunge's over 25,000 employees in over 30 countries enhance lives by improving the global agribusiness and food production chain. The company supplies fertilizer to farmers in South America, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers and supplies raw materials and services to the biofuels industry.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances; estimated demand for the commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry and unpredictability of the weather; agricultural, economic and political conditions in the primary markets where we operate; and other economic, business, competitive and/or regulatory factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstance.


SOURCE Bunge North America

Bunge Ltd Ends Bid to Acquire Corn Products International

When the board of Corn Products International (CPO) recently announced it could no longer support the acquisition bid from Bunge Ltd (BG) for the company, the deal had little chance of going forward, and Bunge confirmed that today, announcing it had withdrawn its bid.

The primary reason wasn't the credit markets, because the deal was to be financed with stock. Rather, it was the fall in stock price of Bunge which made the deal undesirable to the Corn Products board.

Bunge was hoping to become a significant player in the finished corn products market, expanding from its core food processing business.

Now that the deal won't go forward, we'll probably see a new CEO announced soon to replace outgoing Corn Products CEO Sam Scott.

Corn Products International Board No Longer Supports Bunge Acquisition

While the announcement by the Corn Products International Inc (CPO) board that it was no longer supporting the proposed acquisition by fertilizer and oil seed giant Bunge Ltd (BG) is a surprise, it can't be called a shocking decision.

With both companies plunging in stock price, especially Bunge (BG), and Corn Products International recently revising their guidance upwards, the deal doesn't look near as profitable for Corn Products' shareholders than when the original offer was made.

Under the terms of the proposed deal, Bunge retains a "force the vote" clause wherein they can bring the deal directly to the shareholders to vote on, no matter what the board says or does. Bunge said it won't be changing any of the terms of the deal.

The original offer was for $4.4 billion, but since then shares in bunge have declined by 63 percent, while Corn Products has fallen by 44 percent.

Most analysts think the chances of a merger are pretty slim at this time, and the major event to watch is if Corn Products hires a new CEO to replace departing CEO Sam Scott. If they do, the assumption is they're going to go on and operate as an independent company rather than proceed with the merger.

Bunge is still weighing its options as whether to continue pursuing it through forcing a vote or not.

Corn Products International Raises Guidance for Year

Corn Products International (CPO) has raised its guidance for the year based on a good third quarter.

The original guidance from the company was for between $3.15 to $3.25 a share, which now has been revised upward to $3.40 to $3.60 a share. Analysts were looking for around $3.29 a share.

Profits for the quarter increased to $88.1 million, or $1.15 a share, from last year's $51.1 million, or 66 cents a share. That growth of 72 percent.

Revenue for the quarter came in at $1.16 billion, up from $938.7 million during the same period last year; a 23 percent increase.

Similar to Archer Daniels Midland (ADM), less international exposure helped them in relationship to currency exchange rates.

Later this year the company will be taken over by Bunge LTD (BG). The date has been moved back to December from November, as the economic crisis has driven the prices of the two companies down by half or more.

USDA Corrects Corn Production, Will Lift Prices

Stronger cash corn prices are being predicted as a result of unprecedented corrections to an official crop report Tuesday by the U.S. Department of Agriculture.

The report said that U.S. farmers will probably harvest about 1 million acres less of corn than they said in the last report, with soybeans also being much less than the previous report.

What this effectively does is cut expected production by close to 1.5 percent than what was projected on October 10.

"Corn production is forecast at 12.033 billion bushels, down 167 million from the Oct. 10 forecast," said the USDA. "Soybean production is forecast at 2.938 billion bushels, up slightly from the September forecast, and up 10% from last year. If realized, this will be the fourth largest production on record."

As a result of the corrections, corn will ending stocks of about 1.088 billion bushels, a drop of 6 percent. That should push corn prices up a little going ahead.

With the new statistics, expectations are the average bushel of corn will increase by about 5 cents to $4.25 to $5.25 a bushel.

For only the third time since 1980, over 60 percent of the corn crop in the U.S. still has to be picked as of October 26.

Corn Futures Increase from News on Initial Government Injection of Capital into Banks

The emotional boost given by the announced plan of the U.S. government to take $250 billion of the $700 billion bailout and inject it into "healthy" U.S. banks, has caused many commodities to rise over the last couple days, but that will be short lived.

For corn, it partook in the overall boost by increasing by 6.75 cents for December delivery to reach $4.18 a bushel on the Chicago Board of Trade. Earlier in the day it was higher at $4.29 a bushel.

So far this year corn maturity has dropped significantly from last year, as a recent report from the USDA says, where as of October 5 it was only as 73 percent maturity, in contrast to last year during the same period where it was at 95 percent. Later today the U.S. Department of Agriculture will release their weekly crop report.

USDA Raises Monthly Corn Forecast

The monthly forecast by the U.S. Department of Agriculture on Friday reported corn production for the year could be a much higher 12.2 billion bushels, a significant increase over September's projection of 12.1 billion bushels.

While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.

At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.

Corn Prices Move Up After Fed and Other Central Banks Cut Interest Rates

Corn for December delivery on the Chicago Board of Trade climbed by 10.5 cents Wednesday after the U.S. Federal Reserve and several other central banks around the world cut their interest rates. After the interest rate cuts corn did rebound settling at $4.275 a bushel on the CBOT, a 10.5 cent or 2.52 percent gain.

While many other commodities dropped, which temporarily made central banking officials feel good because of the usual response of inflation emerging from declining interest rates, corn was one of the few that responded in the positive as demand falls because of a variety of inflationary pressures.

Interest rates in the U.S. were cut from 2 percent to 1.5 percent in hopes of stimulating the economy. Other central banks working in unison with the Fed cut rates by half a percent as well.

Corn Drops Maximum Allowed on Spread of Economic Fears

Corn dropped by the maximum allowed on the Chicago Board of Trade (CBOT) today as the spread of economic fears and realities is starting to hit Europe hard, and China and India are showing signs of slowing demand as well.

Growing concern on a global scale is causing almost all commodities to fall in price as demand across the board decreases. The only exception to positive growth for commodities for today was with Gold.

Much of the problem continues to be access to capital. It's possible to continue to have a negative impact even as prices drop because of inability to acquire the needed operational funds.

Corn for December delivery fell as low as the maximum allowed, to $4.24 a bushel earlier in the day.

The golden nugget continues its poor performance, following up its horrible week that just ended where it crashed by 16 percent, the most since June 1973.

It's far down from its $7.9925 a bushel it reached on June 30 of 2008, a 47 percent plunge.

Corn in Slight Rebound after Plunging Yesterday

Corn futures are enjoying a slight rebound today after falling by almost 5 percent in Tuesday trading.

On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.

Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.

Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.

Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.

Corn Futures Drop as Market Waits on Bailout Plan

Uncertainty in the market and overall economy have investors on the sidelines in a number of categories, and concerning corn futures it's no different.

Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.

As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.

Still, investors are waiting on the sidelines until, and if, the agreement is made law.

Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).

Corn Rides Returning Favor of Commodities as Investors run for Cover

December delivery for corn increased by 22 cents a bushel, riding the migration of investors to commodities as they seek shelter from the financial markets. Corn closed at $5.54 a bushel on the Chicago Board of Trade.

Most dollar-denominated commodities were benefactors of the exodus from equities.

Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.

The U.S. dollar index was down as the greenback fell against most major currencies.

Bunge Ltd. Clears Regulatory Hurdle for Corn Products Deal

The Hart-Scott-Rodino Antitrust Improvements Act has been successfully fulfilled by Bunge Ltd. in its quest to acquire Corn Products International. It involved satisfying a required regulatory waiting period.

While international clearance and approval by shareholders is still waiting in the wings, the deal is expected to close sometime in the fourth quarter.

Bunge sells a number of agricultural commodities and food products. The price range of the stock has traded in a wide swoth of $84 to $135 over the last year.

Bunge has offered about $4.8 billion for Corn Products, which includes assuming about $414 million in debt.

Corn Products will continue operating under its existing brand name.

CBOT Corn Futures Surpass $6 First Time in Almost Three Weeks

For the first time in about three weeks, corn futures on the Chicago Board of Trade surged past the $6 mark, as the U.S. dollar weakens on stronger oil prices and geo-political concerns.

Nearby September corn on the CBOT increased by 22 1/2 cents to $5.97 3/4, and most-active December gained 22 1/2 cents to end at $6.17 1/2 a bushel.

One other factor in the price of corn futures is Midwest rain may not be enough to pull corn through to a strong harvest. It's also slightly possible that later maturity levels could make corn vulnerable to frost further on in the season.

Kernals now filling out may not be helped by the forecasted wet weather over the next 7-10 days in the midwest.

Corn exports also fell far below the projected 850,000 to 1.4 million tons looked for; only 691,500 metric tons sold the week ending August 14.

According to the U.S. Department of Agriculture, 196,600 metric tons were sold for 2007-08, while 494,900 tons were sold for 2008-09.

Corn News and Updates

US corn rallies in late trading

CBOT Corn Review

Corn prices gain 2.05% in Chicago

Farmers using biotech seed may pay less insurance

Farmers always adapt to meet demand for corn

USDA: Corn production down from last year

USDA Approves Syngenta and John Deere for Broadened Biotechnology Endorsement for Corn Crop Insurance

Half Corn Crop At Dough Stage

India corn futures lower on US corn

Happy Corn Subsidy Pacific Ethanol: Company Gets Clobbered with High Corn Prices

Talk about a self-inflicted wound! In a second-quarter report for Pacific Ethanol Inc. (Nasdaq:PEIX), the company said it lost to common stockholders of $10.5 million, or 23 cents a share. That's almost double the 12 cents a share loss analysts were looking for.

Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.

Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.

Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.

Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.

For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.

The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.

Corn Futures Drop to Lowest Level in Four Months

For the fourth straight session corn futures fell, dropping as low as $5.26 earlier in the day, the lowest level in four months on the CBOT.

The major driver of the drop is the cooling weather, as pollination will increase in response to cooler weather conditions, increasing corn yields. This helps to address the opposite concerns that hot weather would cause corn prices to surge through an even lower pollination rate.

"A forecast for relatively cooler weather this week will be beneficial for" corn's pollination, said Elaine Kub, a grain analyst at commodities research firm DTN.

Even so, according to the U.S. Department of Agriculture, as of August 3, pollination of corn was down from the five-year average of 91 percent, with 83 percent pollinating at this time. The cooler weather will increase that percentage, and probably bring it closer in line with past performance.

Another factor is the strengthening U.S. dollar, which has brought downward pressure on commodities in general, including corn.

Corn Futures Increase on Weather Concerns, Export Demand

Noting that higher temperatures could cause problems in the corn yield, the price of corn futures increased today, closing up by 12 cents to $5.94 a bushel. December corn also increased by a little over 12 cents, finishing the session at $6.13 1/2.

The concern is over how well the corn pollinates during this crucial time, as too warm weather could hamper the yield results.

Even with the strong response of buyers, the warm weather isn't anticipated to stay too long, and hopefully will just be a temporary blip.

Drew Lerner, an agricultural meteorologist at World Weather Inc. said, "We shouldn't have more than just a few days of stressful conditions in the eastern part of the corn belt."

Other factors were concerns by end-users that other variables like a late growing season, early frost and increased export demands could impact them down the road, so they wanted to lock inventory in so they don't lose out later in the year.

Corn Prices Come Crashing Down to Earth, Lost Over 11% in Week

Even though the flooding in June wiped away some cornfields, the warm weather after the flood receded has helped corn surge back, resulting in the steep drop in price.

December delivery for corn dropped 21 cents to finish at $6.29 a bushel on the CBOT. That's the lowest price point since May 30.

The flooding had driven up prices in June to as high as $7.96 a bushel; more than a 20 percent increase.

The specific corn-related reasons for the decline the good weather is expected to help the corn to pollinate great during the July 20 to July 30 period. That's the most critical period for the pollination period, which determines what the extent of the corn yield will be.

Another reason for the decline in prices is the decreased demand, which has offset the lower production levels.

The year-end corn production is projected at 11.7 billion bushels by the USDA. That's about 20 million bushels less than its June forecast.

Philippine Corn Output Increases 27.6 Percent in 1st Quarter

Corn production in the Philippine's in the first quarter gained 27.6 percent to reach 2.17 million metric tons. In the same season last year production reached 1.70 million metric tons.

Agriculture Assistant Secretary Dennis Araullo said output exceeded expectations of the projected 2.14 million metric tons.

“More farmers planted corn in the last quarter of 2007. The total area harvested for corn reached 711,000 hectares,” Araullo said.

The best areas of production were the provinces of Isabela and Mindanao.

With the unexpected high results, if the second quarter holds up to expectations, the first half would reach 3.34 million metric tons, which would be an increase of 21 percent. Last year the first half produced 2.75 million metric tons.

If corn production keeps at this pace, the yearly output would reach 7.384 million metric tons, bringing the self-sufficiency level of corn for the Philippines to 94 percent.

Assuming the projections are close to accurate, yellow corn would reach 4.647 million and white corn 2.737 million.

Kentucky Corn Planting Behind Schedule as Rains Continue to Hinder

Kentucky corn farmers are scrambling to get their corn fields planted this week, as wet weather has continued to hamper the start of the seasonal planting.

"They're in the `go' mode right now," Kenny Perry, agricultural extension agent in Graves County in western Kentucky, said Thursday. "They're excited to finally be getting into the fields."

Across the state, only 11 percent of acreage intended for corn has been planted, that's in contrast to last year's 39 percent and the average of 47 percent over the last five years on the same date. That's according to the most recent report from the National Agricultural Statistics Service's Kentucky field office.

If Kentucky weather can remain dry, the season for corn should be ok, as there is still a couple weeks to plant without experiencing the lower yields expected if a later sowing results in summer heat influencing the pollination of the corn.

The option for Kentucky farmers would be to sow soybeans, but that isn't without risks either, as the 2007 drought has resulted in supply problems for soybean seeds. Most of those problems are connected to varieties offered, more than being able to attain some type of soybean seed.

This is the short window where major decisions have to be made whether to go ahead with corn or switch to soybeans; much of what farmers in other states around the country are facing.

U.S. Agriculture Secretary Ed Schafer Says No Change in Biofuels Policy

The criticism and impact of the biofuels policy in the U.S. and Europe is causing food riots and protests across the world, as the prices of food surge; mostly on the continuing price increases of corn.

For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."

In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.

Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.

Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.

It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.

Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.

Corn News Weekend Roundup

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Corn Falls on Improved Weather

Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.

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Corn market gains more uncertainty in April

Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.

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CBOT Corn Review: Down On Profit-Taking, Weather Concerns

U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.

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Profit taking weigh down corn futures

U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs

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S Korea's Nonghyup buys 165,000 tonnes of US corn

South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.

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Corn Futures Expected To Continue To Grind Higher

In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.

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Texas A&M report clears corn from food price inflation

The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.

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Monsanto in Deal with Bayer CropScience LP for Corn Treatment

Monsanto Co. (NYSE:MON) and a division of Bayer AG (Other OTC:BAYRY.PK), Bayer CropScience LP, have entered an agreement in relationship to a new fungicide product which will treat corn crops.

The new treatment would be used in the early corn season, and would protect seedlings against insects and diseases during that period of growth. It's said to be a significant improvement over past remedies.

Monsanto has exclusive rights under the terms of the deal to market the new product under its Dekalb corn brand label. It will also be empowered to license the new product through its licensing division.

Weekend Corn News Roundup

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CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking

Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.

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Corn Looks to Trend Higher

On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.

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In The Cattle Markets: Prospective Plantings Will Not Help Feeders

It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.

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Japanese food processor to accept GM corn

Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.

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CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking

Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.

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Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls

Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.

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Monsanto to build seed corn facility near Independence

On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.

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Corn Settles at $6, after Record $6.025

The story for corn continues to be the projected supply problems, and the resultant surge in prices. That story continues, as corn broke another record today, reaching $6.025 a bushel before settling to $6. Corn has already increased by 30 percent this year, as demand increases.

This follows yesterday's prices, which just fell short of the $6 a bushel mark.

"It's a demand-driven market and we may not be planting enough acres to supply demand, so that adds to the bullishness of corn," said Elaine Kub, a grains analyst with DTN in Omaha, Neb.

We also talked about the decreasing acreage being planted in corn this year, which have dropped by about 8 percent across America.

The wet weather continues to wreak havoc in the industry as well, with plantings not only being put off, but growers talking about abandoning corn planting this year if it continues on too long.

The ethanol industry continues to cause problems for corn, as it gobbles up valuable resources; not only on an unproven alternative fuel, but one that may not to be grown profitably at these prices. That's what you get for government mandates and interference.

Corn Prices Break Record on Supply Concerns

Corn prices reached a record today on concerns the continuing wet weather in the midwest and southern United States will slow down planting, increasing the possibility that supplies could be low.

Acreage for corn is already projected to be about 8 percent lower than last year's planting, adding to the concern on inventory.

"We're going to start trading the weather here," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "The rainy weekend means that some corn growers may switch acres over to beans, and it also raises the risk that there will be lower corn yields."

Corn surged by 11.75 cents to finish at $5.9575 a bushel on the CBOT, after breaking a record at $5.99 a bushel earlier in the day.

If the wet weather continues, planters may drop corn planting altogether and sow beans instead. Corn prices should rise steadily on a supply and demand basis.

Nebraska Corn Growers Planting 6 Percent Less Acres Than Last Year

Citing a report from the U.S. Department of Agriculture, Nebraska Farmer reported that farmers in the state would be planting about 6 percent less acres in corn this year than in 2007. Last year there were 9.4 million acres planted, against the 8.8 million projected for 2008.

Nationwide, the USDA said overall corn planting will probably fall from the 93.6 million acres planted last year, to 86 million in 2008, an eight percent drop. Last year's 93.6 million was the largest amount of acres in corn in the U.S. since 1944.

The factors influencing the Nebraska market were higher corn production costs and the higher prices of competitive crops at the time the survey was taken, said Don Hutchens, executive director of the Nebraska Corn Board.

“Corn and soybean markets have fluctuated considerably this spring, and this will likely continue,” Hutchens says. “Although interesting to watch, it can make it more difficult to predict things like planting intentions because each producer calculates the best marketing opportunity for their operation, and those calculations can change. As markets change following this report, what producers intend to plant may change along with them.”

The Latest Corn News

Corn News from around the Internet

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Farm Lobby Beats Back Assault On Subsidies
With grain prices soaring, farm income at record highs and the federal budget deficit widening, the subsidies and handouts given to American farmers would seem vulnerable to a serious pruning.

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Corn choice could be key to consumers

As spring planting nears, farmers are making a choice that could affect what Americans pay for everything from car fuel to chicken wings.

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CBOT Corn Review: Bounce From Losses On Bullish Acres Talk

Chicago Board of Trade corn futures ended higher Friday, rebounding from earlier session losses on bullish acreage outlooks for Monday'splantings report and supportive underlying fundamentals.

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Huge U.S shift away from corn to soy acres

Record-high soybean prices are expected to lure U.S. farmers to make a huge shift away from corn production in 2008 and if the current cold, soggy weather pattern persists in key corn states, corn plantings may be cut even more dramatically than analysts now expe

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Glo orders NFA to have corn sold in its outlets, supply watched

BEFORE the supply of corn grits runs out, President Arroyo ordered the Department of Agriculture (DA) to find out if local distributors have been hoarding it or if it is distributed unevenly.

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Corn farmers anxious to get back into fields

Recent rains and flooding have many Arkansas farmers cooling their heels. They would like to be preparing their land for planting corn, but weather-related problems have delayed tillage operations.

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South Africa Raises Corn Crop Estimate by 1.7 Percent

South Africa, the biggest corn producer in Africa, raised its corn crop forecast for this season by 1.7 percent.

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Romania Intends to Join other European Union Members in Banning Monsanto Corn

Romania was a large believer in and producer of GM crops before it joined the European Union last year. Now they had a revival and have joined the anti-GM religion, and are looking to ban growing the crop within its borders. It would be the latest setback to the biotechnology industry. Six other EU members have bans in place.

Romanian environmental minister Attila Korodi called for a moratorium on planting the Monsanto GM corn named MON810, with the possibility of instituting a ban on April 15.

The tool Romania will use to justify the ban would be studies used by France and Hungary that allege there is some type of negative effect on the environment.

But as Europabio, a representative of the biotech companies says, “The specific biotech maize has also been the subject of thorough scientific reviews by scientific communities around the world and has received positive approvals by the world’s most robust approval systems, as well as EFSA.”

They added that the bans were totally baseless and would harm farmers.

Corn Futures Will Continue to Rise because of Several Factors

Corn futures on the Chicago Board of Trade finished higher on Wednesday, with a number of factors continuing to contribute to its rise.

Future contracts for May increased to $5.52 1/4, up by 7 1/2 cents; July contracts finished at $5.65, and increase of 8 cents; December contracts ended at $5.68 1/2, an increase of 8 3/4 cents.

While speculators played some role in the increase, as consumer confidence reports and the dollar starting to drop again have brought them back to commodities, after their exodus last week.

Other drivers that should guarantee continuing price increases are the midwest corn fields which are being held back from being planted because of wet fields; and forecasts are it'll continue getting rain over the next week, further slowing the planting season - especially in the southeastern portion.

Overall consensus by analysts from a Dow Jones Newswires' survey are the number of acres planted in corn this year will fall by 6.2 million acres to 97.387 million. That's down from the 93.600 million acres planted in 2007.

Other bad weather news is the the northern half of the midwest could be hit with up to 2 inches of rain, which will cause them to delay corn planting, making the harvest even further off.

If this keeps on much longer, the price of corn will probably continue to go up, as there could be anticipated times of low supply.

Of course the ethanol issue continues to rear its ugly head as the battle for corn, acreage and planting other crops like wheat continues on, reeking havoc in American agriculture and the price of food.

Argentina Farmer Strike Causes Corn to Rise to Allowed Limits

After an export tax increase in Argentina, farmers protested by blocking ports and asserting they'll plant less crops this year than in the past - including corn.

The strike shut things down so completely that only 19 trucks entered the port of Rosario, according to reports, when a usual day in March can have up to 6,000 trucks delivering goods to the port. Rosario accounts for about 60 percent of the grain exported out of Argentina.

The protest is actually in reference to increases in export taxes on soybeans and sunflowers seeds, which was increased to around 44 percent from the 35 percent last week.

As a result, the possibility that exports for Argentina could be cut back, caused prices to rise as high as they're allowed for corn by the Chicago Board of Trade.

May delivery of corn futures rose by 20 cents, to reach $5.4475 a bushel, or 3.8 percent.

Over the last year, corn prices have risen by 35 percent and attained a record on March 11 of $5.795 a bushel.

Another factor causing the increase of corn prices is the weather in the U.S., which has been extremely wet in the eastern portion of the midwest, which is causing farmers to delay planting. It looks like the wet conditions will continue on for some time in some parts of this region of the country.

Finally of course, the artificially created market for ethanol continues to put pressures on corn prices, as the unproven fuel continues to reek havoc in the markets.

All this combined makes the price of corn likely to continue increasing in price over the next several months.

Chinese Corn Oil Company Raises Capital on NYSE Euronext's Alternext Exchange

The NYSE Euronext (NYSE: NYX) has been a magnet for Chinese mainland companies, as 44 of them have listings with the exchange. The total value of those combined companies are $1.5 trillion. There are 58 companies overall from the Chinese region.

The first company from mainland China to raise funds on the exchange is the China Corn Oil company, which specialized in corn oil. They raised $7.8 million. Raised through a private placement, now China Corn Oil will have direct access to the exchange

NYSE Euronext's Alternext exchange caters to smaller and mid-sized companies.

USDA's Prospective Plantings Report for Corn to be Released Soon

Those watching the commodity corn market should remember that the USDA's Prospective Plantings report is scheduled to be released on March 31.

History has shown that many times the futures market makes a lot of swings leading up to the release of the report; with speculation and rumors generating the swings.

On the other hand the elevator markets are usually less volatile, and trade on the realities of supply and demand rather than the unknown.

In other words, we need to be cautious during this time, and resist the temptation to follow the speculators.

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