July 9, 2004 * Volume 11* Number 26

NCGA's Mission: To Create and Increase Opportunities
for Corn Growers in a Changing World

This is Corn Commentary, the weekly newsletter for state and national grower leaders of the National Corn Growers Association (NCGA). For complete stories and updated NCGA information, visit www.ncga.com or the NCGA Leader Resource Center, www.insidencga.com.

IN THIS ISSUE:

• NCGA Applauds Hulshof’s Introduction of House Locks Bill
• NCGA’s Fitchhorn Testifies on Need for Modern Locks
• NCGA’s Yoder Attends Launch of National Center for Food Protection and Defense
• NCGA Consultant Estimates Record Corn Crop and Yield in 2004
• NCGA Leaders Share Lessons Learned on Biotech Mission to EU, Russia
• Good News for Corn Growers: International Freight Rates Falling

NCGA Applauds Hulshof’s Introduction of House Locks Bill
The National Corn Growers Association (NCGA) today praised Rep. Kenny Hulshof (R-Mo.) for introducing the House companion bill to S. 2470, the Senate bill calling for the construction of new navigation locks on the upper Mississippi and Illinois rivers. Like the Senate bill, the House version recommends the construction of seven new 1,200-foot locks and the immediate construction of small-scale measures. Additionally, the bill calls for ecosystem restoration measures in the upper Mississippi River basin. (More On This Story)

NCGA’s Fitchhorn Testifies on Need for Modern Locks
Testifying today before the U.S. House of Representatives’ Mississippi River Caucus, National Corn Growers Association (NCGA) member Ron Fitchhorn expressed the immediate need for an efficient and competitive transportation network to ship crops to international and domestic markets. (More On This Story)

NCGA’s Yoder Attends Launch of National Center for Food Protection and Defense
Secretary of Agriculture Ann Veneman and Department of Homeland Security Secretary Tom Ridge on Tuesday announced the official launch of the National Center for Food Protection and Defense, a consortium of academia, government officials and food industry representatives that includes National Corn Growers Association (NCGA) Chairman Fred Yoder. (More On This Story)

NCGA Consultant Estimates Record Corn Crop and Yield in 2004
The release of the U.S. Department of Agriculture (USDA) June acreage report last week has spurred speculation on whether this year’s crop will surpass 2003’s record production of 10.114 billion bushels. (More On This Story)

NCGA First Vice President Leon Corzine, left, and President Dee Vaughan, right, visited a European corn field during the recent NCGA-U.S. Grains Council biotech mission to the European Union and Russia.

NCGA Leaders Share Lessons Learned on Biotech Mission to EU, Russia
The use of biotechnology in agriculture continues to ignite debate among farmers, governmental officials and consumers in the European Union (EU). While many European growers recognize the potential of biotechnology, alarmist consumer groups and media have prevented widespread acceptance of biotech crops, according to National Corn Growers Association (NCGA) leaders who recently returned from a fact-finding mission to the EU and Russia. (More On This Story)

Good News for Corn Growers: International Freight Rates Falling
Freight rates have tumbled from all-time highs, making U.S. grain a better buy for overseas customers. As of June 22, freight rates from the U.S. Gulf to Japan were $36.97 per ton, about a 50 percent drop since March. And rates from the U.S. Pacific Northwest to Japan were $24.65 per ton, a 46 percent decrease compared to three months ago. The U.S. Grains Council’s overseas directors are optimistic about the turnaround, particularly in Asia. “The 50 percent reduction in ocean freight from March highs and the suspension of Brazilian feed ingredients to Indonesia due to the foot and mouth disease outbreak in Brazil are definitely making U.S. commodities more attractive to Southeast Asian end users,” said Kim Rameker, USGC Southeast Asia regional director. In Taiwan, Director C.M. Lynn is hoping for a more stable market. “The high ocean freight from the U.S. Gulf and Pacific Northwest to Taiwan ports forced Taiwan feed grain buyers and importers to import from nearby supply sources, including China, Vietnam, India, Thailand, etc., often using containerized shipments,” he said. “Lower freight rates will definitely make them decrease or stop these imports and go back to the U.S. market.” In Korea, importers have returned to the United States as their only reliable corn supplier, despite the high freight rates, said Byong Min, the Council’s Korea director. But Min noted lower rates will ease Korean import buyers’ financial burden. Similarly in Japan, importers have continued to import U.S. corn throughout the period of high freight rates. “Japan just physically has to import so much corn per month to meet total demand, so they have done their best to obtain the lowest freight rate possible,” said Cary Sifferath, senior director in Japan.
Story courtesy U.S. Grains Council.

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© 2004 National Corn Growers Association

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