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Dairy farmers switch to grain feeding
A quarter of all the cows milk we drink in Australia now comes from cattle fed on grain - and it's not just due to the drought.
Once dairy farmers fed grain to cows to get through dry times, but increasingly the change in diet is to boost milk supply and protein content.
Steve Little, from Dairy Australia, says just four per cent of dairy farmers rely solely on grass anymore.
"Tasmania has the lowest level of grain feeding, they're at about 1.2 tonnes per cow per year and the highest regions are South Australia, northern New South Wales, south-east Queensland and other areas in New South Wales." (ABC Rural)

US agency to buy mostly corn for N.Korea
The U.S. government plans to ship mainly corn to North Korea during the next year to ease food shortages at a cost of $300 million to $350 million, including shipping, Jon Brause, USAID's expert on North Korea, told Reuters in an interview on Wednesday.
The U.S. Agency for International Development will buy about 50,000 tonnes of food a month through mid-2009. The corn will be milled into corn flour, not fed to livestock, he said.
North Korea is facing a food shortage due to flooding last year, higher commodity prices and political wrangling with major donor South Korea. Famines a decade ago killed an estimated 1 million people, experts have said.
"Government rations have almost been reduced to zero over the last few months," said Brause, who was part of a U.S. delegation to North Korea. "If there isn't an augmentation of the food supply, you're going to see some problems. Their harvest isn't until the fall."
In May, the United States said it would provide 500,000 tonnes of food aid to North Korea to fight food shortages, with most of the food distributed by the World Food Program (WFP).
About 400,000 of the 500,000 tonnes will be bulk grain, predominantly corn with some wheat, Brause said. The remaining 100,000 tonnes will be vegetable oils, pulses, and corn-soy blends for children. (Reuters)

Iraq to sue AWB over oil-for-food program
The Iraqi government has launched a civil lawsuit against wheat exporter AWB in the United States.
The lawsuit has been filed against 94 companies which the government alleges to have participated in the United Nations oil-for-food program.
The Iraqi government's lawsuit alleges violations of the US Racketeer Influenced and Corrupt Organizations Act by the 94 companies that participated in the oil-for-food program.
AWB is one of the 94 companies mentioned in the lawsuit.
AWB said today that the matters were already the subject of litigation in other civil actions before the US District Court for the Southern District of New York.
“AWB will vigorously defend its position if the case proceeds,” AWB said today.
AWB shares were steady at $2.41 at 12.37pm. (West Australian)

Lamb finishing crucial to quality?
A two-week finishing period pre-slaughter with a medium energy ration is critical for lamb meat eating quality, according to Robin Jacobs, from the Department of Agriculture and Food, Western Australia.
Outlining lamb finishing strategies at the Cooperative Research Centre for Sheep Industry Innovation forum last Thursday at Naracoorte, he said producers had a part to play ensuring consumers had a pleasant eating experience every time by managing the muscle glycogen levels of their lambs on-farm.
Low levels of muscle glycogen post-slaughter lead to dark cutting carcases but feeding lambs on a high-quality pasture, or high-concentrate diet to ensure weight gains of 100-150 grams a day in first and second cross lambs – or 200g/day in Merinos – in the fortnight before slaughter maximised muscle sugar levels. (FarmOnline)

Majority of S.Koreans oppose US beef deal - survey
The majority of South Koreans are unhappy with the government's new deal for the re-import of U.S. beef but said the nightly rallies against President Lee Myung-bak should stop, a newspaper survey published on Tuesday said.
South Korea and the United States said at the weekend they had reached a private-sector deal to restrict trade in U.S. beef to cattle under 30 months and forbid exports of parts that are thought to pose a higher risk for mad cow disease.
But the revised deal, which followed more than a month of rallies against an original agreement that mushroomed into broader protests against Lee, has not stopped the nightly street demonstrations.
Over the weekend, some of the thousands of South Koreans who had held a candle-light vigil erupted into violence in central Seoul, clashing with police and smashing police buses set up to block protesters from marching to the presidential office.
Online message boards have been filled with posts by users wondering if the private-sector agreement is enough to prevent meat they feel poses a high risk for mad cow disease from entering the country.
In the survey conducted by the conservative Dong-a Ilbo newspaper, 52.9 percent of the 726 people polled said the revised deal should not be accepted. Just over 38 percent approved it.
Trade Minister Kim Jong-hoon, said the U.S. private-sector export restrictions were a binding mechanism under the U.S. Department of Agriculture Quality System Assessment programme and Seoul had the right to return any product not in compliance.
The April beef deal was meant to help a separate bilateral free-trade accord that U.S. congressional leaders threatened to block unless South Korea opened up its market to beef imports. (Reuters)

Libs backdown on wheat amendment
The Liberals have backed down on its threat to impose an amendment to the Federal Government's wheat deregulation bill, which would have eased regulations over port terminals operated by bulk grain companies.
The Australian Financial Review is today reporting that the Liberal Party has ditched its amendment, after lobbying by The Nationals and by AWB, which argued that the move would harm grain growers.
They say the regulations are necessary to ensure fair access to ports by all players.
Labor's legislation, which effectively deregulates the marketing of bulk wheat exports, was debated in the Senate last night and is expected to pass parliament in time for the planned July 1 start date for the new system. (Stock & Land)

Lamb prices at dizzy heights
The lamb market's jekyll and hyde nature has returned and neither is good for the industry.
Prices may be booming for the relative few who have any to sell, but processors face losing money and an early winter shut down. Meanwhile, lamb is in danger of pricing itself out of the market.
A decent forward-selling system could have solved this supply, demand and price dilemma, according to Sheepmeat Council president Chris Groves.
"Come spring-time there will be lambs everywhere and not enough kill space and watch the price fall," Mr Groves said.
"This boom and bust cycle reinforces the need for all interested parties to sit around the table and talk about how we can solve this supply issue as it has the potential to be very damaging indeed."
Mr Groves said a general lack of confidence in the relatively new and specialist lamb finishers industry was one of the key reasons why a better forward contract system did not exist.
Lamb has now hit a four-year high across the eastern states and is expected to stay at close to 500 cents per kilogram (dressed) until spring lamb hits the saleyards.
Three and four score trade lambs in Bendigo and Ballarat, Victoria, this week made between $85 and $130 per head, or 460-550c/kg, according to the National Livestock Reporting Service, which quoted prices at yards in central New South Wales as at similar levels.
Across South Australia prices have hit 550c/kg for the best trade lambs, while heavier lambs are selling for closer to 425-450c/kg, according to Landmark livestock manager for SA, Wayne Hall.
"For the first time in a long time we are seeing vendors rewarded for feeding lambs, it is a simple supple and demand situation and it is very hard to predict where it will go to from here," Mr Hall said.
In the west, prices have not reached these dizzy heights, with Peter Trefort, of Hillside Meats at Narrogin, WA, saying lamb supply was holding up well in that state.
"We have had some forward contracts in place but the price will no doubt stay up for some time yet; we're at 380-400c/kg for a good 20kg lamb right now," he said.
But better quality second cross lambs are becoming harder to find, according to the NLRS.
Last week it reported a big jump in the Victorian and New South Wales trade lamb indicators at 464c/kg and 446c/kg, their highest price since August 2004. (Stock & Land)

Flood damage to Midwest soil may block replanting
Midwest U.S. farmers with flooded fields may find that soils have been damaged too much to plant this year even if the waters recede quickly, agronomists said on Wednesday.
Fields that have been underwater for close to a week were facing damage that could give farmers headaches for years.
"There has been a tremendous amount of soil erosion," said James Fawcett, a field specialist in southeastern Iowa with Iowa State Extension Service. "The fields will not be as productive as they have been in the past."
Fields along flooded rivers will have to be cleared of sand and debris before they can be planted again, Fawcett added. And it will take a long time for some fields to dry even if the standing water subsides soon.
"We have areas where it is going to take six months before it is going to dry out," said Palle Pedersen, extension agronomist at Iowa State University.
"The worst areas are the river bottoms where ... we have had a lot of water sitting for a long, long time."
But conditions have dried out enough on higher ground to allow some farmers to replant soybeans or spray and fertilize their fields despite watery "potholes," agronomists said.
About 20 percent of Iowa's corn crop was either ruined or is in serious jeopardy, Iowa State University agronomist Roger Elmore said. The remaining 80 percent is not in good shape.
Affected farmers face a dilemma: spend the money to replant and reap perhaps half the normal yield, assuming there is not a summer drought or early frost, or accept crop insurance payments. (Reuters)
Corn hits record highs on US floods
Corn rose close to a record after floods in the US Midwest ruined some crops and increased the risk of lower production as global demand for food increases.
Some fields in Iowa, the biggest US corn producer, got more than 15 inches (38 centimeters) of rain in the past two weeks, National Weather Service data show. Crop conditions deteriorated for a second straight week, the government said on June 16. Harvested cornfields will decrease by 2 million acres and yields will fall, said analyst Dan Cekander in Chicago.
''Prices are going to stay supported until more is known about acreage and yield losses,'' said Cekander, a senior grain analyst at NewEdge USA LLC. ''Prices are not high enough yet to slow demand.''
Corn futures for December delivery rose 4 cents, or 0.5%, to $US7.80 a bushel on the Chicago Board of Trade, the highest close ever for a most-active contract. Prices touched a record $US7.915 on June 16. The most-active contract soared 84% in the past 12 months on record demand for livestock feed and grain-based fuel.
Floods and severe Midwest storms have killed at least 17 people and forced the evacuations of more than 36,000 Iowa residents. The disastrous weather has boosted corn prices 30% since May 25.
River levels will match or beat records set in 1993 for a half-dozen communities along a 60-mile (97-kilometer) stretch of the Mississippi north of St. Louis over the next three days, the National Weather Service said. At St. Louis, the river is forecast to crest on June 23 at about 10 feet (3 meters) below the record. The rising river is jeopardizing as many as 24 flood-control levees, according to forecaster AccuWeather.com.
Crop condition
About 57% of the corn crop was in good or excellent condition as of June 15, down from 60% a week earlier and 70% a year ago, the USDA said yesterday.
Global corn inventories as of Aug. 31 will drop to the lowest in 24 years, the USDA has projected.
Crop conditions this month are the worst since 1996, USDA data show, and mirror the deterioration in 1993, the last time widespread flooding reduced yields.
The weather is endangering a US corn crop already expected by the government to decline from last year's record harvest after farmers planted 8.1% fewer acres, analysts said. Domestic corn production will drop 10% this year, to about 11.7 billion bushels, the USDA said last week.
US inventories before the 2009 harvest will total 673 million bushels, representing about 20 days of supplies at current consumption rates. That's down from 40 days of stockpiles estimated for this year and the lowest since 1996, when reserves were projected to last 18 days, USDA data show.
''I've never seen corn and soybeans look this bad in Iowa,'' said Chip Flory, editor of the Professional Farmers of America newsletter in Cedar Falls, Iowa. ''Things are starting to straighten out, but there are more risks'' for lower yields from hot summer weather or a shortened growing season, he said.
Corn is the biggest US crop, valued at a record $US52.1 billion in 2007, followed by soybeans at $US26.8 billion, government figures show. (Bloomberg)
S.Korean president apologises on beef
South Korea's embattled president apologised on Thursday for a U.S. beef import deal that sparked mass street protests against his new government and will sack close aides to try to halt a dramatic slide in public support.
Lee Myung-bak, who eased to victory in a December election with pledges of pro-business reforms and growth for the world's 13th largest economy but now has an approval rating of less than 20 percent, said he wanted to start a new chapter for his four-month-old government.
"As I sat up on a hill in the dark watching the lines of candles filling the city streets, I faulted myself for not ensuring the comfort of the people," Lee said in a televised speech, referring to more than a month of candle-lit rallies.
"I will make it a top priority to stabilise prices and look after the lives of the working people," Lee said.
Analysts said they expect large parts of Lee's reforms, which include privatising state firms, tax cuts for companies and mortgage relief for low-income households, to be stalled unless he can win back public support.
A parliament in which Lee's conservative Grand National Party holds the majority has yet to begin sitting because of a boycott by the left-of centre opposition angered at the beef deal.
Hundreds of the 13,000 striking South Korean truckers, whose protest has paralysed ports and cost export firms billions of dollars, reached deals with employers and returned to work on Thursday, easing a little pressure on Lee. (Reuters)

Koreans in talks with US on beef
South Korea's Trade Minister is set to meet his US counterpart in Washington today to resolve a seemingly endless dispute over American beef.
The US insists it will not "renegotiate" its April agreement with Seoul to accept all US beef under international mad cow safety rules.
But the two sides were set to talk about how to implement a more restrictive voluntary private industry agreement.
Gretchen Hamel is with the US Trade Representative's Office says: "Trade Minister Kim will be coming to the US Trade Rep's office and will be meeting with Ambassador Schwab. There may, possibly, be additional meetings, so we can re-open the beef market and get beef flowing back into South Korea."
US President George W. Bush has assured Korea's new president, facing tremendous political pressure at home, that the US won't ship to Korea beef from animals over 30 months, which is thought to have a greater mad cow risk. (ABC Rural)

Container shortage hits exports
SOUTH Australia is missing a golden opportunity and millions of dollars in business because of a shortage of food-grade containers to export wheat.
The containerised grain export market has grown rapidly since Australia's wheat industry was deregulated on August 27, 2007.
Wheat exports have swung from bulk towards containers as deregulation has removed AWB Limited's export monopoly, allowing other traders into the market.
As well, an increasing number of Asian customers prefer containers. At the same time, bulk shipping costs have soared due to the mining boom.
Container terminal operator DP World Adelaide commercial manager Peter Gaffney said containerised wheat exports had the potential to become its largest export trade in SA.
Mr Gaffney said the market had grown from zero to about 20,000 containers within two years and had the potential to quickly reach 50,000 containers.
"This would rank it behind wine as South Australia's largest containerised export,'' Mr Gaffney said.
The latest Export Wheat Commission figures show that Australia has exported 1.53 million tonnes of wheat in containers in the eight months since deregulation, a threefold increase on the same period in 2006-07.
It compares to 2.6 million tonnes of wheat shipped in bulk in the same time.
Balco Group managing director Malcolm May said it could ship 20-30 per cent more grain out of SA in containers if they were available - and the demand was only going to increase. (Adelaide Now)
Argentina sticks by grain export taxes
President Cristina Fernandez dug in her heels Monday over contentious grain export tax hikes, rebuffing farmers who are seeking talks to end a three-month standoff that has crippled Argentina's farm sector.
Fernandez also announced that revenue from the duties will fund social programs including the construction of 30 new hospitals, housing for the poor and rural roads. It was the first time she has given details of her plans for the money.
"I ask that all Argentines commit themselves to the fight against poverty and the redistribution of wealth," Fernandez said. "It is impossible to redistribute wealth without touching extraordinary profits."
The government hiked export taxes on soy from 35 percent to 45 percent at current prices on March 11 to tap into an international commodities boom. Farmers responded with a nationwide protest that has lasted for nearly 90 days, paralyzing the economy and raising the specter of economic recession.
Fernandez spoke Monday just hours after her government refused to attend a meeting called by the national ombudsman with leaders of the four main rural groups, saying no mediators are needed.
The previous night, farmers lifted hundreds of protests in the hopes of sitting down to a third round of negotiations with government officials.
Farmers claim they need the profits to reinvest in their lands to increase productivity.
During a news conference later Monday, Mario Llambias, head of the Argentine Rural Confederation, criticized Fernandez's determination to use farm profits to fund social programs.
"We agree with the destination of the funds," he said. "What we don't agree with is their origin." (Associated Press)
US refuses to negotiate with Korea on beef
The United States is refusing to renegotiate its beef deal with South Korea, after Korea's President Lee bowed to public concerns about mad cow disease.
The US insists American beef is safe, that it has met international mad cow safety standards, and that Korea should abide by those rules and stop delaying a beef deal Seoul announced with the US in April.
Sean Spicer from the US Trade Representative's Office says: "The agreement that our two governments reached in April is a good agreement, based on recognizing international science, and there would be no reason for any type of renegotiation."
Five leading US beef producers have agreed to voluntarily label shipments to South Korea to show the age of cattle when slaughtered, and the Americans hope this gesture will get their beef back into the market.
The Koreans agreed in April to accept all US beef, but now don't want product from cattle over 30 months, thought at greater risk. (ABC Rural)

New rules for wheat exporting
Draft accreditation rules for wheat exporters have been released as the $5 billion industry prepares to formally dismantle the monopoly on bulk exports.
The House of Representatives on Wednesday passed legislation aimed at opening up bulk wheat exports to multiple operators in the wake of the AWB food-for-oil scandal.
The government's Export Wheat Commission has released the draft accreditation rules for public comment, ahead of the new scheme's expected start date of July 1.
The commission says the draft rules cover how companies could gain accreditation to export, grounds for suspension or cancellation of accreditation and fees to be charged. (AAP)

Grower anger as wheat bill passes parliament
The Federal Government's Bill to open up wheat exports to competition has passed through the lower house today with Liberal support.
The legislation scrapping the single desk split the Coalition with only the 10 Nationals MP's voting against it.
The Nationals won't be able to block it in the Senate.
Farmer Peter Cannon from the Wheat Growers Action Group met Agriculture Minister Tony Burke yesterday to tell him he's ignored a large section of the grower community.
"I've actually asked for him to resign because he is not representing us grain growers, he's just playing political games with our rural economy," he said.
"To me it's just one big political game, and I'm just totally disgusted." (ABC Rural)

Boom times for Australian dairy industry
A new report says the Australian dairy industry is enjoying its best world market conditions in decades.
Dairy Australia's Situation and Outlook report says world demand for dairy products is proving strong, despite big price increases.
Domestic dairy sales rose seven per cent in value in the year to March, even though there were falls in the amount of cheese and yogurt sold.
A Dairy Australia national survey of 1000 farmers found confidence was up 24 per cent, and many farms, particularly in coastal areas, were moving back into profit after the drought.
The report predicts farm gate milk prices may fall 10 per cent next financial year, because of weakening commodity prices and a rising Australia dollar, but competition for the milk from dairy companies will limit any falls.
Co-author of the report, Joanne Bills, says many believe their costs are out of control.
"On average, dairy farmers fed about 1.7 tonnes per cow, per year in the last 12 months, and that was up on the previous year. Grain prices have reached record levels in response to global shortages so stocks are at very low levels for the grain market." (ABC Rural)

S Korea Backs Away From Resuming US Beef Imports
South Korea says it has asked the United States to halt exports of beef from cattle over the age of 30 months.
South Korea's Agriculture Minister Chung Woon-chun made the announcement Tuesday and described the decision as a "humble acceptance of the people's will."
The decision reverses a plan to resume normal beef imports from the United States, and follows weeks of almost daily street protests against the plan, prompted by fear of mad cow disease.
South Korean demonstrators demand that President Lee Myung-bak cancel the deal he made with the United States to lift restrictions on U.S. beef imports, fearing the U.S. beef is not safe.
Officials asked the U.S. to respect South Korea's position.
Spokesman for the U.S. Department of State, Tom Casey says the U.S. is looking forward to resuming unrestricted beef exports to South Korea, but will cooperate with Seoul in resolving the controversy at home.
U.S. officials say U.S. beef has been proven safe and is exported throughout the world.
Seoul banned U.S. beef in 2003 after mad cow disease was detected in the United States. South Korea resumed imports last year, but restricted them to boneless beef from cattle 30 months old or younger.
The government in April agreed to open South Korean markets to unrestricted U.S. beef imports.
But the South Korean Agriculture Ministry announced Monday that the government had decided to delay the plan for an unspecified period.
The beef deal was a condition the United States set for a larger free trade agreement. (VOA News)

Woes continue for GrainCorp
Agribusiness GrainCorp expects to post another full year earnings loss, after the impact of the drought pushed its first half result into the red.
The Sydney-based company has now embarked on an internal restructure aimed at insulating its business from poor seasonal conditions in the future.
GrainCorp today reported a net loss of $6.5 million for the first half of fiscal 2008, as the drought on the east coast of Australia last year reduced the amount of grain it had in storage. The result compared to a profit of $5.5 million in the prior corresponding period.
GrainCorp is forecasting a full year net loss of around $20 million, in line with $19.8 million loss it reported in fiscal 2007, due to the smaller tonnage of stored grain.
Chief executive Mark Irwin said the first half result was disappointing.
But aside from the drought the fundamentals of the business were strong, as Graincorp pursues a takeover of stockfeed company Ridley Corp.
"The result clearly shows that GrainCorp needs to diversify income streams, it validates our Ridley acquisition strategy and provides an imperative to identify and pursue growth," Mr Irwin said. (News.com.au)
Argentine farmers suspend grain exports
Argentine farm groups vowed Tuesday to suspend grain exports and meat sales, resuming protests against controversial export taxes a day after talks with the government stalled.
Farmers will halt meat sales and shipments of grain for export from May 28 to June 2, sending a more than two-month conflict over increased taxes on soy and sunflower seed exports back to an apparent deadlock.
"Faced with the national government's recurring refusal to resume dialogue, the farmers' commission has resolved to call on all growers in the country to resume protest measures," Mario Llambias, head of the Argentine Rural Confederation, told reporters.
Unless progress is made, he warned, farmers will on June 9 step up efforts to ensure the "the solutions the sector needs are achieved by legislative process."
President Cristina Fernandez's government hiked export taxes on select grains in March, unleashing weeks of strikes that triggered food shortages and protests nationwide. One march drew about 300,000 people in the town of Rosario on Sunday.
Fernandez contends the tax increases are needed to redistribute wealth to the poor, but farmers say the taxes make it difficult for them to make a living. (Associated Press)
Feedlot wheat a new variety
For the first time, a wheat variety targeted to the feedlot industry has been launched in Australia.
Crops of the variety, called Stampede, have been planted in Queensland and New South Wales.
Plant breeder Dr Phillip Banks, from Queensland's Department of Primary Industries, says it'll answer a growing need for good quality rations for feedlot cattle.
"What the livestock industry's been asking for are higher yielding wheats," he said.
"The industry's quite happy with the energy levels in existing wheats, but they want something that's higher yielding, so that there's more wheat for that market." (ABC Rural)

Parmalat, Murray Goulburn would split Dairy Farmers
Dairy cooperative Dairy Farmers would be split in two if Parmalat and Murray Goulburn take over the business.
According to a letter released by the Australian Competition and Consumer Commission to market participants, the Parmalat-Murray Goulburn consortium’s proposed transaction would result in two separate dairy businesses, each with its own particular dairy industry focus and each separately controlled.
While no precise detailed were disclosed, one company, to be called Fresh Dairy Co, would see the merging of the fresh milk operations of all three companies, and control about 50% of Australia’s branded liquid milk sales.
Parmalat would hold a 51 per cent stake in Fresh Dairy, with Murray Goulburn holding 49 per cent .
Meanwhile, Murray Goulburn would acquire the non-fresh dairy operations of Dairy Farmers, including cheese, UHT milk and milk powder.
Dairy Farmers has also attracted firm offers from National Foods and Fonterra. All bidders are awaiting ACCC approval. (FoodWeek)

U.S. Beef to Hit Korean Markets in June
U.S. beef imports will likely hit Koreans' dinner tables some time in early June. Official announcement of negotiation terms by the agriculture ministry is expected early this week.
This will give the go-ahead to a quarantine inspection on 5,300 tons of U.S. beef cuts that have been waiting in the nation since last October. Korean inspectors who left for the U.S. to look into quarantine measures there about two weeks ago will make their final report Monday.
The new beef deal signed last month allows more beef parts with the exception of specified risk materials into the Korean market. Letters between the two nations' top trade officials, with additional clarifications, will be added as supplementary provisions to the original agreement.
In the letters, the U.S. recognizes that materials considered risky will be held to the same standard for import to Korea as for its domestic market. And they add that Korea has the right to ban imports in case of a health threat due to a mad cow disease outbreak in the U.S. (Arirang News)

West Australia Grain Areas to Get Rain, East to Stay Mostly Dry
Grain-growing areas in Western Australia, the nation's biggest wheat producer, may get more rain this week, adding to recent falls, while southern and eastern parts will mostly remain dry.
Western Australia's cropping regions may get as much as 25 millimeters (1 inch) of rain, Shoni Dawkins, a climatologist at the National Climate Center, said today by phone from Melbourne. South Australia and Victoria states will mostly be dry this week, while an upper-level trough may bring isolated showers and thunderstorms to New South Wales and Queensland states, he said.
New South Wales, usually the nation's second-largest grain grower, hasn't yet had enough rain to sow crops and needs as much as 1 1/2 inches for planting, AgRisk Management Pty said last week. Drought spread in the state and rain was ``crucial'' within three weeks, New South Wales' agriculture minister said May 12.
``Unlike Western Australia which seems to be receiving the cold fronts and the low-pressure systems in the past week and again this week, we're just not seeing those features over the eastern part of the country,'' Dawkins said.
The south-east of South Australia state and Victoria may get isolated showers today or tomorrow, Dawkins said. South-east Queensland state may get as much as 10 millimeters of rain later in the week, he said. (Bloomberg)

Ridley board rejects Graincorp offer
The board of agribusiness company Ridley Corporation has rejected a takeover offer from GrainCorp.
The offer, made late last week, values Ridley at $415 million dollars.
Ridley chairman, Dr John Keniry, says the offer is opportunistic, and a number of major Ridley shareholders don't support it.
He is not surprised there is some jockeying in the grain trade after the demise of AWB limited's single desk for export wheat.
But Dr Keniry says the government should stop companies getting too big and powerful in the grain sector.
"When you start to get people aggregating back up to the dominant position that AWB used to have, then it's appropriate for the competition regulars to ask what's going on here." (ABC Rural)

Cotton finds a new home in the far north
The first commercial area of cotton in the Burdekin in North Queensland is approaching picking but it has already been heralded as a success considering the abnormally wet season.
With a dozen growers producing about 850 hectares this year, defoliation is expected to commence in coming weeks, with the pickers to begin rolling from mid-June onwards.
The DPI&F's Paul Grundy is one of the leaders of the project, after a recent move to Ayr from Biloela as part of a three-year Cotton Catchments Communities and QDPI&F funded project.
With extensive trials at the local research station and on farm, he and those like him are hopeful that the crop has a long-term future and that eventually a gin will be built.
His current trials are assessing four different planting dates by five different varieties, in a bid to ascertain the impacts of the wet season, which usually occurs in January and February.
Climate variability is the biggest challenge in the north; but in an inverse way to the south. Too much water and cloud cover is their problem. (Stock & Land)
Canola plantings soar
Western Australia's grain handler says there has been a massive increase in canola plantings along the south coast this year.
Co-operative Bulk Handling says grain plantings are expected to rise by 20 per cent across the state with growers keen to cash in on high prices.
Albany zone manager Richard Simonaitis says good rainfall on the south coast has allowed growers to sow canola crops early and most will finish seeding within the next week.
However, Mr Simonaitis says a dry start to the month in the south-eastern Wheatbelt has forced many growers to delay seeding programs.
"Up around Hyden, Lake Grace, Newdegate, you'd expect those guys to be locked into their rotations and would not change a hell of a lot," he said.
"Whereas the further south and west you go, I'd see more and more canola going in and potentially bigger barley programs as well." (ABC News)

Some wheat growers continue to fight for single desk
A new wheat growers action group, WAG, has pledged to fight the Federal Government in its plans to deregulate the industry.
It strongly opposes the new Wheat Export Marketing legislation that will change the way wheat is exported and marketed.
Spokesman for WAG, Peter Cannon, says the idea that the legislation creates a free market is a furphy.
He says Australian wheat growers will be competing against heavily subsidised, corrupt markets dominated by the US and the EU.
Mr Cannon says surveys show more than 80 per cent of wheat growers want the single desk retained, and they are being ignored.
"We need a voice that speaks the mind of the grassroots wheat growers," he said.
"We want to see this wheat export bill thrown out and the 08/09 wheat marketing pool to continue.
"We want to be given time to negotiate with government, so that they will listen to what the grain growers want, not just what government wants." (ABC Rural)

Big lift in profit for AWB
AWB has reported a profit increase of nearly 90 per cent, posting a net profit after tax of $22.3 million dollars.
The result was driven by a strong performance by its rural services division, Landmark, where fertiliser, chemical and merchandise sales were strong.
Managing director Gordon Davis says international commodity prices have also helped the result.
"The Australian commodity business, which is our core traditional business, returned to profitability," he said.
"In the corresponding period last year, we exited some business with some associated write-offs.
"This year it's been a more normal profile, and it's preformed more strongly.
"We've seen wheat prices increase by close on 40 per cent.
"Clearly, as we trade those commodities globally, that affects the revenue line." (ABC Rural)

Argentine farmers to suspend strike
Argentine farmers announced plans Monday to suspend a 13-day strike and resume grain sales, paving the way for talks with the government to end contentious export restrictions.
Farmers will resume shipments of wheat, soybeans, sunflower seeds and other grains beginning Wednesday at midnight (0300 GMT), said Mario Llambias, head of the Confederation of Rural Argentine producers. The coming truce promises another lull in an on-again, off-again battle between the government and farmers, who have bitterly protested increased export taxes for weeks.
President Cristina Fernandez imposed the measure in mid-March, raising export duties on soybeans from 35 percent to as high as 45 percent. Similar increases were tacked onto other grains in a bid to boost the nation's tax revenue while world commodity prices are high.
Argentina is the world's second-largest exporter of corn and third-largest of soy, according to the U.S. Department of Agriculture.
Farm leaders on Monday said they expected talks to resume shortly with Fernandez's government, which had vowed not to negotiate until growers ended their ban on grain sales.
"We hope the government won't disappoint us," protest leader Eduardo Buzzi said.
The protest has deprived the government of increased tax income, but has not caused renewed food shortages, as many had feared. Farmers blockaded key highways for 21 days in March, causing stores in Buenos Aires and other cities to run low on staples like beef and vegetables.
Fernandez called for unity in a conciliatory speech last week, but offered no specific proposal. Her office did not immediately react late Monday to news of the strike's suspension.
Her government has refused to re-examine farmer's central demand that it roll back soybean export taxes and other restrictions. The farmbelt rebellion is the first large domestic crisis to confront Fernandez's five-month-old government and triggered the recent departure of her first economy minister. (Associated Press)
Government moves to calm Japanese over grain shipment contamination
The Federal Government is trying to ensure Australia's grain export market to Japan is not threatened by a recent insecticide contamination in a barley shipment.
The 20,000 tonne shipment, owned by Western Australia's Cooperative Bulk Handling, has been stalled by the Japanese Government for recording higher than acceptable insecticide levels.
The Federal Government is trying to reassure the Japanese that it's safe to continue importing grain and barley from Australia.
Josh Roberts, a senior trading manager with CBH, says it's confident a positive outcome can be reached.
"The Japanese Government, the ministry has announced that this particular cargo is going to be rejected on the basis of the rules, rules that have been in place for some time. At the same time there are other cargoes of barley that are on the water and we don't expect any ongoing problem." (ABC Rural)

Rain in northern Vic lifts breeder cattle prices
Widespread rain in the northeast of Victoria before the Wangaratta monthly store cattle sale on Friday saw keen competition for breeding cows with young calves at foot, with prices $50-$80 dearer.
Competition was steady for steers and unjoined heifers.
Prices for cow and calf outfits saw a top price of $1180 for these units.
Joined females, on the point of calving made to $900, up by $40/head on the previous sale.
Later calving heifers were, however, harder to sell.
And unjoined heifers met weaker competition, especially those backward in condition and unsuitable for immediate feedlot entry. (Stock & Land)

Australia key wheat growing state misses out on rain
Good weekend rainfall in southern and southeastern Australia has triggered full-scale wheat planting there, but the key eastern growing region mostly missed out, farm analysts and weather officials said on Monday.
Farmers in the eastern state of New South Wales, which normally produces about 30 percent of the country's wheat crop, were anxiously waiting for rain to begin to plant a forecast record wheat crop, after two years of drought-devastated crops.
"New South Wales has been pretty disappointing," said Ron Storey of private group Australian Crop Forecasters.
Australia is the world's second-largest wheat exporter after the United States.
Around 20 millimeters (0.8 inch) of weekend rain fell over western parts of Victoria state and in southeastern South Australia.
"That would have got the tractors going," said Andrew Watkins, senior climatologist at the National Climate Centre of the Australian Bureau of Meteorology.
Farmers contacted by Reuters in the Mallee wheatgrowing area of Victoria state said on Monday they were starting full-scale planting.
But rain in New South Wales had been generally light at less than 10 millimeters.
Storey said he was maintaining his forecast for a record Australian wheat crop of 27 million tonnes because of the encouraging downpours in South Australia and Victoria. (Reuters)

Rice growers get a better price for next year's harvest
Rice growers will be paid $100 a tonne more for their crop next season after the smallest harvest in 80 years.
The Sunrice company, in the New South Wales Riverina, wants to harvest 120,000 tonnes next year, and will pay growers $550 a tonne.
Chairman Gerry Lawson says there is enough water to meet that target.
"I think there's a significant amount of water being held by people who are carrying it over from their small amount of water last year," he said.
"Significant quantities of water are in Coleambally, there are significant amounts of water held by bore license holders." (ABC Rural)

Japan cancels purchase of unsafe Australian barley
Japan cancelled the purchase of 20,000 tonnes of Australian food barley after the shipment was found to contain too much pesticide, Japanese health and farm ministries officials said on Wednesday.
"We have found pesticides that exceeded our standard for the (barley) shipment which arrived last month," a farm ministry official said.
The farm ministry official said the ministry decided to cancel the purchase of the Australian barley as the shipment failed to meet Japan's food safety standard under the contract.
The imported barley will not be distributed in the market as food, the official said.
The Japanese government controls all imports of wheat and barley by holding purchase tenders.
The official said this is the first time Japan has cancelled the purchase of wheat or barley.
He added that the shipment of barley which arrived last month was from a tender that was held in February.
On Feb. 28, the farm ministry conducted a tender under the simultaneous buy and sell (SBS) system, in which it bought 20,000 tonnes of barley from Australia. (Reuters)

South Korea delays U.S. beef imports
South Korea will delay the resumption of U.S. beef imports in the face of mounting public concern over the safety of the product, the farm ministry said on Wednesday.
South Korea, once the third-largest importer of American beef until a U.S. outbreak of mad cow disease in 2003, had been scheduled to start quarantine inspections from Thursday. That would have led to its first full imports of U.S. beef in more than four years.
"I think we need a week to 10 days," Agriculture Minister Chung Woon-chun told parliament.
South Korea reached a deal with the United States last month to open its market wider to American beef. Prior to the agreement, it only allowed in boneless beef from cattle under 30 months of age.
The delay may irritate U.S. lawmakers who have said Congress would not approve a sweeping free trade deal with South Korea unless Seoul fully opened its market to U.S. beef.
The level of public anger over the deal -- which was meant to be a high point of President Lee Myung-bak's visit to the United States last month and his first trip abroad since taking office -- has clearly taken the government by surprise.
Last week, the prime minister and other top officials apologised on national television over the issue and promised to reimpose the ban if there was a fresh outbreak of mad cow disease in the United States.
South Korea imposed a blanket ban on U.S. beef imports for about three years after an outbreak of the disease there in late 2003. Before then, it imported around 199,000 tonnes worth $850 million of the product a year.
Exports from Australia have taken up much of that gap. (Reuters)
ABB cautious about grain export growth
ABB Grain expects to expand its bulk wheat business after Australia's export arrangements are liberalised from July 1, but it is not about to bolt for volume growth, according to managing director Michael Iwaniw.
ABB Grain plans to apply for accreditation as a bulk wheat exporter in an expansion Mr Iwaniw described as complementary to its current business of marketing, storing, handling and exporting grains other than wheat, and manufacturing malt.
"A lot of people who buy barley buy wheat," he told Dow Jones Newswires, adding that the company planned to use the relationships it had built with buyers by exporting up to 15,000 tonnes of wheat monthly in containers this year.
Under legislation yet to be debated in federal parliament, the federal government plans to accredit multiple exporters, ending a protected system under which AWB or its predecessor, the Australian Wheat Board, had an export monopoly or, more recently, dominated exports.
At stake is a share in an annual export trade that has in the past reached nearly $5 billion in value and almost 18 million tonnes of wheat, or more than 15 per cent of the annual world wheat trade.
ABB Grain planned to buy bulk export wheat for cash from farmers, operating in the market on its own behalf while also offering farmers collective sales pools -- details of which had not been finalised, Mr Iwaniw said. Like other Australian grain companies that are also likely to win market share from AWB, ABB Grain is assessing its capital needs and how much to allocate to marketing but "there isn't going to be a bottomless pit of money".
JPMorgan has warned that liberalising wheat export arrangements will affect the working capital needed to market the Australian crop.
An Australian wheat export crop usually had a market value of about $5.6 billion based on current wheat prices, so the grain industry would need to source a large amount of fresh capital to fund this change, JPMorgan's Australian research unit said in a note late last week. (The Australian)

Doubt slows barley sales: CWB chief
Barley sales by Western Canadian farmers are a little slower than normal due to uncertainty over government legislation to end the Canadian Wheat Board's monopoly, the chief executive of the CWB said on Tuesday.
"With the issues in the market place, we're not seeing quite the level of take up on the sales side as we would normally see," Ian White, chief executive of the CWB, told Reuters after appearing before a parliamentary committee.
But White said he expected sales to pick up over the next couple of months, adding that they're "still relatively on track."
"There is some uncertainty ... I'm not saying anything other than things are a little slow," he said.
The Conservative government introduced a bill in Parliament in March to end the CWB's barley monopoly by August 1. But the legislation has yet to be debated and is seen as unlikely to win the required support from opposition parties.
White has said in the past it would be difficult for the CWB to forward-sell barley for the upcoming market year, which begins August 1, until the government provides clarity on its mandate.
The farmer-controlled CWB is one of the world's largest grain sellers with annual revenue of about C$5 billion. (Reuters Canada)

Fonterra joins battle for Dairy farmers
Fonterra has confirmed it is trying to buy Dairy Farmers by requesting regulatory approval to bid for the Australian dairy company.
The New Zealand co-operative has asked the Australian Competition and Consumer Commission to indicate whether it has any concerns that would need to be overcome before a bid was assessed by the board of Dairy Farmers.
A Fonterra spokeswoman said the company was bound by confidentiality and could not comment on the process.
Fonterra has a global strategy and this month bought out its major partner in Chilean company Soprole for US$201.9 million ($263 million).
A deal for Dairy Farmers could be worth between A$800 million ($985 million) and A$1 billion.
The attempt to buy Dairy Farmers will pit Fonterra against National Foods - the company it had been prepared to pay nearly $2 billion for in 2005 and which was eventually bought by San Miguel.
National Foods, now owned by Japanese brewer Kirin Holdings, put in a similar request to the Australian commission last month.
Dairy Farmers, which is owned by 2000 farmers and processes one billion litres of milk a year, had been planning to float its manufacturing and marketing division but signalled last year it would look at broader options.
In March Dairy Farmers said a formal process was under way to evaluate interest from third parties to buy, merge or enter into a joint venture with the co-operative.
Dairy Farmers chief executive Rob Gordon said other interested parties might initiate similar regulatory clearances. Interested parties are understood to also include Italian dairy firm Parmalat and Canadian operator Saputo.
"Any bidder that does not have existing dairy operations in Australia would not, however, be expected to seek an ACCC review at this point," Gordon said. "Such parties may be required to seek Foreign Investment Review Board approval during coming months."
Gordon said the Dairy Farmers board would meticulously assess each option before putting a recommendation to its dairy farmer shareholders. (NZ Herald)

Fonterra seeks ACCC okay for Dairy bid
DAIRY Farmers said today New Zealand dairy co-operative Fonterra Co-operative Group is seeking regulatory approval for a proposed bid.
The application for clearance from the Australian Competition and Consumer Commission follows a move by National Foods, owned by Japan's Kirin Holdings, to seek regulatory approval last month.
Dairy Farmers chief executive Rob Gordon said that other interested parties may seek similar regulatory clearance processes in coming weeks.
"As stated previously, Dairy Farmers' board has requested interested bidders seek the necessary regulatory clearances, including ACCC reviews, prior to it formally assessing proposals," Mr Gordon said in a statement.
National Foods and Dairy Farmers are the second-largest and third-biggest sellers of milk.
Foreign bidders would also need the approval of the Foreign Investment Review Board, Mr Gordon said.
Other parties tipped as potential buyers include Murray Goulburn Co-operative, Italy's Parmalat and Canada's Saputo.
Goodman Fielder (ASX: GFF: quote), which had previously signalled interest in the sale, is no longer part of the bidding, a person familiar with the situation told Dow Jones Newswires last month.
The sale process is being run by Goldman Sachs JBWere. (The Australian)

Good autumn break needed for record grain crop
A record season is still a possibility for Wimmera-Mallee grain farmers if there is a good autumn break in the next few weeks.
A Department of Primary Industries (DPI) survey shows Victorian farmers are planning to plant about 3.7 million hectares of winter grains in the next few months.
The DPI's Chris Sounness says strong commodity prices are enticing farmers to plant more this season in an effort to reduce debt after years of drought.
"We need a lot of things to go right, everyone's looking for a good break in the next two to three weeks which will get the crop off to a good start and then average rain throughout the growing season will definitely set it up," he said.
"Then it's a matter of not getting any diseases, not having any frost events, just having a nice average season would be something that a lot of people dream of after the last six or seven years."
But north central region rural financial counsellor Ted Gretgrix says morale is starting to wane among farmers as they wait for the autumn break.
"Everybody was hoping for a good early break, traditionally the break does come about the middle of May, so I guess at this stage we're not even behind average, so as I said if it would rain certainly this month farmers could still have a really good year," he said. (ABC News)

Cattle trade resumes to Egypt
The Australian Government will resume trade in live cattle to Egypt, subject to strict conditions including the use of a new purpose-built feedlot and abattoir facility inspected by Australian authorities.
The move comes ahead of a $7.6 million extension to the Live Animal Trade Program, to be announced in the 2008-09 Federal Budget, to further improve animal welfare outcomes in countries importing Australian livestock and enhance Australian exports to the Middle East region.
This will include funding upgrades of livestock facilities to meet international welfare guidelines and education and training in areas such as feedlot management and nutrition.
Minister for Agriculture, Fisheries and Forestry Tony Burke said the Australian and Egyptian governments had signed two Memoranda of Understanding on the handling and slaughter of Australian live animals.
The agreement requires the monitoring and recording of movements of Australian cattle through a ‘closed system’ which only permits the use of the new abattoir at the port of Ain Sokhna.
Australian officials and industry assessed the facility and were satisfied it was consistent with World Organization for Animal Health (OIE) guidelines for animal welfare.

Australia May Produce Biggest Canola Crop in 9 Years
Australia, the world's third-largest canola exporter, may produce its biggest crop in nine years, providing farmers get sufficient autumn rain for planting.
Canola output may be 1.8 million metric tons in 2008-2009, up from 1.07 million tons a year earlier, Rosemary Richards, executive director of the Australian Oilseeds Federation, said today in a telephone interview from Sydney. That would be the most since 1999-2000's record crop of 2.4 million tons, she said.
``We are still talking about planting intentions, the area is not even in the ground at this stage,'' Richards said today. ``Particularly on the east coast, unless we get rain in the next two to three weeks, those planting intentions won't be realized.''
Grain growers in Australia rely on rain at this time of year to plant their next crop for harvest starting about October. Canola prices have risen 67 percent in the past year, touching a record as prices for soybeans, soybean oil and palm oil reached all-time highs as global demand exceeded supply.
``One of the big areas of improvement comes from Western Australia,'' Richards said. ``They had obviously an ideal start to the season as well as strong canola prices.''
Canada is the world's largest canola exporter, followed by the Ukraine and Australia, according to the U.S. Department of Agriculture. (Bloomberg)

World wheat outlook rebounds
The US Agriculture Department's latest supply and demand forecast shows a global wheat recovery, but continued high wheat prices.
World Ag Outlook Board chair, Gerald Bange, says the latest USDA estimates call for a "major rebound" in world wheat production, starting with 08/09 US production of about 656 million tons.
"So that's an increase of about 8 per cent," he said.
"Canada's going to be up sharply, up 25 per cent, according to our current estimatea, and Australia will be a huge recovery there, nearly double their last year's production, up to 24 million tons."
US wheat prices should hit another record average of US$7.35 a bushel, but moderate as new production comes on market.
Meanwhile, US wheat exports are forecast to fall sharply, by 24 per cent, as other nations, including Australia, benefit from recoveries.
But a small corn harvest in the US could keep the wheat price steady.
Grains analyst Tony Smith says that, with the USDA predicting the US corn crop to be half of last year's, farmers will be forced to feed their livestock wheat, and that will keep wheat prices steady.
He says a large US wheat crop was expected and much of it has already been factored into current prices.
"Wheat prices have come off dramatically in the past few months," he said.
"But then, if the Australian crop is fine, we're not only going to see a record US crop but we're going to see a record world crop so that will mean negative wheat prices, but the good thing is that it won't be as negative as prices five years ago because the floor will be put in by the corn market." (ABC Rural)

Beef exports to Russia hit record highs
Australian beef exports to Russia continued at pace during April, reaching a record 8333 tonnes (shipped weight), up from a mere 75t sent in April 2007, according to the latest figures from the Federal Department of Agriculture.
Meat and Livestock Australia says that as a result of the surge in April, beef exports to Russia during the first four months of 2008 were 13,073t – almost 30-fold shipments during the calendar year to April last year.
MLA says the boom in exports to the region has been a result of the recent sharp fall in subsidised beef exports from the EU, tight beef supplies and high prices coming out of South America, falling Russian beef production and rising domestic beef demand.
According to DAFF, exports to Russia represented 9pc of total Australian beef exports during April (up from 2pc last year), and 5pc for the calendar year to April (1pc in 2007) – making Russia Australia's fourth largest beef market behind Japan, the US and Korea.
A surge in frozen product is behind the export boom, jumping to 12,749t during the first four months of the year (97.5pc of the total) – up from 230t exported during the same period last year. (Meat and Livestock Australia)

U.S. rice prices soar as supply worries linger
U.S. rice futures soared nearly 5 percent in early Asian trading on Friday as prospects of reduced output from cyclone-devastated Myanmar and a larger-than-expected purchase of rice by Malaysia raised supply concerns.
Other grains were slightly higher, led by corn, as slow U.S. corn plantings caused concerns about potential declines in production at a time when big corn output is needed to meet the needs of livestock, export and ethanol sectors.
Rice prices came off their highs last week after hitting a record of $25.07 on April 24 as Asian prices stabilized on prospects of increased supply from Thailand, the world's largest rice exporter.
But prices started rising again this week, because Myanmar is likely to become a net rice importer, with trade sources saying thousands of metric tons of rice that were in storage in the country were lost and thousands of acres are now not plantable.
U.S. rough rice futures for July delivery RRN8 rose 4.9 percent, or $1.1, to $23.45 per hundredweight in a sixth consecutive daily gain, while September contract RRU8 rose 4.0 percent, or 81.5 cents, to $21.165.
"Supply worries have intensified with Myanmar cyclone and the market is likely to continue to rise and probably test its record highs soon," a Seoul trader said. (Reuters)

AWB reduces 08-09 pool return
AWB has reduced its 2008-09 Estimated Pool Return (EPR) by a $30 a tonne.
The EPR range for APW wheat pool is now $350 - $370 (FOB, GST exclusive) and the Western Australian wheat noodle grade is now $355-$375.
AWB Australian Commodity Management Division general manager, Mitch Morison, said the latest prices reflect ongoing significant falls in international wheat futures.
"The risk premium in US wheat futures has been dramatically reduced as buyers become more confident with the outcome of the northern hemisphere winter wheat harvest," Mr Morison said.
"Northern hemisphere crops are in excellent condition, with the European Union, Russia and Ukraine set to compete aggressively in the export market when their new crop becomes available mid July onwards.
"US crop conditions remain generally good, with a very large Soft Red Winter crop expected, and although Hard Red Winter conditions have not been ideal for much of the growing season, recent moisture has put a floor under production, with additional tonnage likely given
further ideal conditions.
"The Indian crop also finished well and the success of the government procurement program has made a significant import program unlikely however, Middle Eastern crops are likely to see below average yields.
"The combined result of increasing confidence in the production potential of major exporting nations and falling import demand from India has pressed wheat prices lower."
Mr Morison said the lower international wheat price in combination with the high Australian dollar has resulted in a reduction of the new crop pool estimate.
Growers are again reminded that the 2008/09 EPR is currently not supported by a hedging program and will continue to fluctuate by the price moves seen in international markets.
AWB will continue to provide regular updates on the 2008/09 season pool estimate going
forward. (Stock & Land)

Long term rail grain plan needed
A long term is needed to ensure grain would continue to be hauled to port by rail, according to the NSW Farmers’ Association.
The association welcomed the State Government announcement an agreement has been reached to secure the rail transport of this year’s grain harvest but said there was much detail to go over secure the service.
Association president Jock Laurie said the future of grain growers across North West NSW depended on a solution.
“Rail is used to transport a significant proportion of the State’s annual grain production and is part of an overall integrated transport strategy for the movement of grain,” he said.
“For several years growers have been calling for an effective grain rail network and the association will continue to present their issues to all stakeholders to ensure a workable system post June 2009.”
Mr Laurie said he looked forward to a meeting with Deputy Premier and Transport Minister John Watkins next week to discuss the rail line issue and would be asking what freight charges growers would pay and whether growers would be guaranteed equitable access to rail and up-country storage. (Northern Daily Leader)

Crop sowing underway for grain farmers
Grain farmers in north central Victoria are busy sowing crops, despite the lack of a good autumn break.
Bendigo has received about 11 millimetres of rain so far this month.
Echuca and Castlemaine have recorded 10mm, but Kerang has only had 2mm and Maryborough seven 7 mm.
Elmore farmer David Trewick says growers are planting at the traditional time to try to get crops established before winter sets in.
"I think it's probably the movement with direct drilling and minimal tillage to sow more by the calender than by moisture in the ground, but yes with the way the grain prices look ... and hopefully some sub-soil moisture left from some significant summer rains, everyone is generally optimistic but we just need a true autumn break," he said. (ABC News)

Wheat Falls as Rains Likely to Boost U.S. Winter Crop Yields
Wheat fell on speculation that rain this week in the southern U.S. Great Plains will help grain development, mitigating delays from dry, cold weather.
As much as 3 inches (7.6 centimeters) of rain has fallen on fields from Texas to northern Kansas since yesterday, National Weather Service data show. In Kansas, the biggest winter-wheat producer, yields from crops in the north-central region may be 14 percent bigger than last year, participants in the Wheat Quality Council's annual tour said after inspecting the area yesterday.
``The wheat market is transitioning from one of tight supply to adequate supplies,'' said Don Roose, president of U.S. Commodities Inc. in West Des Moines, Iowa. ``The results from the Wheat Quality Council tour will keep pressure on prices.''
Wheat futures for July delivery fell 9.25 cents, or 1.1 percent, to $8.0875 a bushel at 11:51 a.m. on the Chicago Board of Trade. Most-active futures soared 70 percent in the past year before today, reaching a record $13.495 on Feb. 27 as world demand was forecast to exceed output for the seventh time in eight years.
On the Kansas City Board of Trade, where most hard-red winter wheat is traded, futures for July delivery fell 6.25 cents, or 0.67 percent, to $8.5775 a bushel. Most-active futures on the exchange still have jumped 77 percent in the past year, while the price is down 39 percent from a record $13.95 reached on Feb. 27 after rains boosted the outlook for crops worldwide. (Bloomberg)

US predicts no wheat price collapse this year
United States wheat growers are worried about a reversal of soaring prices this season, if world production rebounds.
But US agriculture officials say they've no reason to worry.
Despite sharply lower wheat prices on US futures markets, USDA's Foreign Ag Service chief, Mike Yost, does not expect a US wheat price collapse, even if this season's harvest is 'big'.
He says world food demand is a critical part of the argument.
"I would expect, if we do have good crops in the Northern Hemisphere, that we'll see easing of price," he said.
"But we're also going to see a lot of these countries wanting to develop more of a strategic reserve.
"So I think there'll be considerable buying, particularly if prices moderate somewhat."
With the lowest world wheat stocks in 30 years, after prolonged drought in Australia and poor harvests in Canada, Europe and the former Soviet Union last year, Yost says he still expects a 'good floor' under wheat prices. (ABC Rural)

Lamb count tipped to fall by 5 million
Sheep farms could have about five million fewer lambs in the next five years as the aftershocks of poor prices, drought and dairy conversions take effect.
The bleak forecast by Meat & Wool New Zealand would remove nearly a sixth of the 32.3 million lambs killed last season.
Meat processor PPCS expects the processing industry will probably be down two million new lambs in the coming season.
Meat & Wool chairman Mike Petersen said it was difficult to know if the lamb kill would be down by this much, but initial modelling for a five-year forecast was for an even smaller lamb crop.
"Over five years quite likely there could be five million lambs [fewer]. We have to look past this season and look where we are going in five years."
Big numbers of breeding stock, including replacement ewe lambs, were still being killed.
Fewer lambs would put pressure on the processing industry. Restructuring of meat plants was inevitable.
"If there are five million lambs less that is quite a lot of killing capacity that will need to be taken out of the industry." (Dominion Post)

'No hope' of drought-breaking rains for Qld
Weather forecasters say hopes of drought-breaking rain in Queensland are over, because the La Nina pattern has petered out.
Forecasters say the recent La Nina caused the flooding in Queensland last summer but ended too soon to be considered a drought-breaker.
Senior climatologist Brad Murphy says it is about to get a lot drier.
"Up in the north you've had most of the rain you can expect for the next six months, until the next wet season," he said.
"There is going to be the odd rainfall around over the dry period, but farmers shouldn't be counting on getting any more rain between now and the next wet season.
"It's very hard to say, I mean we can't put one season down to global warming if we're looking at over a long period of time," he added.
"The monsoon finished a little bit earlier than we would have liked and the rainfall in the last couple of months has been quite low."
Doctor Roger Stone from the University of Southern Queensland says the chances of drought-breaking rain over the next three months are only about 10 per cent.
He says the focus now should be on capturing any rain, introducing new technology, and making sure water is not wasted.
"There's some engineering opportunities in desalinisation plants, even in some cloud-seeding research that seems to have been improved over recent years, so I think there's opportunities like that that we have to explore," he said.
The Queensland Water Commission says south-east residents should be prepared for another 12 months of tight water restrictions.
Spokesman Gerald Tooth says Level Six restrictions will be kept in place to make sure there is enough water to last through another year of drought.
Meanwhile rural lobby group Agforce says there will be severe ramifications for farmers and businesses in Queensland if the Federal Government drought relief is prematurely removed.
Agforce Chief Executive Officer Brett de Hayr says the Government is reviewing exceptional circumstances declarations and the forecasts should confirm that the drought is a long way from over. (ABC News)

Argentine Farmers to Renew Roadblocks, Curb Exports
Argentine farmers vowed to renew protests and disrupt the country's food shipments for the second time in as many months after the government failed to repeal tax increases on soybean exports.
Farmers on May 7 plan to block highways that connect Brazil and Uruguay with Argentina and Chile and impede access to grain ports on the Parana River unless the government agrees to end the variable tax on soybean sales abroad introduced March 11, said Alfredo De Angeli, a grower who led the previous stoppage.
``Evidently the government is waiting for us to back down,'' De Angeli said in a May 3 interview in Gualeguaychu, Argentina. ``This is going to be a long battle.''
A prolonged dispute may trim world supplies of soybeans and stoke further gains in prices that surged 79 percent in the past year in Chicago. Farmers blocked highways for three weeks in March, paralyzing grain shipments and creating food shortages across the country, which is the second-biggest corn exporter after the U.S.
The protests were suspended April 2 to allow for negotiations with the government.
Argentina isn't prepared to modify the export tax when officials and farmers meet tomorrow, newspaper La Nacion reported yesterday, citing people close to the government who weren't identified. A sliding export tax levies soybeans at more than 40 percent, depending on market prices. Previously, a flat rate of 35 percent prevailed. (Bloomberg)

World dairy prices start to decline
World dairy commodity prices are dropping and meat prices rising, although the exchange rate is swiping some gains, says the ANZ bank.
The ANZ Commodity Price Index was down 0.3 per cent in April, with the world dairy index dropping to 262.3 - down 4.9 per cent on the previous month.
The dairy products index had risen for 15 consecutive months to reach 291.9 in November but has since fallen in all but one month.
ANZ economist Steve Edwards said the dairy price index was still up 24 per cent on the same time last year.
"We've certainly seen it reach a peak and just how far it declines from that is what everyone will be looking at."
Historical food price trends showed a 50 per cent drop from a peak.
"That's potentially where it could go, but each sort of cycle is a little bit different and we won't really know until we get into it a bit more." The dairy price index in the first half of April had fallen but was flat during the second half of the month. (NZ Herald)

Australia's Cotton Output May Almost Triple as Farms Expand
Australia's cotton output will almost triple next year as farmers expand their fields, which have received beneficial rains, the U.S. Agriculture Department said.
Production may soar to 1.5 million bales in the year ending September 2009, from 525,000 in the year ending this September, the agency's Foreign Agricultural Service said in a report posted on the USDA Web site. Harvested area will more than triple to 190,000 hectares, the report stated.
Australia's cotton production plummeted this year, the report said, citing the effects of a severe drought since 2002. This year's harvest will be a 25-year low, the Australian Bureau of Agricultural and Resource Economics said in February. Even at 1.5 million bales, the country's cotton output will fall short of the 2.3 million bale 10-year average, the USDA report said.
Australian cotton growers haven't benefited from the 43 percent gain in U.S. cotton prices in the past year because of the country's strengthening currency, the USDA report said. The Australian dollar has gained 15 percent against the U.S. currency in the past year.
Cotton futures for July delivery fell 0.27 cent, or 0.4 percent, to 69.29 cents a pound today in New York. (Bloomberg)

Australia Grain Regions May Get More Rain This Week
Grain-growing regions in parts of Western Australia state, the nation's biggest wheat producer, may get more rain this week, adding to falls in recent weeks, as farmers sow crops.
Western and southern cropping areas in the state may get 10 to 20 millimeters (0.4 to 0.8 inches) in the coming seven days, Brett Dutschke, a meteorologist at weatherzone.com.au, said by phone from Sydney. Most other grain-growing areas in Australia may get less than 5 millimeters, he said.
``In Western Australia there's still the benefit of relatively warm sea surface temperatures in the Indian Ocean, so that's going to help cause a reasonably good spread of rainfall over the region during the next week,'' Dutschke said.
Grain farmers in Australia, the world's sixth-largest wheat exporter, rely on rain at this time to sow winter grain crops including wheat, barley and canola. Australia is ``well placed for a strong start,'' to the season, analyst ProFarmer Australia said on May 1.
Northern parts of Western Australia got between 15 and 50 millimeters of rain in the past week, while southern regions had 5 to 10 millimeters, Dutschke said. South Australia mostly had 5 to 10 millimeters last week, except for the some areas in the southeast and mid-north which had as much 30 millimeters, he said.
South-western Victoria had as much as 30 millimeters of rain, with 5 millimeters over the rest of the state and southern New South Wales in the last week, he said. The southwest and central western slopes of New South Wales state had between 10 and 20 millimeters, he said. There were 1-2 millimeters of rain in southern and central Queensland. (Bloomberg)

NSW cotton crop smallest in 30 years
The cotton harvest in northern New South Wales is well underway and going better than expected.
But the crop is still the smallest in 30 years.
It was planted late and endured problems with cool weather and spray drift.
Agronomist Jeremy Kitchen says cotton prices are looking reasonable too, but the Australian dollar is high.
"The price in Australian dollars at the moment is somewhere around $350 and we need it be around $400 to get anywhere at all." (ABC Rural)
Quarantine checks on U.S. beef to resume on May 15
South Korea is expected to resume quarantine inspections of U.S. beef starting on May 15 after a seven-month suspension that halted all imports, the government said Monday.
The Ministry for Food, Agriculture, Forestry and Fisheries and local beef importers said that barring renegotiation of the April 18 agreement, Seoul will complete its internal review process on the new sanitary and phytosanitary (SPS) standards by May 13 and begin inspections two day later.
The import sanitation pact signed in Seoul allows most U.S. beef cuts, including ribs, T-bone steak and intestines, to be imported. In addition, South Korea has effectively agreed to place no limit on the age of cattle that can be butchered to provide meat.
Under the old SPS standards established in early 2006, South Korea agreed to import only boneless beef from cattle under 30 months old.
The ministry said inspections are to begin with the 5,300 tons of U.S. beef that have been held in storage in South Korea since Oct. 5 when Seoul stopped all quarantine inspections after the discovery of banned backbone parts.
Once inspections are completed, they will be handed over to importers for sale and should reach store shelves and restaurants within the month.
It also said 7,000 tons of U.S. beef that have been locked up in storage at Long Beach will be shipped to South Korea and should arrive in the country early next month.
Official sources said because imports will be screened based on new standards, bone-in-beef will be permitted to enter the country, and there will be no checking of all packages by X-ray to find bone chips, a practice that has been criticized by Washington in the past.
They said that local inspectors will concentrate on finding so-called specified risk materials (SRMs) that include distal ileum, a part of the small intestine, and tonsils. SRMs are banned because they pose the greatest risk of transmitting to humans the fatal bovine spongiform encephalopathy more commonly called mad cow disease.
The ministry said that while only 32 meat processing facilities will be allowed to ship beef to South Korea beginning mid May, no restrictions will be placed after a 90-day grace period. (Yonhap News)

Wheat expert group hands report to Government
A report on who should handle some of the wheat industry issues formerly handled by AWB has been finalised.
The Wheat Industry Expert Group was asked to help the government decide where some of the support services, like classifying grades of wheat and providing market information, should be housed under the new wheat marketing system.
Chairman John Crosby says two major recommendations in the initial report are included in the final draft.
"The setting of standards for the delivery of grain will be moved from AWB to NACMA, the National Agricultural Commodity Marketers Association, which does that already for other grain and the varietal classifications," he said.
"That involves which varieties go in which grades of wheat - the committee which currently does that will be followed on with a committee, the secretariat of which is run by the Grains Research and Development Corporation."
The group presented its report to Agriculture Minister Tony Burke on Wednesday, and it's expected to be released to the public shortly. (ABC Rural)

Sprialling price of fuel and fertiliser set to hit profits
Farmers in Western Australia are being warned the spiralling price of fuel and fertiliser will significantly reduce their profits, despite high grain prices and predictions of a record harvest.
The state's grain handler is predicting seeding will increase by 20 per cent this year with farmers keen to cash in on historically high grain prices.
However, the price of diesel has skyrocketed to $1.60 a litre in the past year and the cost of fertiliser has risen three-fold, to about $1,000 a tonne.
Kim Povey from Consult Ag says as a result, growers will only make a 5 per cent return on their capital.
"A 5 per cent return on capital is considered average. In a good year, you might expect a 7-12 per cent return on capital," he said.
" If you don't achieve an average yield, the risk of making a loss is more significant this year."
Tags: agricultural-crops, grain, wheat, wa, albany-6330, bunbury-6230, geraldton-6530, kalgoorlie-6430

Wheat ship fails quarantine check
Resumption of Australia's wheat trade to Iraq has been delayed at the port of Geelong, after the bulk container vessel chartered by the Iraqis failed an AQIS ship survey.
The ship, M-V Renuar, must be cleaned before Swiss trader Glencore can load 50,000 tonnes of wheat bound for the port of Umm Qasr.
It's part of a 250,000-tonne shipment worth more than $100 million.
It's understood the ship will depart by the end of the week.
Iraq suspended wheat purchases from Australia two years ago following AWB's kickback payments to Saddam Hussein. (ABC Rural)

Parliamentary committee to hold hearing on U.S. beef deal
A parliamentary committee will hold a hearing next month on a recently struck deal to fully open South Korea's market to U.S. beef amid growing concerns here over mad cow disease and an expected blow to the local cattle industry.
Members of the National Assembly agriculture committee on Tuesday approved a motion to hold a hearing on the Seoul-Washington beef agreement. The beef agreement is a key condition for securing U.S. legislative support for a free trade agreement (FTA) struck in June last year, even though it is not officially part of the FTA.
Hoping for prompt settlement of the FTA, the South Korean government has agreed to open its market to U.S. beef regardless of the age of the cattle the beef comes from, the first such decision in almost five years.
While President Lee Myung-bak's Grand National Party has been supportive of the move, liberal opposition parties have joined forces to nullify the deal, using it as their defense against early ratification of the FTA.
The FTA has yet to be approved by the legislatures of both countries.
Foreign Minister Yu Myung-hwan admitted Tuesday that the government has been "burdened" to promptly reach a beef deal due to its link to the FTA. He emphasized, however, that import of U.S. beef is critical to the country's trade sector, even without the FTA factor.
"Although the link (between the beef deal and the FTA) may have burdened the government to a certain extent, the import of U.S. beef is crucial for the country's trade environment even without the FTA," Yu said during a parliamentary foreign affairs committee session.
"The government agreed to open the market under the judgment that the threat of mad cow disease can be fully controlled by keeping strictly to the standard set up by the international Office of Epizootics," he said.
South Korea's ruling party hopes the current legislature, whose term expires on May 29, will pass the FTA to give impetus to the economic initiatives of the new administration. (The Hankyoreh)

Wheat growers 'overwhelmingly' support single desk
A new survey of graingrowers has revealed the overwhelming majority of respondents are opposed to the Federal Government's plans to abolish the single export desk.
Federal MP for New England Tony Windsor sent the survey to all of Australia's wheat growers.
Of those who responded, 80 per cent supported the single desk export arrangement while 14 per cent support the Government's preferred multi-licensing option.
Mr Windsor says he will ask Prime Minister Kevin Rudd to undertake proper consultation with the industry.
"We will present findings to the Prime Minister and will remind him of his position when he was in Opposition two years ago that the government should poll wheat growers before changing the single desk structure," he said.
The Coalition is split over the Government's legislation to introduce a multi-licence system and Mr Windsor says the poll should convince the Liberals to change their mind.
"It'll be up to Brendan Nelson to decide whether he'll support what wheat growers in Australia actually want," he said.
"But I think it should carry a great deal of weight with both Opposition and the Government." (ABC News)

Rice harvest shortages forecast troubled times ahead
The rice market is a good indicator for the political stability of Asia, Jonathan Pincus, the chief economist of the UN in Vietnam, told The Times. Since the new year Asian rice prices have trebled and in some local markets they have risen tenfold in the past year. With staples such as wheat also surging, the World Bank, for one, says it does not believe there will be any moderation in global food prices until 2010 and that 33 countries face the prospect of civil unrest.
In India and China, the biggest consumers of rice, politicians grown used to trumpeting their economies’ explosive growth have been wrongfooted. The rice price spike has taken governments by surprise even though the conditions behind it have been festering for years.
Most of the rice crops in the world are consumed by the countries that produce them, which means that the global trade in the commodity is thin. According to US officials global stocks were at a 25-year low this year, which means that the smallest of shocks has had an even larger effect on prices.
A six-year drought hit the Australian crop and the International Rice Research Institute gave warning of pest problems in Vietnam, a key exporter. Several countries have banned exports, piling more pressure on global supplies.
The head of the World Food Programme, which is feeding the equivalent of the population of Britain, wrote to the rich nations last month to plead for emergency funds. The body, responsible for providing for the poorest people in the world, estimated it needed an extra $500 million. By the time the letter was delivered — three weeks later — its food bill had risen by a fifth. (The Times)

Mulesing aside, wool’s got a bright, green future
If the wool industry can survive mulesing, it has enormous new market opportunities.
The growing demand for ethical and environmentally sustainable fibres was one of the key messages hammered home at last week’s International Wool and Textile Organisation (IWTO) congress in Beijing.
The impacts of this real and growing trend, coupled with the continued shortage of supply, is presently being counterbalanced by the immediate concern over mulesing and the slowdown in the US economy.
How this influences the world’s economy is still to be seen but history would suggest a slower global demand for wool will be cushioned by low supply, according to former Woolmark market intelligence economist Chris Wilcox.
He told the 450 delegates in Beijing that the demand for raw wool was still strong but as the global economy was the key driver at retail, a dip in raw wool demand must be expected. Buffering the fall will be the simple shortage of wool.
“This, together with the move towards natural fibres, will be sure to balance the volatility to some degree,” Dr Wilcox said.
“We may well see a fall but it may well be a softer fall than we have seen in the past.”
Australian Wool Innovation (AWI) declared it was repositioning the old Woolmark business from an organisation that sold Woolmark licenses to one that formed business partnerships through marketing contributions.
AWI chief executive officer Craig Welsh also said the measure of success of the new Woolmark would be kilograms of new wool sold, increased brand exposure for Australian Merino and Woolmark, and the education and training of retail staff.
Meanwhile, AWI’s new $1.4 million marketing push into Japan aims to lift wool demand by one million kilograms in the next three years. (Stock & Land)

WA Grain growers expected to increase plantings
Commodities traders say Western Australian growers are still gearing up for a bumper crop this season, despite the recent fall in wheat prices.
Wheat has dropped $100 to about $300 a tonne, while the price of canola has risen slightly to about $600 a tonne.
Tony Smith from Plum Grove says despite the fall, grain prices remain historically high.
Mr Smith says farmers are still expected to increase plantings by 20 per cent this year. (ABC News)

Korea to Lift Age Limit on U.S. Beef by June
U.S. beef will be imported without age limit from the beginning of June. During negotiations between Korea and the U.S., the two sides agreed that Korea would first import beef from cattle aged less than 30 months old. Imports from cattle aged 30 months or older was supposed to be imported after certain qualifications are met. However, when the U.S. Food and Drug Administration on Wednesday announced stronger measures on animal feed, Korea decided to import U.S. beef without age limit straight away.
The FDA announced a ban on producing livestock feed containing the brain and spinal cord of animals older than 30 months from April next year. According to the agreement signed last Friday, as long as the U.S. “publishes” tougher measures, Korea would import any parts of cattle regardless of age, except for seven high-risk parts such as the spinal cord.
Min Dong-seok, assistant minister of food, agriculture, forestry and fisheries, said the required procedure will be completed by mid-May. This completely disarms the Korean market against imports of U.S. beef as of early June. Critics say the decision was hasty given that all the U.S. has done is to publish legislation it is going to take. Min countered the stronger regulation on animal feed was not part of the negotiation but “a bonus” Korea received. “I believe the newly revised law will be implemented; the U.S. government seems determined,” he added. (Chosun News)

AWB punished by US Agriculture Department
The US Agriculture Department has banned AWB from using US export credits for two years. The USDA ruling follows a one-year suspension imposed in December, 2006, and a full Department review after the Cole Commission report on the AWB Iraq 'Oil for Food' scandal.
USDA spokesman Keith Williams says the ruling means AWB and its affiliates, which voluntarily stopped using US export credits in 2005, cannot use the credits now, until 2010.
"We took a careful look at the evidence and came to a decision that was in the best interests of the US Government, to debar the organization for a period of time," he said.
US Senate Agriculture chairman, Tom Harkin, calls AWB kickbacks to Saddam Hussein's regime for wheat sales to Iraq "blatantly unethical and illegal."
AWB says the USDA's decision has no real bearing on the Australian arm of the company, because it stopped using the US export credit program a long time ago. (ABC Rural)

US rice sets new high on supply fears; wheat sags
U.S. rice futures rose to an all-time high on Wednesday on worries about supply shortages that have triggered political unrest and export restrictions designed to protect dwindling domestic stocks.
But most other U.S. grain futures retreated, with wheat down 4 percent on prospects for a large global crop in 2008.
"Everywhere you see (look), there is some story about food shortages and hoarding and tightness of supplies," said Neauman Coleman, an analyst and rice broker in Brinkley, Arkansas.
"Rice gets mentioned because rice is the No. 1 direct consumable agricultural grain in the world," he said.
On the Chicago Board of Trade, July rough rice futures hit a record high of $24.85 per hundredweight and settled at $24.82, up 62 cents or 2.5 percent.
Spot CBOT rice prices are up about 80 percent so far in 2008.
"Some of the main rice producing countries have imposed export curbs ... and this has combined with low global stocks to drive rice higher," said Kenji Kobayashi, a grains analyst at Kanetsu Asset Management in Tokyo.
"Rice has been hitting successive records. It's neared $25 and I think $30 is now on our horizon," Kobayashi said.
Trade bans have been put in place by India, the world's second-largest rice exporter in 2007, and Vietnam, the third-biggest, in hopes of cooling domestic prices of the staple food. Thailand is the largest exporter. (Reuters)

Wheat growers worried about cash flow with deregulation
Wheat growers have told a Senate committee once the export system is opened to competition they won't be able to afford to plant their crops.
Other farmers in favour of scrapping the single desk have told the final day of the inquiry into the government's legislation, in the long term most growers will be better off.
But New South Wales grower Jock Munroe says in the past AWB paid him up front for his crops, even if the company took more than a year to find a buyer.
He told the committee he's worried he won't be able to sell his crops each year in time to finance his next crop.
"The thing that's going to kill me off is the the market uncertainty, the fact that I'm going to have to hold stocks," he said.
"There's no way that, without a pool, if I have a big crop, what am I going to do with it?
"Am I going to store it on farm until somebody wants to buy it, or am I going to deliver it to a warehouse to these very people that we're giving control to, so I can pay warehouse charges?" (ABC Rural)

USDA: Little progress made with sluggish corn planting
Weather is expected to cause more delays after moderating later this week.
Not much progress has been made in getting the '08 corn crop in the ground in the last week, according to Monday's USDA-NASS Crop Progress report.
As of Sunday, four percent of the country's corn crop has been planted. This doubles last week's two-percent progress mark, but is lagging significantly behind the average pace. Typically, 17% of the nation's corn crop has been planted by this week.
The most significant planting delays are in the mid-South and southern Corn Belt, according to Monday's report. In Tennessee, normal progress has 64% of the state's corn in the ground by this time, but as of Sunday, only 17% of Tennessee corn is planted. A similar story is developing in Missouri, where only four percent of the corn crop is planted compared to the average progress level of 53% by this week. (Agriculture Online)

Victorian grain companies fight to save rail freight
A group of Victorian grain companies have banded together in an attempt to rescue the state's failing rail freight industry.
Several rival packing, processing and transport companies say they'll leave Victoria if rail services aren't improved. If they leave, 50 million dollars of investment and 140 jobs are at risk.
The rail operator Pacific National will soon decide if it will pull out of Victoria and the companies want the state government to guarantee continuing rail services.
It comes as the 2020 summit in Canberra heard regional transport services are critical to the future of rural Australia.
The Victorian State Government says it supports the rail industry. However, it is unwilling to comment further saying it doesn't want to pre-empt May's state budget. (ABC Rural)

From paddock to plate: new grain export
Indonesia will receive Australia's first shipment of quality-assured traceable grain from Esperance.
The wheat is known as grain pool integrated quality and has a premium traceability allowing customers to track detailed information about the crop including what stock previously grazed in the paddock.
Grain handler Cooperative Bulk Handling says detailed traceability is extremely important in Asia.
CBH Group Chairman Neil Wandel says the product will give Australian growers a major point of difference in the international market.
"The world is looking for safer and cleaner food and we believe our QA [quality assurance] program is going to deliver a competitive edge for our growers," he said.
Mr Wandel says farmers in Grass Patch have lead the project and resurrected the State's quality assured program. (ABC News)

Multi-national grain buyer decides to go cropping
Multi-national grain buyer, Glencore, will go cropping this year leasing an estimated 40,000ha across three States in five-year arrangements.
The cropping program is another sign of confidence from the corporate sector in continuing high grain values.
While the notoriously private company would not comment publicly, sources close to the business says Glencore has seen an opportunity to exploit its vertically integrated supply chain.
Glencore this year will plant crops in South Australia, NSW and Victoria.
Although Glencore has said it will look at farming in all districts that meet its criteria of yield versus price, its activities centre in low rainfall zones this year due to the chances of getting the best returns for its leasing dollars.
One source said that much of the activity would centre on Victoria's western central Mallee, in areas such as Hopetoun and Ouyen, with other pockets in the South Australian Mallee in place such as Pinnaroo and Loxton.
The Mallee is seen as a good return on investment, given the land prices in other areas.
The lighter Mallee soil types have proven to be relatively reliable, even in dry seasons, as opposed to the heavier Mallee clay loams which cannot grow a crop on as little rainfall as can be done on sandier soils.
All the Glencore leases are over five years, and the business has committed to cropping to best practice standards. (Stock & Land)
World's biggest dairy exporter will start selling milk online
Fonterra Cooperative Dairies Ltd - the world's biggest dairy exporter - says it is introducing online trading in commodities for the first time. Up to 20 per cent of Fonterra's New Zealand milk commodities will be sold through a website called globalDairyTrade. The company already controls more than one-third of the international dairy trade.
The online trading is expected to eventually lead to an international dairy futures or derivatives market, similar to trading in commodities such as oil, sugar and coal.
Trading will start in July and about $1 billion worth of milk powder is expected to be sold during the first year, with other commodity groups added during the year. Fonterra chief executive Andrew Ferrier said the new trading platform will allow the cooperative and its customers to be more responsive to shifting global prices.
The company has not been able to take full advantage of soaring dairy prices over the past season because its usually signs deals with key customers up to a year in advance.
World dairy prices began rising dramatically at the end of last year, but Fonterra had already committed a lot of product to contracts signed at lower prices.
From July, customers will tender for commodity products each month through the website, making bids for different specifications of product and delivery times. After a number of bidding rounds the price would adjust to match demand and all customers would pay the final price.
The process will be run by an independent trading manager and Fonterra said it will eventually allow its supply partners and possibly even competitors to participate.
"This is likely to lead to enhanced price transparency," said Mr Ferrier.
"GlobalDairyTrade represents a significant shift away from some of the contracting practices that we have traditionally used," he said. The global dairy market - once overhung by massive stockpiles such as a European "butter mountain" was evolving because of rapid changes in supply and demand, as well as in global stock levels.
"We expect more price volatility for the foreseeable future," Mr Ferrier said.
Online trading would help Fonterra and its customers manage their exposure to changing prices, and key sales results from the website will be made public. (NZPA)

Lower feed grain prices help lift feedlot cattle numbers
Reflecting marginally improved trading conditions on the domestic market, the numbers of cattle on feed have increased by 3pc since the December quarter, according to the March survey.
However, there has been no improvement on cattle numbers on feed for the export market with the increase largely driven by the need in Western Australia to finish cattle in feedlots due to normal dry summer conditions.
This survey, for the quarter ended March 31, is conducted by Australian Lot Feeders’ Association (ALFA) and Meat and Livestock Australia (MLA).
ALFA president Malcolm Foster said, “A 23pc fall in sorghum prices along, with a 17pc fall in barley prices over the quarter helped offset rises in feeder cattle prices and a resilient Australian dollar”.
“Regardless, trading conditions remain tight and it is not surprising that cattle numbers as a proportion of feedlot capacity remain at 51pc - the same as for the December quarter.
"This is down from 77pc at the same time last year”.
“The survey indicated that the larger feedlots in Western Australia and New South Wales drove the overall cattle number increases while the majority of feedlots in Queensland, Victoria and South Australia continued to experience reductions”.
Manager for market information at MLA Peter Weeks confirmed the lack of improvement in the numbers of cattle on feed for export markets, which remained at 417,000 head at the end of March, down almost 30pc on numbers for the previous year”.
“Beef demand in Japan and Korea is being constrained by increased competition from the US and higher prices for Australian beef - primarily due to decreased production and high grain costs. "The decline in US grain fed exports is due to tight supplies, lacklustre demand and the high Australian dollar”.
“The small improvement in numbers of cattle on feed in the March quarter will benefit predominantly domestic consumers, with cattle on feed for this market up 15pc on December, to 184,000 head, but still 30pc down on a year earlier.” (MLA and ALFA)

Fears farmers will miss out on wheat exporting positions
The Western Australian Farmers Federation says it is concerned producers may be excluded from a new wheat export authority.
The Federal Government has called for expressions of interest for positions on Wheat Exports Australia, the new independent watchdog being set up to oversee Australia's bulk wheat export arrangements.
It will replace the Wheat Export Commission, which was established in the wake of the AWB scandal.
Members applying for positions on the new authority are required to have expertise in areas including finance, economics and international trade.
The Farmers Federation's Derek Clauson has criticised the selection criteria because he says they place too much importance on business qualifications.
"I think there's some very very capable farmers around the place that have business experience outside of farming that can contribute," he said.
"Obviously the closer they are to the wheat producing industry, the more interest they'll take in ensuring that they keep a very close eye on events and try and position the industry where growers don't get hurt." (ABC News)

Still no deal between U.S. and South Korea on beef
It looks like President Bush and the new South Korean President Lee Myung-bak won’t be announcing a deal to resume U.S. beef exports when Mr. Lee visits the U.S. tomorrow.
A South Korean deputy ag minister told Yonhap news Monday that South Korean and U.S. negotiators meeting in Seoul had been unable to reach a deal on the beef issue. South Korea reportedly offered to resume bone-in beef imports from cattle under 31 months of age. But U.S. negotiators continue to insist on complete market access for U.S. beef based on international standards established by World Organization for Animal Health (OIE).
The impasse comes as South Korean livestock groups met Monday with that nation's ag minister and urged him to break off talks with the U.S. on the beef issue. (Brownfield)

Dairy-product prices unlikely to rise
Fonterra says dairy products will probably not rise in price after a 40-cent increase in the forecast milk payout to farmers.
The managing director of Fonterra Brands New Zealand, Peter McClure, said consumers were resisting higher prices for butter and cheese with sales 10 per cent down on the same time last year.
In 2007 cheese prices jumped 37 per cent and butter soared 66 per cent. By contrast milk rose much less - 16 per cent. Milk sales were not falling and demand was fairly "inelastic", McClure said.
There was a lot of competition in milk pricing and consumers who shopped around got good deals.
The milk payment to farmers drove the wholesale and retail price of milk.
On Friday Fonterra increased the forecast to a record $7.30 a kilogram of milk solids, 40c higher than the forecast late last year.
The high kiwi dollar was limiting the price paid to farmers and helping to restrain the retail price.
McClure said he was reviewing prices to see if there was room for an increase.
When the forecast payout increased to $6.90 a kg last year it was hard for the New Zealand brands division, essentially the manufacturer and wholesaler of products, to recover all the extra cost in wholesale prices to customers, mainly supermarkets.
"It would be very difficult to put another increase into the marketplace," McClure said.
He had to weigh up whether the market could bear an increase and in the next farming year the payment to farmers for the raw milk was likely to be a bit lower.
Dairy prices would probably not rise as a result of the latest increase in the forecast payment to farmers.
Butter and cheese prices were set internationally and had risen more than whole milk and skim milk power because there was more demand for them, he said.
Discount supermarket Pak N' Save in central Christchurch was selling two litres of milk produced by small local processor Al and Son for $1.99 at the weekend.
Al and Son managing director Brent Thornton said that was less than the price the company sold it to the supermarket.
He was grateful for the contract he had struck with Pak N' Save and another local supermarket. (Dominion Post)

N. Korea asks China to export 150,000 tons of corn this year
North Korea has asked China to export 150,000 tons of corn this year to help ease a food shortage in the North aggravated by severe flooding last year, informed sources here said Sunday.
The North's request came as China is restricting food exports due to rising domestic demand and increasing grain prices on the international market.
"At the request of North Korea, China has decided to export 50,000 tons of corn this year," one source said, adding Beijing will likely decide later on whether to ship more corn.
North Korea's corn imports from China rose 1,523 percent to 27,600 tons in February this year alone over the same period last year, according to statistics released recently by Chinese authorities.
"The sharp rise in China's corn exports to North Korea should be seen as the result of China's having increased the corn export quota for North Korea," the source said.
Another source predicted North Korea will likely ask for further exports of corn during the remainder of the year, but added "China may find it difficult to increase corn exports to North Korea for the time being until the food supply is stabilized in China where grain prices have risen sharply recently." (The Hankyoreh)
Big bags best for grain storage
Grain silos could soon be a thing of the past across South Australia's landscape.
Farmers on the Eyre Peninsula are looking to store grain in polythylene bags rather than replace traditional silos.
It's an initiative by a group of farmers called "Free Eyre" which are looking at ways of marketing their own grain.
Free Eyre's Kerry Hanel says these bags can hold up to 200 tonnes of grain and are more of a cost effective storage facility.
"If we were to replace the current system in place today, or if the owner was to replace the system it would cost millions of dollars" he said.
"To establish a silo bag site costs virtually nothing. We need machines to fill bags, we need some machines to empty bags and the bags themselves, they're available to buy to hold 200 tonnes for about eight hundred and eighty dollars. " (ABC Rural)

Another strong year tipped for live cattle trade
Fourteen thousand cattle from across northern Queensland have left the port of Townsville this week bound for markets in South-East Asia.
The Australian Livestock Exporters Council says the resurgence in the live cattle trade is likely to continue this year, with demand and prices strong.
Spokesman Lach MacKinnon says while uncertainty in global financial markets and currency problems could affect the outlook, conditions still look positive.
"The live trade, especially into South-East Asia with cattle is very strong and looks strong for the foreseeable future," he said.
"Queensland has sent a lot more cattle out over the last two years or 18 months - for example 14,000 have just left Townsville in the last couple of days.
"Last year was extremely strong and we're looking for another strong year this year as well for the northern cattle trade." (ABC News)

Lamb carcase weights hit record in February
Despite a decline in lamb slaughter during February, lamb production remained unchanged for the month as improved seasonal conditions contributed to record average carcase weights.
Production for the month totalled 35,962 tonnes (cwt) with average carcase weights