Headlines:

  • EPA Approves New Insecticide for Soybeans and Other Crops
    The EPA has approved BASF’s Inscalis insecticide. The new insecticide controls piercing-sucking insect pests in various row and specialty crops, including soybeans, cotton, and citrus. The Sefina Inscalis formulation is labeled for soybean aphids, a major soybean pest. “Inscalis insecticide is a new active ingredient with a unique mode of action that provides effective control of devastating piercing-sucking insect pests, such as aphids, whiteflies, and certain psyllids,” said Christa Kirk, BASF technical market manager in a BASF news release. “Once these insects infiltrate a field, they can cause costly damage to the quality and yield of a crop. Farmers can choose from several Inscalis formulations as part of their resistance and integrated pest-management plans, giving them more operational control over their crops.” Since insecticide resistance is now more widespread, Inscalis also meets farmers’ demands for new tools to control insects in their fields, say BASF officials. Insecticide resistance has added $40 million to the total insecticide bill for farmers in additional and alternative applications, according to the Insecticide Resistance Action Committee (IRAC). “As piercing-sucking pests become more diverse and adaptable, it’s more important than ever to continue to develop new tools that will meet farmers’ ever-changing needs,” said Kirk.
  • Trade Pact Clause Seen Deterring China Trade Deal with Canada, Mexico
    China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries, trade experts said on Tuesday. The provision specifies that if one of the current North American Free Trade Agreement partners enters a free trade deal with a “non-market” country such as China, the others can quit in six months and form their own bilateral trade pact. The clause, which has stirred controversy in Canada, fits in with U.S. President Donald Trump’s efforts to isolate China economically and prevent Chinese companies from using Canada or Mexico as a “back door” to ship products tariff-free to the United States. The United States and China are locked in a spiraling trade war that has seen them level increasingly severe rounds of tariffs on each other’s imports. Under the clause, the countries in the updated NAFTA, renamed the U.S.-Mexico-Canada Agreement (USMCA), must notify the others three months before entering into such negotiations. Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said the provision gave the Trump administration an effective veto over any China trade deal by Canada or Mexico. If repeated in other U.S. negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system.

Summary:

Secretary Purdue recently made a statement suggesting that the US “probably made a mistake becoming too trade dependent on China, and that the administration was pursuing new trade deals elsewhere.” This is perhaps an indication that the current struggles with China are a long way off from reaching resolution. Corn prices rose with export sales remaining strong coming in at 1.431 mmt for the week. Trade estimates ranged from 1.000-1.600 mmt. Also, forecasts for potential rain in the Midwest could damage the crop and affect yield outcomes. The soybean came unraveled right before the close. Negative news on the outlook of the US – China trade war were not well received. Also, it is looking like Brazil may have the potential to export up to 79 mmt in 2019-20 versus the 75mmt for 2018-19. Soybean export sales rose above estimates at 1.521 mmt versus trade estimates that ranged from 1.000-1.500 mmt. The wheat market remained stable as export sales stayed steady. Exports were reported at 435,300 tons with estimates ranging from 250,000-550,000 tons.