Headlines:

  • Jury Awards $217.7 Million to Kansas Corn Growers in Syngenta GMO Class Action Lawsuit
    A Kansas jury sided with Kansas corn producers in the first of eight certified state class action lawsuits. After a half-day of deliberation, the jury awarded Kansas corn growers $217.7 million in compensatory damages to the class of more than 7,000 Kansas corn growers, according to a news release sent by the law firm Gray Reed & McGraw LLP. Each claimant will receive $31,100 (not accounting for legal fees or details regarding dispersal among farmers). These farmers were represented in the lawsuit by four Kansas corn producer plaintiffs (Five Star Farms et al v. Syngenta AG et al, No. 2:14-cv-02571.) The class action suit claimed that Syngenta’s genetically modified strains of corn led to the loss of an important market for U.S. corn and caused them economic harm.
  • S. Bans Fresh Brazil Beef Imports Over Safety Concerns
    CHICAGO, June 22 (Reuters) – The United States halted imports of fresh Brazilian beef on Thursday, the U.S. Department of Agriculture (USDA) said, after a high percentage of shipments failed to pass safety checks. The USDA had “recurring concerns about the safety of the products intended for the American market,” after increasing tests on Brazilian beef in March, according to a statement. The agency raised scrutiny on Brazilian beef and ready-to-eat products as a precaution following an investigation into corruption involving Brazil’s health inspectors that targeted meat companies JBS SA and BRF SA. JBS, the world’s largest meat packer, declined to comment on the U.S. ban. The USDA’s action threatens the reputation of meat from Brazil, the world’s top exporter of beef and poultry, even though the United States is not a top customer. It also could boost domestic sales in the United States. “Product was already on the water and that’s not going to be allowed in,” Altin Kalo, a U.S. livestock analyst at Steiner Consulting Group, said about shipments headed to the United States from Brazil via boat. Since March, the USDA has rejected 11 percent of Brazilian fresh beef products, compared to the rejection rate of 1 percent for shipments from the rest of the world, the agency said. The shipments, totaling about 1.9 million pounds, raised concerns about public health, animal health and sanitation, according to the USDA. The agency said none of the rejected lots made it into the U.S. market.

Summary:

Wheat futures were largely quiet in overnight trading and traded slightly higher into the early morning trading. It reached its intraday high at about 11am Eastern from which it declined for the balance of the day. The July contract closed the day down 1.25 cents and the December contract was down 2.50 cents. Corn suffered a day with big losses dropping just over 1%. It hit is lowest levels of the year reaching levels last seen on December 1 last year. Weather forecast over the next three days are looting favorable for Corn Belt which in turn has reinvigorated the bears. July Soybean reached a low of 900.25 today and is very close to reaching the life of contract low of 877. Despite trading to new intraday lows, Beans managed to close marginally in positive territory. The July contract edged up 1.50 cents and the November contract was off 1.25 cents. As far as the overall technical charts are concerned, Wheat appears to be in the best position to sustain its price levels. It posted new highs early in the week and is still not too far off of those levels.