January 30, 2006
South Dakota Governor Signs Executive Order Promoting Use Of Biodiesel
South Dakota Governor Mike Rounds has signed Executive Order 2006/01, promoting biodiesel use by the state of South Dakota. Additionally, the governor directed the South Dakota Department of Transportation (SDDOT) to stock and use biodiesel-blended fuel, which meets technical specifications whenever it is available and financially prudent to do so.
The SDDOT initiated a study in 2002, to determine the impact that a biodiesel blend might have on its vehicle fleet. In results released late last year, a technical panel for the study recommended the use of a 2% biodiesel (B2) blend to meet the lubricity requirements needed for ultra low sulphur diesel fuel usage. The SDDOT currently operates more than 1,200 diesel powered vehicles and uses approximately 1 million gallons of diesel fuel per year.
PAGE TOP U.S. Soybean Business Developments
The American Soybean Association announced that – for the second year running – it will be working with Monsanto and its Vistive low-linolenic soybean program. ASA has been working with Monsanto and others to find soy-based solutions to the trans fat issue, and the Vistive soybean is hoped to help ensure the future competitiveness of U.S. soybeans and soyoil in the global market. This year, Monsanto plans to contract with growers in Indiana, Iowa, Michigan, Minnesota, Nebraska and South Dakota.
Meanwhile, proposals for a soybean processing plant in a yet-to-be disclosed northeast South Dakota location are in the advanced stages, according to Christopher Fischbach, a director of the South Dakota Soybean Association. “It will be a good investment opportunity for the public, not just producers,” he added.
South Dakota currently has only one soybean processing plant, which is located west of Brookings, near Volga. In 2004, the South Dakota Soybean Processors Association – which operates the Volga plant – began assessing the feasibility of building a soybean processing plant in northeast South Dakota. Twenty-five investors formed Coteau Hills Processors, a limited liability corporation that used a $43,500 state grant for the nine-county study.
Darrell Davis, another director of the Association, said that from a regional perspective, processing in South Dakota makes sense because it is closer to Pacific Ocean ports than most soybean-belt states. This means less freight charges for shipping finished products, he said.
Fischbach and Davis also commented on soybean rust, stating that the problem could be defeated through advances in disease control. However, Davis warned that producers will need to do a more sophisticated job of scouting their soybean fields if the new fiend is to be conquered, Davis. “No more field checks by driving by at 50, 60 mph,” he said.
In related news, Carolina Soya will invest $8 million to add a soybean oil refinery to its existing soybean processing plant in Estill, South Carolina. The expansion, planned to be in operation late this year, will create an estimated 40 new jobs, which will double the company’s work force.
Carolina Soya processes a third of all soybeans grown in South Carolina and Georgia. The new plant will produce soybean oil that can be used in food products and as feedstock for industrial uses, such as biodiesel.
U.S. Soybean Sector Increases Funding For Fight Against Asian Rust
The U.S. soybean checkoff program is continuing its battle against soybean rust by approving funds for more sentinel plots to monitor the spread of the disease. The United Soybean Board (USB) and the North Central Soybean Research Program (NCSRP), which consists of a 12 state checkoff board, will join forces to launch ‘lookout’ plots in the soybean belt.
They will focus on monitoring movement of the rust from south to north in order to gain early detection of the disease, allowing for an early warning for soybean farmers. The plots will coincide with those already established by the USDA. Between the USDA, USB and NCSRP, around 20 plots will be established in each state.
“Sentinel plots will generally be planted early in the season, with earlier-maturing varieties than are grown in the surrounding area, “ said USB’s Ed Ready. “This will allow the soybeans in the sentinel plots to reach the flowering stage sooner than surrounding crops.”
“Although in 2005 soybean rust did not spread as quickly or as widely as feared, we have just one year of experience, “ Ready said, stressing: “Each year’s weather is different and in 2006 conditions may be much better for the spread of rust. Farmers must remain vigilant.” Early detection of the disease is crucial for farmers to know when to apply fungicides.
“The additional sentinel plots will be a great tool in our checkoff’s fight against soybean rust,” says Kathy Patton Strunk, a member of USB’s Rust Initiative Team. The soybean checkoff program is also providing money to search for rust resistant soybean varieties, investigate field-friendly disease diagnosis methods and provide for early detection of rust spores via rainwater sampling.
The U.S. soybean checkoff program has also developed two diagnostic guides and a management guide regarding soybean rust, which are all available at www.unitedsoybean.org. The soybean checkoff co-sponsors two soybean rust Web sites (www.planthealth.info and www.stopsoybeanrust.com) designed to provide the latest information on soybean rust. The USDA’s official public rust web portal is located at www.sbrusa.net. “As someone who has experienced rust firsthand, I think it is very important to continue to fund rust research and communications activities,” said USB director Billy Wayne Sellers.
Soybeans And Meal Up Despite Disappointing Export Sales And Crush
The soy complex closed mostly higher on January 26 despite disappointing reports on export sales and the crush. While the gains likely are attributed to speculative money entering the market, there are some concerns about Argentina drying out again. The U.S. fundamentals are extremely bearish, with record U.S. supplies able to absorb a substantial shortfall in South American production, especially if U.S. soybean plantings bounce back in 2006.March bean futures closed up $2.20 finishing at $210.54; May was $2.39 higher, closing at $214.76; and July gained $2.30 ending at $218.53. March meal was up $2.09, closing at $198.74; May was $1.65 higher, finishing at $200.51; and July increased $1.76 to finish at $203.37. March oil closed $0.22 lower to finish at $474.21; May decreased $0.22, closing at $482.37; and July lost $0.66, ending at $490.30.
