Diplomatic cables reveal aggressive GMO lobbying by US officials overseas

American diplomats lobbied aggressively overseas to promote genetically modified (GM) food crops such as soy beans, an analysis of official cable traffic revealed on Tuesday.

The review of more than 900 diplomatic cables by the campaign group Food and Water Watch showed a carefully crafted campaign to break down resistance to GM products in Europe and other countries, and so help promote the bottom line of big American agricultural businesses.

The cables, which first surfaced with the Wikileaks disclosures two years ago, described a series of separate public relations strategies, unrolled at dozens of press junkets and biotech conferences, aimed at convincing scientists, media, industry, farmers, elected officials and others of the safety and benefits of GM products.

The report offers a further glimpse of the power of the agricultural and biotech industries in America, after the supreme court came down on the side of Monsanto in its effort to enforce its patented GM soybeans. The court ruled on Monday that an Indiana farmer had to buy new seeds directly from Monsanto every time he planted the GM Roundup Ready soybeans.

The public relations effort unrolled by the State Department also ventured into legal terrain, according to the report. US officials stationed overseas opposed GM food labelling laws as well as rules blocking the import of GM foods. Read more >>

U.S. Supreme Court Justices Signal Support for Monsanto on Patents

U.S. Supreme Court justices signaled support for Monsanto Co. in a clash with a farmer who used harvested soybeans to plant a new crop of beans, hinting at a victory for makers of vaccines, software and genetically modified products.

Hearing arguments today in Washington, a majority of the nine justices suggested that Monsanto has broad rights to control the use of seeds that contain its patented technology. The genetically modified seeds are used to grow more than 90 percent of the nation’s soybeans.

“Why in the world would anybody spend any money to try to improve the seed if as soon as they sold the first one anybody could grow more and have as many of those seeds as they want?” Chief Justice John Roberts said.

He and other justices signaled that they view seeds harvested from patented crops as new products with fresh patent protections. A victory for Monsanto would potentially let patent holders restrict use of self-replicating products beyond the first generation, benefiting producers of live vaccines, genetically modified salmon, and bacteria strains used in medical research. Read more >>

Soybean Futures Rise To Set Another Record

U.S. soybean futures leapt to a record, buoyed by strong demand and concerns that global supplies will remain tight well into next year. Soybeans for September delivery gained seven cents, or 0.4%, to close at $17.7025 a bushel at the Chicago Board of Trade. Soybeans topped the previous record closing high set Wednesday and are up 48% for the year.

Soybean prices have surged for much of the summer as a severe drought has eroded the size of the coming U.S. harvest. Prices have picked up additional steam lately following reports of higher than expected demand. On Thursday, the U.S. Department of Agriculture said weekly export sales of soybeans totaled 721,300 metric tons, which was at the high end of traders' expectations, showing that demand for U.S. soybeans hasn't waned as prices have hit highs.

Such reports, combined with supply squeezed by drought, have made for an explosive market. "It's like watching kindling, and the smallest spark sets it on fire," said Sterling Smith, commodity strategist with Citigroup Inc. in Chicago. Read more >>

Corn prices hit record as crops shrivel

Corn prices surged to a new record high Monday, as the worst drought in more than 50 years continues to plague more than half the country. Almost 90% of the United States' corn crops are in drought ravaged areas, according to the U.S. Department of Agriculture, and nearly 40% are situated in the hardest hit spots.

Corn prices have soared more than 50% during the past six weeks as the crops continue to shrivel in relentless dry heat throughout the Midwest. They jumped another 3% Monday to a record high of $8.17 per bushel on the Chicago Board of Trade.

The Teucrium Corn ETF, which tracks a basket corn futures contracts, gained 2.5%. Soybean prices, which are up more than 20% in recent weeks, also advanced. Prices rose 1% Monday to touch $16.17 per bushel, the highest since July 23. The Teucrium Soybean ETF (SOYB) gained more than 2%. Soybean prices will likely continue to rise as the heat lingers in the area where soybeans are the major crop.

"Soybeans are second only to corn as the biggest agricultural product in the Midwest," said Alex Sosnowski, expert senior Meteorologist at AccuWeather.com. "While episodes of rain will continue over some agricultural areas in the Upper Midwest, Ohio Valley and East in the coming weeks, part of primary soybean growing areas will continue to be slammed by heat and drought." Read more >>

Food crisis fears as US corn soars

It has become a distressingly familiar question. With the price of agricultural staples such as corn, soyabeans and wheat soaring for the third summer in five years, the prospect of another price shock is once again becoming a prominent concern for investors and politicians alike.

The debate marks a dramatic shift from just a few weeks ago, when traders were expecting bumper crops and policy makers were comforting themselves that – if nothing else – falling commodity prices would offer some relief to the troubled global economy.

But since then, scorching heat and a paucity of rain across the US has withered the country’s corn and soyabean crops, with the US Department of Agriculture this week making the largest downward revision to its estimate for a corn crop in a quarter of a century.

The US is crucial to supplying the world with food: the country is the largest exporter of corn, soyabeans and wheat, accounting for one in every three tonnes of the staple grains traded on the global market. Read more >>

Crop Prices Soar

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Prices of corn and soybeans leapt 4% Wednesday and wheat gained 1%, continuing the broad rally in commodity prices that began in June. With yesterday's gains, prices of corn futures contracts are now up 94% from their June lows; soybeans are up 51% and wheat is up 80%.

The strain on the world's food system is making policy makers nervous. The World Economic Forum cited rising demand for water, food and energy as a risk facing the world, in a separate report released Wednesday.

A rising global population and greater prosperity, said the report, "are putting unsustainable pressures on resources." The report also raised the specter of shortages, which could "cause social and political instability, geopolitical conflict and irreparable environmental damage." Read more...

Deflationists Can Kiss My $$$

Hours cut, wages cut, unemployment up, foreclosures up, credit card interests rates are up, oil up, energy prices up, and now for the 3rd year in a row food prices are up while the dollar goes down. There's no deflation for the working man.

Steep food price increases on way
Reuters reports U.S. food prices will rise by at least 7 percent in 2009 because of higher feed costs for chickens, hogs and cattle, said a group of food-industry economists on Thursday.

It would be the third year in a row that food prices rose faster than the overall U.S. inflation rate. Food inflation is the highest since 1990.

"The sizable increase in the cost of producing food has not been fully passed on to the consumer," said private consultant Bill Lapp. He foresaw food inflation of 7 percent-9 percent in 2009.

During a teleconference, economists from the National Chicken Council and the consultancy Farm Econ said food inflation could be 7 percent-8 percent. The teleconference was arranged by a group of major foodmakers.

Wholesale prices for items used by foodmakers have climbed more rapidly than grocery and restaurant prices, so higher consumer prices are in store, said Lapp.

Although grain prices have declined since summer, this year's corn, wheat and soybean crops are forecast to fetch prices at the farm gate that are double their 2005 levels. Corn and soybeans are major ingredients in feed rations.

"We've been losing money for more than a year," said Bill Roenigk, economist for the Chicken Council, who said producers intend to cut production by as much as 12 percent. "We need to recover these feed costs."

Thomas Elam, head of Farm Econ, said poultry, hog and cattle producers would cut production in coming months because of feed costs, meaning less meat on the retail market but at higher prices.

Menu prices are restaurants up 4.3 percent so far this year, the largest increase since 1990, said Hudson Riehle of the National Restaurant Association. He said one-third of each sales dollar goes to food purchases.

Agriculture Department forecasts also say pricey meats will drive food inflation in 2008.

Americans spend more than $1 trillion a year on groceries, snacks, carry-out foods and restaurant meals. Farmers get 20 cents of the food dollar. The rest goes to processing, labor, transportation and distribution.