May 18, 2012

CME submits revised proposal on expanding electronic trading hours

CME Group has submitted a revised proposal on expanded electronic trading hours. According to DTN, the proposed hours will be changed to a 5 p.m. open with a 2 p.m. close. The new hours would go into effect no later than Sunday, June 3, according to CME Agricultural Commodities and Alternative Investments managing director Tim Andriesen.

The move cools concerns from some in the industry that the earlier proposal of a 6 p.m. to 4 p.m. trading day would make it difficult and costly for grain companies to complete their end-of-day bookkeeping and back office functions.

As a result, the National Grain and Feed Association has withdrawn its letter to the CFTC which requested an additional 30-day comment period. The groups says it sees no more reason to delay the expanded hours.

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House Ag Subcommittee talks crop insurance & commodity programs

The House farm bill process is under way again this week, with House Ag Committee subcommittees continuing a series of hearings on key farm policy issues ahead of mark-up. Hearings Wednesday and today covered commodity programs and crop insurance.

Witnesses focused on the need for meaningful price protection, payments that would kick in only when needed and policy that is fair to all commodities and producers.

When addressing crop insurance, University of Illinois’s Gary Schnitkey says that there are gaps in the program, but the Senate plan accounts for them.

Schnitkey

But, Dee Vaughan, President of the Southwest Council of Agribusiness in Texas disagrees.

Vaughan 1

And Vaughan says that protecting against multi-year deep prices declines is not just a rice or peanuts issue.

Vaughan 2

The witnesses did agree that the farm bill needs to get done this year to ensure producers will have certainty this fall when planning for the 2013 growing season.

American Farm Bureau Federation President Stallman…

Stallman

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Pioneer moves to sell soybean products by seed count per unit

Pioneer Hi-Bred announced that it will sell its soybean products by seed count per unit, rather than by weight, beginning in the fall of 2012 for varieties sold throughout North America for the 2013 planting season. The number of soybean seeds sold per unit by Pioneer will be 140,000.

The company says it is an advantage to its customers because buying by seed count provides a simple, convenient and more accurate means of planning their soybean crop.

“Our customers will benefit because they can more easily calculate the number of units they need based on their desired planting rates because the seed quantity per unit will always be consistent,” says Don Schafer, senior marketing manager, soybeans. “This change is in response to customer demand for consistent seed count packaging for more efficient field-by-field planning.”

Prior to this change, Pioneer sold soybean seeds by weight (50 pounds of seed equals one unit). Soybean seeds can potentially vary in size, based on genetics and growing conditions, affecting the number of seeds per unit. With this change to selling by count, the number of seeds per unit will be consistent for Pioneer customers.

Pioneer brand soybeans will continue to be sold by count in traditional paper bags, PROBOX units and jumbo bags, as well as through PROBulk systems.

Source: Pioneer

 

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