The Grain Report

SURPRISE......... Thursday brought us two reports for the grains to trade off. The first was on the demand front with our weekly export sales report, telling us how much of each grain was sold last week for future delivery. Wheat exports were 630 thousand metric  tons down 34% from the week prior and 26% under our four-week average. New crop year sales after June 1, 2011 were 785 thousand metric tons up 3% over its four-week average. Were shuffling from current crop year to new crop year week to week. The last two export reports showed strong buying up front and cancellations of previous purchases for June 1, 2011 on out delivery. Today that reversed. The long and short of wheat demand is it's good but not great. Were double the weekly sales since August 1 versus the first four months of the year but ending stocks are high at 902 m.b , offsetting good demand. Demand isn't a driving force year. Corn export sales were 925 t.m.t  up 65% from the prior week with key Asian players in for 544 of the total versus only  84 t.m.t. the week prior. The last three weeks saw Asian buyers backing off as cash was weakening  with harvest progress and they  waited for harvest low prices. Rule of thumb is, once were 30% harvested demand picks up. Well, we were 27% harvested as of Monday so possibly we're seeing the seasonal demand kicking in. Soybean sales were expected to be large and the report didn't disappoint us coming in at 1.737 million metric tons sold last week, up 60% from the week prior, with key world player China in for 1.295 of the total. The surge comes as China is overbooking US beans for future shipments as insurance in case drought in number two world producer exporter Brazil continues. Brazil is currently planting their crop and will continue through 
October. WXRISK.COM , the weather site, sees generally dry conditions ahead. Central and eastern Brazil have seen under .25 inches of rain the last three weeks while central and eastern 
Argentina remains dry as well. Theres no real  rains threat next week. The next report was the quarterly stocks report, which tells us how much of each grain was on  hand as the September 1. 
Wheat came in at 2.459 b.b. up 19 m.b. from the average pre-report trade guess by the brokerage houses. It was considered neutral. Beans came in at 151 m.b. right in line with the average pre-report estimates. Then there was the corn. It was a real shocker at 1.708 b.b. only 35 m.b. over a year ago, but 301 m.b. over the average pre-report trade guess and 219 m.b. over the highest pre-report guess on a  range of 1.350 to 1.489. No one believes the government found 301 m.b. laying around in warehouses stumbled across. In the old days back in the 80s when the government owned the grain and stored 3 to 4b.b. for a rainy day. They would have quarterly reports that will say whoops, we lost 200 m.b. of beans and whoops we found 300 m.b. of corn over there. The governments out of the grain business to save billions of dollars in storage and interest costs. Here's what the trade thinks happened. Last year was one of the coldest and wettest grain seasons in history. It was so wet during the planting season there was fear corn and beans acres would go unplanted. At harvest time it was so wet and cold fear was we would never get the crops harvested. The quarterly report and monthly reports looked as if  we had no grain as it was still  in the fields. The harvest was the latest on record. 
This year is the opposite. We were generally dry and hot. We had a record early planting pace and harvest got underway earlier than ever. The trade believes that the USDA is including early harvested corn from the southern Delta into its quarterly inventory. When normally they wouldn't. 
The reality here is if added to this report. It's not added to the next. It's not discovered corn, but reshuffled inventory. The September 1 quarterly stocks report is the final ending stocks report for the 2009- 10 marketing year as the new grain marketing year begins September 1. Thinking is if they added 301 m.b. to the 2009-10 marketing year, which had last months ending stocks at 1.386 b.b. Now should jump to 1.687. Then last months 2010- 11 marketing year ending stocks number of 1.116 b.b. should or could dropped to 815,000 m.b. on the October 8 report  and or a 
significantly lower December quarterly stocks report. More food for thought to create  more fear of the October 8 crop report. A very confusing situation to traders but a great opportunity for traders wanting to buy and get long prior the feared to be bullish October 8 monthly USDA crop report,  as prices were sharply lower on the opening Thursday with a Friday dip. Nothing is changed as we head into the weekend, expected fast harvest pace and generally lower yield talks with a firmer tone to pricing ahead of the crop report next Friday. Corn looks to be the leader as just about everyone agrees the report will lower yield and production as well as next year's ending stocks. Beans find strength from talk of frost this weekend across the upper 

Midwest, Northern Illinois, Indiana and the Western grain belt and talk of drought in South America. The question is can we make new highs on the year for corn and beans or are the highs in. Because of the prices were at , we can't expect new highs ahead of the report. It will take report day to  be bullish enough  to break this past week's contract high prices. But expect prices higher prior the report's release. This next report is corn and beans last chance to make another new growing season high on prices as in October we will harvest the higher-yielding corn and beans in the upper Midwest and Western grain belt, setting up a more bearish psychology ahead of the November crop report. Ibtimes

NCBA Blasts EPA for Anti-Agriculture Agenda

The National Cattleman’s Beef Association has launched a series of blistering allegations against the Environmental Protection Agency. Last week EPA administrator Lisa Jackson testified before the Senate Ag Committee that her agency is not out to get American agriculture. But, this week National Cattlemen’s Beef Association Chief Environmental Counsel Tamara Thies accused the agency of trying to put the cattle industry out of business, “It is ironic that as we strive to become less dependent on imported oil the policies of the Obama administration are likely to make us more dependent on imported beef.” She accused the EPA of waging a war to bring an end to production agriculture, “EPA exhibits reckless indifference to scientific fact, and instead imposes stringent regulations based on nothing more than its biased, anti-animal agriculture agenda that will leave many cattle operations with no recourse but to shut down.”

Speaking on Wednesday at a forum focused on the impact of EPA regulations on job creation and economic growth in the nation’s rural communities, Thies told members of the Rural America Solutions Group that EPA’s regulations will result in a loss of jobs, just the opposite of what the White House says they want to do. She said EPA regulations are causing economic uncertainty in the cattle industry and throughout rural American because they are “vague, overreaching, costly, unnecessarily burdensome, ludicrous, and sometimes illegal.”

Thies offered several examples of EPA regulations that could potentially stifle the U.S. cattle industry - including dust regulation. She said the EPA has laid the foundation to impose the most stringent regulation of dust in U.S. history. Thies said she could continue with more examples and explained that this vast array of new regulatory requirements will add to the cost of doing business - making it harder to pay bills, pay workers, expand, compete in the world marketplace, and satisfy America’s demand for safe, affordable beef.

Thies said cattle producers have made progress in decreasing the industry’s environmental footprint. In 2007, she says 13% fewer cattle were slaughtered than in 1977 but that those animals produced 13% more beef. By producing more beef with fewer resources, she said the total carbon footprint for beef production was reduced from 1977 to 2007 by 18%. On top of that, when compared to beef production in 1977, she said each pound of beef produced in modern systems use: 20% fewer feedstuffs, 30% less land, 14% less water and 9% less fossil fuel energy. hoosieragtoday.com

Wheat Gains for First Time in Three Days as Drought Slows Russian Planting

Wheat advanced for the first time in three sessions as grain plantings in Russia, the world’s third-largest wheat grower last season, lagged behind last year’s pace and recent declines lured buyers.

December-delivery wheat rallied as much 1.5 percent to $7.3775 a bushel on the Chicago Board of Trade, after slumping 2.5 percent in the past two days. The contract was at $7.3425 a bushel at 10:51 a.m. Singapore time.

Farmers in Russia have planted 5.8 million hectares (14.3 million acres) of grains so far this season, compared with 10.8 million hectares in the same period last year, the country’s Agriculture Ministry said yesterday.

“The Russian planting pace is slower than the market hoped,” Michael Pitts, a commodity sales director at National Australia Bank Ltd., said by phone from Sydney. “That’s providing some underlying support.”

The Russian wheat harvest was at 34.3 million tons from July 1 through Sept. 16, the ministry said, compared with the 48 million tons reported by the government in the same period last year. Yesterday’s harvest estimate by the ministry didn’t provide a comparison with the previous year.

Total grain harvests were 51 million tons as of yesterday, the ministry said. That compares with 77.4 million tons in the same period last season, according to the 2009 report.

Wheat declined in the past two days after rain improved soil moisture in the southern Great Plains as farmers prepare to plant winter crops in the U.S., the world’s largest exporter, and the Australian government forecast its wheat harvest to rise to 25.1 million tons, the third-biggest on record.

‘Bargain Hunters’

“There’s certainly been a range of buyers who are looking for a fall-off in the market,” Pitts said. “We’re certain to see bargain hunters out there.”

Prices have fallen 15 percent since trading at a 23-month high of $8.68 a bushel on Aug. 6, the day after Russia announced a ban on exports that was later extended through next year.

December delivery corn was unchanged at $4.9525 after gaining for the past five days. Corn futures have advanced 13 percent this month, outpacing wheat’s 7 percent advance, as investors boosted bets on price gains.

The U.S. Department of Agriculture has cut its estimates for U.S. and worldwide inventories every month since May, as drought or excessive rains in some of the world’s largest exporters slashed harvests of wheat and barley. To meet livestock-feed requirements, buyers may turn to the U.S., which accounts for more than half of global corn exports, according to USDA data.

That will take corn inventories in the U.S. before next year’s harvest to about 9.8 percent of domestic consumption, the lowest level in 15 years.

“There’s a very good fundamental story that hasn’t quite made a bit of a run, and that’s attracting investor interest” in corn, Pitts said.

November-delivery soybeans climbed as much as 0.4 percent to $10.465 a bushel, before trading at $10.4525. 

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

Wheat Falls as U.S. Agency Unexpectedly Raises Global-Inventory Forecast

Wheat prices fell for the third time this week after the U.S. government unexpectedly raised its forecast for global stockpiles and boosted Canada’s production outlook.

World inventories will total 177.8 million metric tons in the year ending May 31, the Department of Agriculture said in a report today. That’s up from last month’s estimate of 174.8 million tons and above the 171.1 million tons forecast by analysts surveyed by Bloomberg News. The grain has gained 36 percent this year on supply concerns.

“I have to go with these report numbers being bearish,” said Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri. The increased forecast “is going to put the brakes on prices.”

Wheat futures for December delivery fell 1.25 cents, or 0.2 percent, to close at $7.3675 a bushel at 1:15 p.m. on the Chicago Board of Trade. The grain fell 0.6 percent this week.

Canada’s crop will be 22.5 million tons, up 9.8 percent from last month’s estimate, the USDA said. Last year, the U.S. was the largest shipper of wheat, followed by Canada, Russia, Australia and Ukraine, USDA data show.

Wheat is the fourth-biggest U.S. crop, valued at $10.6 billion in 2009, behind corn, soybeans and hay, government data show.

To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus@bloomberg.net. 

Jobs, homes and gold

Jobs and homes; the pivotal focus items by which many solely continue to gauge the state of the States’ economy, remained at the centre of this morning’s preoccupation among investors as well. Yesterday’s ISM data offered a bright spot and markets responded in kind.

The Dow had its best day in months (254 points were added to its value), and the US dollar sold off as some safe-haven seekers opted for riskier havens. Gold prices backed away from the $1,255.00 area to ease towards the $1,244.00 level, where they ended up closing last night’s session.

Such changes in sentiment however lasted but overnight, as investors greeted markets with another, double serving of doubt and gloom this morning. Jobs and homes. Having a job, buying or keeping a home. These are the metrics by which today’s judgments will be made and which will move markets. However, in essence, the chances of the USA skirting the double-dip event are actually fairly decent. Why, you ask?

Part of the reason, at least according to the tea leaf readers at BofA Merrill Lynch, is that the string of data that has unnerved everyone from the Fed to John Q. Public has already proven to be so dismal that there is largely no more room to the downside (for such numbers to go). Thus, BA/Merrill places the odds for a DD at 25% for the next 12 months, at the moment. In addition, with the markets so emphatically pricing in the inverse of such odds, any surprise to the upside could be pretty nasty for the doomsayers.

At any rate, the odds of a DD were summarily dismissed by ECB head Jean-Claude Trichet this morning, even as he left interest rates unchanged at 1% -just-in-case, until year’s end. Mr. Trichet also opined that he is not distressed with economic reports coming from the US inasmuch as the ECB at least did not expect to learn about ‘extraordinarily dynamic growth’ taking place there at this time.

Another central banker, Mr. Benrnanke, on the other hand, offered a different kind of hindsight today: he said that the single most important lesson he (and presumably the Fed and other authorities) have learned from the crisis is the need to do away with the ‘too big to fail’ mentality.

None of the above stopped gold from opening with a fresh, $5 gain this morning. The spot price was bid at $1,249.40 on account of predominant physical buying by funds (and a small, $0.20 contribution to the price gain, courtesy of a further 0.11 drop on the index in the greenback).

Later in the session, gold drew nearer to yesterday’s $1,255 area but once again retreated to the $1,250.00 level. Judging by both gold and the Dow, the waiting game is all about Friday’s figures on the jobs front at this point. That number, plus pre-long-weekend book-squaring jousts will likely make for a fun Friday for some markets.

Sorties by shoppers to souks in the Middle East were rather scarce in August, as the observation of Ramadan took place. Sales of gold in Dubai and Abu Dhabi fell by 15% for the month. General gold demand in the region during the second quarter was a mixed bag, with Saudi Arabia showing a 5% percent gain, whilst the UAE’s gold sales dropped by 15%.

The same, pre-data-fueled rise was evident in the rest of the metals complex as well. Silver added 14 cents, rallying to but one penny short of $19.50 the ounce. Platinum (go figure) gained $19 the ounce and opened at $1,550.00 following the revelation that US auto sales careened towards a ditch, in their worst August in 27 years.

Toyota and Honda’s US outlets posted sales declines in excess of 30% last month, while both GM and Ford saw an 11% drop in sales. Not so, the case for GM Canada; its sales were up 8% in what amounted to the best August level in two decades. Automaker Chrysler…dodged a bullet in the US, posting a 7% gain in August sales.

Experts attribute much of the contraction in US auto sales to the absence of C-4-C car buying stimulus schemes from the scene. Palladium rose $3 to start at $520.00 per ounce. If one needed more evidence of speculative fund-type footprints in this sector, well, there it was in oodles this morning.

While US consumers clearly kept a distance from automobile showrooms last month, they still went shopping. With the calendar evidently continuing to march forward, school time almost knocked on the door and throngs of docile parents headed to Costco, Hot Topic, Zumiez, The Limited, Wet Seal, and at least another six retail chains and made for better-than-anticipated beep counts at cash registers last month.

US initial jobless claims filings fell by a relatively modest 6,000 in the latest reporting period, bringing the total to 472,000. Meanwhile, the four week average of initial filings (normally thought to be a better metric of labour market conditions than the weekly figure) also declined. This decline was not exactly what the safe-haven flavoured markets expected this morning. Remember, they thrive on terrible, horrible, no good, very bad kind of news.

These days however, with nerves, greed, fear, and other such impact factors being at extremes, even modestly negative news can do the trick. To wit, the downward revision in US second quarter productivity. It (and the fact that the drop in jobless claims was not seen as ‘good enough’) was probably enough of a catalyst to shove the jobless claims figures out of the way and reignite the quest for certain assets (metals) but not others (stocks) while the dollar just treaded water.

It (the fear/greed combo) was also the reason why things turned the other way after the release of pending home sales figures (up 5.2% in July) and US factory data. Every nuance of every little number is enough for exaggerated moves in this environment of ‘unusual uncertainty’ (even if not everything in the world –not even remotely- hinges on the slightest sneeze or sigh coming from the US economy).

Consider for a moment that the entire continuing unemployed segment in the US totals 4.4 million souls. That number is only half a million higher than that currently seen in Spain; a country for which, the 3.9 million figure amounts to an unemployment level of 20%. “Bad” is –at best-a relative notion.

Then again, so are ‘slow’ and ‘sufficient’ and any other adjective being used to characterize anything to do with the economy and the recovery. Instant gratification wants things ‘now’ and ‘fast’ and ‘big.’ One of the reasons that this last recession was, and is, still, ‘unacceptable’ to markets and to investors. And also one of the reasons the Fed had, to and is still expected to, do ‘whatever it takes.’ There is no room for pain among today’s entitlement-imbued investors.

Until tomorrow,

Jon Nadler is Senior Analyst, Kitco Bullion Dealers Montreal

Links to Ag Scholarships

Links to Ag Scholarships

Compiled By Jeanne Bernick

Future Farmers of America (FFA)

The FFA offers more than $2 million in scholarships each year under the provisions of the National FFA Collegiate Scholarship Program.

http://scholarships.ffa.org

CHS Foundation University Scholarship

Students currently studying agriculture at select universities around the nation may be eligible to apply for a CHS Foundation University Scholarship. Nearly 150 $1,000 scholarships are awarded annually. To apply, eligible students should contact the financial aid, foundation or College of Agriculture offices of a participating university.  Deadlines vary for individual universities. Any questions can be directed to 800-814-0506 or info@chsfoundation.org.

National Holstein Women’s Scholarship Association

Women who are enrolled in college or university for agricultural business are eligible to apply for the National Holstein Women’s Scholarship. The scholarship association was formed to encourage young women to enter the agricultural business fields. Students interested in the scholarship should first become members of the Association (there is a small fee) so that they can stay up-to-date on all of the information pertaining to the scholarship. Scholarship applications are available at the National Holstein Women’s Scholarship Association website at http://www.nhwso.com/.

USA Rice Federation Scholarship

This September, scholarship opportunities await high school seniors in rice-growing states as they head back to school. The USA Rice Federation’s National Rice Month scholarship contest, sponsored by Dow AgroSciences, offers $8,500 in total scholarship awards.

The contest encourages eligible students in Arkansas, California, Louisiana, Mississippi, Missouri, and Texas to conduct a promotion activity in September with U.S.-grown rice as the central theme.

The grand prize is a $4,000 scholarship and a trip for the grand-prize winner and a chaperone to the 2010 USA Rice Outlook Conference in Biloxi, MS, for the award presentation on Dec. 9. The second-place winner will receive a $3,000 scholarship and the third-place winner a $1,500 award.

Initiated by an act of Congress in 1991, this September marks the 20th annual National Rice Month celebration when America salutes its rice farmers, millers and everyone involved in the U.S. rice industry.

For more information, tips on planning NRM promotions and a scholarship application, visit the scholarship Web page.

Monsanto Commitment to Agriculture Scholarship

Must be a high school senior from a farm family with above-average academic record, and plan to enroll as a full-time student in an agriculture-related academic major at an accredited school. FFA membership is not required to be eligible for the scholarship program. Amount: $1,500. To apply, submit online application at http://scholarships.ffa.org.

Dekalb Ag Youth Scholarship Available to both high school and collegiate students who are pursuing agricultural-related degrees and who demonstrate strong leadership skills and community involvement. FFA membership is not required to be eligible for the scholarship program. Submit online at http://scholarships.ffa.org, along with signature page.

Monsanto Roadrunner Scholarship Established in 2006 and supported by employees who raise money for the FFA by running half and full marathons. Eligibility: Must be a high school senior from a farm family with above-average academic record, and plan to enroll as a full-time student in an agriculture-related academic major at an accredited school. Submit online application at http://scholarships.ffa.org/, along with signature page.

GROWMARK System Scholarship

Since 1960, GROWMARK has sponsored agriculture and accounting scholarships at several MidwestOntario. In addition, GROWMARK sponsors six scholarships through the State FFA Foundation to students studying agriculture in local community colleges. Each school is responsible for the selection process and awarding the scholarships. Scholarship applications are available through local FFA advisors. For a list of participating universities, visit http://growmark.com/gmksyst/youth/scholarships_universities.htm universities. Today we support more than 39 scholarships at 14 universities and four colleges in the Midwest and

Pioneer International Scholarship

The Pioneer International Scholarship is designed to contribute to agricultural research and education by providing financial support for outstanding students working toward graduate level degrees in plant breeding at non-U.S. institutions. A committee established by Pioneer will review applications and select recipients based on their qualifications, including academic excellence; proposed study program/area, with consideration given to agronomic crops such as corn, soybeans, canola, sorghum, sunflower, wheat, alfalfa and rice; future professional plans; leadership and other experiences. For information, contact: Peter.Freymark@pioneer.com

USDA William Helms Scholarship Program

U.S. Department of Agriculture offers tuition assistance, mentoring, and summer work to college students interested in pursuing a career related plant pathology, biology, virology, ecology, and entomology. For information, visit: http://www.aphis.usda.gov/plant_health/helms/index.shtml#PPQ

Daughters of American Agriculture Scholarships

Daughters of American Agriculture Foundation provides $500 scholarships to farm, ranch and agribusiness women or their daughters in two categories: the Jean Ibendahl scholarship to high school graduates age 18-23 and the Sister Thomas More Bertels scholarship to women age 24 and over. The DAA Scholarship was created to honor the memory of those courageous and adventuresome pioneer women who played such an important role in the founding of this nation and encourage the present generation to continue their education in agricultural pursuits. Eligibility: Must be a farmer, rancher or be the wife, daughter or other close relative of a farmer, rancher or other person employed in agriculture. There must be an economic or financial need. A copy of the applications and the submission information may be found on the AAW website (www.americanagriwomen.org).

Farm Credit Services of Mid-America Scholarship Program

Scholarships are awarded to customer-members of Farm Credit or their children based on academic record, leadership qualities and community involvement. Recipients of these Farm Credit scholarships must: Be college freshmen, sophomores, juniors or seniors in good academic standing for the academic year in which the scholarship is received.  For more information, visit: http://www.e-farmcredit.com/

How does double dip recession affect Gold?

By Julian D.W. Phillips 

Nearly all the commentary we have heard on this question says the same. “Yes, the prospects of a Double-Dip recession have increased but it remains unlikely that it will happen”. We feel that there may be just a hint of self-interest in these answers. The shockwaves that will reverberate should some say it is going to happen, or if the news confirmed that it had started would rattle the markets hugely. Despite the ability to disseminate news instantly, we have to wait a month before reliable figures are published to confirm one way or the other that this is or is not the case. 

On the other hand a recession or depression has become a state of mind too. If consumers believe it is coming, it will come and at the moment that is the mood out there among the consumer. He is saving because he could become a victim if he hasn’t cut debt and save. No doubt the sight of a neighbor being evicted stimulates thrifty habits. And that’s what is coming from consumers now. They aren’t spending. It’s becoming a financial winter out there and we believe consumers minds are bringing on the recession again. Surely that’s bad for gold? 

What is happening in the Global Economy? 

As we now live in a global economy national economic climates heavily impact the global scene and particularly the U.S. national scene. Look from outside in as a foreign investor that doesn’t have to invest there, what would you do? Well China is right there and this is what they’re doing: 

U.S. Treasury data show that China has cut its holdings of Treasury debt by roughly $100 billion over the past year to $844 billion. Discreetly, the main surplus countries, China, Japan, and the U.K. [Mid-East petro-dollars] have been slowing down in the last two years. In August they bought the least amount of U.S. debt this year. 

China is diversifying as it continues to hold down its currency, buying record amounts of Japanese, Korean, Thai, and no doubt Latin American bonds, in place of U.S. Treasuries. It is also ‘limit’ buying gold in quantity through the London bullion banks, buying scrap ores or buying direct from miners such as Coeur d'Alene in Alaska. Excessive Dollar holdings are also going to more hard assets such as strategic reserves of oil and coal, and probably industrial metals. State entities are buying up natural gas reserves in Africa and Central Asia, or oil sands in Canada, or timber in Guyana. 

There are considerably more activities by countries and institutions that are Dollar diversifying that we don’t have enough room to describe here, but it all leads to an expectation of a falling Dollar. The trouble is that so many dependant currencies will try to fall with it to protect their trade relationship [watch the Yen] that the fall will not be easily apparent in exchange rates, but in the falling buying power of the Dollar. When we describe this we are not talking about a change in exchange rates but changes that will bring about structural changes in the current monetary system based on the U.S. Dollar. 

Then what? 

Don’t think for a moment that the U.S. will follow the path of Japan. Deflation is not an option for the consumer driven economy of the U.S. We believe that the path Mr. Bernanke has chosen for the U.S. has to be followed all the way. Today, he stated that he was ready to act to defeat deflation, should it arrive. Quantitative Easing will lead to inflation. Inflation is an acceptable alternative to deflation, because it is easier to cure inflation than deflation. But the government of the U.S. is likely to wait until deflation is biting before they act, then the stimuli will have to be heavy as will consequential inflation. This prospect is bringing tremendous doubts about the value of Dollar and other currencies. 

U.S. monetary authorities will place U.S. interests well ahead of any others, so don’t expect a globally coordinated policy against deflation. It will be every nation for himself. 

The surplus nations will, as they are doing now, follow the defensive measures described above. But it may take weeks before this is accepted. So now is the time to act. 

And Gold? 

The big picture for the long-term could not be better for gold, than it is now. Gold has proved capable of performing well in deflation, in uncertainty, in fear. Internationally it is liquid in all parts of the world. It is internationally acceptable cash. More than that, it is an effective counter to the devaluing of currencies through quantitative easing or currency devaluations. 

Courtesy: www.goldforecaster.com 

USDA Announces Recovery Act Funding To Improve Water System Infrastructure, Health and Sanitation in Rural Communities

Agriculture Deputy Secretary Kathleen Merrigan today announced funding for 34 projects to protect public health and the environment by improving water quality and public sanitation services in 24 states. Merrigan made the announcement this morning at the Halifax County Courthouse where she highlighted the environmental, health and economic benefits the Recovery Act funding will provide to the Maple Avenue Wastewater Treatment Plant and the local community.

"The Obama Administration is committed to investing in infrastructure to improve the efficiency and availability of water in rural America. Rural areas suffer from multiple problems associated with their water infrastructure," Merrigan said, "Economic assistance to rural communities for investments in water availability is especially valuable, given the borrowing constraints that small or poor communities may face. These Recovery Act investments in water and wastewater infrastructure will create construction jobs, help deliver safe drinking water and protect the environment throughout rural America."

The Halifax County Service Authority in Halifax County, Va., has been selected to receive a $5 million Recovery Act loan and a $10.4 million grant utilizing water and environmental program funding. The funding will be used to expand the capacity of the wastewater treatment plant to meet the regionalization effort being undertaken by the Authority. In addition, the project will correct inadequacies and health hazards to meet standards of the Department of Environmental Quality and increase treatment capacity. The sewer system serves 3,000 residential homes and 664 businesses.

The projects announced today will improve infrastructure across rural America. For instance, the Village of Crawford, Nebraska has been selected to receive a $3.6 million loan and $1 million grant to improve a 74 year old wastewater disposal system. This funding will allow the Village to meet the established timeline for state environmental compliance

USDA Rural Development today is providing $157.3 million for 34 water and wastewater infrastructure projects in local communities through the American Recovery and Reinvestment Act (ARRA) and $45.6 million through other USDA Rural Development Water and Environmental Program funding. To date, USDA has announced $2.9 billion in Recovery Act funds for 788 water and environmental projects. The Recovery Act was signed into law by President Obama one year ago.

The Water and Environmental Program provides loans and grants to ensure that the necessary investments are made in water and wastewater infrastructure to deliver safe drinking water and protect the environment in rural areas.

Funding of individual recipients is contingent upon their meeting the terms of the loan or grant agreement. Below is a complete list of award recipients by state:

Alabama

Mosses Water, Sewer & Fire Protection Authority: $299,000 loan (ARRA) and $690,000 grant (ARRA). The funding will be used for water system improvements.

Arizona

Hualapai West Pipeline Project: $2,000,000 loan (ARRA) $2,000,000 grant (ARRA); and $9,307,209 grant. The funding will be used for water system improvements.

Colorado

The Town of Palisade: $3,992,000 loan (ARRA) and $3,808,000 grant (ARRA). The funding will be used for wastewater system improvements.

Connecticut

The Town of East Windsor: $2,180,000 loan (ARRA) and $1,707,000 grant (ARRA). The funding will be used for wastewater system improvements.

The Town of Kent: $515,000 loan (ARRA) and $418,600 grant (ARRA). The funding will be used for wastewater system improvements.

Florida

The City of Mexico Beach: $2,153,000 loan (ARRA) and $1,840,000 grant (ARRA). The funding will be used for water system improvements.

Georgia

Chattooga County: $2,801,000 loan (ARRA) and $2,191,000 grant (ARRA). The funding will be used for water system improvements.

Kentucky

Paducah-McCracken Joint Sewer Agency: $4,324,000 loan (ARRA); $1,294,000 grant (ARRA); and $406,000 grant. The funding will be used for wastewater system improvements.

Louisiana

The Town of Jonesville: $3,326,000 loan (ARRA) and $9,463,893 grant. The funding will be used for wastewater system improvements.

The Town of Jonesville: $3,292,000 loan (ARRA) and $3,634,818 grant (ARRA). The funding will be used for water system improvements.

Maryland

The Town of Lonaconing: $6,699,000 loan (ARRA) and $2,323,000 grant. The funding will be used for water system improvements.

Michigan

Williamston Sewer System Improvements: $3,540,000 loan (ARRA). The funding will be used for wastewater system improvements.

Williamston Water System Improvements: $4,800,000 loan (ARRA). The funding will be used for water system improvements.

Minnesota

The City of Lismore: $686,000 loan (ARRA) and $394,000 grant. The funding will be used for water system improvements.

Nebraska

The Village of Crawford: $3,623,000 loan (ARRA) and $1,050,900 grant. The funding will be used for wastewater system improvements.

New Jersey

Flemington Borough: $351,000 loan (ARRA) and $704,050 grant. The funding will be used for water system improvements.

New York

The Village of Corinth: $1,138,000 loan (ARRA). The funding will be used for water system improvements.

The Village of Rushville: $1,975,000 loan (ARRA). The funding will be used for water system improvements.

North Carolina

Onslow Water & Sewer Authority: $24,541,000 loan (ARRA) and $9,816,000 grant. The funding will be used for wastewater system improvements.

North Dakota

The City of Sheldon: $204,000 loan (ARRA) and $166,000 grant. The funding will be used for wastewater system improvements.

Oklahoma

Konawa Public Works Authority: $1,001,000 loan (ARRA) and $2,999,000 grant (ARRA). The funding will be used for wastewater system improvements.

Pennsylvania

Borough of Portage Municipal Authority: $4,878,500 loan (ARRA). The funding will be used for water system improvements.

South Carolina

Southern Calhoun County: $2,713,000 loan (ARRA) and $1,611,500 grant. The funding will be used for water system improvements.

Tennessee

Cedar Grove Utility District: $600,000 loan (ARRA) and $256,000 grant (ARRA). The funding will be used for water system improvements.

The City of Crossville: $1,700,000 loan (ARRA) and $800,000 grant (ARRA). The funding will be used for water system improvements.

The City of Decherd: $782,000 loan (ARRA) and $218,000 grant (ARRA). The funding will be used for wastewater system improvements.

The Town of Jonesborough: $3,270,000 loan (ARRA) and $1,500,000 grant (ARRA). The funding will be used for water and wastewater system improvements.

The City of Manchester: $1,348,000 loan (ARRA) and $455,000 grant (ARRA). The funding will be used for wastewater system improvements.

Springville Utility District: $863,000 loan (ARRA) and $1,925,500 grant (ARRA). The funding will be used for water system improvements.

The City of Trenton: $615,000 loan (ARRA). The funding will be used for water system improvements.

Texas

Fort Bend County Fresh Water Supply District No. 2: $6,619,000 loan (ARRA) and $8,673,000 grant (ARRA). The funding will be used for wastewater system improvements.

Virginia

Halifax County Service Authority: $5,000,000 loan (ARRA) and $10,400,000 grant. The funding will be used for wastewater system improvements.

Washington

The City of Cashmere: $13,690,000 loan (ARRA) and $6,001,000 grant (ARRA). The funding will be used for wastewater system improvements.

Wyoming

The City of Laramie: $1,072,000 loan (ARRA) and $340,000 grant (ARRA). The funding will be used for water system improvements.

President Obama signed The American Recovery and Reinvestment Act of 2009 into law on Feb. 17, 2009. It is designed to jumpstart the nation's economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

IMF agrees to release installment

ISLAMABAD: The International Monetary Fund (IMF) has agreed to release the next instalment of $1.2 billion of the Standby Arrangement Programme. The decision followed assurances over the implementation of reformed General Sales Tax (GST) from October 1.

However, a final decision on the release of the loan tranche will be taken later by the IMF Board.

The Fund has also agreed to relax some of the economic targets previously set for fiscal 2010-11, according to a senior member of the Pakistani delegation. This includes a further reduction in the tax collection target from Rs1,604 billion earlier proposed by the Federal Board of Revenue, according to sources.

The IMF delegation expressed reservations about the expected failure to achieve the economic targets for the July-September quarter set during the last meeting between the two sides.

The failure to implement reformed GST, eliminate subsidies on electricity and limit government borrowing from the central bank were the issues raised by the IMF during the discussions.

The IMF added that the next instalment shall be contingent upon the fulfilment of economic targets agreed upon during the meeting.

In response, the Pakistani delegation explained that the delay in the implementation of reformed GST was due to the failure of negotiations between Islamabad and the provinces regarding the collection and distribution of GST on services.

However, they informed the IMF that reconciliation between the provinces and the federal government was likely soon.

The Pakistani delegation also provided a schedule for the elimination of subsidies on electricity and outlined a plan of action to meet the shortage of electricity and other economic challenges, sources said.

The IMF was apprised that economic targets will be revised downwards after estimates of flood losses are made available. They outlined the damages caused by massive flooding to the infrastructure and economy and offered a conservative estimate of $5 billion in losses. The delegation predicted that the agriculture sector will suffer the most in the aftermath of the floods and hence GDP growth will be stunted. The balance of payments will worsen as the trade deficit widens following increased imports of foodstuff and agricultural inputs.

As a result, the IMF has agreed to relax the conditions for the next instalment, but subsequently stressed the realisation of reformed GST schedule from October 1.

According to sources, the delegation will also attempt to obtain additional emergency funding of around $2 to $3 billion for the reconstruction of areas affected by the floods.

Published in The Express Tribune, August 27th, 2010.

Commodity News Snposhot -

National News

Government faces $25 million loss due to delay in sugar import: Senate body informed

ISLAMABAD (August 27, 2010): Senate Standing Committee on Industries and Production on Thursday was informed that Pakistan has faced 25 million dollars loss due to delay in the import of sugar. The Committee was also informed that Pakistan can face 19 million dollars loss in future if sugar is not imported in time.

Wheat damaged by rain, floods being auctioned today

LAHORE (August 27, 2010): The Punjab Food Department will be holding auction for wheat affected due to rain and flood waters at its different storage centres on August 27 (Friday). Sources in the provincial food department told Business Recorder here on Thursday that earlier the auction was scheduled for August 25, but the department did not receive any suitable bid.

Cotton prices avert sharp fall due to fresh partial rains in Sindh, Punjab

KARACHI (August 27, 2010): More rains in some parts of country, helped cotton prices halt sharp losses amid good trading, dealers said on the cotton market on Thursday. The Karachi Cotton Association (KCA) official spot rate was inert at Rs 6,450, they said. In the ready business nearly 11000 bales of cotton changed hands between Rs 6350-6800, they said.

Government urged to take preventive measures to save cotton crops

LAHORE (August 27, 2010): Chairman Pakistan Cotton Forum (PCF) Seth Muhammad Akbar has asked the government to take urgent precautionary measures to save cotton crops from further damage. He said the cotton crop in Punjab has entered into its most crucial phase where picking of each extra boll would matter. Therefore, timely preventive measures are required to save the cotton crops.

Cotton market remains steady

LAHORE (August 27, 2010): Barring a short-lived spike early this week which later petered out, cotton prices have more or less remained steady over the past one week or so. Some volatility creeps in and the market becomes fidgety due to uncertainty bred by rains and floods of gargantuan proportions which have created chaos and havoc over a large part of the country since last one month.

Flash floods destroy crops worth Rs 72 billion

KARACHI (August 27, 2010): Besides displacing millions of people and loss of the lives and property, the current floods have caused a loss of at least Rs 76.067 billion to the standing crops in the Sindh so far, it is learnt.

THE RUPEE: dollar marginally up

KARACHI (August 27, 2010): Slight fluctuations were seen on the currency market on Thursday in process of trading, dealers said. The rupee shed four paisa against dollar for buying at 85.64 and it also slid by two paisa for selling at 85.67, moneychangers said.

International News

Malaysian palm oil rebounds

KUALA LUMPUR (August 27, 2010): Malaysian crude palm oil futures rebounded on Thursday from one-month lows hit the previous day due to technical buying and firmer oils markets. Crude oil rose for a second day in Asian hours as investors bought back into the market after it hit 11-week lows, but analysts said the fundamental outlook was still bearish with ample stocks to cover any rebound in demand.

US wheat futures fall to one-week low

CHICAGO (August 27, 2010): US wheat futures fell 4 percent to their lowest level in a week on Wednesday on a wave of technical selling after Egypt bypassed US supplies in its latest purchase, traders said. "I think its a technical blow-off," said Mike Krueger, president of The Money Farm, a grain market advisory service near Fargo, North Dakota. "When wheat goes, it goes in a hurry. It is running into these sell stops and it just blows right through them."

Gold steadies after US jobless claims fall

* Copper rallies, helped by a weaker dollar

LONDON: Gold steadied on Thursday, having hit its highest level in two months earlier in the day, after US unemployment data beat expectations, boosting the dollar and other risk-linked assets such as equities.