DowDuPont Wins Final Approval For Global Launch of Enlist E3 Soybean
DowDuPont Inc., won the final international regulatory approval needed, from the Philippines, for a global launch of its new line of GMO soybeans called Enlist E3.
The approval means seed companies can sell the Enlist E3 soybeans, to farmers for planting as early as this spring without worrying about taking extra steps to keep the soybeans out of most global export markets.
Developed with Iowa-based MS Technologies, Enlist E3 is the first soybean genetically modified to withstand sprays from three popular weed chemicals - 2,4-D, glyphosate and glufosinate.
Final approval of Enlist E3 from the Philippines was an critical step in the global approval process as the country is one of the largest imports of U.S. soybean meal. U.S. farmers and seed sellers have been waiting for the Philippines to approve imports of Enlist E3 since China, cleared the product in January.
Enlist E3 is expected to be planted on more than 10% of soybean acres in the United States and Canada next year. The companies plan to license the product to other seed sellers and are in talks with more than 100 brands.
How Does This Impact the U.S. Farmer? The approval of DowDuPont’s new GMO product has the ability to offer the U.S. producer another seed option in a market pretty much dominated by Bayer. Approval by China and the global community is key. Please contact your FBN representative for more information about Enlist E3.
USDA’s Releases First 2019/20 U.S Corn & Soy Balance Sheets
On Friday morning the USDA released its first estimates of their 19/20 crop year supply and demand estimates for corn, soybeans, wheat and cotton.
Corn. The corn production + 3% YoY at 14.890 BBU, based on an average yield of 176.0 BPA. 2019/20 crop year carry-out is estimated at 1.650 BBU vs 1.73 BBU for 18/19.
Soybeans. USDA estimates the 19/20 soy production at 4.175 BBU -8% YoY. The carryout is estimated at 845 MBU -65 MBU YoY. The estimated soy carry-out would be the second largest on record.
What Does This Mean For U.S. Farmers? The initial glance is bearish new crop soybeans and neutral/supportive new crop corn. Obviously there are a lot of moving parts with the USDA’s supply and demand equations and at the moment potential Chinese demand could be a large part of the demand calculus that is not being accounted. The USDA’s estimate will stand for a few months until the government releases the first regularly published WASDE for the 19/20 crop year in June.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
