Hormel to Discontinue Buying Hogs Fed Ractopamine
Effective April 1st, Hormel will not accept hogs that have been fed the drug ractopamine.
Hormel Foods is eliminating ractopamine from its hog supply to increase meat sales to China.
Ractopamine is used to add finishing weight on hogs weight more efficiently. It is also known as Paylean and is developed/marketed by Elanco.
China does not allow its use or tolerate residues in imported meat.
The European Union bans ractopamine.
Tyson and JBS do not slaughter hogs with ractopamine.
FBN’s Take On What It Means: We believe that Hormel’s policy of no longer purchasing animals finished with Paylean has the potential to be a positive for corn and soybean demand. Removing Paylean can slow late stage weight gain which can be a positive for corn basis.
Brazil’s President Bolsonaro to Assist Indigenous Peoples Farm
Brazil's President Jair Bolsonaro is pushing a bill through Brazil’s Congress to allow commercial mining and agriculture on protected indigenous lands.
Brazil is offering a credit line to support indigenous farmers who have developed soy plantations on their reservations.
The credit line would allow indigenous tribes to buy seed, fertilizer and machinery.
The proposed legislation will allow indigenous people to mine and plant crops on their lands, and rent them to non-indigenous farmers.
Currently it is illegal under Brazilian law for indigenous peoples to rent land.
The proposal is designed to help pull Brazil’s indigenous peoples out of poverty.
Environmental laws also ban commercial agriculture and the use of transgenic crops on reservation lands. This provision has been waived and three tribes were given a temporary three-year permit to develop large-scale farms.
FBN’s Take On What It Means: Since assuming the presidency in January 2019, President Bolsonaro has been aggressively pushing to increase Brazil’s global competitiveness in the agriculture space. We believe that Brazil’s developing agriculture policy presents a long term direct threat to the US corn and soybean producer as increased acres in Brazil means more global supplies.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
