Food Business News - Dec 25, 2007 - (Page 1)

FOODBUSINESSNEWS ® NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY Assessing the impact of the dollar's downturn 32 Bringing Br nutrition nu benefits b to light 41 Kent to lead K Coca-Cola C 64 MARKET WATCH December 25, 2007 Grain, oilseed prices expected to moderate as crop areas shift Most price relief expected for wheat as new crop supply becomes available KANSAS CITY - Substantial gains forecast for domestic and global wheat production in 2008 will lead to sharply lower new crop prices, but price decreases for other grains and oilseeds will be less severe even with acreage shifts, analysts contacted by Food Business News said. Record high prices for wheat and 33-year highs for soybeans in 2007 are expected to attract acres in 2008, mostly at the expense of corn, which achieved only 10-year highs this year. But myriad other factors, including export demand, alternative fuels, commodity fund buying, economic strength and especially weather will continue to play a large role in determining commodity prices. Dan Basse, president of AgResource Consulting Group, Chicago, said he sees the period of record high commodity prices coming to an end, with prices moderating in a broad range, especially during and after the second quarter of 2008 as U.S. winter wheat and South American soybean crop prospects become better defined. Paul Meyers, vice-president of commodity analysis for Connell Purchasing Continued on Page 20 Monthly U.S. milk production 2007 billion lbs July Aug. Sept. Oct. Nov. Change from 2006 14.4 +4.0 14.3 +3.6 +3.1 13.7 +4.1 14.2 +3.8 13.8 Source: U.S. Department of Agriculture High prices prompted increased milk ilk output iin llast h half lf off 2007 2007. Farm bill showdown in Washington WASHINGTON - The Senate on Dec. 14 passed the Farm, Nutrition and Bioenergy Act of 2007 by an overwhelming vote of 79 in favor versus 14 opposed. The Senate and the House of Representatives, which passed its version of the farm bill in July, will establish a conference committee that early in the new year will hammer out differences between the two bills and compose a common final bill that will be submitted to each body for its approval. There were differences between the two bills, but most were relatively minor and likely easy to surmount. But the Bush administration threatened to veto the House bill when it passed in July and said it would veto the Senate bill if it reached the president's desk in its current form. The Senate farm bill passed with a veto-proof majority, but the House bill failed to reach the required two-thirds majority, passing by a vote of 231 to 191. A showdown between Congress and the administration loomed as indicated by statements of the president's press secretary and acting Secretary of Agriculture Charles Conner shortly after the Senate vote. Senator Tom Harkin of Iowa, chairman of the Senate Committee on Agriculture, Nutrition and Forestry, pointed to the fact the 2007 farm bill garnered more votes in the Senate than any other Continued on Page 18

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Food Business News - Dec 25, 2007