South korea suspends wheat exports.From zero
hedge.
As a reminder, recently news broke out that a rogue
genetically modified strain of wheat developed by
Monsanto, had been found in an Oregon field late last
month. But while modified food has long been a diet
staple, this particular breed was the first discovery of
an unapproved strain, and what made things worse is
the lack of any information how the rogue grain had
escape from a field trial a decade ago. As Reuters
reports, "even after weeks of investigation, experts
are baffled as to how the seed survived for years after
Monsanto had ceased all field tests of the product. It
was found in a field growing a different type of wheat
than Monsanto's strain, far from areas used for field
tests, according to an Oregon State University wheat
researcher who tested the strain."
The USDA was quick to deny any suggestion of public
danger:
The USDA said the GM wheat found in Oregon posed
no threat to human health, and also said there was no
evidence that the grain had entered the commercial
supply chain.
But the discovery threatens to stoke consumer outcry
over the possible risk of cross-contaminating natural
products with genetically altered foods, and may
embolden critics who say U.S. regulation of GMO
products is lax.
This is compounded by the still fresh memory of the
glaring and repeated lies by the Japanese government
in regards to the Fukushima explosion, making some
wonder just how far the government is willing to go
to cover up potential threats if the alternative is
widespread panic.
It is all the more alarming because the wheat strain
was thought to have been eliminated after test trials
ended in 2005, as Monsanto abandoned efforts to
secure regulatory approval due to worldwide
opposition. While there have been more than 20
majors violations of U.S. regulations on handling or
co-mingling biotechnology crops, none have ever
involved wheat before.
Ironically, it was that master hypocrite Japan, which is
now feeding its population rice grown in the
Fukushima evacuation zone, that was first to halt US
grain shipments,
[M]ajor buyer Japan canceled plans to buy U.S. wheat
while the Europe Union said it would step up testing.
Some analysts feared a potentially damaging blow to
the $8 billion wheat export business, recalling the
more than yearlong disruption to corn sales following
a similar discovery in 2000.
"Unless there's a quick resolution, this is not going to
be good for the export market," said Art Liming, grain
futures specialist with Citigroup.
And as the global concern about just what consumers
are putting into their mouths spreads, South Korean
millers were the latest to just announce a suspension
of US wheat imports:
South Korean millers suspended imports of U.S.
wheat on Friday and some Asian countries stepped up
inspections after the discovery of an unapproved
strain of genetically modified wheat in the United
States, but stopped short of imposing import bans.
South Korea - which last year sourced roughly half of
its total wheat imports of 5 million metric tons from
the U.S. - has also raised quarantine measures on
U.S. feed wheat, while Thailand put ports on alert.
As more countries follow South Korea's example, Asia
may suddenly find itself with a major wheat shortage:
Asia imports more than 40 million metric tons of
wheat annually, almost a third of the global trade of
140-150 million metric tons. The bulk of the region's
supplies come from the U.S., the world's biggest
exporter, and Australia, the No. 2 supplier.
But Australia will struggle to soak up extra demand as
its supplies tighten in the wake of unsustainably brisk
exports and growing demand from domestic livestock
farmers.
"The bulk of grain suppliers (in Australia) are
cancelling shipping slots and selling grain to
domestic feed mills and feedlots," said Stefan Meyer,
a manager for cash markets at brokerage INTL
FCStone in Sydney.
Japan is not rushing to find alternative sources of
wheat, however, with the county's flour milling
industry body saying they have sufficient stocks for
the short term.
"We haven't thought about alternatives to the grade
or proposed candidates to the farm ministry (at this
stage)," said Masaaki Kadota, executive director of the
Flour Millers Association of Japan.
Perhaps just as well: what better way to avoid even
more soaring food import costs than due to an
embargo on foreign grain imports. It is unclear if the
proposed alternative will be five-eyed fish caught off
the Fukushima coast.
Another country even more reliant on the US for
wheat is the Philippines:
An industry official in the Philippines, which buys
about 4 million metric tons of wheat a year and relies
mainly on U.S. supplies, said the country could turn
to Canada if it decides not to import from the U.S.
Hopefully Monsanto's GMed strain didn't mysteriously
cross the Canada border as well. Which it very well
may have: as of now the source of the spread of the
rogue wheat is completely unknown:
Bob Zemetra, the Oregon State researcher, said a
local farmer contacted the university in late April after
noticing that some wheat plants survived an
application of herbicide that was being used to kill off
unwanted plants in the fallow field.
Most plants died, but a few wheat plants
unexpectedly emerged after the spraying.
Researchers determined the wheat is a strain of
Roundup-Ready tested by Monsanto in Oregon fields
from 1999 to 2001.
GM crops tolerate certain pesticides, allowing farmers
to improve weed control and increase yields.
Zemetra said Monsanto had been field-testing spring
wheat, while the "volunteer" plants discovered in the
eastern Oregon field were winter wheat. The two
varieties pollinate at different times, making it
unlikely for the GMO traits to have been carried into
the field by wind.
"That's why it's a mystery," he said.
Farmers, wondering whether their wheat could
unknowingly be genetically modified, have flooded
farm bureaus with questions. They should not spray
crops with Roundup to check whether they will
survive, said Mike Flowers, extension cereals
specialist for Oregon State University.
The final word is not surprising: keep calm and keep
eating.
"The recommendation right now is to not panic," he
said. "We really need
to let the investigators do their jobs and get more
information before
people panic. We don't know if it's widespread. Right
now, we know it's
in one field."
There's that... And let's not forget the government is
always there to help you.
But while the potential dangers are clear for all, one
wonder: in a world in which millions of people eat the
mystery meat contained in McNuggets, not to
mention KFC, each and every day, isn't it a little too
hypocritical to be worried about the genetic make up
of a loaf of bread?
Average:
hedge.
As a reminder, recently news broke out that a rogue
genetically modified strain of wheat developed by
Monsanto, had been found in an Oregon field late last
month. But while modified food has long been a diet
staple, this particular breed was the first discovery of
an unapproved strain, and what made things worse is
the lack of any information how the rogue grain had
escape from a field trial a decade ago. As Reuters
reports, "even after weeks of investigation, experts
are baffled as to how the seed survived for years after
Monsanto had ceased all field tests of the product. It
was found in a field growing a different type of wheat
than Monsanto's strain, far from areas used for field
tests, according to an Oregon State University wheat
researcher who tested the strain."
The USDA was quick to deny any suggestion of public
danger:
The USDA said the GM wheat found in Oregon posed
no threat to human health, and also said there was no
evidence that the grain had entered the commercial
supply chain.
But the discovery threatens to stoke consumer outcry
over the possible risk of cross-contaminating natural
products with genetically altered foods, and may
embolden critics who say U.S. regulation of GMO
products is lax.
This is compounded by the still fresh memory of the
glaring and repeated lies by the Japanese government
in regards to the Fukushima explosion, making some
wonder just how far the government is willing to go
to cover up potential threats if the alternative is
widespread panic.
It is all the more alarming because the wheat strain
was thought to have been eliminated after test trials
ended in 2005, as Monsanto abandoned efforts to
secure regulatory approval due to worldwide
opposition. While there have been more than 20
majors violations of U.S. regulations on handling or
co-mingling biotechnology crops, none have ever
involved wheat before.
Ironically, it was that master hypocrite Japan, which is
now feeding its population rice grown in the
Fukushima evacuation zone, that was first to halt US
grain shipments,
[M]ajor buyer Japan canceled plans to buy U.S. wheat
while the Europe Union said it would step up testing.
Some analysts feared a potentially damaging blow to
the $8 billion wheat export business, recalling the
more than yearlong disruption to corn sales following
a similar discovery in 2000.
"Unless there's a quick resolution, this is not going to
be good for the export market," said Art Liming, grain
futures specialist with Citigroup.
And as the global concern about just what consumers
are putting into their mouths spreads, South Korean
millers were the latest to just announce a suspension
of US wheat imports:
South Korean millers suspended imports of U.S.
wheat on Friday and some Asian countries stepped up
inspections after the discovery of an unapproved
strain of genetically modified wheat in the United
States, but stopped short of imposing import bans.
South Korea - which last year sourced roughly half of
its total wheat imports of 5 million metric tons from
the U.S. - has also raised quarantine measures on
U.S. feed wheat, while Thailand put ports on alert.
As more countries follow South Korea's example, Asia
may suddenly find itself with a major wheat shortage:
Asia imports more than 40 million metric tons of
wheat annually, almost a third of the global trade of
140-150 million metric tons. The bulk of the region's
supplies come from the U.S., the world's biggest
exporter, and Australia, the No. 2 supplier.
But Australia will struggle to soak up extra demand as
its supplies tighten in the wake of unsustainably brisk
exports and growing demand from domestic livestock
farmers.
"The bulk of grain suppliers (in Australia) are
cancelling shipping slots and selling grain to
domestic feed mills and feedlots," said Stefan Meyer,
a manager for cash markets at brokerage INTL
FCStone in Sydney.
Japan is not rushing to find alternative sources of
wheat, however, with the county's flour milling
industry body saying they have sufficient stocks for
the short term.
"We haven't thought about alternatives to the grade
or proposed candidates to the farm ministry (at this
stage)," said Masaaki Kadota, executive director of the
Flour Millers Association of Japan.
Perhaps just as well: what better way to avoid even
more soaring food import costs than due to an
embargo on foreign grain imports. It is unclear if the
proposed alternative will be five-eyed fish caught off
the Fukushima coast.
Another country even more reliant on the US for
wheat is the Philippines:
An industry official in the Philippines, which buys
about 4 million metric tons of wheat a year and relies
mainly on U.S. supplies, said the country could turn
to Canada if it decides not to import from the U.S.
Hopefully Monsanto's GMed strain didn't mysteriously
cross the Canada border as well. Which it very well
may have: as of now the source of the spread of the
rogue wheat is completely unknown:
Bob Zemetra, the Oregon State researcher, said a
local farmer contacted the university in late April after
noticing that some wheat plants survived an
application of herbicide that was being used to kill off
unwanted plants in the fallow field.
Most plants died, but a few wheat plants
unexpectedly emerged after the spraying.
Researchers determined the wheat is a strain of
Roundup-Ready tested by Monsanto in Oregon fields
from 1999 to 2001.
GM crops tolerate certain pesticides, allowing farmers
to improve weed control and increase yields.
Zemetra said Monsanto had been field-testing spring
wheat, while the "volunteer" plants discovered in the
eastern Oregon field were winter wheat. The two
varieties pollinate at different times, making it
unlikely for the GMO traits to have been carried into
the field by wind.
"That's why it's a mystery," he said.
Farmers, wondering whether their wheat could
unknowingly be genetically modified, have flooded
farm bureaus with questions. They should not spray
crops with Roundup to check whether they will
survive, said Mike Flowers, extension cereals
specialist for Oregon State University.
The final word is not surprising: keep calm and keep
eating.
"The recommendation right now is to not panic," he
said. "We really need
to let the investigators do their jobs and get more
information before
people panic. We don't know if it's widespread. Right
now, we know it's
in one field."
There's that... And let's not forget the government is
always there to help you.
But while the potential dangers are clear for all, one
wonder: in a world in which millions of people eat the
mystery meat contained in McNuggets, not to
mention KFC, each and every day, isn't it a little too
hypocritical to be worried about the genetic make up
of a loaf of bread?
Average:
Comment