Agribusiness Update for Tuesday 10/8/13

The U.S. Grains Council says an unsettling trade barrier is brewing in Central America. The Panamanian government has published the regulations governing quota administration for powdered milk, rice and corn - which are all governed by the auction system as part of the Panama-U.S. Trade Promotion Agreement.

Even with some downward adjustments - the latest issue of the FAO's quarterly Crop Prospects and Food Situation report shows world cereal production in the 2013-14 marketing season should surpass the 2012 level by nearly eight-percent. The expected increase is mostly due to an 11-percent anticipated expansion in coarse grains output. The bulk of the increase comes from the U.S. corn crop.

Smithfield Foods Inc. told hog producers last week that it will adjust its pricing method for hogs during the federal government shutdown. Smithfield prices live hogs based on USDA market reports that have been suspended. Through Friday - according to a letter to producers - Smithfield planned to determine the price paid for cash hogs based on USDA market hog prices on September 30th.

That's today's Agribusiness Update from the Ag Information Network.