Last week, the USDA’s Foreign Agricultural Service (FAS) released its 2022 U.S. Agricultural Export Yearbook, a statistical summary of U.S. agricultural commodity exports. Today’s update includes highlights from the report, with a focus on corn, soybeans and wheat.
Keith Good
Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
Fertilizer Prices “Well Below Year-Ago Levels”
DTN writer Russ Quinn reported last week that, “Most average retail fertilizer prices continued to be down from the previous month in the fourth week of April 2023, according to sellers surveyed by DTN.”
Global Food Prices Climb, as “U.S. Corn Export Sales Hit Record Low”
Bloomberg writers Megan Durisin and Mumbi Gitau reported today that, “Global food prices rose for the first time in a year, just as the rampant run-up in grocery costs begins to cool in some countries.”
Wheat Climbs Following Kremlin Attack, While “China Has Approved the Safety of a Gene-Edited Soybean”
Bloomberg writers Megan Durisin and James Poole reported today that, “Wheat and corn futures steadied after Wednesday’s jump, as markets weigh up escalating tensions in the Black Sea region against burgeoning global supply.”
Black Sea Grain Talks to Continue, Wheat Slides, as Dollar Value in Focus
Reuters News reported today that, “The Kremlin said on Wednesday that Russia would continue talks with the United Nations and other parties to the Black Sea grain deal, and that Moscow would not do anything to harm its own interests.”
Iowa Farmers Worried, “Profits Per Acre Are a Concern,” China Food Security in Focus
Donnelle Eller reported on the front page of the Sunday Des Moines Register that, “Iowa farmers have a lot on their minds as they hook tractors onto planters this year: Skyrocketing interest rates are helping drive a 20% hike in the cost to plant the crop, along with higher seed, fertilizer, chemical and land costs, said Chad Hart, an Iowa State University agricultural economist.”
EU Reaches Agreement with Poland and Other Member States on Ukrainian Grain Imports
Financial Times writer Andy Bounds reported late last week that, “Poland and three other EU member states are to lift a ban on imports of Ukrainian foodstuffs under a deal reached with Brussels on Friday.”
Fertilizer Prices Mixed, as Anhydrous Drops Below $1,000; Diesel Prices in Focus
DTN writer Russ Quinn reported last week that, “Most retail fertilizer prices continued to shift lower the third week of April 2023, according to retailers tracked by DTN. However, for the first time in several months, multiple fertilizers were slightly higher.”
Flooding Concerns Along Upper Mississippi River Basin Persist
Scott Dance reported in Saturday’s Washington Post that, “Record winter snowfall across northern Minnesota, which quickly melted in a spell of unprecedented spring heat, is dramatically swelling waterways along the upper Mississippi River basin.”
Flooding Impacts Upper Mississippi Barge Traffic, as “Corn Hit its Lowest in Nine Months”
In its weekly Grain Transportation Report yesterday, the USDA’s Agricultural Marketing Service (AMS) indicated that, “On April 24, American Commercial Barge Line reported it had no boats on the Upper Mississippi River above St. Louis, MO, because of flooding conditions and lock closures. Currently, above Lock 17 (which is near New Boston, IL), all locks and dams are closed, and no freight is being accepted along the Twin Cities and Mid-Mississippi portions of the river.”
Canadian Farmers Expect More Wheat Acres This Year, “The Most in 22 Years”
Dow Jones writer Robb M. Stewart reported yesterday that, “Canadian farmers expect to plant more wheat this year, and increase crops of canola and soybeans.”
Black Sea Grain Discussions “Center Stage”
Wall Street Journal writers Jared Malsin and Alan Cullison reported in today’s paper that, “Russia is piling pressure on Ukraine and Western governments over a deal that reopened key Ukrainian ports for vital grain exports, renewing threats to back out of the agreement that lowered global food prices last year.”
Kremlin Sees No Progress on Black Sea Grain Deal, as Political Division Surrounding Ukrainian Farm Exports Continues; Wheat Prices at 21-Month Low
Reuters News reported today that, “The Kremlin reaffirmed its position on Tuesday that the Black Sea grain deal is not working for Moscow, a day after the head of the United Nations handed Russia a letter with proposals to improve and expand it.”
Moscow Threatens Withdrawal From Black Sea Grain Deal if G7 Proceeds with Export Ban
Bloomberg News reported yesterday that, “Moscow may retaliate if Group of Seven countries proceed with a total ban on most exports to Russia by withdrawing from the safe-transit deal that allows Ukraine to ship grains from Black Sea ports, said Dmitry Medvedev, deputy chair of Russia’s Security Council.”
Kansas City Fed: Rising Interest Rates Impacting Farm Lending
In an update last week from the Federal Reserve Bank of Kansas City (“Interest Rates Rise and Farm Lending Softens”), Nate Kauffman and Ty Kreitman indicated that, “Growth in farm lending activity at commercial banks was limited in the first quarter of 2023 as interest rates climbed higher.”
G7 Calls for Extension of Black Sea Grain Initiative
Reuters writer Michelle Nichols reported late last week that, “A deal allowing the safe Black Sea export of Ukraine grain could start winding down next week after Russia said it will not approve any new vessels unless their operators guarantee the transits will be done by May 18 – ‘the expected date of … closure.'”
Fertilizer Prices Fall Again
DTN writer Russ Quinn reported last week that, “Average retail fertilizer prices were down again the second week of April 2023, continuing a trend that has been in place since the beginning of the year, according to sellers surveyed by DTN.”
As “Rankled Farmers” in Europe Deal with Ukraine’s Trapped Grain, Transit of Ukrainian Farm Exports Through Poland Resumes
Reuters writers Alan Charlish and Marek Strzelecki reported today that, “The first trucks carrying Ukrainian food products including corn and eggs were bound to start transit via Poland to the Netherlands on Friday morning, a Polish customs official said, as rules allowing the shipments took effect overnight.”
Despite Resumption of Black Sea Grain Exports, Ukrainian Farm Export Problems Persist
Reuters writer Pavel Polityuk reported yesterday that, “Inspections of ships carrying Ukrainian grain from the Black Sea resumed on Wednesday under a U.N.-brokered deal but Kyiv faces a struggle to secure an extension of the agreement, as well as a widening import ban in eastern Europe.”
Federal Reserve: Observations on the Ag Economy- April 2023
On Wednesday, the Federal Reserve Board released its April 2023 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.