On Thursday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2022.
Keith Good
Global Wheat Production Faces Weather Threats, While U.S. Food Prices Climb
Bloomberg writers Megan Durisin, Kim Chipman, Jen Skerritt, and James Poole reported today that, “As Russia’s invasion chokes off Ukrainian wheat exports, pushing up bread and noodle prices, the global harvest faces an added test: extreme weather.”
Russia Makes Some Land Gains– Persists in Strangling Ukrainian Grain Exports
New York Times writers Michael Schwirtz, Marc Santora and Michael Levenson reported on the front page of today’s paper that, “Russia’s nearly three-month-old invasion of neighboring Ukraine has been punctuated by flawed planning, poor intelligence, barbarity and wanton destruction. But obscured in the daily fighting is the geographic reality that Russia has made gains on the ground.”
Food Protectionism Adds to “Chaos in Global Food Markets,” While Ukraine Could Plant a Majority of Spring Crops
Financial Times writers Oliver Telling, Benjamin Parkin and Emiko Terazono reported yesterday that, “Rising protectionism is exacerbating chaos in global food markets brought on by the war in Ukraine, with governments clamping down on exports of staples including grains, cooking oil and pulses.”
Russian Fertilizer Continues to Arrive in Brazil
Jack Nicas and André Spigariol reported in today’s New York Times that, “When the first Russian missiles struck Ukraine, the reverberations were felt 6,500 miles away, on the vast Brazilian farms that grow much of the world’s soybeans.”
Global Food Prices Ease Slightly From Record, as Ukrainian Exports Foiled; and Global Wheat Variables Evolve
Bloomberg writer Megan Durisin reported on Friday that, “Global food prices held near a record as crop trade is disrupted by the war in Ukraine, exacerbating tight supplies and stoking inflation.”
Prices of Most Fertilizers Continue Rise, as Wheat Prices Climb on Supply Concerns
DTN writer Russ Quinn reported earlier this week that, “According to retail fertilizer prices tracked by DTN for the fourth week of April 2022, prices are somewhat mixed to end the month of April.”
After Hottest March on Record, India Considers Wheat Export Restrictions- Wheat Prices Climb
Bloomberg writers Pratik Parija and Shruti Srivastava reported yesterday that, “India is considering restricting wheat exports as severe heat waves have damaged crops, exacerbating tight global supplies after the war in Ukraine sent food inflation soaring.”
Ukraine Farmers Plant 30% of Expected Spring Acreage, as Brazil Begins “Fertilizer Diplomacy”
Reuters writer Pavel Polityuk reported yesterday that, “Ukraine’s farmers have sown around 31% of the area expected for the 2022 spring crops sowing, or 4.7 million hectares, Ukrainian grain traders union UGA said on Tuesday, citing official data.”
WSJ: Countries Scramble to Fill Black Sea Grain Void
Wall Street Journal writers Jesse Newman and Patrick Thomas reported on the front page of today’s paper that, “From India to Ireland, governments are moving to fill a void from the Black Sea region that could total tens of millions of tons of grain. They are paying farmers to sow more crops and are enlisting railcars and additional containers to move wheat.”
A Quarter of Sunflower Oil Has “Vanished” – Brazil Eyes “Tropical Wheat,” and Fertilizer Problems Persist
Christine Hauser reported in today’s New York Times that, “First the coronavirus, then the war. Just as the pandemic caused shortages of essential items, Russia’s invasion of Ukraine has disrupted important food supplies, driving up prices of staples like cooking oil in supermarkets around the world.”
Fertilizer Prices, Higher Still- Producers World-Wide Adjust; U.S. Faces Railway Issues
DTN writer Russ Quinn reported last week that, “Retail fertilizer prices continued to be slightly higher again the third week of April 2022, according to sellers surveyed by DTN.”
Food Protectionism “Unleashed,” While Ukrainian Corn Finds Romanian Black Sea Export- Planting Continues
Ana Swanson reported on the front page of today’s New York Times that, “Ukraine has limited exports of sunflower oil, wheat, oats and cattle in an attempt to protect its war-torn economy. Russia has banned sales of fertilizer, sugar and grains to other nations.”
Russian War Amplifies Agricultural Market Dynamics in India, Ukraine, U.S., and Indonesia
Reuters writers Rajendra Jadhav and Mayank Bhardwaj reported today that, “But a rare confluence of high international prices, consecutive record crops, a weaker rupee against the dollar and improved internal logistics have made [wheat] shipments from India attractive.”
Indonesia Widens Palm Oil Export Ban, Protectionist Measure Adds to Existing Pressure on Edible Oils
Bloomberg writers Eko Listiyorini, Anuradha Raghu, and Rieka Rahadiana reported yesterday that, “Indonesia, the world’s biggest edible oils shipper, will widen an export ban to include crude palm oil, adding to uncertainty in a market that’s suffered dizzying price swings and threatening to worsen global food inflation.”
Wearing Body Armour, Dodging Mines- Ukrainian Farmers Press Ahead, Cope With Logistics
Reuters writer Joseph Campbell reported yesterday that, “Ukrainian farmers in the southern region of Zaporizhzhia which borders the frontline of the military conflict with Russia are now wearing body armour to plough their fields.”
Planned Indonesia Palm Oil Export Ban Stokes Food Price Worries, as U.S. Crop Progress Slows
Reuters writer Bernadette Christina reported yesterday that, “Indonesia’s agriculture ministry said on Monday that crude palm oil shipments would be excluded from a planned palm oil export ban, according to a copy of an official letter sent to local government leaders.”
Edible Oil Prices Volatile; as Fertilizer Prices Fall Slightly
Reuters writers Naveen Thukral and Mei Mei Chu reported today that, “Global vegetable oil prices climbed on Monday to trade near multi-year highs, as Indonesia’s decision to ban palm oil exports heightened concerns about global food supplies.”
Ukraine Production “More Critical” Amid Food Security Concerns
Bloomberg writers Aine Quinn and Volodymyr Verbyany reported today that, “Ukraine is the world’s largest producer of sunflower oil and ranks among the top six exporters of wheat, corn, chicken and even honey.”
Indonesia Bans Palm Oil Exports- Soybean Oil Surges
Reuters writer Nigel Hunt reported yesterday that, “Soybean oil prices soared to a record high on Friday as Indonesia’s decision to effectively ban exports of palm oil heightened concerns about already depleted global supplies of alternative vegetable oils.”