In an update late last week from the Federal Reserve Bank of Kansas City (“Smaller Operating Loans Slow Lending Activity”), Nate Kauffman and Ty Kreitman indicated that, “Farm lending activity at commercial banks slowed further in the third quarter alongside a drop in operating loan volumes.”
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.
Federal Reserve: Observations on the Ag Economy- October 2023
On Wednesday, the Federal Reserve Board released its October 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.
Lower Mississippi River Water Levels Will Likely Persist
Reuters writer Karl Plume reported yesterday that, “Low water levels on the lower Mississippi River are likely to persist through at least January despite expected above-normal precipitation across the southern United States this winter, forecasters with the National Oceanic Atmospheric Administration (NOAA) said on Thursday.”
Fertilizer Prices Climb; and Injunction for Largest Proposed Fertilizer Mine in Brazil Overturned
DTN Farm Business Editor Katie Micik Dehlinger reported yesterday that, “The retail prices of all eight major fertilizers climbed higher in the second week of October, with anhydrous, MAP and UAN32 posting the largest gains.”
FT Looks at Sustainability Issues in Brazilian Soybean Production
Financial Times writer Sam Cowie reported yesterday that, “Few plants divide opinion in Brazil as much as soya, of which the country is the world’s largest producer and exporter.”
China Approves “Dozens” of Genetically Modified Corn, Soybean Varieties- Potentially Advancing Production
Bloomberg writer Hallie Gu reported yesterday that, “China has approved dozens of genetically modified corn and soybean seed varieties for planting, in a breakthrough move that could eventually boost production and reduce dependence on foreign supplies.”
FAS Highlights International Pork, Beef and Chicken Export Variables- EU Share Expected to Fall, Brazil Increase
Last week, in its quarterly Livestock and Poultry: World Markets and Trade report, USDA’s Foreign Agricultural Service (FAS) indicated that, “In 2024, EU pork, beef, and chicken meat exports are forecast to account for 15 percent of global exports, marking a significant decline from 20 percent in 2019.”
Soybean, Corn Harvest Pace Ahead of Average
DTN Managing Editor Anthony Greder reported yesterday that, “The nation’s soybean harvest jumped to a 10-point lead over the five-year average, and the corn harvest also remained slightly ahead of the average pace by the end of last week as farmers in some areas rushed to get in as much fieldwork as they could ahead of heavy rains, USDA NASS reported in its weekly Crop Progress report on Monday.”
Rains Impact Wheat Planting in China- The Fifth-Largest U.S Wheat Importer in MY 2022-23
Bloomberg writer Hallie Gu reported on Sunday that, “Heavy rains will hit parts of China’s biggest grain producing areas in the next ten days, affecting crops from wheat to rice, the country’s weather bureau said.”
Fertilizer “Scarce and Expensive” in Some Lower-Income Countries, as “Politics of the Dinner Table” Emerge
Peter S. Goodman reported in Sunday’s New York Times that, “Farmers are grappling with shocks that made fertilizer scarce and unaffordable, diminishing harvests, raising food prices and spreading hunger.”
Low Mississippi Levels “Disrupt U.S. Corn Trade,” and “Could Add Pressure on Local Storage Systems”
In its monthly Grain: World Markets and Trade report on Thursday, the USDA’s Foreign Agricultural Service indicated that, “Since June 2023, hot and dry conditions along the Mississippi River valley caused river levels to dip well below historical averages.”
Corn, Soybean Futures Climb on Production Cuts- Third Largest Corn Harvest Expected
Reuters writer Mark Weinraub reported yesterday that, “U.S. corn and soybean harvests will be smaller than previously forecast, with hot and dry weather during critical parts of the growing season dragging on yields, the government said on Thursday.”
Anhydrous Prices Climb; Mississippi Hits Record Low at Memphis, and China “Scoops Up Wheat”
DTN writer Russ Quinn reported yesterday that, “Retail fertilizer prices continued to be evenly split the first week of October 2023 with half lower and half higher compared to last month, according to sellers surveyed by DTN.”
Scientists Use CRISPR Gene Editing To Combat Bird Flu; as Corn, Soybean Harvest Ahead of Average
Emily Anthes reported on the front page of today’s New York Times that, “Scientists have used the gene-editing technology known as CRISPR to create chickens that have some resistance to avian influenza, according to a new study that was published in the journal Nature Communications on Tuesday.”
Bird Flu Detected on U.S. Commercial Poultry Farm
Late last week, Reuters writer Tom Polansek reported that, “The U.S. has detected its first case of avian flu on a commercial poultry farm since April, in a flock of 47,300 turkeys in Jerauld County, South Dakota, the U.S. Department of Agriculture (USDA) said.”
AMIS Fertilizer Outlook- Prices “Mostly Up in September,” While Russia Lifts Ban on Diesel Exports
In its October Market Monitor report, the Agricultural Market Information System (AMIS) indicated that, “Fertilizer prices were mostly up in September along with prices for main fertilizer inputs.”
USDA Explores Third-Quarter Barged Grain Movements on the Mississippi River
In its weekly Grain Transportation report on Thursday, the USDA’s Agricultural Marketing Service indicated that, “The Mississippi River System (MRS) comprises the Nation’s primary waterways for moving grain from Midwest production areas to the U.S. Gulf region for export. Close to 60 percent of U.S. grain exports (wheat, soybeans, and corn) travel this route by barge.”
Wheat Climbs on Black Sea Turmoil, While Global Food Prices Little Changed In September
Dow Jones writer Kirk Maltais reported yesterday that, “Wheat for December delivery rose 3.3% to $5.78 1/4 a bushel on the Chicago Board of Trade on Thursday, with futures climbing in reaction to news throughout the day of Russian attacks on Ukrainian cities, and fears that vessels earmarked for carrying Ukrainian grain could be targeted.”
Fertilizer Costs: “Split as Some Prices Rise and Others Fall,” While Diesel Prices Climb
DTN writer Russ Quinn reported yesterday that, “Retail fertilizer prices tracked by DTN for the fourth week of September 2023 are showing a more pronounced split as some prices rise and others fall.”
Twelve Additional Ships To Enter Black Sea “Humanitarian Corridor”
Reuters writers Olena Harmash and Pavel Polityuk reported today that, “Ukraine’s navy said on Wednesday that 12 more cargo vessels were ready to enter a fledgling Black Sea shipping corridor on their way to Ukrainian ports, as Kyiv steps up a push to defy a de facto Russian blockade on its vital sea exports.”