Bloomberg writer Megan Durisin reported last week that, “Global food costs jumped last month, extending a march toward a record and piling more inflationary pressure on consumers and governments.”
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: Another Week, Another Record- but Corn-Soybean Ratio Still Seen as Relatively Strong
Late last week, Bloomberg writer Elizabeth Elkin reported that, “A gauge of North American fertilizer prices touched a new record high, driving up costs for farmers who are already experiencing tight margins and threatening to make food even more expensive.”
USDA Sees More Soybean Acres, Less Corn in 2022/23 Crop Year
Reuters writer Julie Ingwersen reported last week that, “U.S. farmers are likely to reduce plantings of corn while expanding seedings of soybeans and wheat for the upcoming marketing year, the U.S. Agriculture Department said on Friday.”
“Fertilizer Price Spike Continues,” as Demand Remains Strong, and Corn Still Seen as Profitable
DTN writer Katie Micik Dehlinger reported on Wednesday that, “The retail fertilizer price spike continues, with seven of the eight major fertilizers tracked by DTN posting significant gains and one setting a new record. UAN32 cost an average of $522 per ton in the fourth week of October, the highest in DTN’s 13 years of gathering bids.”
China Urges Local Focus on Food Supplies, as Chinese Pork Market Dynamics Unfold
Bloomberg News reported on Tuesday that, “A statement from China’s government urging local authorities to ensure there was adequate food supply during the winter and encouraging people to stock up on some essentials prompted concerned talk online, with people linking it with the widening coronavirus outbreak, a forecast cold snap, or even rising tensions with Taiwan.”
Supply-Chain Issues Persist at Supermarkets as Meat Prices Rise- Turkey Availability a Concern
Wall Street Journal writer Jaewon Kang reported earlier this week that, “Supermarket chains are revamping their operations to navigate persistent product shortages, expanding storage space and curbing discounts to make sure they don’t run out.”
China’s Energy Crunch Disrupts Oilseed Trade, as the Slow Consolidation in China’s Pork Production Eases Forward
The USDA’s Economic Research Service (ERS) indicated in its October Oil Crops Outlook report that, “Brazil planted 38.6 million hectares of soybeans in the 2020/21 marketing year.”
Wheat Prices Climb, as Elevated Fertilizer Prices Persist
In its October Wheat Outlook report, the USDA’s Economic Research Service (ERS) pointed out that, “USDA’s National Agricultural Statistics Service (NASS) published its Grain Stocks report on September 30, which indicated that wheat stocks as of September 1 this year were the lowest for that date since 2007.”
No Signs of Relenting- Implications From Elevated Input Costs Continue to Unfold for Producers
Earlier this week, Wall Street Journal writer Jinjoo Lee reported that, “High natural-gas prices today mean your electricity and heating bills will likely be expensive this winter. Next year, it could mean you will end up paying more to eat and to fill up your car.”
ADM, Gevo Sign MoU to Produce Sustainable Aviation Fuel, About Half of ADM’s Ethanol Production Could Go To Jet Fuel
A news release on Monday from ADM indicated that, “ADM, a global leader in nutrition and agricultural origination and processing, and Gevo, Inc., a pioneer in transforming renewable energy into low carbon, energy-dense liquid hydrocarbons, announced today that they have signed a memorandum of understanding (MoU) to support the production of sustainable aviation fuel (SAF) and other low carbon-footprint hydrocarbon fuels.”
Kansas City Fed: U.S. Agricultural Economy Generally Strong, as Demand for Livestock Loans Grew in Third Quarter
In an update from the Federal Reserve Bank of Kansas City earlier this month (“Larger Livestock Loans Boost Farm Lending”), Nathan Kauffman and Ty Kreitman stated that, “Demand for livestock loans grew in the third quarter, boosting agricultural lending activity at commercial banks.”
China Emerges as the Third-Largest Market for U.S. Beef, and Remains a Key Factor in U.S. Pork Exports
In its October Livestock, Dairy, and Poultry Outlook report, the USDA’s Economic Research Service (ERS) indicated that, “U.S. beef exports in August set a new record of 325 million pounds, an increase of 57 million pounds, or 21 percent, from a year ago.”
Ballooning Fertilizer Prices and Production Cost Considerations Gain Scrutiny
Bloomberg writers Kim Chipman and Elizabeth Elkin reported late last week that, “Skyrocketing fertilizer prices could lead U.S. corn profits to drop by about a quarter next year, potentially motivating farmers to shift millions of acres into less cost-intensive soybeans.”
Federal Reserve: Observations on the Ag Economy- October 2021
On Wednesday, the Federal Reserve Board released its October 2021 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.
As U.S. and China Reengage on Trade, China Remains Far Behind on Phase One Targets
Bloomberg writer Ailing Tan reported this week that, “China’s goods imports from the U.S. have only reached about 53% of the $200 billion worth of additional products and services it promised to buy under the trade deal signed last year, far behind its purchasing target.”
From Retail Grocer to Commodity Production Inputs, Supply-Chain Knots Persist
Bloomberg writers Brendan Case, Leslie Patton, and Kim Chipman reported this week that, “In Denver, public-school children are facing shortages of milk. In Chicago, a local market is running short of canned goods and boxed items.”
Fertilizer Exports from China Face Curbs, as Crop Acreage Levels Garners Attention
Bloomberg News reported this week that, “Chinese authorities are imposing new hurdles for fertilizer exporters amid growing concerns over surging power prices and food production, a move that could worsen a global price shock and food inflation.”
China’s Pork Output Jumps, as Soy, Meat Imports Slow
Reuters writer Dominique Patton reported this week that, “China’s third-quarter pork production surged to its highest in three years, official data showed on Monday, after producers built thousands of large breeding farms last year to rebuild a hog herd decimated by African swine fever.”
Chinese Livestock Producers Look to Corn as Domestic Prices Fall, While U.S. Corn Exports Hit Record Volume
Reuters writers Hallie Gu and Gavin Maguire reported late last week that, “For the first time in a year, corn prices in China’s key Shandong hub this week have fallen to the same levels as wheat, leading some feed producers to switch back to using more of the yellow grain, traders and analysts said.”
The Reach of Higher Fertilizer Prices Continues to Extend, Implications for Illinois Grain Farmers
On Thursday, Bloomberg writers Tatiana Freitas and Fabiana Batista reported that, “Brazilian farmer Antonio Carlos Jacobsen usually buys fertilizer a few weeks before planting his corn fields. Soaring fertilizer prices are pushing him to move up purchases for the March seeding — although it may already be too late.”