A report last week from the USDA’s Foreign Agricultural Service (FAS), “Banner Year for U.S. Beef Exports in 2021,” stated that, “As countries roll back COVID-19 restrictions, foreign market demand for beef is becoming a bright spot for U.S. producers.”
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.
African Swine Fever Confirmed on German Pig Farm, While China’s Record Pork Imports Cool
Reuters News reported late last week that, “The first cases of African swine fever have been confirmed in farm pigs in Germany, the country’s federal agriculture ministry said on Friday.”
China Pork Production Balloons in Second Quarter, While Meat Inflation in the U.S. Climbs
Reuters writers Emily Chow and Dominique Patton reported this week that, “China’s second-quarter pork production surged to its highest in at least seven years, official data showed on Thursday, after producers launched thousands of new breeding farms last year to rebuild a hog herd decimated by the African swine fever.”
Federal Reserve: Observations on the Ag Economy- July 2021
On Wednesday, the Federal Reserve Board released its July 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.
Brazil Corn Imports Surge
Earlier this week, in its monthly Grain: World Markets and Trade report, the USDA’s Foreign Agricultural Service (FAS) stated that, “Brazil corn imports (Oct-Sep) are forecast at 2.6 million tons for 2020/21. If realized, it would be the largest volume on record.”
By Reducing Red Tape, China Lures Small Pig Farmers Into Production
Reuters News reported this week that, “China will no longer require small pig farms to get environmental approval from the government before breeding pigs as the country seeks to rebuild its hog herd following a disease outbreak, the agriculture ministry said on Monday.”
African Swine Fever Persists in Parts of China
Reuters writer Dominique Patton reported on Friday that, “Large numbers of pigs are dying from African swine fever in China’s top hog-producing province, say farmers and analysts, raising concerns it could spread further across the south and slow China’s pork production recovery.”
Factors May Temper Chinese Purchases of U.S. Corn
Bloomberg News reported on Friday that, “China is likely to take a break from buying large amounts of U.S. corn after record purchases this year because the domestic harvest is approaching and local prices have slumped to the cheapest since late 2020.”
Global Food Prices Fall For the First Time in 12 Months
Reuters News reported this week that, “World food prices fell in June for the first time in 12 months, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday.”
Farmers in China Are Planting More Corn This Year, With a Potential Impact on Import Demand
Reuters writers Hallie Gu and Gavin Maguire reported this week that, “Chinese farmers have sharply increased corn planting this year to cash in on demand-fuelled record prices, a trend that is likely to cool the country’s recent rampant appetite for imports heading into 2022.”
Expansion of Summertime Ethanol Sales Struck Down in Court Ruling
Late last week, Wall Street Journal writer Timothy Puko reported that, “A federal appeals court Friday struck down a 2019 rule-change to expand summertime ethanol sales, saying the Trump administration overreached its authority when it lifted a ban on gasoline with a higher ethanol content.”
USDA Attache Updates from Beijing Highlight Corn, Soy Variables
A report on Thursday from the USDA’s Foreign Agricultural Service (FAS) post in Beijing (“China: Grain and Feed Update”) stated that, “Post’s MY2021/22 corn import forecast is 20 MMT, 6 MMTs below USDA’s official forecast with the expectation that demand softens as corn imported during the current marketing year enters commercial channels, stock building moderates, and the expansion of domestic corn area results in greater production.”
U.S. Agricultural Exports at Record Level in First Four Months of 2021
Late last week, the USDA’s Foreign Agricultural Service (FAS) released a report titled, “Early Months Suggest a Bright 2021 for United States Agricultural Exports.”
China Pork Imports Expected to Drop, as U.S. Pork Prices Fall- Feed Grain Demand Potentially Impacted
Late last week, Wall Street Journal writer Jacky Wong reported that, “Prices of everything seem to be going up this year. Pork prices in China are doing the opposite as a different sort of health crisis eases. That’s tough news for the global pork industry, but a welcome respite for pork buyers everywhere.”
Farm Debt Declines, Loan Performance Improves- Kansas City Fed
Last week, Nathan Kauffman and Ty Kreitman, of the Federal Reserve Bank of Kansas City, penned an update titled, “Farm Debt Declines Further and Credit Stress Eases,” which noted that, “Agricultural debt at commercial banks continued to decline in the first quarter of 2021 and farm loan performance improved.”
Supreme Court Setback for Biofuel Producers
Late last week, Reuters writers Andrew Chung and Stephanie Kelly reported that, “The U.S. Supreme Court on Friday made it easier for small oil refineries to win exemptions from a federal law requiring increasing levels of ethanol and other renewable fuels to be blended into their products, a major setback for biofuel producers.”
House Ag Subcommittee Reviews Farm Safety Net Issues
On Wednesday, the House Ag Subcommittee on General Farm Commodities and Risk Management discussed the Farm Bill, crop insurance, and ad hoc disaster programs in a meeting titled, “A Hearing to Review the Efficacy of the Farm Safety Net.”
Farm Lending Remains Strong in 2020- American Bankers Association Report
A news release this week from the American Bankers Association (ABA) stated that, “Despite the global economic slowdown in 2020 due to COVID-19, total agricultural lending by U.S. farm banks remained strong at $98.6 billion, decreasing by only 1.8% from the year before according to the American Bankers Association’s annual Farm Bank Performance Report.”
China’s Pig Population at Near Normal Levels After ASF, Chinese Hog Producers Urged to Not Panic Amid Low Prices
Bloomberg News reported this week that, “China’s hog population rose 24% in the year through May and has now almost fully recovered from the recent resurgence in African swine fever, according to the country’s agriculture ministry.”
U.S. Refiners Accumulate $1.6 Billion Shortfall in Biofuel Credits, as Biden Administration Weighs RFS Volume Cuts
Late last week, Reuters writers Jarrett Renshaw and Stephanie Kelly reported that, “U.S. merchant refiners have amassed up to a $1.6 billion shortfall in the credits they will need to comply with U.S. biofuel laws, according to a Reuters review of corporate disclosures, an apparent bet that the Biden administration could let them off the hook or that credit prices will fall.”