Reuters writers Shivani Singh and Dominique Patton reported this week that, “China’s March soybean imports from Brazil plunged as rain delayed some shipments from the world’s top exporter, but U.S. bean imports rocketed more than fourfold as delayed cargoes arrived, hitting the highest monthly total since December 2016.”
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.
China Sees Record Pork Imports in March, as Swine Fever Continues to Limit German Pork Exports
Bloomberg News reported on Monday that, “China’s pork imports jumped to an all-time high in March on supply concerns following a resurgence of African swine fever in the world’s biggest consumer and producer.”
An Increase in Wheat Feeding to Hogs in China, as China’s First-Quarter Pork Production Rose
Reuters writer Dominique Patton reported late last week that, “China’s first-quarter pork production rose 31.9% from a year earlier to 13.69 million tonnes, data showed on Friday, the highest quarterly volume in two years.”
Biden Budget Proposal Includes 16% USDA Funding Increase- Sec. Vilsack Testifies at House Appropriations Committee
Los Angeles Times writer David Lauter reported last week that, “President Biden, saying the U.S. has ‘significantly underinvested in core public services,’ will ask Congress for a 16% boost in annual spending for a range of domestic programs, the White House announced Friday [April 9th].”
Federal Reserve: Observations on the Ag Economy- April 2021
On Wednesday, the Federal Reserve Board released its April 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.
China Meat Imports Soar in March Amid African Swine Fever Concerns
Bloomberg News reported on Tuesday that, “China imported a record amount of meat in March on supply concerns as hog herds in the world’s biggest pork consumer struggled to recover from African swine fever.”
China Demand Could Create “Mini Super-Cycle,” U.S. Corn, Soybean Exports Remain Robust, as Shipping Costs Increase
Last week, Bloomberg writer Andy Hoffman reported that, “Agricultural commodities are poised for a “mini supercycle” as China’s rampant demand keeps supplies tight, according to the head of a key Cargill Inc. trading unit that’s seeing its best results in a decade.”
U.S. Hog Prices Climb- Imports to the Philippines Rise, as Chinese Demand Expected to Moderate
Last week, Reuters News reported that, “Philippine President Rodrigo Duterte on Wednesday reduced pork import tariffs as the government seeks to address a domestic shortage by ramping up purchases from abroad.”
2020 U.S. Ag Exports Second Highest on Record, Led by Soybeans, Corn and Pork to China
This week, the USDA’s Foreign Agricultural Service (FAS) released its 2020 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 soybeans, corn and pork.
Some Farmers Reluctant About Administration’s Climate Plans for Carbon Reduction
Last week, Politico writers Zack Colman, Liz Crampton and Helena Bottemiller Evich reported that, “The Biden administration’s ambitious plan to create a multibillion-dollar bank to help pay farmers to capture carbon from the atmosphere is running into surprising skepticism, challenging Agriculture Department officials to persuade the industry to get behind the massive climate proposal.”
China: African Swine Fever Issues Persist, While U.S. Tariffs Set to Remain For Now
Reuters writer Dominique Patton reported late last week that, “A wave of African swine fever outbreaks this year has wiped out at least 20% of the breeding herd in northern China, industry sources and analysts said, exceeding expected losses and raising fears about the potential for further impact in the south.”
Gasoline Sales Provide Lift for Ethanol- Corn; While Higher Prices are Impacting Farmland Values
Reuters writer Stephanie Kelly reported this week that, “U.S. gasoline sales for 2021 have exceeded prior-year levels for the first time since last March, when officials first started to widely impose coronavirus lockdowns, according to a report on Tuesday from the Oil Price Information Service by IHS Markit.”
Observers Watching ASF in China, Herd Size a Variable Impacting Demand for Feed and Pork
Reuters News reported last week that, “China reported an outbreak of African swine fever in Xinjiang region, the agriculture ministry said on Wednesday.”
Suez Canal Blockage- Grain, Livestock Impacts Noted
Last week, New York Times writers Vivian Yee and Peter S. Goodman reported that, “Trying to convey the sheer scale of the nearly quarter-mile-long container ship that has been stuck in the Suez Canal since Tuesday evening, some news outlets compared it to the length of four soccer fields. Others simply called it gigantic.”
USDA Announces “Pandemic Assistance for Producers,” New CFAP Aid
Bloomberg’s Mike Dorning reported on Wednesday that, “The Biden administration announced $12 billion in new farm aid, and said it will seek to expand Covid assistance to producers that weren’t covered under the Trump administration’s pandemic relief programs.”
Kansas City Fed: Improvement in Ag Economy Strengthens Credit Conditions
In an update this week from the Federal Reserve Bank of Kansas City (“Farm Lending Pullback Continues”), Cortney Cowley and Ty Kreitman stated that, “Agricultural debt at commercial banks eased further at the end of 2020, and loan repayment problems moderated slightly.”
Recent CARD Paper Discusses China’s Hog Inventory, with Implications for Corn Demand
Writing recently in the CARD (Center for Agricultural and Rural Development) Agricultural Policy Review, from Iowa State University (“Is China’s Hog Rebuilding Complete? Reconciling Inventory and Price Data“), Dermot Hayes, Xi He, and Wendong Zhang stated that, “The African swine fever (ASF) outbreak that started in August 2018 wiped out 40% of China’s sow inventory.
Caustic Round of U.S., China Talks Conclude, as Chinese Corn Buying Continued
William Mauldin reported in Saturday’s Wall Street Journal that, “High-level talks between the Biden administration and Beijing that veered into acrimony put the U.S.-China rivalry in sharp relief, complicating efforts by the two powers to erect guardrails and keep tensions from spiraling further.”
House Passes the Farm Workforce Modernization Act on Bipartisan Vote
Wall Street Journal writer Siobhan Hughes reported on Thursday that, “The House passed two bills providing pathways to citizenship for certain categories of immigrants living in the U.S. illegally, in a show of bipartisan support for narrow measures that still risk getting tied up in a long-running impasse over how to repair the immigration system.”
Chinese Corn Demand– Some See More Purchases as a Possibility
Bloomberg News reported on Wednesday that, “China, the biggest corn consumer after the U.S., is still short of the feed grain, and more overseas purchases are likely.”