Bloomberg’s Gerson Freitas Jr and Tarso Veloso reported Monday that “grain prices have slumped to the lowest level since the pandemic as Tropical Storm Beryl is expected to bring rains to the Midwest, potentially aiding yields at a critical time for crop development.” “The Bloomberg Grains Subindex, which tracks futures for corn, soybeans and wheat […]
Agricultural Economy
Farmers Still Holding Corn & Soybeans Amid Low Prices
Reuters’ Karen Braun reported Tuesday that “survey work published by the U.S. Department of Agriculture on Friday showed June 1 U.S. corn stocks at 4.99 billion bushels, a four-year high, up 22% from a year earlier and up 7% from the 10-year average for June 1. But 61% of those corn supplies was held on […]
John Deere Laying Off 600+ More Employees
Fox Business’ Michael Dorgan reported this past Saturday that “John Deere, the world’s largest seller of tractors and crop harvesters, has announced another wave of layoffs Friday, telling around 610 production staff at plants in Illinois and Iowa that they will be out of a job by the end of the summer.” “The company is […]
U.S. Farmers Holding On To Large Corn and Soybean Stocks
Reuters’ P.J. Huffstutter and Karl Plume reported Monday that “after stockpiling crops for much of this season due to low prices, many farmers in the world’s largest corn-producing nation continue to shun buyers despite few signs that prices will improve. Grain supplies are ample and early ratings of summer crops are the best in years.” […]
Farm Finances Remain a Concern, Fed Reports
Pro Farmer reported at the end of May that “the Fed’s Beige Book noted 10 of 12 districts reported slight or modest economic growth (in May), while the other two had no change in activity. The Fed noted, “Agricultural reports were mixed, as drought conditions eased in some districts, but farm finances/incomes remained a concern. […]
Deere & Co. Layoffs, Cargill Workers Strike in Canada
Bloomberg’s Michael Hirtzer reported this past Friday that “Deere & Co., the world’s top seller of farm machinery, will cut an undisclosed number of employees in its global production and salaried workforce, according to a letter sent to employees Friday that was seen by Bloomberg.” “The company is facing rising operational costs and declining demand, […]
US Ag Trade Deficit Widens to $32 Billion
The United States agricultural trade deficit is projected to increase once again to $32 billion in fiscal year 2024, an increase of $1.5 billion from the February projection, according to the USDA Economic Research Service’s May 2024 Outlook for U.S. Agricultural Trade report, which is released quarterly. “U.S. agricultural exports in fiscal year (FY) 2024 […]
US Soybean Seed Costs Have Risen 260% Since 1997
The USDA Economic Research Service’s Bryn Swearingen and Kate Vaiknoras reported earlier this week that the cost of soybean seeds per acre in the United States has risen more than 260% since 1997, while total soybean production costs have risen 157%. “In 1997, U.S. farmers spent an average of $19.72 per acre on soybean seeds,” […]
Traders Speculate China Tariffs to Include Used Cooking Oil
Bloomberg’s Michael Hirtzer and Tarso Veloso reported Friday that “soybean oil futures surged by the most since July as traders bet that Chinese used cooking oil may be included on the list of tariffs expected to be announced by the US.” “Speculation spread in the market Friday that imports of used cooking oil from China […]
China Approves GM Wheat Crops
Reuters’ Mei Mei Chu reported Wednesday that “China has approved the safety of gene-edited wheat for the first time as Beijing cautiously moves forward with commercial growing of genetically modified food crops.” “The approval for the gene-edited disease-resistant wheat is seen as a milestone, as the ingredient – used to make pasta, noodles and bread […]
Ag Losses in Spring Texas Wildfires Top $123 Million
Texas A&M AgriLife’s Blair Fannin reported Monday that “Texas A&M AgriLife Extension Service economists project the Panhandle wildfires caused $123 million in preliminary agricultural losses, making it the costliest on record.” “The losses include more than 12,000 cattle deaths, lost grazing values and fence repair costs, according to economists,” Fannin reported. “The initial loss estimates […]
Argentina’s Rosario Port Falls in 2023 Exports, New Orleans Takes Top Spot
Reuters’ reported late last week that “Argentina’s massive Rosario farming port lost its spot as the world’s No. 2 grains export hub in 2023, a report from a local exchange showed on Friday, underscoring the impact of a historic drought that hammered corn, wheat and soy last year.” “Rosario shipped out 42.4 million metric tons […]
Wheat Futures Erasing Early-Year Losses
Bloomberg’s Áine Quinn and Tarso Veloso reported late last week that “wheat futures traded in Chicago nearly erased losses so far this year, with prices climbing on concerns over weather in key producers. The recovery comes as traders worry that weather in Russia, Europe and the US could impact supplies.” “’Concerns over crop prospects in […]
Canada Concerned Over Bunge, Viterra Merger
Reuters’ David Ljunggren and Rod Nickel reported that “Canada’s Competition Bureau on Tuesday said it found major competition concerns around U.S. grains merchant Bunge’s proposed acquisition of Glencore-backed Viterra, throwing an obstacle before a global agriculture merger that is unprecedented in dollar value.” “The deal would create a company worth $34 billion including debt, nearer […]
Farmers Oppose Koch Acquisition of Iowa Fertilizer Plant
The Des Moines Register’s Donnelle Eller reported Sunday that “Iowa farmers told a federal trade leader this weekend that the agency should block the $3.6 billion sale of the Iowa Fertilizer Co. to Koch Industries, saying it will further consolidate the industry and drive prices higher.” “Several of the roughly 100 Iowa, Minnesota and Missouri […]
Fed’s April Ag Economy Observations
The Federal Reserve Board on Wednesday released its April 2024 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. While the report covers generalized “regional economic conditions and prospects,” it also includes the following observations pertaining to the U.S. agricultural economy. Sixth District — Atlanta “Agricultural conditions showed modest […]
Republican Study Committee Budget Targets SNAP, Crop Insurance
A proposed 2025 budget from the Republican Study Committee — the largest conservative caucus in the U.S. House of Representatives — would cap crop insurance subsidies a single farmer may receive to $40,000, provide PLC and ARC payments only to farms with gross income below $500,000 and convert funding for the Supplemental Nutrition Assistance Program […]
U.S. Cotton Mills Rapidly Closing
Bloomberg’s Ilena Peng reported Saturday that cotton’s “demand from US manufacturers is on an unrelenting — and accelerating — decline. There were nearly 900 US cotton mills operating around the time of the Chicago expo (in 1893). That number is today around 100, the National Cotton Council estimates, after eight closed in the last five months […]
Maryland Bridge Collapse Could Affect Ag
NBC News’ Rob Wile and Shannon Pettypiece reported Tuesday that “customers from the East Coast to the Midwest who were expecting goods shipped in via the Port of Baltimore could see significant cost increases as a result of Tuesday’s collapse of the Francis Scott Key Bridge in Baltimore” that has blocked access for ships to […]
ADM Overstated Nutrition Profits by Up To 10%
The Financial Times’ Stephen Foley reported Tuesday that “Archer Daniels Midland, the global agricultural commodities merchant, overstated historical profits at its fast-growing nutrition business by up to 10 percent, it said on Tuesday, setting out for the first time the details of an accounting probe that led to its chief financial officer being put on […]