Agricultural Economy

Dow Jones writer Paulo Trevisani reported yesterday that, “Initial reports from the Pro Farmer crop tour point to disappointing yield potential.”

Matthew Dalton, Jim Carlton and Sha Hua reported on the front page of today’s Wall Street Journal that, “Severe droughts across the Northern Hemisphere—stretching from the farms of California to waterways in Europe and China—are further snarling supply chains and driving up the prices of food and energy, adding pressure to a global trade system already under stress.”

Tony Briscoe reported on the front page of Wednesday’s Los Angeles Times that, “After Colorado River Basin states failed to meet a deadline for emergency drought reductions Tuesday, the U.S. Bureau of Reclamation announced new emergency water cuts for Arizona, Nevada and Mexico as the nation’s two largest reservoirs decline to perilously low levels.”

In its monthly World Agricultural Production report Friday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “European Union (EU) (MY) 2022/23 corn production is forecast at 60.0 million metric tons (mmt), down 12 percent from last month, 15 percent below last year’s crop, and 10 percent below the 5- year average.”

On Thursday, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2022.

Don Lee reported on the front page of today’s Los Angeles Times that, “After months of steadily climbing to a 40-year high, the pace of inflation slowed notably in July as gas prices fell sharply and Americans got relief on the cost of clothing, used cars and some other necessities.”

Rachel Siegel reported on the front page of today’s Washington Post that, “Inflation soared in June, continuing to climb at the fastest pace in 40 years across many sectors of the economy, driven in large part by higher energy prices.”

On Wednesday, the Federal Reserve Board released its July 2022 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.

Washington Post writer Rachel Siegel reported on the front page of Saturday’s paper that, “Inflation in May reached a new pandemic-era peak of 8.6 percent compared with a year earlier, with soaring energy, housing and food prices driving up costs at the fastest pace in 40 years.”

Yusuf Khan reported in today’s Wall Street Journal that, “The European Union faces a disappointing wheat harvest this year, dimming hopes that one of the world’s biggest producers might help fill a widening global grain gap left by the war in Ukraine.”

Financial Times writers Myles McCormick and Derek Brower reported yesterday that, “Russia’s invasion of Ukraine is threatening food shortages in import-dependent nations, but it is also increasing costs for growers based in big agricultural exporters.”

Bloomberg writer Aine Quinn reported today that, “Global food prices stayed near a record as Russia’s invasion of Ukraine disrupted trade, fueling hunger and worsening a cost-of-living crisis.”

On Wednesday, the Federal Reserve Board released its May 2022 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.

Donnelle Eller reported on the front page of today’s Des Moines Register that, “This year’s planting season is about as unusual as Blake Reynolds can recall: Snow, rain and cold meant he started planting corn and soybeans this year in mid-May, about when he finished planting his crop last year. And the year before.”

On Thursday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2022.

DTN writer Russ Quinn reported last week that, “Retail fertilizer prices continued to be slightly higher again the third week of April 2022, according to sellers surveyed by DTN.”

DTN writer Russ Quinn reported yesterday that, “Retail fertilizer prices tracked by DTN for the second week of April 2022 show all eight major fertilizers had higher prices than the previous month. This has been the trend in recent weeks.”

On Wednesday, the Federal Reserve Board released its April 2022 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.

Bloomberg writers Megan Durisin and Sybilla Gross reported yesterday that, “Chicago corn futures are hovering close to a decade high reached earlier Tuesday as the war in Ukraine curtails grain sales and weather hampers crops elsewhere.”

Bloomberg’s Tarso Veloso Ribeiro reported yesterday that, “Corn futures in Chicago exceeded $8 a bushel for the first time in almost a decade, approaching a record high as war threatens global supplies, boosting demand for U.S. grain.”