Financial Times writer Christopher Miller reported over the weekend that, “Russia launched its largest drone attack of the war in the early hours of Saturday morning, targeting Kyiv in what Ukrainian officials fear is the start of a winter campaign aimed at destroying the country’s energy infrastructure.”
Farm Policy News
Record Brazilian Soybean Crop Expected
Earlier this week, Reuters writer Roberto Samora reported that, “Brazil’s soybean crop is expected to reach a record 161.6 million metric tons in 2023/24, agribusiness consultancy Agroconsult said on Wednesday, despite weather issues that are seen keeping overall production below the country’s potential.”
China to Encourage “More Reasonable Level” of Pig Production
Reuters writer Dominique Patton reported this week that, “China’s sow herd at the end of October was still larger than needed at 42.1 million pigs, state media reported on Monday, raising the supply of live pigs to the market and pressuring prices.”
Wheat Climbs Following Russian Strike on Odesa
Gloria Li reported today at The Financial Times Online that, “Wheat prices climbed on Wednesday, after Russian attacks on food infrastructure in Ukraine raised concerns over the potential impact on supply from the world’s fifth-largest wheat exporter.”
Minneapolis Fed: Farm Incomes Down in Third Quarter, But Land Values Climb
In an article last week from the Federal Reserve Bank of Minneapolis, “Farm incomes fell going into harvest, but finances remained solid,” Joe Mahon pointed out that, “Farmers always have a lot riding on harvests. But heading into this year’s fall harvest, they were also contending with lower incomes, due to falling output prices and high production costs.”
China Soybean Imports From Brazil Surge
Reuters writer Mei Mei Chu reported on Monday that, “China’s soybean imports from Brazil rose 71% in October from a year ago, data showed on Monday, boosted by cheaper prices following a bumper crop in the South American nation.”
Dry Weather in Brazil Threatens Crops, Compels Tough Decisions for Farmers
Bloomberg writers Clarice Couto, Tarso Veloso, and Michael Hirtzer reported late last week that, “Parched fields and scorching heat have delayed soybean planting in the world’s biggest grower, imperiling the upcoming corn crop that can’t even begin until soy has been reaped.”
Kansas City Fed: Farm Loan Interest Rates Climb, as Ag Real Estate Values “Held Firm”
Nate Kauffman and Ty Kreitman, writing in last week’s Ag Credit Survey from the Kansas City Fed, noted that, “Farm income and producer liquidity cooled in recent months alongside lower commodity prices.”
Low Chinese Pork Prices “Bad News” for Grain Exporters
Bloomberg writer Hallie Gu reported yesterday that, “Chinese pork prices are likely to stay low for longer, extending a run of miserable profits for pig farmers and complicating efforts to stave off deflationary pressures in the economy.”
Ukraine Reaches Insurance Deal For Black Sea Grain Exports; as Amazon Drought Impacts Crop Shipments
Financial Times writers Ian Smith and Isobel Koshiw reported today that, “Ukraine has reached a deal with global insurers to provide affordable cover to ships carrying grain and other critical food supplies from its Black Sea ports, even as its war with Russia wages on.”
Kansas City Fed: U.S. Ag Economy Softened in Third Quarter; While Soybean Futures Climb “10% From a 22-Month Low in October”
Last week, in its Third Quarter 2023 Ag Bulletin, the Federal Reserve Bank of Kansas City indicated that, “The U.S. agricultural economy softened in the third quarter alongside a drop in commodity prices.”
Chicago Fed: Farmland Values Climb 5% Year-Over-Year in Third Quarter
On Thursday, in the Federal Reserve Bank of Chicago’s quarterly AgLetter, David Oppedahl explained that, “The District had a year-over-year gain of only 5 percent in its agricultural land values in the third quarter of 2023.”
Corn Futures Near Three-Year Low, Falling “Around 32% So Far in 2023”
Bloomberg writer Kim Chipman reported on Friday that, “Corn futures extended losses, trading near a three-year low, on forecasts that the US farmers will collect a record harvest this season.”
Chinese Soybean Demand Sizzles- “Enormous” U.S. Purchase Unfolds as “Soybean Diplomacy” Precedes Meeting
Bloomberg writer Agnieszka de Sousa reported on Friday that, “China is gobbling up staple crops from around the world.”
Record U.S. Corn Harvest Expected, While Ukraine Grain Exports Fall- “Despite Recent Improvements”
Reuters writer Tom Polansek reported yesterday that, “U.S. farmers will produce a record corn crop this year, the government said on Thursday, sending futures prices to a three-year low.”
USDA Provides Glimpse of 2024 U.S. Planted Acreage, While Fertilizer Prices Mostly Higher
Earlier this week, the U.S. Department of Agriculture released the U.S. focused portion of its upcoming Agricultural Projections to 2033 report. The full report is due to be released in February 2024.
China Shows “Wave of Interest in U.S. Soybean Exports,” as Drought Dents Cattle Herds
Reuters writer Karl Plume reported yesterday that, “China booked its largest single-day U.S. soybean purchases in at least three months on Tuesday, traders said, offering a glimmer of hope for the most valuable U.S. farm export after overseas sales of the 2023 harvest had fallen well behind the normal pace.”
U.S. Wheat Exports Falter to “Unprecedented” Lows, While Chinese Pork Prices Impact Deflation Prospects
Bloomberg writers Michael Hirtzer and Dominic Carey reported yesterday that, “American wheat shipments dropped to a two-decade low, hampered by a shrinking Mississippi River and competition from ample global grain supplies.”
Ukrainian Grain Exports, Production in Focus- as Ukraine Pushes Back Front Line in Black Sea
Simon Constable indicated late last week at The Wall Street Journal Online that, “Russia’s invasion of Ukraine last year sent the price of key grains soaring as investors worried that supplies from the two countries—which before the recent war supplied roughly 30% of wheat exports—would be interrupted.”
Extreme Weather Battering China Grain Production
Bloomberg writer Hallie Gu reported yesterday that, “Cold snaps are hitting China’s northeastern region, disrupting harvesting of grains from corn to rice and bolstering prices.”