Reuters writer Nigel Hunt reported on Friday that, “The United Nations food agency’s world price index fell in October to its lowest level in more than two years, driven by declines in sugar, cereals, vegetable oils and meat.”
Farm Policy News
Fertilizer: Prices and Other Variables
DTN writer Russ Quinn reported earlier this week that, “Average retail prices for all but one fertilizer were higher during the third week of October 2023 compared to last month, according to sellers surveyed by DTN.”
China Soybean Imports Could Set Record in 2023, While Black Sea Transit Concerns Arise
Reuters writers Mei Mei Chu and Naveen Thukral reported today that, “China’s soybean imports are likely to stay high through the fourth quarter, taking 2023 purchases to an all-time record, but lackluster demand from loss-making hog farms is seen reducing purchases in early 2024, traders and analysts said.”
Harvest Crop Insurance Prices Below Spring Guarantees, as White House Highlights Rural Investments
DTN writer Katie Micik Dehlinger reported yesterday that, “The average daily close of the December corn futures contract was $4.88 during October, while the November soybean contract was $12.84 per bushel.”
China Wheat Imports Could Set Record This Year
Reuters writers Naveen Thukral and Dominique Patton reported yesterday that, “China is set to import record volumes of wheat this year, trading sources say, with rain damage to its crop and worries over dry weather in exporting nations fuelling Beijing’s appetite to buy while prices are low.”
Australia- EU Fail to Reach Free Trade Deal Over Agriculture
Financial Times writers Nic Fildes and Andy Bounds reported today that, “Talks over a free trade agreement between Australia and the EU have foundered after the sides failed to reach a deal over the weekend, scuppering five years of negotiations.”
Four Vessels Move Grain and Metals Through Black Sea “Humanitarian Corridor” on Friday
Reuters writer Pavel Polityuk reported late last week that, “Four vessels left Ukrainian Black Sea ports in the Odesa region on Friday as shipping via a new export corridor resumed after a three-day pause, independent transport sector consultancy STC said.”
Black Sea Humanitarian Grain Corridor Working, Ukraine Says
Reuters writer Pavel Polityuk reported yesterday that, “Ukrainian Deputy Prime Minister Oleksandr Kubrakov denied on Thursday reports by Ukrainian and British firms that the new Black Sea export corridor had been suspended.”
Fertilizer Prices Higher, Anhydrous Climbs 6%- DTN
DTN writer Todd Neeley reported yesterday that, “Retail prices of all eight major fertilizers continued to climb in the third week of October, with anhydrous leading the way while farmers continued to hit the fields.”
Ukraine Suspends Black Sea Humanitarian Grain Corridor
Reuters writer Pavel Polityuk reported today that, “Ukraine has suspended the use of its new Black Sea grain corridor due to what it sees as a threat from Russian warplanes, the Kyiv-based Barva Invest consultancy said on Thursday.”
Iowa Farmland Values Steady, After Two Years of Record Highs- Des Moines Register
Donnelle Eller reported on the front page of Tuesday’s Des Moines Register that, “Following two years of record highs, Iowa farmland values have plateaued: Rising interest rates, declining profits and drought are cooling buyers’ enthusiasm, experts say.”
China Grain Companies Sign Agreement to Purchase U.S. Farm Goods
Bloomberg writers Michael Hirtzer and Tarso Veloso Ribeiro reported yesterday that, “Chinese grain companies participated in a formal contract-signing ceremony for the purchase of US farm goods for the first time since the Trump-era trade dispute.”
FAS: “U.S. Soybean Meal Exports Expected to Reach Record High”
In a Trade Spotlight report yesterday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “U.S. soybean meal exports set a record at an estimated 13.2 million tons in MY 2022/23 (Oct-Sep), valued at nearly $7 billion, driven by increased soybean crush to supply feedstock oil for growing U.S. biomass-based diesel production.”
U.S. Soybeans Facing Increased Export Competition as Brazilian Soybeans to China Jump
Bloomberg writer Tarso Veloso Ribeiro reported last week that, “A sevenfold jump in Brazilian soybean shipments to China for next month highlights how the US is losing influence over one of the world’s most important agricultural markets.”
Farm Loan Interest Rates Highest Since 2007, Higher Financing Costs Impacting Business Decisions
In an update late last week from the Federal Reserve Bank of Kansas City (“Smaller Operating Loans Slow Lending Activity”), Nate Kauffman and Ty Kreitman indicated that, “Farm lending activity at commercial banks slowed further in the third quarter alongside a drop in operating loan volumes.”
Federal Reserve: Observations on the Ag Economy- October 2023
On Wednesday, the Federal Reserve Board released its October 2023 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.
Lower Mississippi River Water Levels Will Likely Persist
Reuters writer Karl Plume reported yesterday that, “Low water levels on the lower Mississippi River are likely to persist through at least January despite expected above-normal precipitation across the southern United States this winter, forecasters with the National Oceanic Atmospheric Administration (NOAA) said on Thursday.”
Fertilizer Prices Climb; and Injunction for Largest Proposed Fertilizer Mine in Brazil Overturned
DTN Farm Business Editor Katie Micik Dehlinger reported yesterday that, “The retail prices of all eight major fertilizers climbed higher in the second week of October, with anhydrous, MAP and UAN32 posting the largest gains.”
FT Looks at Sustainability Issues in Brazilian Soybean Production
Financial Times writer Sam Cowie reported yesterday that, “Few plants divide opinion in Brazil as much as soya, of which the country is the world’s largest producer and exporter.”
China Approves “Dozens” of Genetically Modified Corn, Soybean Varieties- Potentially Advancing Production
Bloomberg writer Hallie Gu reported yesterday that, “China has approved dozens of genetically modified corn and soybean seed varieties for planting, in a breakthrough move that could eventually boost production and reduce dependence on foreign supplies.”