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.”
Farm Policy News
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.”
Global Food Prices Continue to Drop- At Slower Pace
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.”
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.”