Jared Malsin and Anastasiia Malenko reported in today’s Wall Street Journal that, “Ukraine said it was opening temporary routes for civilian ships to sail from its Black Sea ports in a potential challenge to Russia’s attempt to blockade the country’s globally important food exports.”
Farm Policy News
More Heavy Rains Expected in China’s “Grain Basket,” While Black Sea Viewed as “Increasingly Dangerous Cauldron” of Tension
Bloomberg writer Hallie Gu reported today that, “China’s northeastern grain basket is bracing for more rains and flooding brought on by Typhoon Khanun, as producers struggle to recover from the impact of an earlier storm that ravaged farmland and destroyed crops.”
July Rains: U.S. Corn Harvest Could Be “Second-Largest on Record,” as Black Sea Export Issues Persist
Reuters writer Mark Weinraub reported yesterday that, “The U.S. corn harvest could be the second-largest on record as rains during July shepherded the crop through its critical development phase, offsetting dry conditions early in the season and hot summer temperatures, analysts and farmers said.”
U.S. Corn, Soybean Conditions Climb Two Percentage Points Each
DTN Managing Editor Anthony Greder reported yesterday that, “Beneficial widespread rains this past weekend and a break from the extreme heat across much of the country helped corn and soybean conditions rebound from the previous week, USDA NASS reported in its weekly Crop Progress report on Monday.”
Wheat Climbs on Black Sea Tensions, While Heat Takes Toll on U.S. Cattle, and Low Mississippi River Water a Concern
Financial Times writer Gloria Li reported today that, “Wheat prices climbed on Monday after Ukraine’s drone strikes against a Russian naval vessel and oil tanker over the weekend raised concerns over the potential impact on supply from the world’s largest exporter.”
Threat of Violence in the Black Sea Expands
Financial Times writer Christopher Miller reported on Saturday that, “A Ukrainian naval drone has struck a Russian oil tanker in the Kerch Strait near Crimea, in the latest in a series of bold strikes that signal Kyiv’s use of unmanned vehicles is becoming more aggressive and effective.”
U.S. Cropland Value Averaged $5,460 in 2023, Up 8.1 Percent From 2022
In its annual Agricultural Land Values report on Friday, the USDA’s National Agricultural Statistics Service (NASS) indicated that, “The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $4,080 per acre for 2023, up $280 per acre (7.4 percent) from 2022.”
Global Food Prices Climb Slightly in July
Bloomberg writer Megan Durisin reported on Friday that, “Global food prices rose for the first time in three months, as trade disruptions from India to the Black Sea and extreme weather stoke supply concerns anew.”
Ukrainian Drones Attack Russian Black Sea Grain Export Port of Novorossiysk, as U.S. Grain Export Inspections Fall in Second Quarter
Bloomberg writer Ben Sharples reported today that, “Wheat futures rose after the Novorossiysk port was closed to marine traffic by Russian authorities following a drone attack.”
Amid Kremlin Grain Port Attacks, Farmers in Ukraine Cut Planting Area; as Midwest “Crop-Friendly” Weather Unfolds
Bloomberg writer Aine Quinn reported today that, “Major Ukrainian farm companies are curbing winter crop plantings after Russia blocked the main Black Sea export route, hitting world food supplies for the next two years.”
Danube River Port of Izmail Attacked, “Raising Further Concerns over Global Food Supplies”
Financial Times writers Christopher Miller and William Langley reported today that, “Russia attacked targets across Ukraine with drones before sunrise on Wednesday, hitting a critical river port facility and a grain silo in the southern Odesa region and raising further concerns over global food supplies.”
U.S. Corn, Soybean Conditions Fall Two Percentage Points Each
DTN Managing Editor Anthony Greder reported yesterday that, “U.S. corn condition fell for the first time in several weeks as intense heat baked much of the country last week, according to USDA NASS’ weekly Crop Progress report on Monday. Soybean conditions also declined for the second week in a row.”
Russia Bombardment Against Ukrainian Grain Infrastructure Persists, as Romania Plans Transit Route Expansion
Marc Santora and Victoria Kim reported in Sunday’s New York Times that, “Russian forces struck a grain terminal in the southern Ukrainian city of Kherson, Ukrainian officials said on Saturday, extending a bombardment of the country’s infrastructure that has raised alarm about Kyiv’s ability to ship grain to the world.”
Farm Production Expenditures Climb 15.2 Percent in 2022
In its annual Farm Production Expenditures report on Friday, the USDA’s National Agricultural Statistics Service (NASS) indicated that, “Farm production expenditures in the United States are estimated at $452.7 billion for 2022, up from $392.9 billion in 2021.”
Wheat Falls as “Solidarity Lanes” Warrant Focus, and U.S. Corn, Soybeans in Drought Climb This Week
Bloomberg writer James Poole reported today that, “Wheat fell for a third day from the highest close in five months as the outlook for ample near-term supplies outweighed concerns over the impact of Russian attacks on Ukrainian port facilities.”
Russia Fires Missiles in Odesa Region From Black Sea Submarine, as NATO Steps Up Patrols
Reuters News reported today that, “Russian forces struck port infrastructure in Ukraine’s Odesa region in an overnight missile attack, killing a security guard and damaging a cargo terminal, the region’s governor said on Thursday.”
EU “Could Provide Alternative Routes” for Ukrainian Grain- Expand “Solidarity Lanes”
Financial Times writers Andy Bounds and Ian Johnston reported yesterday that, “The EU could provide alternative routes for almost all of Ukraine’s grain exports following Russia’s decision to stop their passage through the Black Sea, the bloc’s agriculture commissioner said.”
U.S. Corn Condition Holds Steady, While Wheat Prices Move as Port of Reni Damage Assessed
Reuters writer Julie Ingwersen reported yesterday that, “Weekly condition ratings for the U.S. corn crop held steady in the past week while soybean and spring wheat crops deteriorated, U.S. government data showed on Monday, and ratings for all three crops fell short of trade expectations.”
Russia Strikes Infrastructure Along Danube, “an Alternative [Grain] Export Route”
Reuters writers Olena Harmash and Tom Balmforth reported on Monday that, “Russia destroyed Ukrainian grain warehouses on the Danube River and wounded seven people in a drone attack on Monday, expanding the target area of an air campaign it launched last week after pulling out of the Black Sea grain deal, Kyiv said.”
Kansas City Fed: As Interest Rates Climb, Farm Lending Activity at Commercial Banks Slowed
Earlier this month, in an update from the Federal Reserve Bank of Kansas City (“Farm Lending Slows as Interest Rates Rise”), Nate Kauffman and Ty Kreitman indicated that, “Farm lending activity at commercial banks slowed through the first half of 2023 as interest rates continued to push higher.”