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.”
Farm Policy News
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.”
U.S. Beef Cow Herd Declines, “Fewest Beef Cows Since at Least 1971”
Reuters writer Tom Polansek reported on Friday that, “U.S. farmers are raising the fewest beef cows since at least 1971, government data released on Friday showed as drought conditions whittled herds, likely boosting costs for meatpackers that slaughter the animals into steak and hamburgers.”
Amid Black Sea Turmoil, Wheat Set for 9% Weekly Climb; as India Rice Export Issues Emerge
Bloomberg writers Jasmine Ng, Megan Durisin, and Aliaksandr Kudrytski reported today that, “Wheat edged lower but is still poised for a weekly gain of more than 9%, as military drills in the Black Sea add to the risks disrupting grain trade from a vital producing region.”
Wheat Soars as Russia Threatens Ships; Ports Hit For Third Straight Night
Bloomberg writers Megan Durisin, and Aliaksandr Kudrytski reported yesterday that, “Wheat and corn rallied to three-week highs as another wave of Russian attacks battered southern Ukraine following the collapse of the grain-export deal.”
U.S. Winter Wheat Harvest Slows, as Dry Weather Remerges as a Concern for Corn, Soybeans
Shannon Najmabadi reported in today’s Wall Street Journal that, “Rows of wheat fall like waves under the combine Laura Haffnerdrives in a 320-acre field in far west Kansas, leaving stalks stripped of kernels in its wake.”
Ukraine Ports Attacked For Second Consecutive Night, as U.S. Announces Ukrainian Agricultural Aid
New York Times writer Gabriela Sá Pessoa reported yesterday that, “The United States Agency for International Development announced a total of $750 million in new assistance to Ukraine on Monday and Tuesday, with $500 million dedicated to humanitarian aid and $250 million to support the country’s farmers after Russia refused to extend a Black Sea grain deal.”
Black Sea Grain Deal Abandoned – China Was “Biggest Recipient of Ukrainian Grain Under the Deal”
Financial Times writers Max Seddon, Henry Foy and Adam Samson reported yesterday that, “Russia has formally withdrawn from a UN-brokered deal to export Ukrainian grain across the Black Sea, potentially imperilling tens of millions of tonnes of food exports around the world.”
Crop Conditions Improve- Corn Up Two Points, Soybeans Up Four Points
DTN Managing Editor Anthony Greder reported yesterday that, “U.S. corn and soybean conditions improved again last week, according to USDA NASS’ weekly Crop Progress report released Monday. Both crops also continued to mature at a slightly ahead-of-average pace.”
Federal Reserve: Observations on the Ag Economy- June 2023
On Wednesday, the Federal Reserve Board released its June 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.
Black Sea Grain Deal Update- “Deal to Expire Monday”
New York Times writers Matthew Mpoke Bigg, Anatoly Kurmanaev and Vivek Shankar reported on Sunday that, “The United Nations on Sunday awaited a response from Russia on renewing a deal that allows Ukraine to export its grain amid a wartime blockade, a necessity in helping keep global food prices stable.”
Dry Weather Concerns Linger Over Parts of the Midwest, as Black Sea Grain Deal Issues Persist
Dow Jones writer Kirk Maltais reported yesterday that, “Corn for September delivery rose 3.5% to $5.00 1/2 a bushel, on the Chicago Board of Trade on Thursday, with rainfall over the next few days expected to give way to hot and dry weather that may stress crops.”
Despite Early Dryness, “Massive” Corn and Soybean Harvest Expected
Reuters News reported yesterday that, “The government said on Wednesday that U.S. farmers will harvest massive crops of both corn and soybeans this year, boosting the supply base despite drought conditions stressing plants during early stages of development.”
WASDE- “All Eyes Will Be on America’s Corn Yield,” Excess Milk in Upper Midwest Going “Down the Drain”
Bloomberg writer Tarso Veloso Ribeiro reported yesterday that, “Wednesday is WASDE day, when the US government releases its monthly World Agricultural Supply and Demand Estimates report.”
Corn, Soybean Conditions Improve, But “Still the Lowest for this Time of Year Since 2012”
DTN Managing Editor Anthony Greder reported yesterday that, “Another week of widespread rains and cooler weather boosted the national corn condition rating for the second week in a row, and soybean condition also improved slightly following several weeks of declines, according to USDA NASS’ weekly Crop Progress report released Monday.”