Reuters writer Julie Ingwersen reported yesterday that, “U.S. corn futures rose to a nearly two-month high on Monday as traders fretted about disappointing weekend rains and dry conditions stressing crops in portions of the Midwest crop belt, analysts said.”
Farm Policy News
FAS World Agricultural Production Report, Focus on Wheat and Soybeans
On Friday, the the USDA’s Foreign Agricultural Service (FAS) released its monthly World Agricultural Production report. Today’s update includes highlights from the report, with a particular focus on wheat and soybeans.”
China Will Feed More Wheat to Hogs; “El Nino Has Officially Returned,” and Ukraine “Counter-Offensive Gets Under Way”
Bloomberg writer Hallie Gu reported today that, “China will feed a lot more of its domestic wheat crop to hogs and poultry this year after heavy rains reduced the quality of the harvest in the biggest growing region, boosting prospects for imports.”
China Imported Record Amount of Soybeans in May; Ukraine Dam Explosion Ag Impacts Unfold
Reuters writer Dominique Patton reported yesterday that, “China imported a record 12.02 million tonnes of soybeans in May, up 24% on a year ago, Reuters calculations based on customs data showed, as cargoes delayed during last month’s strict inspections were finally unloaded at ports.”
Ukraine Dam Destroyed, Wheat Jumps; “Ukrainian Forces Step up Attacks”-US Corn Condition Deteriorates
Wall Street Journal writers Matthew Luxmoore and Bojan Pancevski reported today that, “A major dam and power station in a Russian-occupied part of Ukraine were destroyed Tuesday, casting uncertainty over Ukraine’s planned counteroffensive in the south of the country.”
USDA- Economic Research Service Report Highlights U.S. Soybean Production
Last week, the USDA’s Economic Research Service (ERS) released a report titled, “Characteristics and Trends of U.S. Soybean Production Practices, Costs, and Returns Since 2002.” Today’s update includes highlights from the report, which was authored by Kate Vaiknoras and Todd Hubbs.
DTN: “Fertilizer Prices Mostly Higher for First Time Since November”
DTN writer Russ Quinn reported last week that, “According to retail fertilizer prices tracked by DTN for the fourth week of May 2023, fertilizers are mostly higher.”
FAO Food Price Index at Two-Year Low
Bloomberg writers Agnieszka de Sousa and Aine Quinn reported on Friday that, “Global food costs fell to the lowest level in two years in May, reviving hopes that sticky inflation on supermarket shelves will start to ease.”
U.S. Requests USMCA Dispute Settlement Consultations on Mexico’s Ag Biotech Measures
Kristina Peterson reported in Saturday’s Wall Street Journal that, “The U.S. on Friday stepped up its efforts to get Mexico to ease its restrictions on genetically modified corn, after more than a year of high-level discussions between the two countries failed to resolve the dispute.”
Federal Reserve: Observations on the Ag Economy- May 2023
On Wednesday, the Federal Reserve Board released its May 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.”
U.S. Agricultural Exports in Fiscal Year 2023 Forecast Down, Lower Grain Exports Expected
On Wednesday, the USDA released its Outlook for U.S. Agricultural Trade, a quarterly report from the Department’s Foreign Agricultural Service (FAS) and Economic Research Service (ERS).
U.S. Winter Wheat Condition Improves, While “Ukraine’s Farmers Face Deadly Planting Season”
Reuters writers Julie Ingwersen and Tom Polansek reported yesterday that, “The condition of the drought-hit U.S. winter wheat crop has improved more than analysts expected, while the nation’s corn is in worse shape than last year, U.S. Department of Agriculture data showed on Tuesday.”
Kansas City Fed: Ag Credit Conditions Strong, “Alongside Some Moderation in the Farm Economy”
In an update last week from the Federal Reserve Bank of Kansas City (“Credit Conditions and Farmland Values on Solid Footing as Farm Economy Moderates”), Nate Kauffman and Ty Kreitman indicated that, “Agricultural credit conditions remained strong in the first quarter, but improvement slowed alongside some moderation in the farm economy.”
China Trade Issues in Focus
Financial Times writers Joe Leahy and James Politi reported last week that, “China’s commerce minister and his US counterpart have raised concerns about their countries’ trade and investment policies at a meeting in Washington but pledged to keep channels of communication open in the first visit by a senior Chinese official to the US capital since 2020.”
Supreme Court Limits EPA’s Authority Over Wetlands
Jan Wolfe and Jess Bravin reported on the front page of today’s Wall Street Journal that, “The Supreme Court limited the Environmental Protection Agency’s authority over wetlands in a decision with broad ramifications for the environment, agriculture, energy and mining.”
In Iowa, Record High Cash Rents, Up 9% in 2023
DTN Farm Business Editor Katie Dehlinger reported yesterday that, “The average cash rental rate for Iowa farmland climbed 9% in 2023 to $279 per acre, according to an annual survey conducted by Iowa State University Extension.”
China Shifting From Corn to Wheat in Animal Feed, as U.S. Drought Takes Toll on Hay Market
Reuters writers Dominique Patton and Naveen Thukral reported today that, “A surplus of cheap wheat in China is replacing significant volumes of corn in its huge animal feed market, say feed makers and analysts, curbing consumption of both corn and soymeal and potentially reducing demand for imports.”
Wheat Variables in Focus- U.S. Winter Wheat Condition Improves Slightly
Reuters writer Julie Ingwersen reported yesterday that, “The U.S. Department of Agriculture’s weekly crop progress report rated 31% of the U.S. winter wheat crop in good to excellent condition, up 2 percentage points from a week earlier and above an average of analysts’ expectations.”
Drought Plagues Kansas Winter Wheat Farmers, but “Global Wheat Market Seems to be Well-Supplied”
Reuters writer Tom Polansek reported on Monday that, “Farmers in Kansas, the biggest U.S. producer of wheat used to make bread, are abandoning their crops after a severe drought and damaging cold ravaged farms.”
Fertilizer Prices Mixed- Urea Climbs, Anhydrous Lower
DTN writer Russ Quinn reported last week that, “Retail fertilizer prices moved in opposite directions the second week of May 2023, according to sellers surveyed by DTN.”