Bloomberg writer Tarso Veloso Ribeiro reported yesterday that, “Corn prices are surging as persistent dry weather in the US, the world’s biggest producer, has dragged crop conditions to the worst levels in three decades.”
Farm Policy News
For Second Week in a Row, Corn and Soybean Conditions Fall
DTN Managing Editor Anthony Greder reported yesterday that, “U.S. corn and soybean conditions fell for a second week in a row during the week ended Sunday, June 18, according to USDA NASS’ weekly Crop Progress report released Tuesday.”
Expected Record U.S. Corn, Soybean Production “In Jeopardy Due to Problematic Weather”
Wall Street Journal writer Shannon Najmabadi reported on Saturday that, “Were this a normal mid-June morning, farmer Gary Millershaski would be looking out at waist-high fields of golden wheat almost ready to be harvested.”
U.S. Secretary of State Antony J. Blinken Visits China Aiming to Stabilize Tensions
Washington Post writers John Hudson and Lily Kuo reported in Sunday’s paper that, “Antony Blinken became the first U.S. secretary of state to visit China in five years as he arrived in the country Sunday for two days of high-stakes meetings aimed at stabilizing a relationship under historic stress.”
A Look at Agriculture in Drought
Dow Jones writer Kirk Maltais reported yesterday that, “The weather forecast for the U.S. Corn Belt continues to be the main focus of grain traders in the latter half of the week.”
Global Wheat Production Forecast at a Record
In its monthly Wheat Outlook report this week, the USDA’s Economic Research Service indicated that, “Global wheat production is forecast at a record 800.2 million metric tons (MMT), up 10.4 MMT from the May forecast.”
Growing Price Gap in U.S. Corn Export Prices Could Further Limit U.S. Exports
In its monthly Feed Outlook report yesterday, the USDA’s Economic Research Service (ERS) indicated that, “U.S. corn exports for 2022/23 are lowered to 1.725 billion bushels, down 50 million bushels from the May World Agricultural Supply and Demand Estimates (WASDE) report.”
Dryness Concerns Impact Corn Price, as China is “Actively Seeking to Add New Suppliers of Corn”
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.”
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.”