Financial Times writer Ben Hall reported yesterday that, “A deal allowing Ukraine to export grain to world markets by ship despite Russia’s blockade of the Black Sea has been extended, the UN and the Ukrainian and Turkish governments said on Saturday.”
Farm Policy News
Two Month Trend of Lower Fertilizer Prices Continues
DTN writer Russ Quinn reported last week that, “Retail fertilizer prices continue on their path lower, according to prices tracked by DTN for the first full week of March 2023. This welcome trend has been in place for over two months.”
Russia Still Calls for 60 Day Extension of Black Sea Grain Initiative, as Global Grain Stocks Seen Lower
Reuters writer Michelle Nichols reported yesterday that, “The United Nations backed Turkey and Ukraine on Thursday by calling for a 120-day rollover of an agreement allowing the safe export of grain from several Ukrainian Black Sea ports after Russia said it would only extend the pact for 60 days.”
China Makes Advance Purchases of Brazil’s Safrinha Corn Crop
Reuters writer Ana Mano reported yesterday that, “China is actively buying Brazil’s second corn, known as ‘safrinha,’ even as farmers grapple with planting delays in the world’s third biggest producer of the cereal.”
African Swine Fever Surges in China Potentially Driving Pork Prices Higher
Earlier this week, Reuters writer Dominique Patton reported that, “A surge in African swine fever infections in China is set to reduce hog output later this year, farm managers and analysts said this week, pushing up prices in the world’s top pork consumer as demand recovers.”
ERS: “Drought Conditions Have Contributed to Lower U.S. Beef Cow Inventory”
In its monthly Livestock, Dairy, and Poultry Outlook report earlier this week, the USDA’s Economic Research Service (ERS) indicated that, “Changes in beef cow inventory are related to the current and future phases of the cattle cycle— the cyclical expansion (increase) and contraction (decrease) of the national beef cattle herd over time, which tends to span between 8 and 12 years.”
Uncertainty Over Black Sea Grain Initiative Extension Continues to Impact Market- Wheat Price Volatility “Remains High”
Reuters writers Nigel Hunt and Jonathan Saul reported yesterday that, “Russia has proposed that a U.N.-backed initiative that has enabled grains to be exported from Ukraine’s Black Sea ports should be renewed for just 60 days.”
Turkey Supports 120 Day Extension of Black Sea Grain Initiative, Wheat Prices Gain on Confusion Over Deal’s Extension
Bloomberg writers Aine Quinn and Megan Durisin reported on Tuesday that, “Wheat gained to the highest in a week amid confusion over the terms of renewing a key grain-export deal that allows Ukraine to ship crops from its Black Sea ports.”
Food Prices Rose 0.4% in February, While Eggs Dropped 6.7%- But Eggs Still 55% Higher Than Last Year
Gabriel T. Rubin and Nick Timiraos reported on the front page of Wednesday’s Wall Street Journal that, “Inflation eased in February but remained stubbornly high, presenting a challenge for the Federal Reserve as it confronts how to slow the economy with higher interest rates at the same time it moves to stem banking problems.”
China in Focus: Biden to Speak by Phone “Soon” With His Chinese Counterpart, Xi Jinping
Reuters writer Joe Cash reported yesterday that, “China’s new Premier Li Qiang said that the country’s food security is guaranteed and that state policies to support food production will increase, at a news conference to mark the close of the annual sitting of parliament on Monday.”
If No Objections, Black Sea Grain Initiative Automatically Extended, Mixed Signals on Extension Emerge
Reuters writer Gabrielle Tétrault-Farber reported yesterday that, “Russia on Monday suggested renewing a deal allowing the safe export of grain from Ukraine’s Black Sea ports but only for half the term of the previous renewal while the United Nations pledged to do everything possible to ensure the agreement’s integrity remained intact.”
Fertilizer and Diesel Prices Continue To Decline
DTN writer Russ Quinn reported last week that, “Retail fertilizer prices tracked by DTN for the last week of February 2023 continue to move lower. This trend has been in place for a couple months.”
Black Sea Grain Initiative Deadline Looms, Ukrainian Farmers Still “Risk Deadly Harvest”
Michael Schwirtz and Stanislav Kozliuk reported in Sunday’s New York Times that, “Oleksandr Hordienko stepped gingerly into a wheat field that had recently served as a Russian tank position, following closely behind an assistant with a metal detector.”
Kansas City Fed: “Signs of Softening” in Farmland Values, as Interest Rates Climb
In an update last week from the Federal Reserve Bank of Kansas City, “Growth in Farmland Values Slows Amid Higher Interest Rates,” Cortney Cowley and Ty Kreitman indicated that, “Farm real estate values increased considerably in 2022 but showed signs of softening during the final months of 2022 as interest rates rose sharply.”
Federal Reserve: Observations on the Ag Economy- February 2023
On Wednesday, the Federal Reserve Board released its February 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.”
Argentina Soybean, Corn Production Estimates Lowered, as “Country’s Key Agricultural Region Battles Ongoing Drought”
In its monthly Oilseeds: World Markets and Trade report yesterday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “For the third straight month, 2022/23 Argentina soybean production is lowered as hot and dry weather continues to strain the crop in key growing regions.”
UN Secretary-General, in Kyiv, Highlights Black Sea Grain Deal Rollover, Expires on March 18
Bloomberg writers Olesia Safronova and Megan Durisin reported yesterday that, “United Nations Secretary-General Antonio Guterres stressed the importance of renewing the key Black Sea grain deal during a visit to Kyiv, with the current accord soon set to expire.”
Wheat Export and Production Issues in Focus, as Black Sea Grain Deal Discussions Continue
Late last week, Bloomberg writers Aine Quinn and Megan Durisin reported that, “After a slow start to the season, Russia’s grain exports are booming as buyers load up on its attractive bumper supplies.”
China Imports Record Volume of Soybeans in Jan.-Feb., While Warning U.S. on Policy Strategy
Earlier this week, Reuters writer Dominique Patton reported that, “China, the world’s top oilseed buyer, imported a record volume of soybeans for the first two months of the year, as buyers stocked up in anticipation of healthy demand and over worries of a delayed harvest in Brazil.”
Biden Administration Requesting Talks With Mexico on GMO Corn Import Restrictions
Ana Swanson and Linda Qiu reported on the front page of the Business section in today’s New York Times that, “The Biden administration said on Monday that it would take initial steps toward challenging a ban that Mexico has placed on shipments of genetically modified corn from the United States, restrictions that have rankled farmers and threatened a profitable export.”