In a recent update from the Federal Reserve Bank of Kansas City, “Steady Growth in Farm Lending,” Nate Kauffman and Ty Kreitman indicated that, “Larger sized operating loans continued to boost farm lending activity. The volume of non-real estate farm loans increased by more than 10% for the third consecutive quarter.”
Farm Policy News
Drought Impact on Mississippi May Persist, China Soybean Imports Down From Last Year, as U.S. Sets Fiscal Year Agricultural Trade Record
Ag Meteorologist Bryce Anderson reported on Friday at DTN that, “October was dry in many primary U.S. crop areas, including the Eastern Midwest and specifically the Ohio River valley. Precipitation totals in the Ohio Valley were no more than half the normal totals. This lack of moisture was a big contributor to low water levels on the Mississippi River system.”
FAO Food Price Index Steady in October, While Fertilizer Prices in Focus
Bloomberg writer Megan Durisin reported today that, “Global food prices steadied in October, as supply disruptions wrought by the war in Ukraine were partly offset by slowing demand for staples.”
Insurers Resume Black Sea Grain Cargo Coverage After Russia Rejoins Accord, While Mississippi River Woes in Focus
Ivan Nechepurenko and Matthew Mpoke Bigg reported in today’s New York Times that, “Russia on Wednesday rejoined an agreement allowing the shipment of Ukrainian grain through the Black Sea, one of the few areas of cooperation amid the war in Ukraine, easing uncertainty over the fate of a deal seen as crucial to preventing famine in other parts of the world.”
Russia to Rejoin Black Sea Export Deal, as Mississippi River Water Level Concerns Persist
Financial Times writers Ayla Jean Yackley and Max Seddon reported today that, “Grain shipments from Ukraine will resume on Wednesday after Russia agreed to rejoin a UN-backed initiative to allow their export, ending a stand-off that threatened to reignite a global food crisis.”
Russia Threatens Ships Sailing Ukraine’s Grain Export Corridor, Calls Movement “Unacceptable”
Jared Malsin and Alistair MacDonald reported in today’s Wall Street Journal that, “Russia threatened to stop vessels carrying grain from Ukraine, two days after Moscow said it would abandon an agreement that guaranteed the safety of those exports and as ships continued to make the voyages Monday anyway.”
Ukraine, Turkey and UN Agree on Movement Plan for 16 Vessels from Ukrainian Port- Wheat, Corn Futures Rise
Bloomberg writers Selcan Hacaoglu, Agnieszka de Sousa, and Daryna Krasnolutska reported yesterday that, “Turkey, the UN and others looked for ways to salvage the Ukrainian grain export initiative after Moscow said it would pull out indefinitely following an attack on its Black Sea naval fleet.”
Russia Suspends Participation in Black Sea Export Deal
Financial Times writers Polina Ivanova, Christopher Miller and Emiko Terazono reported yesterday that, “Moscow has suspended its participation in a UN-backed deal with Kyiv that unblocked the movement of Ukrainian grain out of its southern ports, threatening to deepen the global food crisis.”
Mississippi River “Strangled” by Dry Weather, as Percent of U.S. Winter Wheat in Drought Highest Since 2000
Brady Dennis, Laris Karklis, Scott Dance and Tim Meko reported on the front page of today’s Washington Post that, “The nation’s mightiest, most mythic waterway has been strangled by months of dry conditions, which have sent water levels plummeting to historic lows.”
“Relative Optimism” on Black Sea Grain Export Deal, While Some Mississippi River Grain Terminals “Halt” Deliveries
Reuters writer Michelle Nichols reported yesterday that, “United Nations aid chief Martin Griffiths said on Wednesday that he was ‘relatively optimistic’ that a U.N.-brokered deal that allowed a resumption of Ukraine Black Sea grain exports would be extended beyond mid-November.”
“Mixed Rhetoric” Surrounds Renewal of Black Sea Grain Deal
Dow Jones writer Will Horner reported yesterday that, “The future of the Black Sea grains deal is shaping up to be agricultural markets’ key concern this week, while weather for South American farmers and macroeconomic developments such as economic data and central bank meetings will also be in focus.”
Mississippi River Barge Traffic “Continued to Struggle,” as “Active and Intensive” Discussions Occur on Black Sea Export Deal
Cameron McWhirter reported in Saturday’s Wall Street Journal that, “Barge traffic continued to struggle along the Mississippi River and its tributaries as low water caused boats and barges to run aground on sandbars up and down the river system. Areas near Memphis and other cities saw record-low river levels this week.”
Low Mississippi River Levels “Likely to Persist,” Black Sea Grain Deal in Focus, While Turkey Prices Rise
Reuters writer Karl Plume reported yesterday that, “Low water levels on the Mississippi River are likely to persist this winter as drier-than-normal weather is expected across the southern United States and Gulf Coast, U.S. government forecasters said on Thursday.”
Federal Reserve: Observations on the Ag Economy- October 2022
On Wednesday, the Federal Reserve Board released its October 2022 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.
“Fertilizer Prices Are Falling,” Black Sea Export Deal in Focus, While Mississippi River Flow Draws Attention
Bloomberg writers Elizabeth Elkin and Tarso Veloso Ribeiro reported yesterday that, “Fertilizer prices are falling as farmers balking at the high costs of nutrients hold off on purchases, driving down demand and causing gluts that are upending the market for crop inputs.”
Drought Closes Portion of Mississippi River- Soybean, Corn Exports Lagging, While Black Sea Export Discussions Continue
Bloomberg writers Michael Hirtzer and Diego Lasarte reported yesterday that, “Drought has again closed a portion of the Mississippi River — and this time shrunk a part of the major US waterway in Memphis to its lowest level ever.”
Mississippi River Flow a Continuing Concern, as Rising Dollar Impacts Food Importers
Cameron McWhirter reported in Saturday’s Wall Street Journal that, “Sections of the Mississippi River are approaching low water levels not seen in more than three decades, disrupting a vital supply lane for agriculture, oil and building materials and threatening businesses including barge and towboat operators, farmers and factories.”
Food Costs Up 11.2% Over Past Year, While Mississippi Water Level Worries Persist, and Russia Concerned About Black Sea Export Deal
Don Lee reported on the front page of today’s Los Angeles Times that, “That turkey you’re planning for the big family get-together is going to give you a nasty peck on the pocketbook. So will the flour for the gravy and the butter for the rolls.”
Lower Water Levels on Mississippi Tributaries a Concern, as U.S. Wheat Exports at 50 Year Low
Bloomberg’s Brian K Sullivan, Joe Deaux, and Michael Hirtzer reported earlier this week that, “The Mississippi River isn’t out of the woods as falling water levels along its major tributaries threaten to deepen a crisis on the US’s main artery for moving vital products.”
U.S. Supreme Court Weighs Impacts of California Pork Welfare Law, While Pace of Corn, Soybean Exports Slows
David G. Savage reported in today’s Los Angeles Times that, “The Supreme Court justices sounded wary Tuesday of California’s animal welfare law and its protections for breeding pigs, warning it could set off a wave of state laws that put a wide array of restrictions on products moving nationwide.”