On Wednesday, the Federal Reserve Board released its August 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.
Farm Policy News
Putin Criticises Black Sea Export Deal, While Drought Takes “Hefty Toll” on U.S. Production
Financial Times writers Polina Ivanova, Roman Olearchyk, Henry Foy, and David Sheppard yesterday that, “Vladimir Putin has criticised a grain deal signed with Ukraine that unblocked agricultural products trapped in the country by his government’s military assault, threatening an agreement that had eased a growing global food crisis.”
Russia Questions Black Sea Export Deal- Implying West Not Fulfilling Obligations to Facilitate Moscow’s Exports
Reuters writer Michelle Nichols reported yesterday that, “Russia on Tuesday questioned a U.N.-brokered deal with Ukraine to boost grain and fertilizer exports by both countries, accusing Western states of failing to honor pledges to help facilitate Moscow’s shipments.”
Thirteen Ships Sail From Ukraine, Biggest Grain Convoy Yet, While Australia Wheat Production Climbs
Reuters writer Aleksandar Vasovic reported earlier this week that, “Ukraine said it had dispatched its biggest convoy of grain vessels under a U.N.-brokered deal so far after 13 ships set sail from its ports on Sunday carrying 282,500 tonnes of agricultural products to foreign markets.”
2022 Farm Sector Income Forecast, September
The USDA’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to increase by $7.3 billion (5.2 percent) from 2021 to $147.7 billion in calendar year 2022.”
World Food Prices Drop For Fifth Month in a Row in August
Bloomberg writer Agnieszka de Sousa reported today that, “Global food prices fell for a fifth month after demand for some products weakened and there was a seasonal uptick in supplies.”
FAPRI Baseline Update- Higher Prices for Some Commodities and Inputs- August 2022
Earlier this week, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets.
U.S. FY 2023 Ag Exports Forecast Slightly Lower From Record Breaking FY 2022
On Tuesday, 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). Today’s update includes highlights from the report, which was coordinated by Bart Kenner, Hui Jiang, and Dylan Russell.
Kansas City Fed: Farm Finances Positive, But Risks “More Notable,” While Crop Outlook for Canada, Australia Improves
In an update last week from the Federal Reserve Bank of Kansas City, “Ag Credit Conditions Remain Strong as Risks Grow,” Nathan Kauffman and Ty Kreitman stated that, “Agricultural credit conditions remained strong in the second quarter, but slower improvement was expected in the coming months.”
Over One Million Tons of Grain Exported by Ukraine Under Black Sea Agreement, But Global Grain Stock Rebuilding a Concern
Wall Street Journal writers Isabel Coles and Jared Malsin reported on Saturday that, “Exports of grain from Ukraine’s southern ports have surpassed one million metric tons under a United Nations-brokered deal with Russia that has held up for nearly one month even as hostilities rage elsewhere in the country.”
“Drought, Watchword of the Week,” While India May Curb Some Rice Exports, and Black Sea Exports Continue
Kirk Maltais reported today at The Wall Street Journal Online that, “The worst drought in a decade is posing fresh challenges to farmers in the Corn Belt who already are struggling with surging costs, the dark side of a post-Covid commodities boom.”
Drought Dents Crop Production Outlook in U.S., EU and China, as Ukraine Production Concerns About Next Crop Persist
Dow Jones writer Paulo Trevisani reported yesterday that, “Initial reports from the Pro Farmer crop tour point to disappointing yield potential.”
Thirty-Three Grain Cargo Ships Have Left Ukraine, While Dry Weather Weighs on U.S., China and European Production Prospects
Reuters writers Pavel Polityuk and Jonathan Spicer reported today that, “A total of 33 cargo ships carrying around 719,549 tonnes of foodstuffs have left Ukraine under a deal brokered by the United Nations and Turkey to unblock Ukrainian sea ports, the Ukrainian agriculture ministry said on Tuesday.”
Drought Negatively Impacting China, the U.S. and Europe, as Ukrainian Black Sea Exports Continue
Matthew Dalton, Jim Carlton and Sha Hua reported on the front page of today’s Wall Street Journal that, “Severe droughts across the Northern Hemisphere—stretching from the farms of California to waterways in Europe and China—are further snarling supply chains and driving up the prices of food and energy, adding pressure to a global trade system already under stress.”
Black Sea Export Deal Easing Ukrainian Grain Flows, Bringing Down Prices, as Ukraine’s Wheat Harvest 91% Complete
Bloomberg writers Elizabeth Elkin and Megan Durisin reported yesterday that, “Ukrainian grain flows are pushing down global prices as the newly opened crop-export corridor shows initial success.”
Emergency Water Cuts Announced for Colorado River Basin States, Farmers Impacted
Tony Briscoe reported on the front page of Wednesday’s Los Angeles Times that, “After Colorado River Basin states failed to meet a deadline for emergency drought reductions Tuesday, the U.S. Bureau of Reclamation announced new emergency water cuts for Arizona, Nevada and Mexico as the nation’s two largest reservoirs decline to perilously low levels.”
U.S. to Contribute $68 Million to World Food Program to Buy Ukrainian Wheat
William Mauldin and Jared Malsin reported in today’s Wall Street Journal that, “The U.S. Agency for International Development is spending more than $68 million to purchase and ship Ukrainian grain in the largest such export deal since Russia’s invasion this year and the start of a July agreement to allow for renewed shipments from Ukraine’s Black Sea ports.”
Drought and Hot Temperatures Negatively Impact European Union Grain Production
In its monthly World Agricultural Production report Friday, the USDA’s Foreign Agricultural Service (FAS) indicated that, “European Union (EU) (MY) 2022/23 corn production is forecast at 60.0 million metric tons (mmt), down 12 percent from last month, 15 percent below last year’s crop, and 10 percent below the 5- year average.”
Black Sea Export Deal Shows Early Progress, But Risks Remain
Jared Malsin reported in today’s Wall Street Journal that, “An international agreement to restore Ukraine’s Black Sea grain exports is showing early progress, with 18 ships moving to and from ports in Odessa nearly six months after Russia’s invasion bottled up a chunk of the world’s agricultural products.”
Federal Reserve Ag Credit Surveys- 2022 Second Quarter, Farmland Values Continued to Rise
On Thursday, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the second quarter of 2022.