Wall Street Journal writers Gordon Lubold, Alex Leary and Lingling Wei reported in Tuesday’s paper that, “President Biden and Chinese President Xi Jinping used a virtual meetingMonday evening to cool tensions between the two powers as the leaders seek to manage issues they disagree on and identify ways to communicate to avert conflict.”
Farm Policy News
Federal Reserve Ag Credit Surveys- 2021 Third Quarter Farmland Values Soar
On Monday, the Federal Reserve Banks of Chicago and Kansas City released updates regarding farm income, farmland values and agricultural credit conditions from the third quarter of 2021.
Port Crunch Hits U.S. Farm Exports- Containers Head Back to Asia ASAP- Often Empty
New York Times writer Ana Swanson reported on the front page of Monday’s paper that, “A supply chain crisis for imports has grabbed national headlines and attracted the attention of the Biden administration, as shoppers fret about securing gifts in time for the holidays and as strong consumer demand for couches, electronics, toys and clothing pushes inflation to its highest level in three decades.”
Fertilizer: “Supply Disruptions Push Prices to New Highs”
Last week, DTN writer Katie Micik Dehlinger reported that, “The average retail price of anhydrous set a record this week at $1,113/ton after increasing 38% from last month.”
Wheat and Ethanol Prices Climb
In its November Wheat Outlook report on Friday, the USDA’s Economic Research Service (ERS) indicated that, “The 2021/22 Season-Average Farm Price (SAFP) is raised 20 cents per bushel to $6.90 based on the continued strong farmgate prices as reported in the October 29 National Agricultural Statistics Service (NASS) Agricultural Prices report as well as rising futures and cash prices.”
China’s Coarse Grain Imports for 2020/21, Doubles the Previous Record
Earlier this week, in its Grain: Worlds Market and Trade report, the USDA’s Foreign Agricultural Service (FAS) stated that, “China coarse grain imports for 2020/21 are now complete.”
WASDE Reveals Record Wheat Trade, as China Wheat Imports Soared Over the Past Year
Bloomberg writer Megan Durisin reported this week that, “Global wheat exports will reach an all-time high as Russia, the European Union, India and Ukraine are all shipping out more than expected.”
Signs of Easing Chinese Demand, a Variable in Soy, Corn Availability
Reuters News reported this week that, “China’s soybean imports in October fell 41.2% from a year earlier, hitting the lowest level since March 2020, customs data showed on Sunday, as poor crush margins curbed demand and Hurricane Ida limited U.S. shipments.”
Global Food Prices Jump, Again
Bloomberg writer Megan Durisin reported last week that, “Global food costs jumped last month, extending a march toward a record and piling more inflationary pressure on consumers and governments.”
Fertilizer Prices: Another Week, Another Record- but Corn-Soybean Ratio Still Seen as Relatively Strong
Late last week, Bloomberg writer Elizabeth Elkin reported that, “A gauge of North American fertilizer prices touched a new record high, driving up costs for farmers who are already experiencing tight margins and threatening to make food even more expensive.”
USDA Sees More Soybean Acres, Less Corn in 2022/23 Crop Year
Reuters writer Julie Ingwersen reported last week that, “U.S. farmers are likely to reduce plantings of corn while expanding seedings of soybeans and wheat for the upcoming marketing year, the U.S. Agriculture Department said on Friday.”
“Fertilizer Price Spike Continues,” as Demand Remains Strong, and Corn Still Seen as Profitable
DTN writer Katie Micik Dehlinger reported on Wednesday that, “The retail fertilizer price spike continues, with seven of the eight major fertilizers tracked by DTN posting significant gains and one setting a new record. UAN32 cost an average of $522 per ton in the fourth week of October, the highest in DTN’s 13 years of gathering bids.”
China Urges Local Focus on Food Supplies, as Chinese Pork Market Dynamics Unfold
Bloomberg News reported on Tuesday that, “A statement from China’s government urging local authorities to ensure there was adequate food supply during the winter and encouraging people to stock up on some essentials prompted concerned talk online, with people linking it with the widening coronavirus outbreak, a forecast cold snap, or even rising tensions with Taiwan.”
Supply-Chain Issues Persist at Supermarkets as Meat Prices Rise- Turkey Availability a Concern
Wall Street Journal writer Jaewon Kang reported earlier this week that, “Supermarket chains are revamping their operations to navigate persistent product shortages, expanding storage space and curbing discounts to make sure they don’t run out.”
China’s Energy Crunch Disrupts Oilseed Trade, as the Slow Consolidation in China’s Pork Production Eases Forward
The USDA’s Economic Research Service (ERS) indicated in its October Oil Crops Outlook report that, “Brazil planted 38.6 million hectares of soybeans in the 2020/21 marketing year.”
Wheat Prices Climb, as Elevated Fertilizer Prices Persist
In its October Wheat Outlook report, the USDA’s Economic Research Service (ERS) pointed out that, “USDA’s National Agricultural Statistics Service (NASS) published its Grain Stocks report on September 30, which indicated that wheat stocks as of September 1 this year were the lowest for that date since 2007.”
No Signs of Relenting- Implications From Elevated Input Costs Continue to Unfold for Producers
Earlier this week, Wall Street Journal writer Jinjoo Lee reported that, “High natural-gas prices today mean your electricity and heating bills will likely be expensive this winter. Next year, it could mean you will end up paying more to eat and to fill up your car.”
ADM, Gevo Sign MoU to Produce Sustainable Aviation Fuel, About Half of ADM’s Ethanol Production Could Go To Jet Fuel
A news release on Monday from ADM indicated that, “ADM, a global leader in nutrition and agricultural origination and processing, and Gevo, Inc., a pioneer in transforming renewable energy into low carbon, energy-dense liquid hydrocarbons, announced today that they have signed a memorandum of understanding (MoU) to support the production of sustainable aviation fuel (SAF) and other low carbon-footprint hydrocarbon fuels.”
Kansas City Fed: U.S. Agricultural Economy Generally Strong, as Demand for Livestock Loans Grew in Third Quarter
In an update from the Federal Reserve Bank of Kansas City earlier this month (“Larger Livestock Loans Boost Farm Lending”), Nathan Kauffman and Ty Kreitman stated that, “Demand for livestock loans grew in the third quarter, boosting agricultural lending activity at commercial banks.”
China Emerges as the Third-Largest Market for U.S. Beef, and Remains a Key Factor in U.S. Pork Exports
In its October Livestock, Dairy, and Poultry Outlook report, the USDA’s Economic Research Service (ERS) indicated that, “U.S. beef exports in August set a new record of 325 million pounds, an increase of 57 million pounds, or 21 percent, from a year ago.”