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.”
Farm Policy News
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.”
Ballooning Fertilizer Prices and Production Cost Considerations Gain Scrutiny
Bloomberg writers Kim Chipman and Elizabeth Elkin reported late last week that, “Skyrocketing fertilizer prices could lead U.S. corn profits to drop by about a quarter next year, potentially motivating farmers to shift millions of acres into less cost-intensive soybeans.”
Federal Reserve: Observations on the Ag Economy- October 2021
On Wednesday, the Federal Reserve Board released its October 2021 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.
As U.S. and China Reengage on Trade, China Remains Far Behind on Phase One Targets
Bloomberg writer Ailing Tan reported this week that, “China’s goods imports from the U.S. have only reached about 53% of the $200 billion worth of additional products and services it promised to buy under the trade deal signed last year, far behind its purchasing target.”
From Retail Grocer to Commodity Production Inputs, Supply-Chain Knots Persist
Bloomberg writers Brendan Case, Leslie Patton, and Kim Chipman reported this week that, “In Denver, public-school children are facing shortages of milk. In Chicago, a local market is running short of canned goods and boxed items.”
Fertilizer Exports from China Face Curbs, as Crop Acreage Levels Garners Attention
Bloomberg News reported this week that, “Chinese authorities are imposing new hurdles for fertilizer exporters amid growing concerns over surging power prices and food production, a move that could worsen a global price shock and food inflation.”
China’s Pork Output Jumps, as Soy, Meat Imports Slow
Reuters writer Dominique Patton reported this week that, “China’s third-quarter pork production surged to its highest in three years, official data showed on Monday, after producers built thousands of large breeding farms last year to rebuild a hog herd decimated by African swine fever.”
Chinese Livestock Producers Look to Corn as Domestic Prices Fall, While U.S. Corn Exports Hit Record Volume
Reuters writers Hallie Gu and Gavin Maguire reported late last week that, “For the first time in a year, corn prices in China’s key Shandong hub this week have fallen to the same levels as wheat, leading some feed producers to switch back to using more of the yellow grain, traders and analysts said.”
The Reach of Higher Fertilizer Prices Continues to Extend, Implications for Illinois Grain Farmers
On Thursday, Bloomberg writers Tatiana Freitas and Fabiana Batista reported that, “Brazilian farmer Antonio Carlos Jacobsen usually buys fertilizer a few weeks before planting his corn fields. Soaring fertilizer prices are pushing him to move up purchases for the March seeding — although it may already be too late.”
A Profitable Harvest, But Farmers Leery of Rising Production Costs and Parts Shortage
Des Moines Register writer Donnelle Eller reported this week that, “After last year’s destructive derecho, which flattened corn and stripped soybean across the state, better-than-expected yields and strong prices are making this harvest a profitable one for Iowa farmers lucky enough to have gotten the much-needed rain.”
FAS: “China Continues to Drive Red Meat Trade”
In its Livestock and Poultry: World Markets and Trade report this week, the USDA’s Foreign Agricultural Service (FAS) indicated that, “China pork production is expected to contract in 2022 as the hog sector adjusts to rapidly changing market conditions. Hog prices have fallen dramatically since the beginning of 2021 and have remained persistently low despite recent national holidays that usually mark an uptick in pork consumption.”
Higher Crop Income Boosts U.S. Farm Outlook, as Energy Crunch Poses Ongoing Concerns
Bloomberg writers Michael Hirtzer and Kim Chipman reported this week that, “It turns out that 2021 was a pretty good year to be an American farmer.”
Fertilizer Fever: Soaring Costs Could Impact Farmers and Food Prices
Bloomberg writer Elizabeth Elkin reported on Friday that, “A gauge of North American fertilizer prices soared to a record high, driving up costs for farmers and threatening to worsen food inflation.”
First Steps in U.S., China Trade Talks, as Heavy Rain Delays China’s Corn Harvest
Wall Street Journal writer Yuka Hayashi reported late last week that, “The Biden administration kicked off its trade-policy engagement with China late Friday with a virtual meeting between U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu He.”
Global Food Prices Highest Since 2011, as Energy Costs Rise and Supply Chain Challenges Persist
Bloomberg writer Megan Durisin reported on Thursday that, “The jump in global food prices to a decade high risks leading to even more expensive grocery bills, and the energy crisis is threatening to make things even worse.”