Financial Times writers Demetri Sevastopulo and Ryan McMorrow reported on Thursday that, “Joe Biden and his Chinese counterpart Xi Jinping have agreed to hold a virtual summit this year, in the first sign of improving relations between the countries since the US president took office.”
Farm Policy News
USDA Attache Update from Beijing Highlights Corn Import Variables
A recent report from the USDA’s Foreign Agricultural Service (FAS) post in Beijing (“China: Grain and Feed Update”) stated that, “Post’s MY 2021/22 corn import forecast is 20 MMT, 6 MMTs below USDA’s official forecast.”
Trade Representative Katherine Tai Outlines U.S., China Trade Policy
Wall Street Journal writers Josh Zumbrun, Bob Davis and Lingling Wei reported in Tuesday’s paper that, “The Biden administration began defining its China trade policy Monday, saying it aims to launch new talks with Beijing but will keep existing tariffs in place, while also restoring the ability of U.S. importers to seek exemptions from those levies.”
Promising Vaccine Candidate for African Swine Fever
Bloomberg’s Mike Dorning reported last week that, “The U.S. Department of Agriculture has potentially found a vaccine to combat African Swine Fever, a disease that devastated hog herds in China and was recently detected in the Dominican Republic and Haiti, the agency said Thursday.”
Higher Fertilizer Prices Could Impact U.S. Acreage Allocation, as Power Issues in China Impact Feed Costs
Bloomberg writer Kim Chipman reported this week that, “Corn and wheat rebounded in Chicago as ripple effects from soaring fertilizer prices threatens to squeeze already tight grain supplies.”
China’s Energy Problems Impacting Food Security Variables, as Weaker Chinese Corn Buying Unfolds
Bloomberg News reported this week that, “China’s power-hungry commodities producers are in Beijing’s firing line, but the government’s efforts to stave off a full-blown energy crisis are also fueling rallies in everything from fertilizer to silicon.”
Democratic Lawmakers Call On Biden Administration to Halt Plan to Cut Biofuel Blending Volumes
Reuters writers Stephanie Kelly and Jarrett Renshaw reported this week that, “A group of U.S. Democratic lawmakers called on President Joe Biden to halt a plan to slash the amount of biofuels that oil refiners must blend into their fuel, according to a letter dated Monday.”
Gulf Export Inspections Making a Comeback, as Hog Production Variables in China Evolve
Reuters writer Karl Plume reported this week that, “U.S. soybean exports jumped last week to a six-month peak, while corn shipments were the highest in a month as Louisiana Gulf Coast terminals steadily ramped up operations disrupted nearly a month ago by Hurricane Ida, preliminary data showed on Monday.”
Wall Street Journal: “Revival” in the Farm Belt, But Things Can Turn Quickly
Wall Street Journal writers Jesse Newman and Bob Tita reported in Monday’s paper that, “A revival in the U.S. Farm Belt is in full swing, boosting markets for land and equipment and raising concerns over farmers’ escalating costs.”
Global Corn Production Higher, but Farmers Face Ida-Related Input Supply Disruptions- Increased Fertilizer Costs
Reuters writer Nigel Hunt reported last week that, “The International Grains Council (IGC) on Thursday raised its forecast for the 2021/22 global corn crop, predominately reflecting improved outlooks for the United States and Ukraine.”
Biden Administration Considers Biofuel Blending Cuts, According to Reports
Reuters writers Stephanie Kelly and Jarrett Renshaw reported this week that, “The administration of U.S. President Joe Biden is considering big cuts to the nation’s biofuel blending requirements, according to a document seen by Reuters, a move triggered by a broad decline in gasoline demand during the coronavirus pandemic.”
U.S. Beef Exports Increase, Reflecting Large Shipments to China
In its monthly Livestock, Dairy, and Poultry Outlook report last week, USDA’s Economic Research Service (ERS) stated that, “In July, U.S. beef exports totaled 297 million pounds, exceeding last July’s exports by 17.9 percent or 45 million pounds.”
Ports in the Gulf Show Signs of Life Post-Ida, But Export Volumes Still Below Normal
Reuters writer Julie Ingwersen reported earlier this week that, “U.S. grain exports increased last week as shippers along the Louisiana Gulf Coast recovered from flooding and widespread power outages caused by Hurricane Ida’s Aug. 29 landfall, but volumes were much lower than normal, preliminary data showed on Monday.”
Kansas City Fed: U.S. Farm Economy Strong in First Half of the Year
In an update from the Federal Reserve Bank of Kansas City earlier this month (“Financing of Ag Production Loans Eases Further”), Nathan Kauffman and Ty Kreitman stated that, “Farm debt at commercial banks continued to ease in the second quarter.”
A Look at U.S. and EU Pork Exports, and Chinese Pork Demand
In its monthly Livestock, Dairy, and Poultry Outlook report last week, USDA’s Economic Research Service (ERS) stated that, “Pork exports in July were 508 million pounds, 8.5 percent lower than those of a year ago.”
Ida Slows Soybean Export Pace, as China Looks to Brazil for Soy
Earlier this week, the USDA’s Economic Research Service noted in its monthly Oil Crops Outlook report that, “Hurricane Ida’s emergence in the Gulf of Mexico slowed the pace of exports near the end of August which is expected to continue into early September.”
FAPRI: Higher Commodity Prices Contribute to a Sharp Increase in 2021 U.S. Net Farm Income
Earlier this week, the, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. farm income and government costs.
Export Inspections of U.S. Grain Remain Low Post-Ida, as Cargill Restarted its Westwego Terminal on Monday
Reuters writer Karl Plume reported this week that, “U.S. grain exports slumped to their lowest level in years last week as shippers struggled to restart loading operations along the Louisiana Gulf Coast after Hurricane Ida flooded and damaged grain terminals and knocked out power across the region, preliminary data showed on Monday.”
FAPRI Baseline Update- Focus on Corn, Soybeans- September 2021
Earlier this month, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets.
China Corn Production at Record Level, as U.S. Expecting Second Largest Corn Harvest Ever
In its monthly World Agricultural Production report on Friday, USDA’s Foreign Agricultural Service (FAS) indicated that, “USDA estimates China marketing year (MY) 2021/22 corn production at a record 273.0 million metric tons (mmt), up 5.0 mmt or 2 percent from last month, up 5 percent from last year, and 5 percent above the 5-year average of 260.3 mmt.”