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.”
Farm Policy News
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.”
Federal Reserve: Observations on the Ag Economy- August 2021
On Wednesday, the Federal Reserve Board released its August 2021 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District.
USDA Attache Update from Beijing Highlights Soy Variables, as Ida Related Export Delays Persist
Last week, a report from the USDA’s Foreign Agricultural Service (FAS) post in Beijing (“China: Oilseeds and Products Update“) stated that, “Soybean imports are forecast at 101 million metric tons (MMT) in marketing year (MY) 21/22, up 3 MMT from the previous year.”
2021 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 $18.5 billion (19.5 percent) from 2020 to $113.0 billion in 2021.”
Uncoupled Variables Scramble Agricultural Export Flows
Recent news articles have highlighted independent developments that are impacting agricultural export markets.
Ida Aftermath Stymies Grain Exports as Trade Routes Altered, China Eyes Brazil Soy
Reuters writers Karl Plume and PJ Huffstutter reported this week that, “Grain shippers on the U.S. Gulf Coast reported more damage from Hurricane Ida to their terminals on Wednesday as Cargill Inc confirmed damage to a second facility, while power outages across southern Louisiana kept all others shuttered.”
China’s Import Demand for Corn in Focus, as Brazil’s First Corn Planting Underway
Alfred Cang reported this week at Bloomberg that, “China’s record corn-buying spree — a cornerstone of its trade deal with the U.S. — may be running out of steam, with risks growing that imports by the top buyer will fall short of U.S. official estimates.”