Bloomberg News reported this week that, “China is taking hog biosecurity to new levels — 13 stories in fact.”
Farm Policy News
African Swine Fever Detected in the Dominican Republic, Raising Concerns
Reuters writers Julie Ingwersen and Tom Polansek reported last week that, “The U.S. Department of Agriculture confirmed the deadly hog virus African swine fever in samples from pigs in the Dominican Republic, the agency said on Wednesday, fueling concerns about the disease creeping closer to the United States.”
Bout of Higher Prices for Beef, Chicken and Other Products Could Continue
Bloomberg writer Michael Hirtzer reported this week that, “A little-known market, that of young cattle, is signaling that pricey beef could be here to stay awhile.”
House Ag Committee Passes Supplemental Farm Disaster Bill
DTN Ag Policy Editor Chris Clayton reported this week that, “The House Agriculture Committee on Tuesday advanced a bill to provide as much as $8.5 billion in supplemental disaster aid for farmers and ranchers who faced disaster both in 2020 and 2021.”
Fear of New Disease Outbreaks in Pigs Linger after China Floods
Reuters writer Emily Chow reported this week that, “[Chinese producer Cheng’s] farm is one of thousands in Henan, famous for agriculture, and pork production in particular. The province was struck by heavy rains last week that sparked the worst flash flooding in centuries, catching many by surprise.”
Threat of Food Inflation Persists, as Sec. Vilsack Sees Prices Moderating
At the end of last week, Bloomberg News reported that, “Extreme weather is slamming crops across the globe, bringing with it the threat of further food inflation at a time costs are already hovering near the highest in a decade and hunger is on the rise.”
Easing Protein Demand in China Could Slow Soybean Imports
Late last week, Reuters writers Hallie Gu and Gavin Maguire reported that, “China’s soybean imports are set to slow sharply in late 2021 from a record first-half tally, confounding expectations for sustained growth from the top global buyer and denting market sentiment just as U.S. farmers look to sell their new crop.”
Kansas City Fed: Outlook for Ag Economy in 2021 Remains Strong
In an update late last week from the Federal Reserve Bank of Kansas City (“Interest Rates for Operating Loans Rise Slightly From All-Time Lows”), Nathan Kauffman and Ty Kreitman pointed out that, “Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending, but remained historically low through the first half of 2021.”
Record U.S. Beef Exports Forecast for 2021- Robust Demand from China a Factor
A report last week from the USDA’s Foreign Agricultural Service (FAS), “Banner Year for U.S. Beef Exports in 2021,” stated that, “As countries roll back COVID-19 restrictions, foreign market demand for beef is becoming a bright spot for U.S. producers.”
African Swine Fever Confirmed on German Pig Farm, While China’s Record Pork Imports Cool
Reuters News reported late last week that, “The first cases of African swine fever have been confirmed in farm pigs in Germany, the country’s federal agriculture ministry said on Friday.”
China Pork Production Balloons in Second Quarter, While Meat Inflation in the U.S. Climbs
Reuters writers Emily Chow and Dominique Patton reported this week that, “China’s second-quarter pork production surged to its highest in at least seven years, official data showed on Thursday, after producers launched thousands of new breeding farms last year to rebuild a hog herd decimated by the African swine fever.”
Federal Reserve: Observations on the Ag Economy- July 2021
On Wednesday, the Federal Reserve Board released its July 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.
Brazil Corn Imports Surge
Earlier this week, in its monthly Grain: World Markets and Trade report, the USDA’s Foreign Agricultural Service (FAS) stated that, “Brazil corn imports (Oct-Sep) are forecast at 2.6 million tons for 2020/21. If realized, it would be the largest volume on record.”
By Reducing Red Tape, China Lures Small Pig Farmers Into Production
Reuters News reported this week that, “China will no longer require small pig farms to get environmental approval from the government before breeding pigs as the country seeks to rebuild its hog herd following a disease outbreak, the agriculture ministry said on Monday.”
African Swine Fever Persists in Parts of China
Reuters writer Dominique Patton reported on Friday that, “Large numbers of pigs are dying from African swine fever in China’s top hog-producing province, say farmers and analysts, raising concerns it could spread further across the south and slow China’s pork production recovery.”
Factors May Temper Chinese Purchases of U.S. Corn
Bloomberg News reported on Friday that, “China is likely to take a break from buying large amounts of U.S. corn after record purchases this year because the domestic harvest is approaching and local prices have slumped to the cheapest since late 2020.”
Global Food Prices Fall For the First Time in 12 Months
Reuters News reported this week that, “World food prices fell in June for the first time in 12 months, pushed lower by declines in vegetable oils, cereals and dairy products, the United Nations food agency said on Thursday.”
Farmers in China Are Planting More Corn This Year, With a Potential Impact on Import Demand
Reuters writers Hallie Gu and Gavin Maguire reported this week that, “Chinese farmers have sharply increased corn planting this year to cash in on demand-fuelled record prices, a trend that is likely to cool the country’s recent rampant appetite for imports heading into 2022.”
Expansion of Summertime Ethanol Sales Struck Down in Court Ruling
Late last week, Wall Street Journal writer Timothy Puko reported that, “A federal appeals court Friday struck down a 2019 rule-change to expand summertime ethanol sales, saying the Trump administration overreached its authority when it lifted a ban on gasoline with a higher ethanol content.”
USDA Attache Updates from Beijing Highlight Corn, Soy Variables
A report on Thursday from the USDA’s Foreign Agricultural Service (FAS) post in Beijing (“China: Grain and Feed Update”) stated that, “Post’s MY2021/22 corn import forecast is 20 MMT, 6 MMTs below USDA’s official forecast with the expectation that demand softens as corn imported during the current marketing year enters commercial channels, stock building moderates, and the expansion of domestic corn area results in greater production.”