On Wednesday, the Federal Reserve Board released its May 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.
Farm Policy News
JBS Systems Coming Back Online After Ransomware Attack
Jacob Bunge reported on the front page of Wednesday’s Wall Street Journal that, “Meatpacker JBS SA was hit by a ransomware attack that took a big chunk of U.S. beef-and-pork processing offline, sending buyers scrambling for alternatives and raising pressure on meat supplies.”
Livestock Sector in China Looks to Wheat
Reuters writers Hallie Gu and Gavin Maguire reported on Friday that, “China’s massive livestock sector is set to snap up millions of tonnes of wheat from the country’s winter harvest that began this month, extending a run of crop-switching in animal feed and further cooling demand for corn imports.”
Surging Costs of Breakfast Staples Stirs Food Price Concerns, as the U.S. and China Talk Trade
Financial Times writers Chelsea Bruce-Lockhart and Emiko Terazono reported this week that, “The cost of raw materials that go into making breakfast staples have roared higher since the pandemic began — raising fears that a broad commodity boom could push up global food prices for consumers.”
USDA Forecasts Record Farm Exports in FY 2021
On Wednesday, the USDA released its Outlook for U.S. Agricultural Trade, a quarterly report from the Department’s Foreign Agricultural Service (FAS) and Economic Research Service (ERS). Today’s update includes highlights from the report, which was coordinated by Hui Jiang, Dylan Russell, and Adam Gerval.
Under USMCA, U.S. Begins Trade Dispute Process Against Canadian Dairy Quotas
Wall Street Journal writer Josh Zumbrun reported on Tuesday that, “The Biden administration initiated a dispute process against the Canadian dairy industry, triggering the formal dispute mechanism of the new U.S.-Mexico-Canada Agreement for the first time.”
As Phase One Purchases Fall Short, China Cracks Down on Commodity Inflation- Sparking Reflection on Demand
Bloomberg writer Ailing Tan reported on Monday that, “China’s imports of American goods slowed in April, pulling back on the already incremental progress toward the purchase targets agreed with the U.S. in the 2020 trade deal.”
Hog Prices Climb to Seven Year High, as Food Inflation Variables Impact Protein Prices
Bloomberg writer Michael Hirtzer reported on Friday that, “America’s insatiable appetite for ribs and hot dogs pushed hog prices to the highest in nearly seven years as the summer grilling season kicks off.”
Strains in Food Supply Chains- Higher Costs Curb Expansion Plans, as Food Prices Climb
Wall Street Journal writers Jennifer Smith and Paul Page reported on Friday that, “Americans are returning to restaurants, bars and other dining places as Covid-19 restrictions come down, adding new strains in food supply chains.”
China Accelerates Corn Orders From the U.S., While Farmers in Argentina Prepare to Strike
On Wednesday, Bloomberg writers Daniela Sirtori-Cortina and Breanna T Bradham reported that, “China has tapped the U.S. for more than a third of next season’s expected corn imports, accelerating its pace of buying from the world’s top supplier to fill its growing grain needs.”
ERS Report: U.S. Beef Exports Up in March on Robust China Demand, Pork Exports Accelerate, and Short Term Chicken Supply a Challenge
In its monthly Livestock, Dairy, and Poultry Outlook report from Tuesday, USDA’s Economic Research Service (ERS) indicated that, “In March, the United States exported the most beef (in volume) ever recorded, totaling 300 million pounds, an increase of 12.3 percent (or 32.9 million pounds) from a year ago.”
Supply Chain Bottlenecks Add to Inflation Concerns, as Chinese Demand for Corn Garners Attention
Bloomberg writers Brendan Murray, Enda Curran, and Kim Chipman reported this week that, “A year ago, as the pandemic ravaged country after country and economies shuddered, consumers were the ones panic-buying. Today, on the rebound, it’s companies furiously trying to stock up.”
Federal Reserve Ag Credit Surveys- 2021 First Quarter Farm Economy Conditions
Last week, the Federal Reserve Banks of Chicago, Kansas City and Minneapolis released updates regarding farm income, farmland values and agricultural credit conditions from the first quarter of 2021.
China Corn Purchases Continue, as Inflation Garners Attention and Mississippi Barge Traffic is Disrupted
Earlier this week, Bloomberg writers Kim Chipman and Isis Almeida reported that, “A drought in Brazil is changing up trade flows, and sending China on a U.S. grain-buying binge that’s causing global prices to surge.”
Soybean Futures Hit $16, While Inflation Concerns Persist and Shipping Costs Rise
Bloomberg writer Breanna T Bradham reported this week that, “Soybean futures touched $16 on Tuesday for the first time since 2012 as concerns mount over a supply crunch.”
Corn Prices Climb Nearly 50% in 2021, as U.S. Food Makers Contend with Labor and Ingredient Shortages
Wall Street Journal writers Ryan Dezember and Kirk Maltais reported on Monday that, “America’s biggest cash crop has rarely been more expensive. Corn prices have risen roughly 50% in 2021 and a bushel costs more than twice what it did a year ago.”
China Makes Its Fifth Largest Purchase of U.S. Corn, While Brazil Soybean Exports Hit Monthly Record on Chinese Buying
Bloomberg writers Breanna T Bradham, Michael Hirtzer, and Dominic Carey reported on Friday that, “China made one of its biggest purchases of corn in U.S. history, a sign that its buying spree of grain off of world markets isn’t over.”
World Food Price Index Highest Since 2014, Few Signs of Higher Prices Curbing Demand
Bloomberg writers Agnieszka de Sousa and Megan Durisin reported on Thursday that, “Consumers are seeing little letup in surging food prices, as rallies in everything from grains to sugar keep pushing global costs higher.”
Corn Trades Above $7 as Weather in Brazil Raises Concern- U.S. Corn Acres a Source of Speculation
Bloomberg writers Breanna T Bradham, Kim Chipman, and Fabiana Batista reported on Tuesday that, “Corn futures surged above $7 a bushel for the first time in more than eight years as lack of rainfall in Brazil added to supply concerns.”
Corn Planting Rate Fastest Since 2015
Bloomberg writers Kim Chipman and Dominic Carey reported on Monday that, “U.S. corn farmers are planting at the fastest pace since 2015, a move that could finally bring some relief to a market that’s battling tight supplies.”