Reuters writer Tom Polansek reported last week that, “A surge to eight-year highs in U.S. corn and soybean prices is boosting farmers’ incomes and their demand for land, tractors and tools.”
Farm Policy News
More Driving Assists Ethanol Demand, While Higher Corn Prices Impact Wheat Use
Bloomberg writer Kim Chipman reported earlier this week that, “Corn’s stunning price rally is getting an extra boost as more U.S. drivers return to the open road.”
U.S. Supreme Court Hears Case on Biofuel-Blending Waivers
Bloomberg writer Jennifer A Dlouhy reported earlier this week that, “A long-running clash between gasoline and ethanol producers will be before the U.S. Supreme Court on Tuesday, in a case that could cost small oil refineries hundreds of millions of dollars.”
Wheat, Corn, Soybeans: Highest Since 2013
Bloomberg writers Kim Chipman and Megan Durisin reported this week that, “A crop rally in the U.S. is making essential food commodities dramatically more expensive, and the costs could soon spill over onto grocery store shelves.”
Kansas City Fed: Reduced Demand for Farm Loans in First Quarter
In an update earlier this month from the Federal Reserve Bank of Kansas City (“Farm Lending Remains Muted in Early 2021“), Nathan Kauffman and Ty Kreitman stated that, “Farm loan demand remained muted at commercial banks in the first quarter of 2021. A reduction in the volume of operating loans led to an overall decline in total non-real estate lending. Financing activity also declined more notably at banks with relatively large farm loan portfolios, while lending was more stable among small and mid-size lenders.”
Renewable Diesel Demand Garners Attention Amid Soy Price Gains
Bloomberg writers Megan Durisin and Deirdre Hipwell reported on Friday that, “Corn, wheat, soybeans, vegetable oils: A small handful of commodities form the backbone of much of the world’s diet and they’re dramatically more expensive, flashing alarm signals for global shopping budgets.”
Corn, Wheat and Soybean Prices Continue to Surge, China Buys U.S. Corn for Fourth-Quarter Shipment
Bloomberg writers Kim Chipman and Breanna T Bradham reported on Thursday that, “Corn extended its ascent to the highest in almost eight years, leading a rally in crop futures on bets that voracious Chinese demand, rebounding economies and adverse weather will leave silos depleted.”
Corn, Soybean Prices Climb, While Record Chinese Corn Imports Expected
Bloomberg writers Kim Chipman and Michael Hirtzer reported on Wednesday that, “Corn prices climbed above $6 a bushel to the loftiest level in almost eight years after the U.S. said it expects China to buy an all-time high amount of the grain off global markets.”
U.S. Soybean Exports to China Swell in March, as Brazil Suspends Corn, Soy Import Duties
Reuters writers Shivani Singh and Dominique Patton reported this week that, “China’s March soybean imports from Brazil plunged as rain delayed some shipments from the world’s top exporter, but U.S. bean imports rocketed more than fourfold as delayed cargoes arrived, hitting the highest monthly total since December 2016.”
China Sees Record Pork Imports in March, as Swine Fever Continues to Limit German Pork Exports
Bloomberg News reported on Monday that, “China’s pork imports jumped to an all-time high in March on supply concerns following a resurgence of African swine fever in the world’s biggest consumer and producer.”
An Increase in Wheat Feeding to Hogs in China, as China’s First-Quarter Pork Production Rose
Reuters writer Dominique Patton reported late last week that, “China’s first-quarter pork production rose 31.9% from a year earlier to 13.69 million tonnes, data showed on Friday, the highest quarterly volume in two years.”
Biden Budget Proposal Includes 16% USDA Funding Increase- Sec. Vilsack Testifies at House Appropriations Committee
Los Angeles Times writer David Lauter reported last week that, “President Biden, saying the U.S. has ‘significantly underinvested in core public services,’ will ask Congress for a 16% boost in annual spending for a range of domestic programs, the White House announced Friday [April 9th].”
Federal Reserve: Observations on the Ag Economy- April 2021
On Wednesday, the Federal Reserve Board released its April 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.
China Meat Imports Soar in March Amid African Swine Fever Concerns
Bloomberg News reported on Tuesday that, “China imported a record amount of meat in March on supply concerns as hog herds in the world’s biggest pork consumer struggled to recover from African swine fever.”
China Demand Could Create “Mini Super-Cycle,” U.S. Corn, Soybean Exports Remain Robust, as Shipping Costs Increase
Last week, Bloomberg writer Andy Hoffman reported that, “Agricultural commodities are poised for a “mini supercycle” as China’s rampant demand keeps supplies tight, according to the head of a key Cargill Inc. trading unit that’s seeing its best results in a decade.”
U.S. Hog Prices Climb- Imports to the Philippines Rise, as Chinese Demand Expected to Moderate
Last week, Reuters News reported that, “Philippine President Rodrigo Duterte on Wednesday reduced pork import tariffs as the government seeks to address a domestic shortage by ramping up purchases from abroad.”
2020 U.S. Ag Exports Second Highest on Record, Led by Soybeans, Corn and Pork to China
This week, the USDA’s Foreign Agricultural Service (FAS) released its 2020 U.S. Agricultural Export Yearbook, a statistical summary of U.S. agricultural commodity exports. Today’s update includes highlights from the report, with a focus on soybeans, corn and pork.
Some Farmers Reluctant About Administration’s Climate Plans for Carbon Reduction
Last week, Politico writers Zack Colman, Liz Crampton and Helena Bottemiller Evich reported that, “The Biden administration’s ambitious plan to create a multibillion-dollar bank to help pay farmers to capture carbon from the atmosphere is running into surprising skepticism, challenging Agriculture Department officials to persuade the industry to get behind the massive climate proposal.”
China: African Swine Fever Issues Persist, While U.S. Tariffs Set to Remain For Now
Reuters writer Dominique Patton reported late last week that, “A wave of African swine fever outbreaks this year has wiped out at least 20% of the breeding herd in northern China, industry sources and analysts said, exceeding expected losses and raising fears about the potential for further impact in the south.”
Gasoline Sales Provide Lift for Ethanol- Corn; While Higher Prices are Impacting Farmland Values
Reuters writer Stephanie Kelly reported this week that, “U.S. gasoline sales for 2021 have exceeded prior-year levels for the first time since last March, when officials first started to widely impose coronavirus lockdowns, according to a report on Tuesday from the Oil Price Information Service by IHS Markit.”