Bloomberg News reported last week that, “China’s corn imports could more than double to 17 million tons in 2020-2021 from a year earlier on prospects for a smaller domestic harvest and a recovery in demand for hog feed, according to the head of the logistics information department at COFCO Trading Co.”
Farm Policy News
La Niña in Brazil Could Impact Chinese Demand for U.S. Soybeans and Support Prices
Soybean prices rose recently on the Chicago Mercantile Exchange, driven by the delay in planting the Brazilian crop, among other factors.
Kansas City Fed: Farm Lending Remained Muted in Third Quarter
In an update last week from the Federal Reserve Bank of Kansas City (“Ag Lending Update: Fewer Loans Issued to Farmers Limit Lending Activity”), Cortney Cowley and Ty Kreitman stated that, “Farm lending remained muted in the third quarter of 2020 but increased from last year according to the National Survey of Terms of Lending to Farmers.”
China Has Purchased 71% of Its Phase One Target- and Could Issue More Corn Import Permits
A news release from USDA on Friday stated that, “The Office of the U.S. Trade Representative (USTR) and [USDA] today issued a report highlighting the progress made to date in implementing the agricultural provisions in the U.S.-China Phase One Economic and Trade Agreement, which is delivering historic results for American agriculture.”
Federal Reserve: Observations on the Ag Economy- October 2020
On Wednesday, the Federal Reserve Board released its October 2020 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.
FAS Report: Corn Ethanol Production Booms in Brazil
A report earlier this month from USDA’s Foreign Agricultural Service (FAS), “Corn Ethanol Production Booms in Brazil,” stated that, “Plentiful, and generally cheap, corn supplies in Brazil’s Center-West region have enticed investment in the corn ethanol sector over the last few years.”
Robust Soybean Export Forecast, While Countries “Bulk Up” Their Food Supplies
Mark Ash and Dana Golden explained in this month’s Oil Crops Outlook, from USDA’s Economic Research Service (ERS), that, “Despite an unchanged yield, USDA pegs the 2020/21 U.S. soybean crop down by 45 million bushels this month to 4.268 billion as the sown acreage is revised down by 731,000 acres to 83.1 million.”
Argentina- First Country to Approve GMO Wheat and Expects Authorization from Brazil
Last week, the Argentine government approved the first transgenic wheat in the world, tolerant to drought and ammonium glufosinate herbicide. The variety HB4 was developed by biotechnology companies Bioceres (Argentina) and Florimond Desprez (France).
Smaller Corn and Soybean Supply Forecast, as Derecho Harvest Impact Grows
Reuters writer Mark Weinraub reported late last week that, “U.S. corn and soybean supplies will be smaller than previously forecast, as adverse weather reduced the acreage that farmers will harvest, the U.S. government said on Friday.”
Recent FAS Reports Highlight Soybean, Meat, and Corn Export Variables
Reports this month from the USDA’s Foreign Agricultural Service (FAS) have provided updated information on market variables impacting soybeans, meat, and corn. Today’s update highlights some of the key findings from these FAS publications.
African Swine Fever in Germany Continues to Impact Pork Markets
Reuters News reported this week that, “One more case of African swine fever (ASF) has been confirmed in a wild boar in the eastern German state of Brandenburg, Germany’s federal agriculture ministry said on Wednesday.”
Pandemic, Drought, and Derecho Among Factors Impacting the Farm Economy
In an update late last month at the USDA blog, Robert Johansson, the Department’s Chief Economist, highlighted how the COVID-19 pandemic was adversely impacting the American farm economy.
FAS Report- Biggest Challenge For U.S. Ag Trade With China: Strong Competition, Especially From Brazil
A recent report from USDA’s Foreign Agricultural Service (FAS), “China: Evolving Demand in the World’s Largest Agricultural Import Market,” stated that, “As part of the Phase One Agreement, China has committed to purchase $12.5 billion more agricultural and related products from the United States over 2017 levels.”
Soybean Planting in Brazil is Underway with Little Rainfall
Soybean planting, which promises to set a new record in Brazil, is underway in the Paraná, Mato Grosso do Sul, and Mato Grosso regions of the country.
As Germany Battles African Swine Fever, Inventory of U.S. Hogs Reaches Record for September
Bloomberg writer Michael Hirtzer reported late last week that, “American hog producers have been cutting back on the herd for several months, but there are signs they haven’t been moving fast enough to keep the market under control.”
China’s Agricultural Imports Up From Last Year
Reuters writers Hallie Gu and Dominique Patton reported late last week that, “China’s August imports of soybeans from Brazil rose 22% from a year ago, customs data showed on Friday, as buyers increased their purchases to take advantage of higher margins earlier this year.”
After Resolving a Fight Over Farm Payments, House Passes Continuing Resolution
David Lerman and Jennifer Shutt reported on Tuesday night at Roll Call Online that, “The House swiftly passed a stopgap funding measure needed to avert a partial government shutdown in eight days after top congressional leaders reached a deal resolving a fight over farm payments.”
Farm-Aid Not Included in House Short-Term Spending Measure, as Funding Deadline Approaches
Wall Street Journal writers Kristina Peterson and Jesse Newman reported in Tuesday’s paper that, “The House was expected to move Tuesday to pass a spending bill that would keep the government running through Dec. 11 but without farm-aid funds sought by the White House.”
China’s Ban of German Pork Could Impact U.S. Pork Exports
Bloomberg News reported last week that, “China’s ban on German pork is set to cement the U.S. as the top overseas supplier of the nation’s staple meat.”
New Round of Farm Aid for COVID Losses Announced, and Causes Snag in Congressional Spending Bill
Andrew Restuccia and Jesse Newman reported in Friday’s Wall Street Journal that, “President Trump unveiled $13 billion in new aid to farmers facing economic harm from the coronavirus pandemic as he aimed to boost support among rural voters at a campaign rally.”