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.”
Farm Policy News
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.”
China: Corn Crop Impacted by Adverse Weather, as U.S. Wheat and Soybean Exports Increase
Reuters writers Hallie Gu and Gavin Maguire reported on Wednesday that, “China’s corn crop is expected to fall by up to 10 million tonnes, or nearly 4%, from the latest government estimates after heavy wind and rains toppled crops in major production areas in the northeastern cornbelt, analysts said.”
Food Inflation Rose Sharply in Brazil- Highlighted by Rice and Soy Oil
The price of food has increased significantly in Brazil. The Broad Consumer Price Index (IPCA) rose 2.44% in 12 months, while food inflation rose 8.83%. More specifically, the price of rice increased 19.2% in 2020, and soy oil rose 18.6%, in the same period.
Executive Branch Highlights Ethanol in Waiver Denials and E15 Promise
Wall Street Journal writers Lindsay Wise and Andrew Restuccia reported on Monday that, “The Trump administration will deny oil refiners’ retroactive requests for exemptions from U.S. biofuel laws, a major boon for Iowa, the leading producer of biofuels and a crucial state that could help determine which party wins the presidency and control of the Senate.”
China, South Korea Ban German Pork Imports (Japan Suspends), After African Swine Fever Case Discovered
Late last week, Bloomberg writers Megan Durisin, Brian Parkin, and Isis Almeida reported that, “A deadly pig disease has materialized in Germany for the first time, threatening to hammer exports from Europe’s biggest hog-producing nation.”
China Could Become Largest Corn Importer, While Soybean Variables Come Into Focus
Bloomberg News reported earlier this week that, “The corn harvest in [China] the world’s top producer after the U.S. is being closely watched as demand for hog and poultry feed expands and state reserves dwindle, pushing local prices to the highest in five years. Purchases from the U.S. and Ukraine already exceed 10 million tons, and they could hit 20 million tons if U.S. prices stay competitive, said Feng Lichen, chief analyst with portal www.yumi.com.cn. That would make the country the world’s largest importer.”
President Trump Instructs EPA to Deny Retroactive (“Gap-Year”) SRE (Small-Refinery Exemption) Waiver Requests
Reuters writers Stephanie Kelly, Jeff Mason and Jarrett Renshaw reported on Tuesday that, “U.S. President Donald Trump has instructed that dozens of oil refiner requests for retroactive waivers from U.S. biofuel laws be denied amid concerns the issue could cut into his support in the Farm Belt, three sources familiar with the decision said.”