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.
Farm Policy News
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.”
Brazil Wants U.S. Counterpart to Negotiate Ethanol Import Tax
The United States started to pay a 20% tariff on all ethanol exported to Brazil this month. Before that, there was a quota of 750 million liters per year at zero rate, which expired on August 30th. Valor Econômico writers Rafael Walendorff and Camila Souza Ramos reported that the Brazilian government must communicate to the United States that the country is willing to negotiate the conditions for the ethanol trade, but without extension of the tariff- free quota.
China: High Demand for Farm Commodities Expected, as Food Inflation and Security Jitters Persist
Reuters writer Karl Plume reported last week that, “Chinese state-owned firms bought at least eight bulk shipments of U.S. soybeans on Wednesday, or at least 480,000 tonnes, for shipment in December and January, two U.S. traders familiar with the deals said.”
Federal Reserve: Observations on the Ag Economy- August 2020
On Wednesday, the Federal Reserve Board released its August 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.
2020 Farm Sector Income Forecast, September
The USDA’s Economic Research Service (ERS) indicated on Wednesday that, “Net farm income, a broad measure of profits, is forecast to increase $19 billion (22.7 percent) from 2019 to $102.7 billion in 2020. Net cash farm income is forecast to increase $4.9 billion (4.5 percent) to $115.2 billion.”
Since April, China Has “Stepped Up” U.S. Ag Purchases, as Taiwan Eases Limits on U.S. Beef and Pork
Reuters writer Karl Plume reported on Thursday that, “China made its largest weekly U.S. beef purchases on record last week, followed by its biggest U.S. corn deals in almost a month this week, according to U.S. Department of Agriculture data released on Thursday.”
Derecho and Drought Take Toll on Corn
Bloomberg writers Michael Hirtzer, Dominic Carey, and Kim Chipman reported last week that, “The corn crop in the U.S. Midwest deteriorated the most in 8 years with hot weather adding to woes from drought and the Aug. 10 derecho windstorm that swept through the top-growing state of Iowa.”
USDA Agricultural Trade Outlook- FY 2021 U.S. Agricultural Exports Forecast Up $5.5 Billion
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 Bart Kenner and Hui Jiang.