NATIONAL AG NEWS SPONSORED BY THE AMERICAN FARM BUREAU FEDERATION
National Ag News for May 13, 2022
USDA Accepting Applications for Philippines Trade Mission
U.S. exporters are invited to submit applications to the USDA for an agricultural trade mission to the Philippines, July 18-21. The mission to Manila will allow U.S. growers, producers, and exporters explore a thriving market that’s expected to emerge from COVID-19 with one of the strongest growth forecasts in Asia. The Philippines is the eighth-largest export market for American agricultural and food exports, averaging $3.1 billion annually during the last five years. USDA says the country offers tremendous export potential thanks to its young and fast-growing population, strong consumer preference for American foods and beverages, and robust service-based economy. “The Philippines sets itself apart from the rest of the world with a U.S. partnership that spans decades and has a bright trade future,” says Daniel Whitley, administrator of the USDA’s Foreign Agricultural Service. Some of the strongest export opportunities in the Philippine market include beef, pork, poultry, cheese, vegetables, and many more.
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European Union to Help Ukraine Export Grain
The European Commission says it will work with the EU governments to help Ukraine export millions of tons of grain currently stuck in the country. As part of the Russian invasion, Russia’s navy has blocked Ukraine’s Black Sea ports. Ukraine was the fourth-largest grain exporter during the 2020-2021 season, selling 44.7 million tons abroad, mainly to China, Africa, and Europe. The closed seaports are causing problems getting grain out of Ukraine and threatening the world’s food supply, especially in poorer regions like Africa. Reuters says getting Ukraine’s products out quickly by train is challenging too because the country’s rail system has different widths of track from Europe. That means the grain has to get transferred at the border to different trains. To make things even worse, there aren’t a lot of transfer facilities on the border. The Commission will take several steps to prioritize Ukraine’s grain shipments at their terminals.
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First 2022 Winter Wheat Production Calls for Lower Yield
U.S. farmers are expected to produce 1.17 billion bushels of winter wheat this year. It’s the first winter wheat production forecast for 2022 issued by the National Agricultural Statistics Service. The forecast calls for an eight percent drop from 2021. As of May 1, the U.S. yield is expected to average 47.9 bushels per acre, down 2.3 bushels from last year’s average of 50.2 bushels. Hard Red Winter Wheat production is forecast at 590 million bushels, down 21 percent from last year. Soft Red Winter Wheat is predicted to be 354 million bushels, expected to be a two percent drop from 2021. White Winter Wheat, at 230 million bushels, is up 38 percent from last year. Of the White Winter Wheat production, 15.7 million bushels are Hard White, and 214 million bushels are Soft White. NASS surveyed roughly 9,300 producers from across the country in preparation for this production report.
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May WASDE Report Shows Lower Corn, Higher Soybean Production
The May World Ag Supply and Demand Estimates call for lower corn and higher soybean production in 2022-2023. The corn outlook calls for lower domestic use, exports, ending stocks, and higher prices. The corn crop is projected at 14.5 billion bushels, 4.3 percent less than the USDA trend from February. Total corn supplies will decline 2.7 percent to 15.9 billion bushels. The season-average corn price is projected at $6.75 a bushel. The soybean outlook is for higher supplies, crush, exports, and ending stocks this year. The soybean crop will be 4.64 billion bushels, five percent higher than last year. Soybean supplies will be 4.89 billion bushels, up four percent from last year. The season-average soybean price will be $14.40 a bushel, up $1.15 from last year. U.S. all-wheat production is projected at 1.72 billion bushels, 83 million higher than last year. The all-wheat yield will be 46.6 bushels an acre, with the price at a record $10.75 a bushel.
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Ethanol Production Rises to Highest Point in a Month
The Energy Information Administration says ethanol output rose to the highest level in a month during the week ending on May 6. Ethanol inventories increased for the first time in six weeks. Ethanol production rose to an average of 991,000 barrels a day, up from 969,000 barrels during the prior week. It was also the highest level since April 8. In the Midwest, which produces the most of any region in the country, production rose to 941,000 barrels a day, up from 915,000 the week before. It’s also the highest level in the Midwest since April 8. The Midwest was the only region that saw an increase. Gulf Coast and West Coast production levels remained the same at 24,000 and 9,000 barrels a day, respectively. Rocky Mountain output dropped to 12,000 barrels a day, the lowest output since December. Ethanol inventories increased to 24.14 million barrels during the week, the highest since April 15.
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CFTC Will Hold Meeting on Voluntary Carbon Markets
The Commodity Futures Trading Commission will hold its inaugural Voluntary Carbon Markets Convening on June 2. Participants will discuss issues related to the supply and demand for high-quality offsets, including the product standardization and data necessary to support the integrity of carbon offsets’ greenhouse gas emissions avoidance and reduction claims. They’ll also discuss issues that relate to the market structure for trading carbon offsets and carbon derivatives as well as what potential challenges and opportunities in these markets may look like. “As companies increasingly turn to derivatives markets to manage risk and keep pace with global efforts to decarbonize, I look forward to CFTC facilitating these discussions,” says CFTC Chair Rostin Benham. He also says the goal is to foster innovation in crafting solutions to the climate crisis while ensuring integrity and customer protection. “We’ll also be gathering information from a variety of market participants in the voluntary carbon markets,” Benham adds.
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