Ukraine
The July Ag Economists’ Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.
The new year brings fresh market action, but volatility continues to be the main theme to enter the new year. As farmers look ahead, analysts say there are some keys lessons to keep in mind from 2022.
With little to no diesel readily available to fuel harvest, wheat and other grains languish in the country’s fields. One analyst says he expects the global wheat market will be shorted 10 million metric tons.
Diesel prices are causing sticker shock, as fears of a possible diesel shortage are growing. It’s not just retail diesel prices that are rapidly rising. Some farmers report booking off-road diesel for above $5.
Biden says Ukraine has 20 million tons of stored grain awaiting export to various countries. He says lack of port movement coupled with halted planting in Ukraine will ignite a global food crisis unless action is taken.
Diesel prices hit historic highs this week. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on supplies at a 30-year low.
Rail backlogs in the United States are delaying shipment of grains as well as processed flour and corn syrup, contributing to the national problem of inflation, food and grain companies said at a hearing this week.
Global meat consumption will decline as inflation squeezes consumer spending because of the Ukraine-Russian War, says Rupert Claxton, livestock and met director at Gira.
With the ongoing war in Ukraine, a recent U.S. Farm Report viewer asked about the U.S. and energy independence. John Phipps provides a reality check of the current situation when it comes to crude oil and petroleum.
Carlo Vittorio Ferrari runs a 2,000-head pig farm with his brother in northern Italy. He fears for the future of his fourth-generation enterprise because of the conflict in Ukraine prompting a shortage of feed.
UPDATE: WASHINGTON (AP) - Biden: US ban on Russian oil a ‘powerful blow’ to ‘Putin’s war,’ warns Americans ‘defending freedom is going to cost.’
Crude oil hit a 13-year high and wheat topped $13. With front-month soybeans soaring past $17, and corn nearing the $8 mark, the crisis in Ukraine means food and fuel inflation fears are also heating up.
UPDATE: 03/02 4:23 pm-EST-There are reports a missile struck a vessel flying under the flag of Bangladesh in Ukraine.
Congress returns Monday, but to a very different situation due to Russia’s invasion of Ukraine, which is expected to be one of the key issues President Biden talks about during his State of the Union address.
Will the expected sanctions on Russia impact global meat trade and demand? Len Steiner of Steiner Consulting Group posed this question in the Feb. 24 Daily Livestock Report.
The Russia-Ukraine crisis sent wheat prices skyrocketing 50 cents higher, with corn up 30 cents at one point Thursday. Crude oil also soared above $100 per barrel, hitting the highest level since 2014.
Russia will ban billions of dollars worth of food imports from the U.S. and other nations in retaliation for sanctions over the turmoil in Ukraine.