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Black Sea Grain Deal Extended Two Months

Odessa port aeral view, Ukraine, Yuzhny seaport. Photo: Adobe Stock.

The Black Sea grain deal has been extended for another two months, something the United Nations calls “good news for the world.” The news came one day before Russia could have quit the deal because of obstacles to its grain and fertilizer exports.

Reuters says Turkey’s president made the announcement, later confirmed by Russia, Ukraine, and the U.N. Moscow was unwilling to extend the deal unless some demands regarding its own ag exports were met. While Russia’s ag exports of food and fertilizer aren’t directly affected by Western sanctions, restrictions on payments, logistics, and insurance are a barrier to shipments.

Russia’s ambassador to the U.N. says the deal was extended because they haven’t lost hope that the problems raised by Russia will be resolved. The U.N. also says it hopes that exports of food and fertilizers, including ammonia, from Russia and Ukraine will get to global supply chains safely and predictably.

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Lower Corn, Higher Soybean Production Estimated in USDA’s Supply and Demand Report

Lower corn and higher soybean production is estimated for 2022-2023 in the USDA’s World Ag Supply and Demand Estimates (WASDE) report for May.

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 USDA cut corn yield to 177 bushels per acre.

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.

Click BELOW to hear market analyst Mike Silver discuss the USDA’s Supply and Demand Report for May and how the estimates for corn, soybeans and wheat production affected Thursday’s grain markets.

Source: USDA, NAFB

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USDA Publishes Origin of Livestock Final Rule for Organic Dairy

The U.S. Department of Agriculture Tuesday published the Origin of Livestock final rule for organic dairy.

The USDA says the change to the USDA organic regulations will promote a fairer and more competitive market for all organic dairy producers. The rule ensures that certified USDA organic dairy products are produced to the same consistent standard.

“The Origin of Livestock final rule provides clear and uniform standards about how and when livestock may be transitioned to organic dairy production, and how transitioned animals are managed within the organic dairy system,” says U.S. Agriculture Secretary Tom Vilsack.

USDA’s National Organic Program will oversee the new rule, which in general allows a dairy livestock operation transitioning to organic, or starting a new organic farm, to transition non-organic animals one time.

The rule prohibits organic dairies from sourcing any transitioned animals. Once a dairy is certified organic, animals must be managed as organic from the last third of gestation. Small businesses may request variances for specific scenarios.

Click HERE to read more from the USDA.

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Updated Cattle Market Reform Bill Introduced in Congress

An updated version of the Cattle Price Discovery and Transparency Act has been released in the U.S. Senate.

The updated bipartisan bill would:

  • Require the Secretary of Agriculture to establish 5-7 regions encompassing the entire continental U.S. and then establish minimum levels of fed cattle purchases made through approved pricing mechanisms. Approved pricing mechanisms are fed cattle purchases made through negotiated cash, negotiated grid, at a stockyard and through trading systems that multiple buyers and sellers regularly can make and accept bids. These pricing mechanisms will ensure robust price discovery and are transparent.
  • Establish a maximum penalty for covered packers of $90,000 for mandatory minimum violations. Covered packers are defined as those packers that during the immediately preceding five years have slaughtered five percent or more of the number of fed cattle nationally.
  • The bill also includes provisions to create a publicly available library of marketing contracts, mandating boxed beef reporting to ensure transparency, expediting the reporting of cattle carcass weights and requiring a packer to report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days. The contract library would be permanently authorized and specify key details about the contents that must be included in the library – like the duration and other provisions in the contract that may impact price such as schedules, premiums, discounts and transportation arrangements.

The update keeps the cash trade mandates included in the previous version of the bill.

First introduced in November, Senators Chuck Grassley (R-IA), Jodi Ernst (R-IA), Deb Fischer (R-NE), Jon Tester (D-MT) and Ron Wyden (D-OR) introduced the updated legislation.

In a press release, Sen. Grassley says the bill would “return fairness to the cattle marketplace dominated by four major meat packers.”

“[The] USCA stands with county, state, and national producer associations across the U.S. in supporting mandatory cash trade minimums,” Says U.S. Cattlemen’s Association President Brooke Miller says,

National Farmers Union President Rob Larew says the legislation “would shed light on the market and bring about greater fairness.”

Click HERE to read more about the Cattle Price Discovery and Transparency Act.