Evening Report | January 4, 2024

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Houthi rebels defy U.S. warning with new Red Sea explosion... Houthi militants detonated a one-way unmanned surface vessel in the Red Sea on Thursday, marking a defiant escalation by the Iran-backed rebel group a day after the U.S. threatened a military response to such attacks. The detonation — the Houthis’ first use of a USV in its latest Red Sea campaign — did not damage any ships but occurred despite the U.S. and 11 allies warning the rebels on Wednesday of military action unless they halted attacks on vessels in the Red Sea. “The introduction of a one-way attack USV is a concern,” said Vice Admiral Brad Cooper, the top commander of U.S. naval forces in the Middle East.

White House warns Red Sea turmoil could impact U.S. economy... The White House expressed concern over the potential impact of higher shipping costs on the U.S. economy due to the diversion of ships from the Red Sea. The extent of this impact depends on the duration of attacks by Houthi rebels on commercial vessels in the region. White House spokesman John Kirby highlighted the significance of the Red Sea as a vital waterway for global trade, and the potential delays and added expenses incurred by rerouting ships around the Cape of Good Hope if the Red Sea is deemed unsafe. However, he mentioned the administration has not yet observed specific effects on the U.S. economy. Kirby emphasized the importance of the Red Sea as a key international waterway, with a substantial percentage of global maritime trade, grain trade, oil transport and liquefied natural gas passing through it. Rerouting vessels could disrupt the movement of essential goods and humanitarian assistance.

Winter wheat drought footprint half of year-ago... As of Jan. 2, the U.S. Drought Monitor showed 55% of the U.S. was covered by abnormal dryness/drought, up one percentage point from the previous week. USDA estimated 32% of U.S. winter wheat areas were covered by drought, up two points from the previous week but half of last year at this time.

In HRW areas, dryness/drought covered 79% of Kansas (3% D3, no D4), 65% of Colorado (2% D3, no D4), 45% of Oklahoma (no D3 or D4), 60% of Texas (6% D3 or D4), 40% of Nebraska (7% D3 or D4), 21% of South Dakota (no D3 or D4) and 61% of Montana (no D3 or D4).

In SRW areas, dryness/drought covered 93% of Missouri (1% D3, no D4), 52% of Illinois (no D3 or D4), 89% of Indiana (no D3 or D4), 48% of Ohio (no D3 or D4), 59% of Michigan (no D3 or D4), 99% of Kentucky (no D3 or D4) and 100% of Tennessee (47% D3 or D4).

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Viterra grain workers set to strike in Saskatchewan... More than 400 Canadian workers at grain handler Viterra are set to strike on Friday in Saskatchewan, pending a last round of talks, the Grain and General Services Union said. Negotiations have lasted more than a year around key issues of wages, work/life balance and “workplace respect,” according to a notice on the union’s website. The strike could begin as early as Jan. 5 at 2 p.m.

Union and Viterra officials were scheduled to meet in Regina for a second straight day with a federally-appointed mediator. Viterra may consider a lock-out if an agreement cannot be reached, and is working on contingency plans to minimize disruptions for customers, the company said in a statement.

Cal-Maine Foods losses about 3% of its total flock to HPAI outbreaks... U.S. egg company Cal-Maine Foods reported late Wednesday a sharp decline in quarterly earnings. The company said it lost about 3% of its total flock to outbreaks of highly pathogenic avian influenza (HPAI) at it some of its Kansas facilities.

Key takeaways from December Gallup poll on U.S. gov’t officials’ approval ratings... The job approval ratings of various top U.S. government officials are based on a Gallup poll conducted in December. Here are the key points:

• No major U.S. government official currently enjoys majority job approval from the American public.
• Chief Justice John Roberts of the Supreme Court has the highest approval rating at 48%, followed closely by House Democratic Leader Hakeem Jeffries at 46%.
• Senate Republican Leader Mitch McConnell has the lowest approval rating at 27%, with President Joe Biden not far ahead at 39%.
• Other key officials in both legislative and executive branches have approval ratings ranging from 40% to 45%.
• Chief Justice Roberts and Federal Reserve Chair Jerome Powell have seen the most significant declines in their approval ratings since 2021.
• Strong partisan differences exist in the approval ratings, with Republicans generally approving more of Republican leaders and Democrats favoring Democratic leaders.
• Overall, there is no unifying figure with broad bipartisan support among the current leadership in the White House, Congress, or the Supreme Court.
• Despite the low approval ratings for individual leaders, Americans generally rate these leaders more favorably than the institutions they represent, such as the Supreme Court and Congress.

Controversial pig antibiotic remains in U.S. food supply... Eight years ago, U.S. regulators acknowledged a mistake regarding an antibiotic called carbadox that was approved for use in pigs in 1972. This drug, which is administered to animals Americans consume as lunchmeat and hot dogs, is now raising concerns about potential carcinogenic residues, according to Bloomberg. Originally, regulators believed the residues of carbadox wouldn’t pass on to humans and pose a cancer risk. However, in the early 2000s, an international committee found flaws in the testing method used to make this assumption. The U.S. Food and Drug Administration (FDA) confirmed the same in 2016.

Despite evidence that removing carbadox from the market would reduce consumers’ lifetime cancer risk, the drug is still in use in the United States. Carbadox is banned in Europe and Canada, but Phibro Animal Health Corp., which sells it as Mecadox, has resisted efforts to withdraw it from the market.

In November, FDA announced plans to revoke the testing method used to determine carbadox residues’ impact on humans and withdraw approval for the drug. Although this isn’t FDA’s first attempt to remove carbadox, it’s part of a lengthy process. Phibro continues to assert the safety of carbadox.

While FDA’s recent move suggests readiness to eliminate carbadox from the food chain, Phibro is expected to challenge this decision, potentially prolonging the process. FDA hasn’t explicitly advised against eating pork during this period but suggested alternative protein sources.