Your Pro Farmer newsletter (October 8, 2022) is now available
A logjam of ships, tugboats and barges due to low water levels on the Mississippi River is threatening to grind trade of grains, fertilizer and other goods to a halt. Impacts are wide-ranging as harvest rapidly advances, including surging freight/barge rates, plunging corn and soybean basis and reduced exports from the Gulf. Unfortunately, the forecast suggests there will be no major rain events for at least the next month to boost water levels on the lower Mississippi River, meaning conditions could worsen near-term. USDA will make big changes to its 2022-23 balance sheets on Oct. 12 as it incorporates Sept. 1 stocks, the final 2022 wheat crop estimate and any adjustments to its corn and soybean crop estimates. On the global front, economic concerns are building as rising interest rates to tame surging inflation slow growth. OPEC+ announced a major oil production cut, which threatens to tighten supplies and push up energy costs even more. The Supreme Court started hearing a case against EPA’s Waters of the U.S. definition that could have huge impacts for agriculture. On Oct. 11, the Supreme Court is expected to take up the case against California’s Proposition 12 rule – another major case for agriculture. Meanwhile, EPA may propose electric vehicles be eligible for renewable fuel credits. We cover all of these items and much more in this week’s newsletter, which you can download here.
