Commodity Plunge Tied to Several Factors, Including China, Weather and the Fed
If you thought EPA would announce RFS details Thursday, you were wrong
In Today’s Digital Newspaper
Market Focus:
• Equities plunge in early trading
• Today is new federal holiday, but markets open, and reports delayed
• Fed’s Jim Bullard sees first interest rate hike coming as soon as 2022
• Yellen won’t comment on tax
• Fed Chair Powell to testify on lending, recovery
• Record $756 bil. flowed into Federal Reserve’s reverse repo facility on Thursday
• World Bank rebuffs El Salvador’s plan to adopt Bitcoin as legal tender
• Uncle Sam is selling seized crypto
• Soybean futures yesterday erased 2021 advance
• How commodity analyst and trader Richard Crow sums up the markets
• Record-breaking heat will continue across large portion of western U.S., central Plains
• More northern U.S. crops to the coast through Canadian rail?
• Ag demand update
• Money flow key moving forward for commodity sector
• Argentine corn yields continue to impress
• French wheat ratings hold strong
• Russian wheat export duty climbs, up $10 from the start of June
• Boxed beef market retreat continues
• Hogs drop the daily limit for second day in a row
Policy Focus:
• Bipartisan $1 trillion infrastructure package continues to gain momentum
• Democrats began discussions on separate $6 trillion infrastructure package
• Map shows broadband gaps & needs… why N.D. is better than other rural states
Biden Administration Personnel:
• Beaudreau wins Senate confirmation to Interior post
• Senate panel to consider NTSB chair nominee
China Update:
• China announces efforts for shipping and freight companies
• China focus on commodity prices continues
• China pushing tougher controls on fertilizer, grants farmers subsidies to help
• China remains an aggressive importer of grains and pork, unfazed by high prices
• Chinese officials are drawing up plans to further loosen birth restrictions
Energy & Climate Change:
• To those who said EPA on Thursday would release RFS info, you were wrong
• Reuters: Refiners more than $1.6 billion short on RIN credits
• Lordstown Motors clarifies status of purchase commitments for electric pickup
Livestock, Food & Beverage Industry Update:
• USDA to reinstate animal welfare standards on organic meat
• Avocado thieves are striking groves around the world
Coronavirus Update:
• U.S. to invest more than $3 billion in Covid-19 antiviral development
• Americans can fly to Europe again
Politics & Elections:
• Jimmy Fallon on why Biden will miss Putin
Congress:
• Iraq war bill
Other Items of Note:
• ObamaCare (Affordable Care Act/ACA) survived another Supreme Court
• Cotton AWP posts another rise
• Farmworker overtime pay clears two states, more ahead
• EU glyphosate review
Remembering:
• Former Senate Ag Staff Director Robert Holifield passed away unexpectedly Wednesday
MARKET FOCUS
President Biden signed a bill making Juneteenth a national holiday immediately.
Most federal employees have today off. While federal government offices are closed, markets have opted to remain open. The Securities Industry and Financial Markets Association (SIFMA) that makes recommendations for U.S. bond markets said that Juneteenth would be incorporated in its holiday schedule in coming years. U.S. stock markets and commodity markets will also be open for trading and on regulator trading hours. A spokeswoman for the NASDAQ exchange told MarketWatch that U.S. markets operated by the exchange will remain open today, a big expiration of options and futures, and Monday “to maintain a fair and orderly market and to minimize operational risks.” The New York Stock Exchange is considering closing for the holiday next year, a spokesperson told CNBC. The Nasdaq plans to show a message of support on its Times Square building on June 19. The Federal Reserve said payment services, “including fulfillment of orders for currency and coin, which is standard practice for any federal holiday that falls on a Saturday,” will operate as normal. The Office of the Federal Register will be closed today and will not publish the Federal Register. USDA’s National Agricultural Statistics Service (NASS) said the Milk Production and Peanut Prices reports currently scheduled for release today (June 18) will move to Monday, June 21. The Commodity Futures Trading Commission (CFTC) announced the holiday will mean the Commitments of Traders data from Tuesday June 15, due to be published on Friday June 18, will instead be published on Monday June 21.
Regulators do not require exchanges to close on federal holidays, and they’re increasingly reluctant to do so. Columbus Day, Lincoln’s Birthday and Veterans Day all used to be market holidays but are no longer. The newest market holiday is Martin Luther King’s Birthday, which was added in 1998, 15 years after it became a national holiday.
Equities today: The Dow initially plunged over 400 points in early trading but tempered some of the losses, still putting the Dow on track for its worst weekly performance since January, having fallen 1.9% as of Thursday's close. Global stock markets were mixed but mostly weaker overnight. Asian equities finished narrowly mixed after early advances as the focus remained on the US Fed. The Nikkei fell 54.25 points, 0.19%, at 28,964.08. The Hang Seng Index was up 242.68 points, 0.85%, at 28,801.27. European equity markets have seen losses increase in early trading with many markets operating in negative territory since they opened. The Stoxx 600 was down 0.8% with regional markets down 0.7% to more than 1.4%.
U.S. equities yesterday: The Dow fell 210.22 points, 0.62%, at 33,823.45. The Nasdaq, however, rose 121.67 points, 0.87%, at 14,161.35. The S&P 500 was down just 1.84 points, 0.04%, at 4,221.86.
On tap today:
• U.S. Juneteenth federal holiday is observed for the first time. The actual holiday falls on June 19, a Saturday this year (see related items below and above).
• IMF Managing Director Kristalina Georgieva speaks at the Brookings Institution. (10 a.m. ET)
• Baker Hughes rig count is out at 1 p.m. ET.
Juneteenth is now a federal holiday. The United States is commemorating the end of slavery with a new federal holiday. President Biden signed legislation into law Thursday to make Juneteenth, or June 19, the 12th federal holiday. The House voted 415 to 14 on Wednesday to send the bill to the president. The Senate passed the bill unanimously on Tuesday under a consent agreement that expedites the process for considering legislation. Juneteenth commemorates the day in 1865 when Union soldiers brought the news of freedom to enslaved Black people in Galveston, Texas — two months after the Confederacy had surrendered and about 2½ years after the Emancipation Proclamation freed enslaved people in the Southern states.
It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983.
Gov’t holiday today. The U.S. Office of Personnel Management tweeted Thursday that most federal employees will observe the new holiday — Juneteenth National Independence Day — on Friday since June 19 falls on a Saturday this year.
The 14 House Republicans who voted against the bill are Andy Biggs of Arizona, Mo Brooks of Alabama, Andrew S. Clyde of Georgia, Scott DesJarlais of Tennessee, Paul Gosar of Arizona, Ronny Jackson of Texas, Doug LaMalfa of California, Thomas Massie of Kentucky, Tom McClintock of California, Matthew M. Rosendale of Montanta, Ralph Norman of South Carolina, Mike D. Rogers of Alabama, Chip Roy of Texas and Thomas P. Tiffany of Wisconsin.
Texas was the first state to make Juneteenth a holiday in 1980. Now, 49 states and the District of Columbia recognize it as a holiday. Juneteenth is an official paid holiday for state employees in Texas, New York, Virginia, and Washington.
Fed’s Jim Bullard sees first interest rate hike coming as soon as 2022. St. Louis Fed President James Bullard told CNBC he sees an initial interest rate increase happening in 2022 as inflation picks up. That’s even faster than the consensus expectation for the first increase to happen in 2023. “You love to have an economy growing as fast as this one, you love to have a labor market improving the way this one has improved,” he said of current conditions.
Yellen won’t comment on tax cap. U.S. Treasury Secretary Janet Yellen declined to offer a position on removing a $10,000 cap on deductions for state and local taxes during a House hearing. Some Democrats have been pushing to repeal the cap, which would cut taxes for high-income households and would disproportionately benefit Democratic-leaning states such as New York, New Jersey or California. Republicans created the cap in 2017 to help offset the costs of a tax cut package.
Powell to testify on lending, recovery. The House Select Subcommittee on the Coronavirus Crisis plans to hold a hearing with Federal Reserve Chairman Jerome Powell on Tuesday to assess the Fed’s emergency lending programs and current policies, according to a statement. The hearing will also review the outlook for the Fed’s asset purchase program.
Market perspectives:
• Outside markets: The U.S. dollar index is firmer in early action with most foreign rival currencies lower against the greenback; it hit another two-month high overnight. The yield on the 10-year US Treasury note has eased to trade under 1.5% with most global government bond yields also weaker. Bloomberg reports the U.S. Treasury yield curve has seen its biggest two-day tightening of spreads between shorter-term instruments and longer-term instruments since March of 2020, following the Wednesday FOMC meeting. The yield on the 30-year bond dropped to 2.07%, with investors pulling back their inflation bets after Fed officials signaled two rate hikes by the end of 2023. Gold futures declined 4.5% on Thursday, the largest drop in over 10 months. That took gold down to $1,777.80 a troy ounce, its lowest since early May. Today, gold and silver futures are higher ahead of U.S. trading, with gold trading above $1,793 per troy ounce and silver above $26.42 per troy ounce.
• A record $756 billion flowed into the Federal Reserve’s reverse repo facility on Thursday, a day after the central bank boosted the return on a key part of its interest rate control tool kit.
• World Bank rebuffs El Salvador’s plan to adopt Bitcoin as legal tender. While the World Bank will continue to help the Latin American country on several matters, it said those won’t include helping it adopt the cryptocurrency, citing environmental and transparency issues. Meanwhile, Uncle Sam is selling seized crypto. The General Services Administration sells many of the assets that the federal government seizes. Today, the agency is auctioning crypto, specifically 10 lots of Bitcoin, plus some Litecoin that was seized by the IRS for nonpayment of taxes. At current prices, the haul is worth nearly $377,000.
• Crude oil remains under pressure ahead of U.S. trading after losses registered Thursday in most commodity markets. U.S. crude is trading around $70.40 per barrel and Brent around $72.40 per barrel. Futures were lower in Asian action, with U.S. crude down 38 cents at $70.66 per barrel and Brent down 43 cents at $72.65 per barrel.
• Soybean futures yesterday erased their 2021 advance, while corn and wheat have recently declined.
• How commodity analyst and trader Richard Crow sums up the markets: “Yesterday’s market has more questions than answers. Multiple discussion can be offered, but why is unknown. The best explanation is a ‘broad brush’ international meltdown. China’s initiative to control commodity prices by releasing government-owned metals on their market. Also, some discussion of China selling reserve grain on the market. The Biden administration is in discussion to issue waivers to some refineries has collapsed RIN prices and brings in the value of SBO. The biodiesel program is tied to the RFS program. Renewable oil is separate. Add the U.S. Fed’s discussion of policy changes which led the dollar on a rally. The U.S. weather over the next 10 days is supposed to bring relief to the dryness. All, or a combo of the above, led to the single largest one-day break any trader can remember.”
• Ag demand: Turkey issued an international tender to buy around 395,000 MT of red milling wheat. South Korea’s Feed Leaders Committee bought around 65,000 MT of animal feed corn to be sourced from global origins. South Korea’s Major Feedmill Group bought an estimated 136,000 MT of animal feed corn, likely from South America. Iran’s Government Trading Corporation bought at least 195,000 MT of milling wheat, likely to be sourced from the Baltic States, Germany or Russia.
• Could we see more northern U.S. crops get to the coast through Canadian rail based on increased available rail capacity due to the significant increase coming in canola crush capacity? For more on this see Shaun Haney’s report (link).
• Weather outlook: Severe thunderstorms and heavy rain producing flash flooding are possible throughout the Ohio Valley today... ...Dangerous and record-breaking heat will continue across a large portion of the western U.S. and the central Plains... ...Tropical rains and an increasing threat for flash flooding are expected along the Central Gulf Coast beginning today...
Western states are at risk of electricity shortages this summer as hydroelectric power dries up. Persistently dry weather has choked off the amount of snowpack and precipitation feeding rivers and streams, and record heat waves are already straining electricity supplies. Eight major hydroelectric facilities in drought-stricken California are forecast this year to be at about 30% of their 10-year average generation. California power supplies may be tight again today as a triple-digit heat wave continues, though the state averted blackouts yesterday. It's telling residents to switch off unnecessary appliances. Meanwhile, streamflow forecasts for Utah, Wyoming, Colorado, New Mexico and Arizona are among the five driest on record.
Items in Pro Farmer's First Thing Today include:
• Money flow key moving forward for commodity sector
• Argentine corn yields continue to impress
• French wheat ratings hold strong
• Russian wheat export duty climbs, up $10 from the start of June
• Boxed beef market retreat continues
• Hogs drop the daily limit for second day in a row
POLICY FOCUS
— Bipartisan $1 trillion infrastructure package continues to gain momentum. A growing group of lawmakers and the White House are discussing how to finance a roughly $1 trillion infrastructure proposal. Five Republicans, four Democrats, and an independent who caucuses with Democrats added their names to the group of 10 bipartisan senators working on a final deal that would spend $974 billion on traditional projects, including roads, bridges, waterways, and broadband. The price tag would include roughly $579 billion in new spending.
The bipartisan group appears to have dropped a proposal to pay for part of the package by indexing the 18.4 cent federal gas tax to inflation, according to Sen. Jon Tester (D-Mont.), who noted lawmakers ditched it because “it falls directly on people under $400,000.” President Joe Biden has pledged not to raise taxes on households earning less than $400,000 and indicated he opposes a new gasoline tax.
Meanwhile, Democrats began discussions on a separate package that could cost up to $6 trillion.
— Map shows broadband gaps & needs. The Biden administration released a new broadband mapping tool (link) that shows high-speed internet needs in rural areas, as part of its push for $2 trillion legislation to fix America’s infrastructure. But it also shows how North Dakota is considerably better than most other rural states when it comes to broadband. The interactive map produced by the White House in partnership with the Commerce Department’s National Telecommunications and Information Administration is “the first of its kind,” Karine Jean-Pierre, White House principal deputy press secretary, told reporters Thursday.
Alaska, New Mexico, Idaho, and Mississippi are among the states with the most widespread needs, the map shows.
More than 30 million Americans live in communities without broadband infrastructure that supports minimally acceptable speeds, the White House said, with rural and tribal areas hit especially hard. “There’s going to have to be an active government role in order to connect those folks,” Bharat Ramamurti, deputy director of the National Economic Council, said on the Thursday call. “There’s a lot of potential we could unlock” with high-speed internet access for more people.
Why North Dakota is better at broadband. A recent report (link) by the Institute For Local Self Reliance (ILSR) found that more than two-thirds of rural North Dakotans have access to fiber broadband, compared to less than 20% of rural U.S. residents elsewhere. Rural North Dakotans are also more likely to have access to gigabit fiber broadband that’s spottily available in many urban areas. In the 1990s, a coalition of local communities banded together in frustration over US West, a then dominant network provider created by the 1982 breakup of AT&T. In a refrain all too familiar with rural citizens, US West didn’t believe that serving rural America was worth the expense. Locals disagreed, and a coalition of 15 local cooperatives and small businesses bought US West’s neglected network assets, incorporating them into their own networks. That led the way for the fiber networks of today. “Not only did it prevent the entrance of another national monopoly, but the new territories strengthened the North Dakota providers, helping them grow and achieve new economies of scale,” the report notes. “Some were even able to leverage the expansion to expand into areas served by other incumbents, creating choice for local businesses and families.”
BIDEN ADMINISTRATION PERSONNEL
— Beaudreau wins Senate confirmation to Interior post. The Senate cleared Tommy Beaudreau to be deputy secretary at the Interior Department Thursday on a vote of 88-9. He served as the first director of the Bureau of Ocean Energy Management. Beaudreau has a background as being an energy lawyer with several former fossil fuel and renewable energy clients. Sen. Bernie Sanders (I-Vt.) joined eight Republicans in opposing the nomination.
— Senate panel to consider NTSB chair nominee. The Commerce panel is set to hold a confirmation hearing next Thursday on Jennifer Homendy, Biden’s nominee to lead the National Transportation Safety Board. Meanwhile, the Senate yesterday confirmed by voice vote Pamela Melroy to be deputy administrator at NASA.
CHINA UPDATE
— China announces efforts for shipping and freight companies. China’s National Immigration Administration has introduced 16 new measures that will help optimize the business environment at ports for shipping and freight companies, according to a report from Xinhua. The efforts are aimed at “streamlining administrative procedures for foreign cargo vessels, and Chinese freight vehicles and drivers frequently crossing land borders,” the announcement said. The agency said it would offer “international shipping vessels around-the-clock customs clearance support across Chinese ports.” The goal of the effort is to save international vessels an average berthing time of 1.5 hours in Chinese ports and reduce more than 10% of time spent in customs clearance for freight vehicles on land borders, Xinhua said.
— China focus on commodity prices continues. China’s National Development and Reform Commission (NDRC) Thursday unveiled new rules for the management of commodity price indices “as part of its ongoing efforts to curb unreasonable price swings and maintain stable prices in the commodity market,” according to a report on the announcement by China Daily.
The new rules take effect August 1 and require those providing price indices to be “independent of the direct stakeholders in the commodity and service markets covered by the index, and the basic information of the index providers, the index compiling plan and other necessary information should be fully disclosed,” the report said, noting that authorities “can conduct compliance reviews and take disciplinary measure for noncompliance.” Meng Wei, spokesperson for the NDRC, said the agency will “also work with relevant parties to release batches of (reserves) in a timely manner for some time to come, to increase the market supply, ease the strain on enterprises costs and guide the prices to return to a reasonable range.” She noted that efforts to far to address unreasonable and rapid commodity price rises this year “have taken the heat out of market speculation” and that prices for items like iron ore, steel and copper have started to return to more-normal levels.
But she also issued what can be read as a clear warning to market participants: “The NDRC will closely monitor changes in the market, strengthen regulation of both futures and spot markets and maintain the normal order of the market.” Separately, the Ministry of Commerce said it would “enrich its policy toolbox” to help steam commodity price spike pressures for foreign trade companies. Import diversification has been promoted, and stable channels of commodity trade established, with joint efforts from the ministry and other authorities, ministry spokesperson Gao Feng told a regular news briefing, according to China Daily. The effort will also see the ministry focus on export credit insurance, credit support and closely monitoring commodity prices and help businesses reduce costs and expand markets.
— China pushing tougher controls on fertilizer, grants farmers subsidies to help. China is urging regions to “strengthen” supplies of fertilizer during the summer given record-setting prices and tight stocks of the chemicals. Raw material costs are soaring, and the country’s premier has called for curbs on key farm inputs as part of the government’s overall effort to stabilize grain prices and improve food security. The country’s ag ministry has pushed regional authorities to promptly detect regional shortages of fertilizer and to improve coordination of supplies. It also pushed more efficient use of the chemicals and tougher oversight of activities like taking advantage of higher prices. China announced it will grant 20 billion yuan ($3.1 billion) in subsidies to farmers to help them deal with rising fertilizer and diesel prices.
— China remains an aggressive importer of grains and pork, unfazed by high prices. China imported 3.16 MMT of corn during May, a 395% surge from year-ago, pushing its year-to-date purchases to 11.73 MMT, a dramatic 323% above last year at this time. The country’s imports of other feed grains have also soared the first five months of the year. Wheat imports of 790,000 MT during May were 3% under year-ago, but its total imports of the grain now stand at 4.61 MMT, up 89% from year-ago. China’s barley imports shot 116% higher to 1.11 MMT during May, with overall imports of 4.65 MMT for 2021 up 139% from year-ago. Its sorghum imports also jumped 125% during May to 620,000 MT. That pushes its total imports of the grain to 3.69 MMT, up 237% from year-ago. The fact these purchases came as prices were registering multi-year highs speaks to Chinese feed needs. Also of note, China imported 370,000 MT of pork during May, a 2.2% dip from last year’s strong showing. Five months into the year, its pork imports are up 14% from year-ago at 1.96 MMT.
— Chinese officials are drawing up plans to further loosen birth restrictions and transition toward policies that explicitly encourage childbirth. The government last month said it would allow up to three kids as the country's slowing birthrate and aging population becomes a concern. Link for details via the WSJ.
ENERGY & CLIMATE CHANGE
— To all those who said EPA on Thursday would release RFS info, you were wrong. As this space noted yesterday, the proposed RVO levels have not yet been sent to the Office of Management and Budget (OMB) for review, a usual step necessary before an announcement is made.
— Reuters: Refiners more than $1.6 billion short on RIN credits. “U.S. merchant refiners have amassed up to a $1.6 billion shortfall in the credits they will need to comply with U.S. biofuel laws, according to a Reuters review of corporate disclosures, an apparent bet that the Biden administration could let them off the hook or that credit prices will fall,” the newswire writes. The liability includes companies like PBF Energy Inc., CVR Energy Inc. Par Pacific Holdings and Delta Airlines. In recent weeks, there has been increasing speculation the Biden administration may ease refiners’ Renewable Fuel Standard blending obligations, with pressure mounting from lawmakers from the president’s home state of Delaware.
— Lordstown Motors clarifies status of purchase commitments for electric pickup. Lordstown Motors said in a securities filing that while it has purchase agreements for its coming electric pickup with fleet-management companies, those agreements are not binding purchase agreements. The clarification came after the company’s president said Thursday the company had “pretty binding” preorders for the Endurance pickup and enough interests from several potential buyers.
LIVESTOCK, FOOD & BEVERAGE INDUSTRY
— USDA to reinstate animal welfare standards on organic meat. USDA will be reinstating standards for animal welfare on farms that produce organic meat, standards that were withdrawn by the Trump administration. USDA Secretary Tom Vilsack announced that USDA will “reconsider the prior administration’s interpretation that the Organic Foods Production Act does not authorize USDA to regulate the practices that were the subject of the 2017 Organic Livestock and Poultry Practices (OLPP) final rule,” including meaningful outdoor access for organic chickens and other animal welfare improvements. The plan had been on public review at the Federal Register today but has since been removed (along with scores of other items on the public inspection list) due to the Juneteenth Holiday. Presumably, it means the organic rule and others will be placed back on public inspection Monday and likely would be published Tuesday (June 22) in the Federal Register.
— Avocado thieves are striking groves around the world. Farmers have turned to infrared cameras, barbed wire and security teams. The California Avocado Commission has a theft-reporting hotline. In Mexico, rival drug cartels battle for a slice of the multibillion-dollar fruit trade. The global avocado market is expected to grow from about $12.2 billion in 2020 to $17.9 billion by 2025, according to ResearchAndMarkets.com, which provides research for a swath of industries. Link to more via the WSJ.
CORONAVIRUS UPDATE
— Summary: Global cases of Covid-19 are at 177,465,609 with 3,843,095 deaths, according to data compiled by the Center for Systems Science and Engineering at Johns Hopkins University. The U.S. case count is at 33,508,906 with 600,934 deaths. The Johns Hopkins University Coronavirus Resource Center said that there have been 314,969,386 doses administered, 147,758,585 have been fully vaccinated, or 45.0% of the U.S. population.
— U.S. to invest more than $3 billion in Covid-19 antiviral development. The oral antiviral medicines, which would be designed to be taken at home and treat early symptoms, are expected to arrive by year’s end.
— Americans can fly to Europe again. Americans can add Europe to their list of summer vacation destinations — a boon for an already recovering airline industry. European Union ambassadors voted to lift travel restrictions between Europe and the U.S., along with several other countries. The vote means that U.S. travelers can go to EU nations quarantine free, regardless of vaccination status.
POLITICS & ELECTIONS
— Jimmy Fallon: “After his week-long trip to Europe, President Biden is finally back in Washington, DC. When he saw his schedule filled with meetings on infrastructure, immigration, and inflation, his first thought was, ‘I already miss Putin.’”
CONGRESS
— Iraq war bill. The House passed a measure with bipartisan support to revoke the 2002 law that authorized war in Iraq, reflecting the unpopularity among U.S. voters with the so-called forever wars.
OTHER ITEMS OF NOTE
— ObamaCare (Affordable Care Act/ACA) survived another Supreme Court challenge, with four conservative justices — including the two newest, Amy Coney Barrett and Brett Kavanaugh — joining the three liberals. Texas and other Republican-leaning states sought to strike down the law on technical arguments after Congress reduced to zero the tax penalty for failing to carry health insurance. The Supreme Court concluded that none of the plaintiffs suffered any injury from zeroing out the penalty and thus lacked legal standing to bring the lawsuit at all. Republicans said their effort to rein in the ACA through other cases would be more difficult following the Supreme Court’s ruling. Congress is now likely to battle over Democratic efforts to further expand coverage.
The court also ruled unanimously that a Roman Catholic social-service agency could refuse to work with same-sex couples while screening potential foster parents.
Separately, the Supreme Court also ruled that Nestlé USA and Cargill couldn’t be sued over alleged human rights abuses at Ivory Coast cocoa farms that are suppliers.
— Cotton AWP posts another rise. The Adjusted World Price (AWP) for cotton rose to 74.16 cents per pound, effective today (June 18), up from 72.36 cents per pound the prior week and second week in a row it is above 70 cents per pound. This also marks the highest AWP since the week of Feb. 26 when it was 75.76 cents per pound. Meanwhile, USDA said Special Import Quota #9 would be established June 24 for the import of 48,008 bales of Upland cotton, applying to supplies bought not later than Sept. 21 and entered into the U.S. not later than Dec. 20.
— Farmworker overtime pay clears two states, more ahead. Legislatures in Colorado and Washington State passed bills this year to mandate overtime pay for agricultural workers, and Oregon and Maine are considering similar measures. Link for more.
— EU glyphosate review. A draft assessment by four EU nations says glyphosate, the world's most widely used weedkiller, "meets the approval criteria for human health" and for reapproval "as an active substance to be used in plant protection products." Link for details.
REMEMBERING
— Former Senate Agriculture Committee Staff Director Robert Holifield passed away unexpectedly Wednesday evening. He served as majority staff director for former Chairwoman Balance Lincoln (D-Ark.). Holifield was 43 and is survived by his wife Kat and their three young children. Robert always took the time to explain complex policy issues in an English 101 way.
