Evening Report | October 17, 2023

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Jordan fails to secure House speaker role in first vote... Rep. Jim Jordan (R-Ohio) won 200 votes, short of the 217 needed to win the House speaker role, as 20 of his fellow Republicans voted against him. All 212 Democrats voted for their leader, Hakeem Jeffries. So, the House remains leaderless. The House immediately recessed following Jordan’s defeat. It is not clear how many of Jordan’s Republican opponents would hold firm in subsequent votes.

Abiove expects record Brazilian soybean crop in 2023-24... Abiove, a trade group representing large soybean traders and processors, forecasts Brazil’s 2023-24 soybean crop will be a record 164.7 MMT, topping last year’s crop by 7 MMT. Abiove expects Brazil to export 100 MMT of soybeans and crush 54 MMT of the crop domestically in 2023-24.

Romania increases access for Ukrainian grain shipments... Romania has set up five anchorages for roadstead transshipment of Ukrainian grain in the Constanta port, which was the result of joint work and talks between the Ukrainian government, the Ukrainian Grain Association (UGA) , the European Commission and the Romanian government, Ukrainian media reported. UGA also said it had collaborated with the Ukrainian government, ministries and other central authorities to lobby for the development of the port infrastructure on the Danube River, improve efficiency and make logistics to Danube ports cheaper, in particular cheaper rail transportation of Ukrainian grain across Moldova, as well as the transfer of the Sulina Canal in Romania to round-the-clock operation. UGA said these steps will make it possible to ship between 30 MMT and 35 MMT of Ukrainian grain per year.

SovEcon cuts Russian wheat crop estimate... Black Sea ag consultancy SovEcon cut its 2023 Russian wheat production forecast by 200,000 MT to 91.6 MMT due to deteriorating crop prospects in the Urals and Siberia, the key spring wheat producers. SovEcon expects a substantial share of these areas will remain unharvested because of slow progress.

SovEcon said, “Despite a slight reduction in the Russian wheat crop estimate, wheat supply will remain high, continuing to exert pressure on global prices. At the same time, the main issue for Russian exports currently is not total supply volume, but infrastructural bottlenecks and governmental intervention.”

Ethanol advocates suggest diverse approach to transportation amid EV push... Ethanol advocates are advocating for flex fuel vehicles rather than solely promoting electric vehicles (EV). They argue the government should explore a range of strategies to address transportation needs effectively.

Meanwhile, the Supreme Court has declined to hear a challenge to Minnesota’s clean car rule, which mandates that new-car dealers increase their inventory of hybrid and all-electric vehicles to combat global warming. The clean car rule, set to take effect next year, was adopted by Minnesota, making it the first Midwest state to adopt California’s tailpipe emissions standard. It does not apply to existing vehicle stocks or used car sales.

In comments submitted to the National Highway Traffic Safety Administration, ethanol proponents emphasized the importance of avoiding an exclusive focus on electrification when updating fuel efficiency standards. They pointed out the current reliance on imported raw materials for batteries underscores the need to plan for fuel diversity within the transportation system.

The Biden administration has set an ambitious goal for electric vehicles to constitute 50% of new vehicle sales by 2030.

USDA advances final rule on updates to bioengineered foods list to OMB review... USDA’s Agricultural Marketing Service (AMS) forwarded the final rule regarding the 2020 annual update to the list of bioengineered foods to the Office of Management and Budget (OMB) for review. Earlier this year, AMS indicated its intention to consider comments on proposed updates to the list and publish a final rule in response to recommended amendments as part of the National Bioengineered Food Disclosure Standard. The anticipated timeline was for the final rule to be released in June 2023.

USDA invests over $50 million in domestic fertilizer production expansion, double cropping support... USDA announced awards totaling $52.6 million under the Fertilizer Production Expansion Program (FPEP), aimed at boosting domestic fertilizer manufacturing, advancing innovative fertilizer technologies, and reducing costs for farmers. Seventeen new projects will receive funding from a $900 million grant program created to expand U.S. fertilizer production in the wake of Russia’s invasion of Ukraine.

Through two rounds of awards, $121 million has been granted to 33 projects to begin or expand independent and innovative domestic production of fertilizer. More awards are expected in coming months, said the USDA. The maximum grant is $100 million. 

Additionally, USDA is facilitating double cropping practices by expanding insurance coverage in approximately 1,500 counties where double cropping is feasible. This initiative aims to enhance food production and lower costs for American families, with significant increases in insured acres for second crops like grain sorghum and soybeans.

Yellen: U.S. economy ‘in a good place’... Treasury Secretary Janet Yellen says higher interest rates may persist while insisting the U.S. economy is “in a good place.” The interest on U.S. debt, which stands at 98% of economic output, “remains manageable,” Yellen said Monday in an interview with Sky News. “Higher interest rates may persist although that’s not clear,” she said. “Our fiscal situation is by no means unsolvable. We have to be attentive to it.”

Yellen also said the U.S. can “absolutely” afford to provide fresh aid to Israel as it battles with Hamas militants while continuing to offer significant assistance to Ukraine. “Americans can certainly afford to stand with Israel and to support Israel’s military needs,” she said. “And we also can and must support Ukraine in its struggle against Russia.”

Poland, Norway report bird flu cases... Poland, the European Union’s largest poultry producer, reported an outbreak of the highly pathogenic H5N1 bird flu virus among poultry in the northern part of the country, the World Organization for Animal Health (WOAH) said. The outbreak was found in a backyard with 80 domestic birds, WOAH said.

Norway reported an outbreak of highly pathogenic H5N1 avian influenza in a backyard flock with 19 domestic birds, WOAH said.