Evening Report: Jan. 19, 2022

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Wheat damage expected to be limited due to cold temps... Limited damage will likely occur in HRW and SRW areas with the cold snap across the country, according to World Weather Inc. While temps  are forecast to be negative to single digits on Thursday in HRW areas and Thursday and Friday in SRW regions, only areas without sufficient snowcover are at highest risk for winterkill.

In the HRW area, some snow is forecast for Colorado and immediate neighboring regions. However, forecasts are only calling for 0.2 inches of moisture away from the mountains, not enough to change the drought status. Snowcover will be lacking in Nebraska and Kansas, and winterkill concerns would increase if temps get colder than expected.

World Weather predicts another cold wave Tuesday and Wednesday of next week in HRW areas. In SRW areas, World Weather says another threat will evolve during the middle of next week with questionable snowcover to protect the crops.

 

South Korea lifts Canadian beef import ban... South Korea is lifting its suspension of Canadian beef imports that it imposed after Canada detected an atypical case of bovine spongiform encephalopathy (BSE) in December, Canadian Agriculture Minister Marie-Claude Bibeau said. Last month, South Korea halted shipments after Canada reported its first BSE case in six years. China and the Philippines then followed with beef import suspensions.

 


Italy issues more ASF containment rules... On Wednesday, Italy introduced the immediate slaughter of pigs and a six-month restocking ban in two northern regions to contain a recent African swine fever (ASF) outbreak, according to the national news agency ANSA. Additional rules include strengthening surveillance and regulation of hunting and other agricultural and pastoral activities within a 10-km radius of the boundaries of the infected area.

Last week, the Italian government issued a hunting ban and several other outdoor activities in 114 rural areas of the northwestern regions of Piedmont and Liguria.

 

Wall Street banks eye 'new normal' for trading revenue...  Wall Street banks are expecting trading revenues to settle in a range between pre-pandemic levels and the highs of the past two years, according to bank executives and analysts. Wall Street banks benefited from the influx of cash from the Federal Reserve as traders were looking for ways to invest the money. However, trading revenues dropped at the end of 2021 as the Fed tightened the money supply. Some analysts believe prospects for trading businesses are better than people were anticipating and will remain above 2019 levels.

 

Scoular ships soybeans out of the new North Carolina export facility...  Scoular shipped its first container of soybeans out of its new export facility at the Port of Wilmington in North Carolina, according to company officials. The facility can ship over 100 soybean containers per week. In January 2021, the company announced plans to develop the agricultural transload facility that would be used to transfer bulk agricultural products to containers for export on ocean-going vessels. The company plans to ship soybeans from the facility to Asia.


ARC-PLC unlikely to pay for the 2022 crop... Farmers should not count on an Ag Risk Coverage (ARC) or Price Loss Coverage (PLC) payment for the 2022-crop marketing year, according to University of Illinois farmdoc agricultural economists. Farmers have until March 15 to make their safety net election. If an election is not changed, farmers will automatically be enrolled in the same option as last year.

When making an election and enrollment, the economists explain ARC-CO for soybeans and PLC for corn will give farmers the highest chance of payments. Farmers should also consider their risk management as PLC only covers price and ARC-CO covers revenue. If farmers want to purchase a Supplemental Coverage Option (SCO) crop insurance policy, they must select PLC for the commodity.

 

U.S. funds to improve waterways, expand ports... The Biden administration announced it would fund improvements to the waterway system and expand ports. More than 500 projects in 52 states and territories will be targeted, according to the White House.  

The
Army Corps of Engineers plans to complete 15 feasibility studies, the pre-construction engineering and design phase of five projects, and 19 construction projects in Fiscal Year (FY) 2022. Additionally, in FY 2022, 22 new projects will be funded in the construction account. The plan includes $732 million to fund the design and construction of Lock and Dam #25, the southernmost lock and dam on the Mississippi River.

Expanding the shipping capacity at some of the nation’s largest and fastest-growing ports, including the Port of Long Beach, is also part of the projects to get funding.



Mexican science agency recommends reduced glyphosate imports... To phase out the use of glyphosate by 2024, Mexico’s top scientific council recommended a 50% reduction in imports of the herbicide this year. Mexico’s National Council of Science and Technology (CONACYT) advised a maximum import quota of 8.26 million kilograms (kg) for formulated glyphosate and 628,616 kg for the more concentrated technical glyphosate.

In 2020, Mexico President Andres Manuel Lopez Obrador issued an executive order to phase out glyphosate and GMO corn by 2024. He said the country needs to be food self-sufficiency without using glyphosate.

Mexico’s top farm lobby CNA has opposed the plan. It argues neither glyphosate nor GMO corn are harmful to health and that reducing their use could affect farm production.

 

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