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Ruveon on Friday said it would withdraw petitions that requested antidumping and countervailing-duty investigations into imports of glyphosate-based herbicides from China after running into a buzzsaw of criticism from U.S. farm groups who noted the Bayer subsidiary is the only U.S. maker of the product.
- “As the sole American glyphosate producer, Ruveon takes very seriously its role in supporting American farmers’ ability to feed, fuel, and clothe the world,” the company said in a news release. “Since filing our petitions, we have engaged directly with farmers and agricultural trade associations to hear their perspectives. Today’s decision reflects our commitment to putting farmers first and meeting their evolving needs, especially during this challenging farm economy.”
“We appreciate Ruveon’s decision to withdraw the antidumping and countervailing duty petitions after listening to the concerns about affordability and access raised by ASA, soybean farmers, and other agricultural organizations,” said American Soybean Association President Scott Metzger, in a statement.
“We commend Ruveon for listening to its customers and withdrawing this petition,” said National Corn Growers Association President Jed Bower, in a statement. “As we have highlighted multiple times in recent weeks and months, input costs are a top concern of growers and for good reason. Actions like the ones Ruveon planned to take would have made an already bad situation even worse.”
“This is welcome news at a time when America’s wheat farmers are already facing extreme financial pressures from factors beyond their control, including inflation and geopolitical disruptions that have driven up the cost of planting, growing, and harvesting wheat,” said National Association of Wheat Growers CEO Sam Kieffer, in a statement.
In a July 1 open letter, Ruveon defended the petitions and pledged to keep the cost of the company’s glyphosate-based products based on the cost of production, with the intent to keep prices for glyphosate-based products in line with the most recent three-year average – assuming production and energy costs remain largely the same.
On Friday, Ruveon said that pledge had been contingent on the relief the company had sought in the petitions.
Ruveon said that it would instead continue with its current “dynamic pricing” approach, based on the price of generic glyphosate products.
“Ruveon will continue to deliver high-quality Roundup brands and glyphosate products with its consistent strategy of pricing dynamically versus generic pricing,” the company said.
Potential wheat export hit: Wheat futures led the way for the grain and soy complex this week, with September hard red winter wheat up 56 cents on the week, ending Friday at a seven-week high, while September soft red winter wheat rallied 42 ½ cents, with the rally attributed largely to escalating damage to vessels and ports as a result of intensified fighting between Russia and Ukraine. Fuel shortages in Russia (see item below) are also on the radar.
- Andrey Sizov of the SovEcon Black Sea research consultancy told Reuters: “If there is no military solution to open up the Sea of Azov, and the situation drags on for most of the second half of the year, Russia could fall short of supplying the global market by 5 to 10 million tons of wheat.”
Diesel crunch: The war in Iran and the intensifying Black Sea fight between Russia and Ukraine have put the spotlight back on crude oil, but it’s diesel prices that are poised to create pain on the farm while ringing alarm bells across financial markets about the potential for resurgent inflation pressure. Russia earlier this month banned diesel exports due to damage to its refining operations and a domestic fuel shortage.
Bridget Payne, head of energy forecasting at Oxford Economics, observed that Russia normally exports nearly half of the diesel it produces and accounts for around 12% of global diesel exports, making it the world’s second-largest supplier after the U.S. That means the impact of the country’s ban on diesel exports extends well beyond its traditional customers.
- “Although Europe and the U.S. no longer directly import Russian fuel, removing these cargoes forces buyers such as Brazil and Turkey to compete with Europe and other importers for alternative supplies, particularly from the U.S., pushing prices higher across regions,” she wrote.
The tight diesel supplies come as farmers continue to feel the pinch from high input prices from fuel to fertilizer and other essentials. The latest Purdue-CME Ag Economy Barometer showed a further drop in farmer sentiment in June, driven by high input costs. Concerns were also reflected in an American Farm Bureau Federation study released this week that warned producers growing nine principal crops are set to lose $32 billion in 2027 without federal assistance, compared to $31 billion in 2026 – with every crop analyzed expected to remain below breakeven next year. Read the full story here.
Beef price-fixing claims: A federal judge granted class-action status to lawsuits by consumers and other beef purchases who are seeking billions of dollars in damages from the nationals’ biggest meatpackers for allegedly conspiring to inflate prices, Reuters reported. Minnesota-based U.S. District Judge John Tunheim on Thursday certified class actions that include grocers, wholesalers, restaurants, caterers and consumers.
The lawsuits accuse Cargill, JBS, National Beef and Tyson Foods of coordinating to restrict beef supplies and push up prices between 2014 and 2020, the report said. The defendants have denied any wrongdoing. The report said the judge declined to certify so-called injunctive relief classes covering demands that the companies change their business practices.
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