Evening Report | Sept. 21, 2021
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SovEcon’s Russian wheat crop estimate edges higher thanks to strong showing in Siberia… The ag markets research firm SovEcon raised its Russian wheat crop forecast by 200,000 metric tons (MT) to 75.6 million MT, citing good yields in Siberia that partially offset lower crop numbers in other regions. Siberia is Russia’s largest spring wheat producing region. SovEcon expects Siberia to produce a 10.7 MMT crop this season, a 12-year high. Earlier this month, USDA estimated Russia’s wheat crop at 72.5 MMT.
Argentine deal on dredging the Parana River… As rumored, the Argentine government has officially agreed to a 90-day deal with the Belgian firm Jan de Nul to keep dredging the Parana River. The firm has handled dredging of this major grains thoroughfare for decades, but the government this year decided to bring dredging of the Parana under government management, raising concerns about increased costs and red tape for those using the waterway. The resolution says the work is urgent to "ensure the continuity of the operating conditions" of the waterway, especially since historical drought upriver in southern Brazil has lowered water levels along the river to the lowest levels in 77 years.
ASF confirmed in Haiti as thousands of migrants swarm the U.S. border… Haiti has reported its first outbreak of African swine fever in 37 years, the World Organization for Animal Health (OIE) says. It details that the outbreak began Aug. 25 near the city of Anse-a-Pitre near Haiti’s border with the Dominican Republic, which reported its first case of the virus in July. USDA confirmed Haiti’s outbreak last week, OIE said. The presence of the virus in the Americas paired with a surge in Haitian migrants at the U.S. southern border heightens concern the highly contagious disease could make its way to the U.S.
EPA rescinds 11th hour Clean Water Act change from the Trump Administration… The Environmental Protection Agency announced it has rescinded a guidance document titled “Applying the Supreme Court’s County of Maui v. Hawaii Wildlife Fund Decision in the Clean Water Act Section 402 National Pollutant Discharge Elimination System Permit Program” that was issued by the Trump administration January 14, 2021, just days before then President Donald Trump left office.
In a press release, EPA said, “The previous administration’s Maui guidance reduced clean water protections by creating a new factor for determining if a discharge of pollution from a point source through groundwater that reaches a water of the United States is the ‘functional equivalent’ of a direct discharge to such water. The addition of that factor skewed the ‘functional equivalent’ analysis in a way that could reduce the number of discharges requiring a National Pollutant Discharge Elimination System (NPDES) permit.”
Therefore, EPA says it is rescinding this guidance upon determining that this additional factor is inconsistent with the Clean Water Act and the Supreme Court decision in County of Maui v. Hawaii Wildlife Fund. The Office of Water is evaluating appropriate next steps.
Additional meetings again added for proposed RFS levels at OMB… Changes continue for the Office of Management and Budget’s (OMB) meeting schedule regarding the proposed Renewable Fuel Standard (RFS) levels from EPA. OMB had removed an Oct. 7 meeting with the Northwest Ohio Building and Constructions Trade Council, but that meeting is now back on the agency’s schedule for Sept. 27. Another session on Sept. 28 has been added with the Pennsylvania Chamber of Business and Industry.
The Biden administration will unveil its proposed biofuel blending mandates on Friday, according to Iowa Senator Chuck Grassley (R), who said farmers will not forget if the president breaks his biofuel campaign promises.
U.K. reaches deal with CF Industries to bring fertilizer plants back online… Britain has reached a deal with CF Industries for the company to restart production of carbon dioxide (CO2). The American-based fertilizer company had stopped production due to the high price of natural gas, leaving the U.K. meat industry fretting about a shortage of the fertilizer byproduct CO2. British Business Secretary Kwasi Kwarteng said the government could provide financial support to get production started at its two fertilizer plants in northern England. This comes against the backdrop of the collapse of several small energy providers due to soaring natural gas prices. This paired with ongoing Covid-19-related shipping disruptions are expected to lift food prices.
USTR Tai tells U.K. counterpart trade deal still under review... A virtual meeting between U.S. Trade Representative (USTR) Katherine Tai and U.K. Secretary of State for International Trade Anne-Marie Trevelyan saw Tai indicate the review of the U.S./U.K. trade deal was “ongoing” to “evaluate how a potential agreement” could mesh with the Biden administration’s agenda. The Biden administration has made clear that it is placing a low priority on inking new trade deals as it focuses on the U.S. economy.
A readout of the session indicated Tai and Trevelyan talked about addressing “the shared challenges posed by the market distorting practices of China and other non-market economies.”
Meanwhile, U.K. Prime Minister Boris Johnson said the U.K. still wants to do the trade deal with the U.S. but said the country “wants a good free trade agreement, a great free trade agreement.” He said U.S. negotiators were “pretty ruthless, and I would much rather get a deal that really works for the U.K. than get a quick deal.”
Biden requests military’s help at the border… The Biden administration asks Pentagon to send military to border to help regain control after thousands of Haitian migrants swarmed over the Rio Grande into Texas. The admission was the first time Homeland Security Secretary Alejandro Mayorkas has confirmed DHS is seeking the Pentagon's help. It comes amid a crisis in south-central Texas, where at least 15,000 migrants illegally crossed by the Del Rio-Acuna International Bridge late last week. Single adults are likely to be flown to Haiti, but families will be released into the country.
