Agri-Pulse DriveTime

Legislators are back in Washington with a full agenda and a clock ticking down to the November elections. Farmers and ag interests are in town lobbying for a new farm bill and energy policy. Crops are maturing and the harvest pace is picking up across the nation. 

Soybean traders were caught leaning toward the bullish side of the market as the USDA increased it's estimated production forecast for the season ahead. As expected, the September crop report lowered both the average corn yield and total production. The USDA lowered expectations for Brazilian corn exports and left its Argentine corn forecast unchanged at 63 mmt. 

Crude oil prices continued to climb while stock prices turned lower. Traders see inflation fears pushing the Fed to raise interest rates at its meeting next week. Commodity prices rallied in front of tomorrow's USDA WASDE report. High sulfur prices may be putting agriculture and food security at risk.

Diesel fuel prices are setting records this week just as farmers are ramping up machines to facilitate this year's harvest. The increased expense threatens to offset any relief from the recent bounce in commodity prices. A survey of market analysts suggests traders are expecting the USDA's WASDE estimates Friday will show lower corn and soybean production. 

The nation's agriculture mourns the loss of Iowa soybean farmer, Ray Gaesser. He worked to develop farm policy and support renewable fuel with fellow ag leaders, but was also an advocate for soil health and climate smart ag practices. In a 2023 interview, he gave testimony to conservation tillage on his own farm.

Farmers are turning to practices to improve soil health to maintain nutrients and boost productivity. Soybean leaders say Small Refinery Exemptions were never intended to stay in the nation's renewable energy program.

New estimates suggest better farm income for the year ahead, but input costs continue rising. Reports suggest th EPA is considering eliminating a federal requirement that states notify the public and seek comment before issuing air pollution permits for data centers and other industrial facilities. Private crop estimates expect the USDA to lower crop production in next week's WASDE report. 

Commodity leaders continue to call on legislators to complete work on a new farm bill. John Bode with the Corn Refiners Association has faith in the U.S. trade team and says Canada is too important to ignore as a trading partner and calls on the Trump administration to approve an updated USMCA. 

Conflict between the U.S. and Iran escalated again today further clouding the outlook for safe passage through the Strait of Hormuz.  Agriculture Secretary Brooke Rollins announced plans to modernize USDA data collection. Undersecretary Richard Fordyce says it will be an evolution toward greater accuracy. 

The Trump administration announced it's decision on Small Refinery Exemptions today. The EPA's action on the matter is pending.  Sources say Trump will meet with members of his cabinet and the oil industry tomorrow to discuss how to lower gasoline prices.  Agriculture Secretary Brooke Rollins announces policies to help cattlemen rebuild their herds. 

Fed Reserve Chair Kevin Warsh said the fed may have to take action to address interest rates that are still running higher than target levels. President Trump took aim at the four largest meatpackers today suggesting farmers should be given the right to process their own food. Meat industry officials say food safety is a concern. 

Clean Fuels Alliance America joined a chorus of other members of the Fuels America Coalition in a letter to President Trump warning of plans to increase Renewable Fuel Standard exemptions for small refiners. A Brazilian crop agency expects similar soybean planted agency in the country this year. 

Cattlemen across the country are speaking out against President Trump's plan to import millions of pounds of foreign beef tariff free over the next 90-days. Agriculture leaders say the plan undercuts domestic beef prices, discourages producers from expanding herds and ultimately won't save consumers money for beef in the meat case. 

Delegates of the Indiana Farm Bureau Federation met to discuss policy for the coming year. President Randy Kron says the farm bill and E15 legislation were at the top of the priority list, but debate over data centers took an extended period of time. Kron says it's a challenging discussion. 

U.S. corn and soybean crop condition fell again this week according to USDA's NASS. Crops are advancing to maturity in overall good growing conditions. Farm groups are calling for a resolution to trade friction between the U.S. and Canada. The Trump administration is threatening additional sanctions on Iran and countries that have economic ties to the Islamic regime. UAW employees rejected a contr...

American Farm Bureau Federation President Zippy Duvall believes the Senate will approve a farm bill and is hopeful for E15 legislation and additional financial support for farmers. The National Cattlemen's Beef Association strongly opposes President Trump's plan to import beef and sell below market prices. 

A bipartisan group of agriculture leaders discussed the deepening farm crisis today and launched an online platform to gather farmer voices. Former NCGA CEO Jon Doggett says the Congress gets a failing grade.  Thus far field samples this week of corn and soybeans have been underwhelming on the Pro Farmer Midwest Crop Tour.  

Senate Majority Leader John Thune told a farm audience in South Dakota today that Republicans are looking at all options to approving a farm bill. President Trump has made his selection for a the new lead at the Food and Drug Administration. The minutes of the last Fed Reserve meeting showed a divided vote on interest rates. 

Control of the Strait of Hormuz remains in question as President Trump said he has no plans for future negotiations with Iran and threatened Oman for reportedly seeking a deal to manage the waterway with Iran. Ag Secretary Brooke Rollins announced plans to rescind the "roadless rule" for the nation's forests. Canada and the U.S. are attempting to negotiate a trade deal to avoid a significant incre...

Corn and soybean condition declined again last week according to the USDA's Weekly Crop Progress report today. Crops continue to mature at faster than the average pace. The latest update from the Chicago Fed Reserve Bank suggests land values held steady in the second quarter. Farm loans reporting repayment issues have grown this year. 

Opposition continues to mount against the proposed merger between two major rail companies. House Agriculture Committee Chairman Glenn "GT" Thompson says he believes Congress will approve a farm bill and hopes labor reform legislation sees action before the end of the year. 

The Trump administration says more than 40 countries are involved in a scam to bypass U.S. tariffs. A recent report says the U.S. could have lost between $10 and $100 billion dollars. Wholesale inflation dropped last month. The Labor Department's producer price index rose 4.7% from July a year ago. The NWS Climate Prediction Center suggests the current El Nino could be the strongest since 1950.

The USDA's WASDE report today revealed increased acres for both corn and soybean crops. Corn yield per acre fell but total production was forecast above 16 billion bushels. Soybean yield was also down, but production was forecast at a record level. 

The USDA's August WASDE report tomorrow may include smaller production estimates and tighter stocks than previous reports. Acreage reports could be key to the results. Iowa Senator Charles Grassley is hopeful for better results on a new farm bill after the summer recess. 

The USDA reports corn and soybeans continue to mature at faster than the average pace while crop condition remains well below a year ago. House Ag Chair Glenn "GT" Thompson shares his resolve to approve a new farm bill.  The FDA proposed a rule to enhance oversight of substances claimed to be "Generally Recognized As Safe".