Kansas State University researchers report a breakthrough in developing wheat-based foods that contain lower amounts of gluten. It’s a discovery that could lessen the adverse effects of celiac (SEE-lee-ak) and other autoimmune diseases. Scientists from Kansas State, the Agricultural Research Service, and in partnership with Kansas Wheat successfully used the gene-editing technique called CRISPR (crisper) to reduce the presence of two types of gluten-coding genes. Gluten is a protein found in wheat, barley, and rye. When people with celiac disease eat gluten, their body mounts an immune response that attacks the small intestine and the small fingerlike projections that help the body absorb nutrients. Researchers admitted they were surprised that once the genes got edited, it reduced the immunotoxicity. However, gluten won’t be completely removed from wheat as it’s important for bread making. While the reduced gluten level achieved so far won’t make wheat safe for use, it’s an important step forward.
Welcome
Tuesday, January 2, 2024
Farm Equipment Dealers Expect a Tough 2024
The ag equipment market began a downward trend a year ago. Dealers say that 2024 might be their roughest year since COVID in 2020. The “Dealer Business Outlook and Trends Report” shows a combination of recovering inventories, high interest rates, and a general economic downturn that has dealers preparing to weather a storm in 2024. The new survey showed a significant drop in optimism in dealers’ new and used whole goods revenue forecasts, while parts and service revenue forecasts hit record highs. The dealers aren’t facing the kind of equipment shortages that dampened their optimism in the previous report, but price increases remain a factor despite falling from 2022 peaks. There is some degree of optimism remaining based on healthy farm financials and solid commodity prices. However, the question of how much cash farmers will bring into the new year remains in question. Revenue projections are negative as demand declines.
POET Reports a Successful 2023
POET, the world’s biggest ethanol producer, celebrated several milestones in 2023. That included multiple victories on the policy front, the grand reopening of its 34th facility, and completing the first-ever bioproducts innovation center. “In 2023, our POET team worked hard to lead the charge toward the bioeconomy of the future,” says Jeff Broin, Founder and CEO of POET. Early in 2023, the company announced that it will be growing its bioCO2 capabilities with expansions at two of its bioprocessing locations. They say it’s a testament to the company’s commitment to providing a renewable CO2 solution for its customers and creating more value from every bushel of grain. POET’s government relations efforts also played a role in securing several policy-related victories during the year. Also, Nebraska passed an E15 mandate, which unlocks access to E15 at Nebraska fueling stations and provides qualifying retailers with a tax credit for every gallon sold.
SD Pipeline Dividing Ethanol Proponents
Iowa-based Summit Carbon Solutions wants to build a pipeline in South Dakota to transport carbon dioxide from Midwest ethanol plants to underground storage in North Dakota. The company wants to gather emissions from 32 ethanol plants, including some in South Dakota. The project would be eligible for federal tax credits incentivizing greenhouse gas sequestration. Summit says no pipeline would break the Midwest ethanol industry and calls pipeline opponents “anti-ethanol.” The South Dakota Public Utilities Commission denied a building permit for Summit last year, citing county setback law violations. Corn farmers who have long supported ethanol were alarmed by the company’s use of eminent domain to acquire private land for the pipeline from roughly 160 farmers. South Dakota Farmers Union President Doug Sombke (SOMB-kee) says members feel betrayed. They supported a growing ethanol industry before facing an infringement on their property rights. Sombke says he’s furious at farmers being called anti-ethanol.
Drought-Stricken Areas Getting Winter Precipitation
Dry conditions continued across parts of the South while heavy precipitation fell across Oklahoma and parts of central and eastern Texas. Large parts of Texas and Oklahoma received between two and five inches of rainfall, which is 300 to 600 percent above normal. Average temperatures in the Midwest were well above normal, as many as ten to 25 degrees higher than typical temps. Much of the region also received above-normal precipitation, especially along the western parts of the region where the heaviest amounts reached two to four inches of rainfall, anywhere from one to three inches above normal The above-normal precipitation helped alleviate longer-term precipitation deficits in the region. Heavy precipitation fell over much of the eastern High Plains, where rainfall totals were greater than 600 percent of normal. Exceptional drought was improved in eastern Nebraska. Precipitation fell in most of the Southeast while the western U.S. remained status quo.
Ethanol Production Hits Two-Year High
The Energy Information Administration says ethanol output surged to a two-year high, and inventories hit their highest points since April during the week ending on December 22. Ethanol production rose to an average of 1.107 million barrels per day, up from 1.071 during the prior week and the highest level since October 2021. The Midwest, which produces the most U.S. ethanol, increased its output to an average of 1.047 million barrels a day, up from 1.009 million a week earlier. That was all the gains during the week as East Coast production was unchanged at 12,000 barrels a day, and Rocky Mountain output held steady at 14,000 barrels. West Coast production remained at 10,000 barrels per day for the second straight week. Gulf Coast output dipped to 24,000 barrels from 26,000 the prior week. Ethanol inventories jumped to 23.517 million barrels during the week, the highest level since April 21.
Tuesday Watch List
Markets
Back from the three-day weekend and starting a new year, traders will catch up on South American weather forecasts and any news that may have popped up over the New Year weekend. USDA's weekly report of export inspections will be out at 10 a.m. CST Tuesday, followed by the NASS report of Fats and Oils at 2 p.m.
Weather
Much of the country will be quiet on Tuesday, though a weak system will develop over Texas with some showers and more will move into the West as well. Temperatures continue to be quite mild as we start the new year.