USTR Responds to Brazil’s Unfair Trade Practices

The U.S. Trade Representative’s decision, which imposes tariffs of 25 percent on most goods from Brazil, followed a year-long investigation into policies that ban American ethanol from Brazil’s market. According to Growth Energy, Brazil has gone beyond tariffs and engaged in systematic discrimination against U.S. biofuels under Brazil’s clean fuel program, RenovaBio, while disguising deforestation by Brazilian producers. Those practices have stoked unfounded claims about land use change attributed to U.S. ethanol, harming U.S. exports to the United Kingdom, Japan, and the European Union. “For nearly a decade, Brazil has unfairly blocked U.S. ethanol imports, while their own producers enjoy complete and unfettered access to American markets,” says Growth Energy CEO Emily Skor. “That imbalance has caused extraordinary harm to U.S. farmers and ethanol producers.” Growth Energy applauds the Trump administration for standing up against Brazil. The organization says it looks forward to working with USTR on additional remedies to level the playing field for American farm exports.

Wildfire Smoke Triggers ‘Dangerous’ Air Quality

Wildfire smoke blowing across the Great Lakes and into the Northeast is creating significant air quality concerns in major cities like Toronto, New York, and Boston, according to AccuWeather. In some areas, the smoke can be very thick, causing the air quality to be hazardous. AccuWeather expert meteorologists are forecasting hazy conditions across many major U.S. cities, including Philadelphia, Cleveland, Chicago, Detroit, and Washington, D.C. More significant impacts are expected across Toronto and southern Canada, Wisconsin, Michigan, far eastern Minnesota, much of New York, including New York City, and New England. Children, older adults, and people with asthma, COPD, or heart disease may need to limit time outdoors when air quality reaches unhealthy levels. Strenuous outdoor activity, including sports practices, running, yard work, and outdoor labor, may be more difficult or risky during smoky conditions. Keeping windows and doors closed, running air conditioning on recirculate, and using an air purifier can help reduce indoor smoke exposure.

Hawaii Becomes Fifth State to Set a Clean Fuel Standard

Hawaii Governor Josh Green signed legislation to create a clean fuel standard for the state. The new law, which has garnered support from Clean Fuels Alliance America, aims to drive demand and open a new market for biodiesel, renewable diesel, and sustainable aviation fuel, all while spurring economic activity and improving the health of citizens. The legislation tasks the Hawaii Department of Transportation with developing regulations to reduce transportation emissions by 10% from 2019 levels by 2035, and no less than 50% by 2045. “As a native of Hawaii, I am thrilled by the state's leadership in passing the Clean Fuel Standard," says Cory-Ann Wind, Director of State Regulatory Affairs for Clean Fuels. "Cleaner fuels like biodiesel, renewable diesel, and sustainable aviation fuel will play a significant role in helping Hawaii reach its climate goals.” Hawaii becomes the fifth state to pass a clean fuel standard, alongside California, Oregon, Washington, and New Mexico.

Grizzly Bear Management Returning to States

The Department of the Interior and the U.S. Fish and Wildlife Service have revised a rule for grizzly bear management that would return authority to states, but no final rules have been published. “This proposed rule acknowledges that grizzly bears have met recovery goals and the best management outcomes will happen at the state level,” says National Cattlemen’s Beef Association President-Elect and Idaho rancher Kim Brackett. “Management is most effective when policy reflects on-the-ground realities and provides the flexibility needed to address conflicts between grizzly bears, livestock producers, and rural communities.” Ranchers and other stakeholders have consistently called for greater management flexibility as predator populations have grown and conflicts with livestock and rural communities have increased. These proposed actions will be published in the Federal Register on July 17. The public comment will be open through Aug. 17. 

NCGA Recognizes Rep. Feenstra with President’s Award

The National Corn Growers Association recognizes Rep. Randy Feenstra with its highest honor, the President’s Award. Feenstra, who serves on the House Agriculture Committee, has been a long-standing champion for corn grower priorities, especially for expanding ethanol access. In May, the congressman was instrumental in passing legislation in the U.S. House authorizing the sale of year-round E15, a top priority of corn farmers, says NCGA. “The passage of year-round E15 in the House would not have happened without the tireless advocacy of the congressman, and we are grateful for his many years of service on this issue and so many others,” says NCGA President and Ohio farmer Jed Bower. Feenstra says while there is still more work to do, he remains committed to working with Senate colleagues to pass year-round E15 and send it to the President’s desk to be signed into law. 

Sixteen States Urge Action on Fertilizer Industry Investigation

Sixteen state corn organizations sent a letter to Senate Judiciary Committee Chairman Chuck Grassley and Ranking Member Richard Durbin requesting they call on the Department of Justice to expedite its investigation of the fertilizer industry. Federal Trade Commission Chairman Andrew Ferguson called for an investigation into the fertilizer industry’s business practices in late May. The letter from the state organizations emphasizes the importance of continued pressure to see the investigation through on behalf of U.S. farmers. “Announcements and reports of investigations are welcome news, but it will take decisive action to restore free and fair markets so that the same competitive environment farmers face when selling their crops is present when they purchase inputs like fertilizer,” the letter states. “It is critical for multiple strategies to be deployed to make a difference for farmers. Specifically, the DOJ must conduct their review of collusive practices in the fertilizer industry with utmost urgency.”

Friday Watch List

Markets

Friday looks to be a quiet day for reports, with CFTC to release their weekly Commitments of Traders report at 2:30 p.m. CDT, wrapping up the week with a look into trader positions as of Tuesday, July 14. Otherwise, traders will continue to monitor the ongoing conflicts in the Black Sea and Persian Gulf, as well as U.S. weather which will remain critical for the next 30-45 days.

Weather

A large plume of wildfire smoke continues to work across the Great Lakes and into the Mid-Atlantic on Friday. In addition, isolated showers will expand across the region as a system moves through Ontario. Both should help to cut temperatures back a few degrees, but high heat continues in the Northern Plains and Upper Midwest.