Fuel Prices Continue New Year Declines

For the second straight week, GasBuddy says the nation’s average price of gasoline has declined, falling 3.8 cents from a week ago to $3.03 per gallon. “Sluggish gasoline demand has led to the national average easing again and brings back the potential for the national average to drift under $3 per gallon for the first time since 2021,” says Patrick DeHaan of GasBuddy. “With a record rise in gasoline inventories last week as demand was anemic during the holidays, motorists have provided the catalyst for falling prices.” He also says if demand remains weak, it’s possible gasoline prices could fall further. In addition, refinery issues in California have also eased, which will soon cause prices to decline in California, Nevada, and Arizona, possibly providing momentum for a $2.99 national average. However, the better it gets now, the sharper the rise could be ahead of spring, as prices could start rising by mid-February.

Taylor Leading Trade Mission to India

USDA’s Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to India from April 22-25. USDA is now accepting applications from U.S. exporters who wish to join the trade delegation. “There is no larger untapped market in the world for U.S. agriculture than India and its 1.4 billion consumers,” Taylor says. “We achieved notable tariff reductions this year on chickpeas, lentils, almonds, walnuts, apples, frozen turkey, and many other products that will open market opportunities for U.S. farmers in the world’s most populous country.” Total U.S. agricultural and related product exports to India, Nepal, and Sri Lanka exceeded $2.5 billion in 2022. January through October 2023 exports reached more than $1.7 billion. India leads the region as one of the fastest-growing economies in the world. The deadline to apply for the India trade mission is Monday, January 22. For information and to apply, go to fas.usda.gov.

Tuesday Watch List

Markets

While a winter storm works eastward across the U.S., traders remain attentive to the latest forecasts for South America. The U.S. Commerce Department's trade deficit for November is set for 7:30 a.m. CST, the source of ag export data USDA will make available later Tuesday morning. The Energy Department's Short-term Energy Outlook is due out Tuesday.

Weather

A major winter storm continues to build across the middle of the country but is pushing east for Tuesday, which is spreading heavy snow across the Midwest and heavy rain for the East Coast. With strong winds circling the low-pressure center, blowing and drifting snow along with near-blizzard conditions will continue in the Plains and Midwest and create other hazards for those in the South and East. Heavy showers and thunderstorms may be severe in the Southeast. Another large winter storm is going through the Pacific Northwest with widespread heavy snow and wind, but will be weaker as it crosses the Rockies into the Northern Plains and Prairies later today

Food Price Index Drops in December

The U.N.’s Food and Agricultural Organization says world food prices dropped in December. The Food Price Index, which tracks monthly changes in the prices of globally traded commodities, averaged 188.5 points in December, down 1.5 percent from November and 10 percent lower than December 2022. For 2023, the index was 13.7 percent lower than the average value of 2022, with only the international sugar price index higher during the period. The Cereal Price Index rose 1.5 percent from November, but the yearly index was 15 percent below 2022. The Vegetable Oil Price Index dropped 1.4 percent from November, and for the year was 33 percent below 2022. The Sugar Price Index dropped 17 percent from November, but still finished 15 percent higher than December 2022. The Meat Price Index dropped one percent from November, hitting a level of two percent below December 2022. The Dairy Index rose 1.6 percent from November.

U.S. Wheat Associates Launch Stewardship Video Series

The time and effort American farmers put into caring for the land makes for a story that isn’t shared often enough. A new video series from U.S. Wheat Associates aims to change that for overseas wheat buyers by focusing on how producers help feed the world while also acting as stewards of soil, water, and the environment. USW’s “Stories of Stewardship” project goes right to the source. Five wheat farmers in five different states appear on camera from their farms to talk about their work and to assure economic security for the next generation of farmers by leaving their land in better shape than it was when they started farming it. “Consumers around the world want to know how their food is grown, and U.S. wheat is definitely a food ingredient,” says USW Vice President of Communications Steve Mercer. Stories of Stewardship can be seen on the USW website and Facebook page.

USGC Touts U.S. Corn Quality in China

The U.S. Grains Council’s office in Beijing, China, recently hit the road to present the 2023-2024 Corn Harvest Quality Report, discuss sorghum opportunities, and protect market share for U.S. coarse grains. The Council conducted a corn quality roadshow and seminar in two of China’s most populated provinces. “More than 60 traders and end-users from all over China attended our seminar to learn about the harvest quality of our 2023-2024 U.S. corn crop and other critical topics affecting the global coarse-grain market,” says Manuel Sanchez, USGC Director in China. “As one of the primary destinations for American corn and sorghum, it’s vital that the Council engage with customers in China to share the latest market information.” In addition to reviewing the report, the seminars welcomed speakers who discussed the challenges and opportunities for corn globally, the current drought hitting the Panama Canal, and a 2023 U.S. sorghum harvest and market outlook.

Midwest Weather Staying Warmer and Drier Than Normal

The Midwest Climate Hub says warm and dry was the theme during December in the North Central U.S. There have been exceptions, including a Christmas system that dropped multiple inches of precipitation in certain areas. The region saw both one and two-class improvements and degradations in drought status, and concerns are starting to weigh heavily on whether soil moisture will be recharged this winter. The next three to five months are expected to follow a typical El Niño weather pattern overall. That means temperatures will lean warmer for the region, and conditions will be drier for the northern and eastern states in the Midwest. It’s about the 180th week of D1 drought in parts of Iowa, which is the longest stretch since the 1950s. Exceptional drought continues in southeast Nebraska, with some places in exceptional drought for the past five months. Temps have been above normal for the last 30 days.