IGC Report Shows Drop in Global Grain Production

The International Grains Council released its Grain Market Report highlighting key global grain production and trade forecasts. The report shows a reduction in the forecast for world total grains production (wheat and coarse grains) for 2023-2024 now at 2.297 billion metric tons, down by four million metric tons month-on-month. The decrease is primarily due to lower estimates for sorghum and barley. Despite increased carry-ins cushioning the supply outlook, carryover stocks were cut by three million metric tons to 588 million. The forecast for global grain trade in 2023-2024 is raised by eight million metric tons, driven by larger wheat and maize flows. World soybean trade in 2023-2024 is projected to increase by two million metric tons, inventories will be higher, and trade will likely reach an all-time high of 172.2 million metric tons. Global rice production for 2023-2024 is revised up by three million metric tons, leading to higher consumption.

USDA Proposes Next Steps to Fairer Markets and Transparency

The USDA announced the next steps it’s proposing to address the many complex competition issues in agricultural markets and create a fairer playing field for poultry growers and farmers. USDA is proposing the rule “Poultry Grower Payment Systems and Capital Improvement Systems.” The new rule would address a range of abuses that have occurred in relation to grower ranking payment systems, commonly called “tournaments.” It also addresses abuses of additional capital investment requirements that poultry companies commonly ask of their contract growers for broiler chickens. This rule is the third in a suite of Packers and Stockyards Act rules that USDA has undertaken to create fairer markets, which ultimately will lead to lower grocery prices for hardworking families. USDA is also announcing new publicly available cattle market transparency tools. These and previous actions are intended to enhance transparency, stop retaliation and discrimination, reduce costs, and support market fairness in every circumstance.

Nominations Open for FARM Excellence Awards

The National Dairy Farmers Assuring Responsible Management (FARM) Program announced the nomination period is open for the 2024 FARM Excellence Awards. These awards spotlight participating farms and FARM Evaluators that demonstrate excellence in their engagement with the FARM Program. Awards are divided into four categories: Animal Care & Antibiotic Stewardship, Environmental Stewardship, Workforce Development, and FARM Evaluator of the Year. “These awards serve as a thank you to farmers and evaluators for their efforts in ensuring best management practices in on-farm social responsibility,” says Emily Yeiser (EYE-sehr) Stepp, FARM Program Executive Director. Nominations are accepted from fellow dairy farmers, community members, extensions, cooperative and processor staff, veterinarians, themselves, or others. Nominations are due by August 1. Nominated farms must have a current FARM Program evaluation in the respective category and be in good standing with the program. For more information or to make a nomination, go to nationaldairyfarm.com.  

Sign-Up Open for Grassland Conservation Reserve Program

The USDA announced that agricultural producers and private landowners can now sign up for the Grassland Conservation Reserve Program. The sign-up runs until June 28, 2024. Grassland CRP, offered by the Farm Service Agency, is a voluntary working lands conservation program that enables participants to conserve grassland and provide important conservation benefits for wildlife, soil health, and carbon sequestration, all while continuing most grazing and haying practices. “Grassland CRP is a vital conservation tool that supports two of USDA’s top priorities: the well-being of American agriculture and the health of America’s grasslands, which provide critical environmental benefits for wildlife and carbon sequestration,” says FSA Administrator Zach Ducheneaux. “The interest from agricultural producers is at an all-time high and proves that agricultural productivity and conservation priorities are not exclusive from one another but can coexist and complement one another.” More than 2.3 million acres got accepted in the 2023 Grassland CRP Sign-Up.

Worker Layoffs and Strikes in Ag Companies

Deere and Co., the world’s top seller of farm machinery, will cut an unknown number of employees from its global production and salaried workforce. That’s according to a letter sent to employees last week that was seen by Bloomberg. Farm Policy News from the University of Illinois says the company faces rising operational costs and dropping demand. That’s from a letter signed by Chief Executive Officer John May. The announced layoffs will add to the more than 650 employees who have been or are scheduled to get laid off at Deere. Meantime, Cargill workers in Ontario began a strike last week. The beef processing facility in Guelph (GWELF) closed down last week as hundreds of workers took to the picket lines. The cost of living and the ending of a two-dollar-an-hour COVID premium were key issues raised in collective bargaining meetings. Cargill provided a statement saying it’s disappointed in the outcome.

TSCRA Announces Fall 2024 Internship Opportunities

The Texas and Southwestern Cattle Raisers Association, the largest and oldest livestock association in the Southwest, announced applications are now open for the fall 2024 internship programs. The Texas & Southwestern Cattle Raisers Association internship programs provide a one-of-a-kind opportunity for students to network with stakeholders throughout the beef industry and gain valuable experience working alongside Texas & Southwestern Cattle Raisers Association staff and leadership. All experiences are paid and offer a unique platform for students to actively engage in and contribute to association happenings. Fall 2024 opportunities include a TSCRA internship, a semester-long internship in Fort Worth, Texas, which offers a variety of opportunities in administration, communications, education, events, membership, and more. Interns will gain firsthand experience in the day-to-day functions of the association. They also offer a TSCRA Government Relations Internship, which is a semester-long internship in Austin, Texas, which focuses on various federal and state policy-related issues.

Tuesday Watch List

Markets

U.S. factory orders for April are due out at 9 a.m. CDT Tuesday, the only significant report of the day. Traders are keeping close watch on the latest weather forecasts and any news about a possible peace deal in the Middle East.

Weather

An old front across the South continues to be active Tuesday morning with a cluster of severe thunderstorms moving through southeastern Oklahoma and headed for the Mississippi River. Behind it, a front moving through the Northern and Central Plains is also producing showers and thunderstorms. This front will get more active across the Upper Midwest later today with potential for severe storms. The southern tier of the country will largely follow suit.