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US winter wheat declines as rain misses key regions

  • : Agriculture
  • 25/04/14

A lack of rain worsened the US winter wheat crop outlook over the week ending 13 April, with crop conditions falling in four of the top five states.

Portions of eastern Kansas, as well as western South Dakota and North Dakota did receive rain in the week following the previous US Department of Agriculture (USDA) crop conditions update. However, those areas primarily received a quarter of an inch or less of precipitation, according to US National Weather Service data, providing minimal support to the developing US winter wheat crop.

As a result, the share of US winter wheat area rated in good to excellent condition fell 1 percentage point over the week, down to 47pc. Of the top five US winter wheat producing states, crop conditions fell the most in Kansas. The state, which accounts for 22pc of total US winter wheat planted acres, saw the share of acres rated in good-to-excellent condition decline 8 percentage points from the prior week, to 43pc.

Despite the decline, the Kansas remained 5 percentage points above the five-year average. However, the crop emerged early this year due to warmer than typical temperatures and has developed quickly. As of 13 April, 46pc of the crop was reported in the jointing phase, 12 percentage points ahead of the five-year average, according to USDA data. In the next two weeks portions of the crop will begin to develop its grain producing head, making additional precipitation critical.

In addition to Kansas, winter wheat crop condition also declined in Texas, Colorado, and Nebraska. Of the top five wheat producing states, Montana was the exception with the state's winter wheat good-to-excellent ratio remaining flat with the prior week at 59pc, 13 percentage points ahead of the five-year average.

Looking at the week ahead, rain is forecast across the entirety of the US high plains region. Portions of central and eastern Kansas are projected to receive an inch of rain or more, according to the US National Weather Service, adding a much-needed boost to the state's wheat crop outlook. Other portions of the region are expected to receive a quarter of an inch at most, but any additional precipitation at this point in the year will bring a boost to the crop's outlook.


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25/04/22

Bulk organic imports avoid US fees on Chinese ships

Bulk organic imports avoid US fees on Chinese ships

Minneapolis, 22 April (Argus) — The fees imposed by the US on Chinese-built vessels will not significantly impact maritime organic imports to the US due to exceptions for small bulk vessels, but containerized imports will face some fees. The US announced Thursday that it will impose fees of $50/net ton (nt) on Chinese ship operators and $18/nt, or $120/container, on Chinese-built ships. Most organic imports to the US, especially for corn and organic soybeans, use bulk vessels to ship to the US. During the 2024-25 marketing year through March, no bulk vessel bringing organic corn and soy products into the country exceeded 70,000 dwt, according to bill of lading data. The fees will exclude any Chinese-built bulk vessel with a capacity of under 80,000 dwt, according to the US Trade Representative (USTR). As a result, bulk organic imports into the US will avoid these fees, even if imported on a Chinese ship. Some organic imports are brought in using containers. For a container with 21 metric tonnes (t) of organic soybeans, a fee of $120/container would be $0.16/bushel. The fee would be similar for a container of organic corn, but organic corn is rarely imported via container. The fee for a container with 21t of organic soybean meal will be $5.18/short ton. Some exporters to the US are more exposed to the fees on containers because of higher use of containerized freight. Shipments from the Black Sea used entirely bulk vessels over the past year, which will avoid the fees. Exporters in Africa and India, however, use containers for most exports and will be more exposed. Africa supplied 50pc of US maritime organic soybean meal imports during the 2023-24 marketing year, according to Argus estimates. All imports of organic soybeans from Argentina since last May used bulk vessels because of the higher cost of containerized freight to the US. If containerized freight rates between the US and Argentina fall, some organic commodities could be exported to the US by containers. Organic imports could also face some delays because of these fees, market contacts said. Some containers may wait at port longer until a non-Chinese-built vessel is available to ship the product to the US. This would lead to longer shipping times into the US and potentially to demurrage charges. The fees will take effect in October and will escalate over the next three years. The fees on a container brought in on a Chinese-built vessel will grow each year from $120/container in 2025 to reach $250/container in April 2028. By Alexander Schultz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

USDA overhauls 'climate-smart' agriculture program


25/04/17
25/04/17

USDA overhauls 'climate-smart' agriculture program

Houston, 17 April (Argus) — The US Department of Agriculture (USDA) has begun to overhaul a program that for three years incentivized "climate-smart" practices to reduce greenhouse gas (GHG) emissions through grants to farmers, ranchers and forest landowners. USDA has cancelled the Partnerships for Climate-Smart Commodities (PCSC), a program launched during former US president Joe Biden's administration, agency administrator Brooke Rollins said on Monday. Instead, the USDA has "reformed and overhauled" the program into the Advancing Markets for Producers (AMP) initiative. According to the USDA, most of the projects under the Biden-era program "had sky-high administration fees" that resulted in considerably less federal funding being provided to farmers. The agency said it will review and potentially allow some projects to continue if they show that producers are receiving at least 65pc of federal funds. "We continue to support farmers and encourage partners to ensure their projects are farmer focused or re-apply to continue work that is aligned with the priorities of this administration," the agency said. In addition, the USDA said it will review current projects based on whether recipients of PCSC grants had at least one enrolled producer and made a payment to at least one producer before the end of last year. Any expenses incurred under the PCSC before this week's announcement will be honored, the agency said. The PCSC, which the agency launched in February 2022, had the potential to increase supply in the voluntary carbon market. It was designed to help farmers, ranchers, and forest landowners use climate-smart practices such as those that help improve and maintain soil quality of forests, promote the use of cover crops, and encourage prescribed grazing. The program funded projects that created market opportunities for products produced through climate-smart practices and used cost-effective methods for tracking and verifying resulting reductions in GHG emissions. The Biden-era program initially had funding amounting to $1bn before more than tripling to $3.5bn a few months after its launch. But the USDA under US president Donald Trump appears to be downsizing that program, and it remains unclear how many projects will be permitted to continue. The move is part of a broader effort by the new administration to review, reconsider and potentially roll back federal climate policies. The US Environmental Protection Agency is reviewing more than 30 Biden-era emissions and water regulations. In addition, the president issued an executive order last week directing the Department of Justice to review and potentially challenge state and local climate policies, calling out California's cap-and-trade program as one potential target. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada grants tariff relief to automakers


25/04/17
25/04/17

Canada grants tariff relief to automakers

Pittsburgh, 17 April (Argus) — The Canadian government will allow automakers to circumvent retaliatory tariffs to continue importing US-assembled vehicles if the companies keep making cars in Canada. Canada began taxing imports of US-made vehicles and parts on 9 April at a 25pc rate in response to a similar tariff the US had implemented. Canada's tariff on vehicle imports from the US will not apply to car companies that keep their Canadian plants running, the country's finance minister said this week. The measure attempts to prevent closures of auto plants and layoffs in the Canadian automotive sector that the US tariffs threaten to cause. Automaker Stellantis paused production at its Windsor, Ontario, assembly plant in early April to evaluate the US tariff on vehicle imports. The plant will re-open on 22 April, Stellantis said. General Motors also plans to reduce production of its electric delivery fan at its Ingersoll, Ontario plant. The slowdown will result in layoffs of 500 workers, the Unifor union said. The automotive industry in the US, Canada and Mexico has struggled to adapt its supply chains to the new tariffs because the US, Canada Mexico free trade agreement (USMCA) and its predecessor helped establish an interconnected North American auto sector. In another measure, companies in Canada will get a six-month reprieve from tariffs on imports from the US used in manufacturing, food and beverage packaging. The six-month relief also applies to items Canada imports from the US used in the health care, public safety and national security sectors. "We're giving Canadian companies and entities more time to adjust their supply chains and become less dependent on US suppliers," finance minister Francois-Philippe Champagne said in a statement. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Risks rising for possible recession in Mexico: Analysts


25/04/17
25/04/17

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Argentina FX change, return of tax to spur exports


25/04/14
25/04/14

Argentina FX change, return of tax to spur exports

Sao Paulo, 14 April (Argus) — Argentinian farmers will likely boost exports of soybeans, corn and other products in coming months after the government loosened foreign exchange controls and President Javier Milei said export taxes will rise again at the end of June. Those two factors, combined with better weather conditions for soybean and corn harvesting should spur sales, according to Javier Preciado Patiño, director of RIA Consultores. The Argentinian peso is expected to weaken with the new exchange rules, which will move it from trading with a narrow peg to the dollar to moving within a wider, slowly expanding, range against the US currency. A weaker currency will increase the number of pesos Argentinian farmers receive in exchange for products priced in dollars, such as corn, wheat, soybeans, soybean meal and soybean oil. The new rules also get rid of a special exchange rate for exporters that left farmers with less money for their sales abroad, which will also encourage producers to sell. Milei announced the exchange rule changes on 11 April and they went into effect today. As a result, the value of the peso weakened through out the day, losing 11pc relative to the US dollar. Argentina has gone through a series of complicated exchange rate regimes over the years intended to prevent a rapid devaluation of the peso, keep dollars from flowing out of the country and allow the country's central bank to maintain enough dollar reserves to meet debt servicing needs and import necessary goods. Looming tax increase Milei's announcement today that a temporary tax reduction on ag exports will end as expected in June should also push farmers to sell more of their crops in the next few months. Until this morning, many people in the farming sector had hoped that the tax cut initiated by the government in January would be extended, or that duties would be eliminated altogether . But Milei confirmed the end of the tax cut in June during a radio interview today. The temporary cuts, which reduced the tax on soybeans to 26pc from 33pc, cut soybean product taxes to 24.5pc from 31pc, and trimmed the levy on corn, wheat, barley and sorghum to 9.5pc from 12pc, will revert to their previous levels, the president said. "Let farmers know that if they want to sell, they should sell now, because the taxes will return" as scheduled, he said. Argentinian governments have for years taxed exports of agricultural products, taking advantage of the country's status as a farming giant to raise much-needed funds, but also reducing farmers' incomes. Waterlogged fields Improved weather is also expected to boost sales, especially for soybeans, in the next few weeks. Argentina's soybean harvest got off to a slow start about two weeks ago because steady rains in many areas had left fields and rural roads too soggy for farm equipment to enter. Sunny weather in recent days has helped dry fields out, and farmers in those areas will want to pick up the pace to take advantage of improved conditions to make up for lost time, according to Patiño. The improving pace of harvest is expected to provide farmers ample supplies to sell in the coming weeks, allowing them to exploit of the advantageous currency situation. By Jeffrey T. Lewis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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