MARKET NEWS HIGHLIGHTS
July 28, 2021
hearing on a motion for a temporary restraining order against Rabo
AgriFinanace LLC filed by Easterday Ranches, Inc. has been delayed
to August 25th.
Rabo is trying to collect nearly $1.1 million owed it by Easterday.
Also, the court issued a sale order to approve Farmland Reserve's
$209 million bid for most of the Easterday properties. Farmland
Reserve is owned by the Mormon Church.
pork stocks in cold storage at the end of June were reported at
442.1 million pounds, down 4% from last year. Pork bellies in the
freezer were estimated at 36.5 million pounds, down 32% from last
year. Beef stock were pegged at 398.7 million pounds, (93% of last
year), while total chicken stocks were 738.4 million pounds (85% of
the previous year).
Cattle Company sued the American Akaushi Association (AAA),
HeartBrand Holdings, and Ronald Beeman over DNA identifications for
cattle bought through HeartBrand. A jury in Fort Bend County,
Texas, found unanimously that the defendants breached a contract
with Twinwood, and fraudulently concealed breaches and tortious
conduct for several years around the issue. The jury awarded a $30
million verdict against the defendants. The Akaushi breed is from
Japan, where it is known as the "Emperor's Breed". They
did not exist outside Japan until 1994, when eight females and three
males were shipped to the US, which was the beginning of the
HeartBrand herd. By 2015, full-blooded Akaushi in the US were
numbered at 1000 bulls and 8700 females. One of the major issues in
the case was that AAA is a wholly-owned subsidiary of HeartBrand,
which is different than other breed associations which are member
driven and have a diverse board of directors.
USDA July 1st
Midyear Cattle Inventory report showed the total US cattle inventory
at 100.9 million head, down 1.3 million head from a year ago. The
beef cowherd declined to 31.4 million head, down 2% year-to-year.
Beef replacement heifers also declined 2% to 4.30 million head.
Steers weighting 500 pounds and over were at 14.50 million head
(99%), while calves weighing less than 500 pounds were reported at
27.40 million head (99%).
Biden administration reportedly will delay the release of the
already late RFS volume proprosals. The EPA missed the June 30th,
2020 deadline to issue a proposal for 2021. Such a proposal was to
be finalized in November 2020. In addition, a 2022 volume proposal
was due by June 2021 and finalized by November 2022. Also, a group
of pro-petroleum senators introduced the Corn Ethanol Mandate
Elimination Act on July 20th,
legislation that would remove corn ethanol from the RFS mandate if
passed. The anti-corn-ethanol lawmakers are being countered by a
larger group of Midwest lawmakers from both parties who want to
defend the RFS but also E-15. Senators Klochuber, D-Minnesota, and
Fisher-R-Nebraska, led the introduction of a bill to allow the sale
of year-around E-15 after a federal appeals court threw out the
Trump administration's year-round E-15 rule.
across five states and collecting carbon dioxide from 30 ethanol
plants for long-term underground sequestration, the $4.5 billion
Summit Carbon Solutions pipeline project is the largest capture and
storage project in the world. It is targeted to be completed in
three years. About 10 million tons of CO2 will be stored
geologically. The ethanol plants involved are in North Dakota,
South Dakota, Minnesota, Iowa, and Nebraska. The pipeline will end
in North Dakota, where the carbon will be geologically stored long
tern. Summit Carbon Solutions will own the pipeline and capture
equipment at all of the plants. There are other sequestration
projects on the drawing board in the ethanol industry, including a
Valero partnership pipeline intending to span 1200 miles through
Nebraska, Iowa, South Dakota, Minnesota, and Illinois.
ADM announced it has reached an agreement to acquire Sojaprotein, a leading European provider of non-GMO soy ingredients. Sojaprotein, a Serbia-based company established in 1977, is the largest producer of plant-based protein in southern Europe. The company had more than $100 million in sales in 2020 into 65 countries. ADM also reported a second-quarter profit this week of $712 million. The strong earnings were driven by the Ag Services division thanks to significantly higher export volumes, particularly corn sales to China.