Latest news with #KarlPlume
Yahoo
11-07-2025
- Business
- Yahoo
Biofuel demand to soak up more than half of US soyoil production next year, USDA says
By Karl Plume CHICAGO (Reuters) -U.S. biofuel makers will consume more than half of all soybean oil produced in the United States next year as a recent flurry of federal policy moves has transformed the sector, including higher blending mandates and curbs on foreign biofuel imports and feedstocks, the U.S. Department of Agriculture said on Friday. In a monthly supply-and-demand report, the USDA sharply raised its outlook for soybean oil use by biofuel producers in the 2025/26 marketing year, which begins October 1, to a record 15.5 billion pounds, up 11.5% from its forecast a month ago and 26.5% higher than the current marketing year. U.S. soyoil exports were seen tumbling to 700 million pounds in 2025/26 as more oil is consumed domestically, down from 2.6 billion pounds in the current season. The U.S. Environmental Protection Agency last month proposed to increase the amount of biofuels that oil refiners must blend into the nation's fuel mix in 2026 and 2027, driven by a surge in biomass-based diesel mandates, along with measures to discourage biofuel imports. The moves were welcomed by the nation's fast-growing biofuels industry after months of policy uncertainty that had hobbled output of fuels made from vegetable oils like soyoil, canola oil and used cooking oil. Under the Renewable Fuel Standard, refiners are required to blend large volumes of biofuels into the U.S. fuel supply or purchase credits known as RINs from those that do. "EPA not only significantly raised the mandates but also proposed to reduce the number of Renewable Identification Numbers (RINs) generated for imported renewable fuels and renewable fuels produced from foreign feedstocks starting in 2026, which increases demand for domestically produced feedstocks like soybean oil," the USDA said on Friday. Additional incentives via state biofuel mandates and the federal 45Z clean fuel production tax credit in U.S. President Donald Trump's recently enacted budget law further fueled the outlook for soyoil use in biofuel, the USDA said. Benchmark Chicago Board of Trade soyoil futures firmed on Friday, hovering just below a 7-1/2-month peak hit on June 23. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
03-07-2025
- Business
- Mint
CME lean hogs drop as pork prices decline, cattle higher
CHICAGO, July 3 (Reuters) - Chicago Mercantile Exchange lean hog futures fell on Thursday on lower cash market prices, while cattle futures posted modest gains despite lower beef values as tight supplies continue to underpin the market, analysts said. Trading volumes were lighter than normal and investors squared positions ahead of the long U.S. Independence Day holiday weekend, with markets closed on Friday. Declining cash pork and cash hog prices have pressured hog futures this week and the market has "officially put in a seasonal top," said Rich Nelson, chief strategist with Allendale Inc. CME August lean hogs ended down 1.800 cents at 106.100 cents per pound after hitting their lowest level since June 3. The actively traded contract was down 3.8% in the week in a second straight weekly decline. The pork carcass cutout value fell for a seventh straight session, down $1.25 in Thursday's morning update at $109.50 per cwt, according to the U.S. Department of Agriculture. Cattle futures closed firm on Friday as traders weighed current tight supplies and good packer margins against a downturn in cash beef prices. CME August live cattle ended 1.600 cents higher at 214.050 cents per pound and August feeder cattle futures finished the day up 0.475 cent at 309.500 cents per pound. Monday's announcement of a phased resumption of imports from Mexico promised to help bolster supplies in the coming months after concerns about New World screwworm in herds south of the border shut off U.S. imports on May 11. The choice boxed beef cutout fell $4.09 on Thursday morning to $390.77 per cwt while the select cutout fell $1.32 to $378.99 per cwt, according to the USDA. Average beef packer margins stood at $104.75 per head on Thursday, up from $31.93 a week ago, according to livestock marketing advisory service LLC. (Reporting by Karl Plume; Editing by Cynthia Osterman)
Mint
20-06-2025
- Business
- Mint
CME live cattle sink on long liquidation as beef rally falters
CHICAGO, June 20 (Reuters) - Chicago Mercantile Exchange live cattle surrendered early gains on Friday and slumped to a 2-1/2 week low on long liquidation and profit-taking following recent all-time highs and as surging beef prices showed signs of topping out, traders said. Position squaring ahead of the U.S. Department of Agriculture's monthly Cattle on Feed report, released after the close, also contributed weakness. The market had been underpinned by rallying beef prices before choice beef slipped on Friday. Demand for beef is expected to wane following a series of holidays when beef consumption typically rises, including Father's Day and the upcoming U.S. Independence Day holiday. Benchmark CME August live cattle settled 1.850 cents lower at 209.825 cents per pound, the lowest close since June 3. "You did see the big run-up in choice box beef slow down a little bit today. As we draw closer to the 4th of July, you're gonna have the idea that that's gonna cool off a little bit more," said Matthew Wiegand, broker with FuturesOne. The choice boxed beef cutout value fell $3.29 per cwt on Friday to $390.50 after gaining $28.71 since June 6, according to USDA data. The select cutout was up $2.36 at $376.95 per cwt on Friday. After the close, the USDA reported that the U.S. supply of cattle on feed as of June 1 was down 1% from a year earlier, in line with trade estimates, while May placements were down 8%, a larger-than-expected drop. CME feeder cattle followed live cattle lower, surrendering early gains that were tied to the ongoing suspension of imports from Mexico over concerns about New World screwworm south of the border. The USDA on Wednesday announced new plans to combat the pest as screwworm flies have been moving northward in Mexico. August feeder cattle ended down 1.725 cents at 302.450 cents per pound. CME lean hog futures ended higher, with actively-traded August up 0.450 cent at 112.450 cents. (Reporting by Karl Plume; Editing by Alan Barona)
Yahoo
12-06-2025
- Business
- Yahoo
ADM sets off 'frenzy' in US soybean market ahead of new biofuel blend rule
By Tom Polansek and Karl Plume CHICAGO (Reuters) -Archer-Daniels-Midland, a major U.S. soybean crusher and biofuel producer, slashed its bids to buy the oilseed this week ahead of an expected Trump administration announcement on biofuel blending requirements, a primary driver of demand for soybean oil. Processors such as Chicago-based ADM have been waiting for the U.S. Environmental Protection Agency's decision on blending requirements for months as they grapple with slumping crush margins and abundant soybean stocks. Reuters reported on Thursday that the EPA is expected to propose blending requirements below industry recommendations on Friday, leading to lower-than-expected demand for soyoil to be used in biofuels. ADM said in an emailed statement to Reuters on Thursday that it does not have insight around the pending blending announcement beyond publicly available information and that it independently sets its basis bids, which is the difference between futures and a local cash price to take possession of the grain immediately. The company on Wednesday rolled its cash basis bid at its flagship Decatur, Illinois, facility to 20 cents below the Chicago Board of Trade November soybean futures price from 22 cents over July futures. The roll to November futures, which closed at a 15-cent discount to July on Thursday, lowered the local cash price by about 60 cents a bushel, representing an unusually sharp 6.5% drop in the price offered to farmers. ADM also rolled basis bids at its other crushing facilities, and some rival processors, including Cargill, followed ADM on Thursday. Other processors kept their basis bids against the July futures contract, but lowered basis values by up to 15 cents. "ADM Decatur put the bean market in a frenzy," agriculture trading company John Stewart and Associates said in a note. Falling basis values reflect expectations for a large autumn harvest and weak demand that has eroded processing margins for companies that crush beans into soymeal livestock feed and soyoil used for cooking and producing biofuels. Crush margins have struggled as a recent jump in U.S. processing capacity has swelled available supplies of meal and oil and pressured prices for the soy products. Tariff worries and unclear U.S. biofuels policies have stoked further unease among crushers and biofuel makers, and some biodiesel producers have scaled back or idled plants. ADM said in April it would permanently close a South Carolina soybean processing plant to cut costs. "Cash crush margins stink, and there is a bunch of downtime scheduled for July," said Charlie Sernatinger, executive vice president for Marex Capital Markets. Diana Klemme, vice president of Grain Service Corp in Atlanta, which serves agricultural hedgers in the futures markets, sent an alert to customers after seeing ADM's bid adjustments. She said that she had never seen a move to new-crop basis levels in June in more than 50 years in the grain business. "I said check your markets carefully because ADM just dropped all their bids 40-75 cents a bushel and went to new-crop values," Klemme said. The November futures contract represents the autumn harvest price, or the new crop. Farmers have been reluctant to sell crops to processors because they want higher prices, while processors avoided raising bids to protect their thin margins.
Yahoo
17-04-2025
- Politics
- Yahoo
Trump funding freeze upends agricultural research at US universities
By Karl Plume and P.J. Huffstutter DAVIS, California (Reuters) - From its earliest days in 1906, when the University of California secured a small stretch of fertile soil in the state's Central Valley, a quiet promise took root - that this place, originally called University Farm, would someday grow mighty. For decades, UC Davis stood tall among the world's giants in agricultural research. All that changed in a few short days amid a sweeping overhaul of the federal government as the Trump administration froze funds, closed down labs and shut out scientists' ability to secure grants for future research. Poultry genetics research was shut down, fruit and vegetable test plots went unwatered, and work to help small farms insure against crop loss was handed off to partners overseas as federal support, by far the largest pool of funding, evaporated. Collectively, millions of dollars in funds from the shuttered United States Agency for International Development disappeared and U.S. Department of Agriculture and other federally backed grants were frozen, while broad new administration rules regarding diversity crippled crucial science on food security and climate resilience at one of the nation's top agriculture schools. The moves at UC Davis and other land-grant universities have halted farm-related research projects midstream, according to interviews with more than a dozen agricultural researchers, professors and economists. "U.S. universities, they're really a model for the world," UC Davis economist Michael Carter told Reuters. "What's at risk of being lost is stuff that can make a difference in the lives of lots and lots of people." Future food and farm research is also in jeopardy with new federal grants tied up in lawsuits winding through the courts. And Davis risks having to turn away graduate students this fall: There simply may not be funding for jobs at the scaled-back labs. The university has not rescinded admission offers to students who submitted a statement of intent to enroll, UC President Michael Drake told Reuters. But some graduate programs have moved students who have not accepted their offers to waitlists due to the funding uncertainty, he said. Federal grant awards and proposals to Davis totaled about $2.75 billion in fiscal 2024, eclipsing $1.83 billion in funding from state grants, private and non-profit contributions, according to UC data. The university said it did not have an estimate for the recent cuts because Trump's executive orders are still being litigated. The White House said in a statement to Reuters that Trump's actions would allow for "more critical research, not less, while cutting bureaucracy, bloat, and programs that do not align with the America First agenda," but did not elaborate further. The State Department, in a statement to Reuters, said its actions were aimed at aligning its programs with the administration's foreign policy priorities and ensuring tax dollars are spent in the national interest. The USDA did not respond to a request for comment. Money remains frozen while the Trump administration considers appeals of court orders blocking its freeze on $3 trillion in federal grants, loans and other financial aid. The aftermath has left everyone here shaken. PANIC ATTACKS On a recent morning, researcher Tara Chiu awoke at 3 a.m., as she has every day since a USAID notice arrived, terminating her work helping poor farmers manage market and climate risks. The emailed notice from USAID Agreement Officer Olivia Ricks, reviewed by Reuters, said the work was "not aligned with agency priorities" and "not in the national interest." "I've had a panic attack every night," Chiu said. "I feel like my entire torso is being crushed." She and her boss Carter, the economist, relied on USAID funding for research that helps small-scale farmers escape poverty traps. Their appeals to the State Department to remain open went unanswered. The lab's $4.3 million in USAID funding remaining from a nearly $22.6 million, multi-year grant is unlikely to be restored, Carter and Chiu said. The State Department did not respond to a request for comment on the matter. Across the Davis campus, Erin McGuire's USAID-funded horticulture lab, will also shut down at the end of April. The lab is renowned for tackling some of the world's most pressing questions, including how to feed a growing global population while climate change threatens farmers' ability to grow food. As the deadline nears, McGuire is scrambling to hand off management of fruit and vegetable test plots overseas to research partners there while also tackling a mound of paperwork required to close out any research project, a process that would typically take up to six months. McGuire's work cultivated drought-resistant tomatoes and ways to kill produce-eating pests and control toxic fungi. It helped the United States remain a leader in agricultural technology even as rivals like China and Brazil ramped up public investment in their own research. Two time zones to the east, University of Illinois researcher Peter Goldsmith laid off 30 staff and will shutter his Soybean Innovation Lab this month. His research into soybean cultivation in hotter, drier climates was aimed at making soybeans the industry standard for vegetable oil worldwide, opening up future markets for U.S. producers in the coming decades. The three labs were among 17 lead labs and dozens of collaborating labs at universities across the country within the USAID-funded Feed the Future Innovation Labs program created in 2012. FOLLOWING THE MONEY The U.S. government's funding of agriculture research was slumping even before the Trump cuts, falling by about a third over the past two decades, according to USDA data. According to the agency's Economic Research Service (ERS), funding levels for public agriculture research and development were around $5 billion annually in 2020 - or about the same level as in 1970, when adjusted for inflation. How much private investment offset this drop is not known, ERS said. Meanwhile, top farm goods importer China and major exporter Brazil have poured money into such research, with China becoming the largest funder of agricultural R&D in the world, ERS said. If U.S. government funding of public R&D continues its decline, U.S. farmers would see lower crop yields as climate pressures intensify by midcentury, Cornell University and University of Maryland economists and an agricultural ecologist at Stanford University wrote in a Proceedings of the National Academy of Sciences journal paper published in March. If farm productivity drops, the likelihood of government aid bailouts increases, the researchers said. During the first Trump administration, farmers received about $217 billion in crop support, disaster and other aid programs, including some related to COVID and his trade war with China - more than in any four-year period since 1933 when adjusted for inflation, according to a Reuters examination of USDA data. Now, the Trump administration is deciding whether to bail out farmers damaged by the current tariff backlash - even as research programs that benefit them are shuttering. Kevin Bellido, manager at the UC Davis avian research and teaching facility, was already concerned that bird flu that has decimated poultry flocks across California would find its way into his research barns. Now, he worries that suspensions of federal grants would deprive the 18-acre research facility of projects like one aimed at identifying birds that are genetically more resilient against Newcastle disease, which spreads similarly to avian flu and is equally deadly. "If we get our funding cut, we basically wouldn't have anything to teach students," he said over deafening rooster crows from a nearby barn housing a half dozen breeds, including the heat-tolerant and more disease-resilient Egyptian Fayoumi. The funding uncertainty is beginning to ripple across the Davis campus in other ways. Allen Van Deynze, director of the seed biotechnology center, relies on federal and private grants to fund his work to develop more disease-resistant spinach and easier-to-harvest peppers. His federal grants were spared in the wave of cuts, but that funding only runs through June. Van Deynze said he is unable to apply for new federal grants because the government's online grant request platform has been frozen. "Nobody's taking students this fall," he said, "because nobody knows if they'll have money."
