Boom in commodity prices more likely to be transitory than permanent
Electrified by Russia’s invasion of Ukraine, commodity prices are sky high, with soybean futures topping $16.80 a bushel and the USDA forecasting the highest-ever farm-gate price for wheat. But high prices for corn, wheat and soybeans are far more likely to revert to their long-term averages than mark the dawn of a new era of permanently higher prices, said five university economists on Tuesday.
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Widespread drought in East Africa brings starvation risk
Up to 20 million people in drought-stricken parts of Somalia, Kenya and Ethiopia could face acute food insecurity by September as livestock and crops struggle to survive, said 14 humanitarian and meteorological agencies. Four rainy seasons in a row have failed, a streak not seen in 40 years, and forecasts say there is a concrete risk that the October, November and December rains could fail, too.
TODAY’S QUICK HITS
World passes ag-land peak: After centuries of expansion, global agricultural land use has declined although food production continues to rise, a decoupling that suggests “feeding more people does not have to mean taking habitat away from other wildlife.” (Our World in Data)
What to call it?: The USDA received a wide array of views during a two-month comment period about cell-cultured meat with a common sentiment: The products deserve regulators’ attention and specific labeling. (Food Dive)
‘Next year will be worse’: School food directors, confronted by supply chain disruptions, labor shortages and rising costs, say the new school year may be impossible to navigate without help from Congress in the form of more money or less stringent rules on meals. (U.S. News & World Report)
Biggest U.S. beef plant: An investment and real estate company announced plans to build a 1 million-square-foot beef packing plant costing $1.1 billion in Rapid City, South Dakota, capable of slaughtering 8,000 head of cattle and bison a day — the largest U.S. packing plant. (DTN/Progressive Farmer)
Wing Zone goes Flippy: Fast food chain Wing Zone said it would install the Flippy 2 robot at the cooking station in its new restaurants with chief operating officer David Bloom saying the industry “is in dire need of automation.” (Meat and Poultry)
