No Turnaround Tuesday for Biden as His Campaign Enters Crisis Zone

(Farm Journal )

MARKET FOCUS

· Holiday schedule

· Fed minutes may reveal why FOMC members lowered expectations for rate cuts

· Fed chair Jay Powell urges Biden administration to address deficit

· Traders in the $27 trillion Treasury market betting on higher long-term bond yields

· Yen continues to weaken, but no signs of intervention

· Home affordability in U.S. is lowest since 2007

· June jobs report anticipated to show significant slowdown in hiring

· Zelenskyy says Ukraine in talks to send natural gas from Azerbaijan to EU

· Ag markets today

· Ag economists pessimistic about U.S. crop sector but more optimistic about livestock

· USDA daily export sale: 110,100 MT soybeans to unknown destinations.

o Of the total, 55,100 MT for delivery 2023-2024 marketing year and

o 55,000 MT for delivery 2024-2025 marketing year

· Ag trade update

· NWS weather outlook

· Pro Farmer First Thing Today items

PRESIDENT JOE BIDEN

· Cracks are beginning to appear in Democratic Party’s support of Biden

· Washington DC hasn’t felt this way since Watergate news began to unfold

· Increasing talk about VP Harris most viable alternative if Biden steps aside

· Biden’s favorability numbers plummeted after debate performance

CONGRESS

· If Donald Trump is re-elected, he might face challenges in passing tax plans

RUSSIA & UKRAINE

· U.S. prepping another $2.3 billion military aid package for Ukraine

CHINA

· PM Trudeau’s gov’t considering several measures to deter Chinese-made EVs

· China launches first SAF center

· China’s beef prices plunge

TRADE POLICY

· WTO trade data shows rise during 1Q 2024

ENERGY & CLIMATE CHANGE

· Iowa leads ethanol

· Refiners shifting towards SAF to counter low returns from renewable diesel

LIVESTOCK, NUTRITION & FOOD INDUSTRY

· Food prices are worrying central banks

· FDA rule revokes authorization for use of brominated vegetable oil (BVO) in food

· Court allows Colo.’s antitrust lawsuit against Kroger-Albertsons merger to proceed

OTHER ITEMS OF NOTE

· OSHA proposes new rule to protect workers from extreme heat exposure

— Holiday schedule: U.S. grain and other futures markets will trade normal hours today while U.S. equity markets will close at noon CT and the bond market will close early at 1 p.m. CT. All U.S. markets and gov’t offices will be closed Thursday for the July 4th holiday. The Thursday holiday means the U.S. weekly Export Sales report will be delayed until Friday and the Commitments of Traders report from the Commodity Futures Trading Commission will be delayed until Monday, July 8.

— Equities today: In Asia, Japan +1.3%. Hong Kong +1.3%. China -0.5%. India +0.7%. In Europe, at midday, London +0.6%. Paris +1.6%. Frankfurt +1.1%. The U.S. Dow opened slightly higher.

U.S. equities yesterday: U.S. stock indices registered gains with tech shares driving the Nasdaq and S&P 500 to record finishes ahead of an abbreviated trading session on July 3. The Dow was up 162.33 points, 0.41%, at 39,331.85. The Nasdaq gained 149.46 points, 0.84%, at 18,028.76. The S&P 500 rose 33.92 points, 0.62%, at 5,509.01.

— Ag markets today: Soybeans mildly extended this week’s corrective gains overnight, while wheat posted two-sided trade and corn weakened. As of 7:30 a.m. ET, corn futures were trading a penny lower, soybeans were 3 to 5 cents higher, SRW wheat was fractionally to a penny higher, HRW wheat was a penny lower and HRS wheat was fractionally lower. The U.S. dollar index and front-month crude oil futures were modestly lower this morning.

Awaiting cash cattle trade. Despite Thursday’s holiday, there appears to be no urgency for packers to actively seek cattle via higher bids again this week. And following three weeks of record cash trade, feedlots are not looking to move cattle at lower prices. Unless the gridlock breaks today, it appears this week’s cash cattle activity will take place Friday — and it’s possible trading volume will be light.

Wholesale pork market remains weak. The pork cutout dropped $1.09 on Tuesday, despite firmer primal belly prices, as all other cuts except picnics declined. Movement remained light at 262.8 loads. Weak retailer demand for pork and abundant supplies are causing packers to reduce wholesale prices.

— Agriculture markets yesterday:

· Corn: December corn futures closed up 3/4 cent at $4.21 1/4 and nearer the session low.

· Soy complex: November soybeans rose 2 cents to $11.13, closing near the session low, while August meal rose $1.30 to $350.30 after gapping higher at the open. August soyoil rose 101 points to 47.04 cents, marking the highest close since April 10.

· Wheat: December SRW futures sunk 7 3/4 cents to $6.04 3/4 and settled nearer session lows. December HRW futures fell 6 1/2 cents to $6.08 3/4, settling near mid-range. September HRS futures sunk 1 1/4 cents to $6.31.

· Cotton: December cotton fell 40 points to 72.70 cents, below the 20-day moving average.

· Cattle: August live cattle futures rebounded from their recent setback, rising 82.5 cents to $185.10, while August feeder futures soared $3.725 to $261.10. Wholesale beef prices continued their march upward Tuesday morning, with Choice beef cutout climbing $1.79 to $330.97 and Select cutout rising $1.03 to $307.44.

· Hogs: August lean hogs rose $1.60 to $89.775 and near the session high. The expiring July contract edged up 2.5 cents to $89.225.

— Quotes of note:

· Fed minutes may shed light on why FOMC members lowered expectations for rate cuts in 2024, even as they left growth and unemployment forecasts unchanged. The Fed is set to release the minutes of its June 11-12 policy meeting at 2 p.m. ET.

· Fed chair Jay Powell urged the Biden administration to address the deficit, warning that the U.S. economy is too strong to justify running such high levels of debt. “Fiscal policy is a job for elected people. We’re not elected people, so we don’t comment on it - particularly in advance of a presidential election,” Powell said at an ECB conference in Portugal. “I will say more broadly, though, the United States is running a very large deficit at a time when we’re at full employment. The level of debt that we have is not unsustainable, [but] the path that we’re on is unsustainable - that’s completely not controversial. This is something that should be a top-level issue. You can’t run these kinds of deficits [even] in good economic times for very long. In the longer run, we’re going to have to do something sooner or later, and sooner will be better than later.”

· Traders in the $27 trillion Treasury market are betting on higher long-term bond yields as Wall Street starts to adjust for Donald Trump’s potential return to the White House. Investors have been buying shorter-maturity notes and selling longer-term ones after Trump came out ahead of President Joe Biden in the first presidential debate. “It’s still too soon to fully price in an election outcome — but probably not too early to leg into it,” said Subadra Rajappa, head of US rates strategy at Societe Generale SA, told Bloomberg.

— Home affordability in the U.S. is the lowest since 2007. The costs of a typical home — including mortgage payments, property insurance and taxes — consumed 35.1% of the average wage in the second quarter, according to Attom.

— June jobs report, expected on Friday, is anticipated to show a significant slowdown in hiring. Economists predict that employers added 190,000 jobs, down from May’s 272,000, marking the 42nd consecutive month of labor market expansion and maintaining the unemployment rate at 4%. Hourly earnings are projected to have risen by 3.9% annually, below May’s figure.

The markets are optimistic about a rate cut at the September meeting, with futures traders pricing in a 75% chance despite Federal Reserve Chair Powell’s caution against committing to a specific date (CME Fed funds futures are at basically 60% for a September cut). A key focus will be on wage growth, which has shown signs of easing, contributing to slower inflation. This shift is attributed to workers being more content to stay with their employers, signaling a move from the “great resignation” to a period termed “the great hesitation.”

— Ag economists are increasingly pessimistic about the financial health of the U.S. crop sector but more optimistic about livestock. The latest Ag Economists’ Monthly Monitor survey (link) reveals concerns about low exports and crop prices. Conversely, strong beef demand and cheaper feed prices are boosting optimism in the cattle sector. Despite slight pessimism overall, projected net farm income for 2024 increased to $113.9 billion, up from $110 billion in May.

Negative Aspects of the Ag Economy
• Rapidly falling crop prices relative to input costs.
• Commodity prices below break-even production costs.
• Weak export outlook, especially due to low Chinese demand.
• U.S. trade policy and international competition.
• Ongoing demand and policy challenges.

Positive Aspects of the Ag Economy
• Profitable cow-calf operations, particularly in regions with good forage.
• Adverse global weather potentially boosting U.S. exports.
• Potential for good yields to meet financial goals.
• Disciplined acreage expansion and competitive U.S. prices.
• Adaptable farmers positioned for growth.

Weather remains a critical factor for commodity prices, particularly for corn and soybeans. U.S. and world weather, demand weakness, Brazilian supplies, and a strong dollar are influencing prices.

Cattle Prices Outlook
• Depends on continued record beef demand.
• Growing crop supplies lowering feed costs.
• Strong U.S. dollar

The U.S. agricultural trade deficit is expected to rise to $32 billion in fiscal year 2024, driven by a strong dollar, increased imports of used cooking oil and horticulture products, and softer U.S. ag exports. Mexico is projected to become the top importer of U.S. ag goods, surpassing China and Canada.

Higher interest rates are affecting farmers and equipment purchases, with expectations for fewer rate cuts this year. Farmers are likely to scale back on big-ticket items, including equipment, to manage costs.

Market perspectives:

— Outside markets: The U.S. dollar index was weaker, with the euro, yen and British pound all firmer against the U.S. currency. The yield on the 10-year U.S. Treasury note was weaker, trading around 4.43% ahead of economic data, with a mixed tone in global government bond yields. Crude oil futures were firmer, with U.S. crude around $82.95 per barrel and Brent around $86.40 per barrel. Gold and silver futures were sharply higher ahead of a barrage of economic data, with gold around $2,355 per troy ounce and silver around $30.44 per troy ounce.

— Yen continues to weaken, but no signs of intervention. The Japanese yen hit a fresh 38-year trough against the U.S. dollar and a record low to the euro on Wednesday. Despite the downward grind, Japanese authorities have been largely quiet on the yen this week, with Finance Minister Shunichi Suzuki only commenting on Tuesday that moves were being watched vigilantly. He refrained from repeating the oft-used warning that the ministry stood ready to act.

— Ukraine President Volodymyr Zelenskyy says the country is in talks to send natural gas from Azerbaijan to the European Union as it seeks to maintain its role as a transit country and help western neighbors ensure energy security.

— USDA daily export sale: 110,100 MT soybeans to unknown destinations. Of the total, 55,100 MT for delivery 2023-2024 marketing year and 55,000 MT for delivery 2024-2025 marketing year.

— Ag trade update: Japan tendered to buy 65,000 MT of feed wheat and 25,000 MT of feed barley. Tunisia tendered to buy 100,000 MT of optional origin soft milling wheat.

— NWS weather outlook: Dangerous heatwave to impact much of the West, while oppressive heat and humidity also swelter areas from the Southern Plains to the Mid-Atlantic... ...Flash flooding and severe thunderstorms possible over the next few days across portions of the Plains, Midwest, and Ohio Valley.

(NWS)

Items in Pro Farmer’s First Thing Today include:

• Beans firmer, wheat mixed and corn weaker this morning
• More payment woes tied to China’s property sector
• Eurozone PMI didn’t slow as much as initially thought

— Washington DC hasn’t felt this way since the Watergate news began to unfold. You can feel the pressure build as each day unfolds since last Thursday’s halting debate, with fast-moving events reported in far more places than when former President Richard Nixon was under attack in the Watergate days… before the Internet.

Top Democrats, including Nancy Pelosi (D-Calif.) and Jim Clyburn (D-S.C.), have expressed concerns about President Joe Biden’s performance and viability as a candidate. Consider:

· Clyburn, a Biden campaign co-chair who played a key role in securing the nomination for the president in 2020, said he would “wait on the experts in medicine to give their opinion” on Biden’s condition. Clyburn said he would support Vice President Kamala Harris if Biden stepped down, although Clyburn noted that he wanted the ticket to remain as is. Clyburn said he plans to speak with the president this week to share what he’s hearing. “I’m gonna tell him what I really feel,” he told The Hill.

· Pelosi and Clyburn acknowledged that it is legitimate to question Biden’s cognitive abilities and overall fitness for the presidency after his lackluster debate performance. Pelosi emphasized the importance of determining whether Biden’s debate struggles were an isolated incident or indicative of a broader issue.

· Continued support: Despite acknowledging concerns, Pelosi and other Democratic leaders have reaffirmed their support for Biden. Pelosi highlighted Biden’s legislative achievements and leadership qualities, while also stressing the importance of defeating Trump in the upcoming election.

· Calls for withdrawal: Rep. Lloyd Doggett (D-Tex.) was the first Democrat to formally call for Biden to step aside, citing the need for a more competitive candidate against Trump. Other Democrats, including former Obama official Julian Castro and ex-Representative Tim Ryan (D-Ohio), have echoed this sentiment, suggesting Vice President Kamala Harris as a potential replacement.

· VP Harris pushed back during a CBS News interview Tuesday. “Joe Biden is our nominee. We beat Trump once and we’re going to beat him again,” she said.

· Rep. Jared Golden (D-Maine) penned an op-ed (link) casting the election outcome as an inevitable victory for Donald Trump.

· Former Iowa U.S. Sen. Tom Harkin (D-Iowa) criticized Biden’s recent debate performance, calling it “a disaster from which Biden cannot recover.” Harkin, 84, described Biden’s sentences as incoherent and meandering, attributing his struggles to being overwhelmed with facts and figures. In contrast, while acknowledging that Trump’s responses were also flawed, Harkin noted they were delivered with force and directness. Harkin suggested that all incumbent Democratic senators should urge Biden to release his delegates and step aside so the national convention can select a new candidate. He believes that a new candidate would energize the Democratic Party and attract voters seeking an alternative to Trump.

· Twenty-five House Dems reportedly preparing to call for Biden to end re-election effort: ‘The dam has broken.’ Link to New York Post article.

· The New York Times reported that some associates and allies are concerned the president’s lapses are increasingly common and worrisome. Link. A veteran quoted by the NYT who Biden honored at the D-Day events in Normandy described him as a “person who is fragile and not really in charge.”

· Impact on down-ballot races: Some Democrats are worried about the broader implications of Biden’s candidacy on down-ballot races. Rep. like Mike Quigley (D-Ill.) and Marie Gluesenkamp Perez (D-Wash.) have raised concerns about how Biden’s performance could affect the party’s overall standing in the elections (link).

· Polls and public opinion: Recent polls indicate a tight race between Biden and Trump, with some showing a slight decline in confidence in Biden’s abilities following the debate. A Reuters/Ipsos poll revealed that one in three Democrats believe Biden should halt his re-election campaign.

· White House clarifications: The White House has stated that Biden did not experience a significant health episode during the debate but had a rough night due to fatigue from extensive travel. Biden himself attributed his subpar performance to fatigue from his international trips. Biden told an audience at a fundraiser that he was “not very smart” for “travelling around the world a couple times” before the event with Trump. (Note: Observers are noting Biden spent six days at Camp David prepping for the debate and had been back stateside for nearly two weeks.)

· Campaign efforts: Biden’s campaign is working to reassure supporters and address concerns. This includes engaging with Democratic governors and lawmakers, scheduling a taped interview with ABC later this week, and emphasizing Biden’s accomplishments and integrity in campaign ads. The White House is also heeding calls to get Biden out there, announcing trips to Wisconsin and Pennsylvania later this week as well as plans for a news conference at next week’s NATO summit. Meanwhile, Biden’s son Hunter is sitting on White House meetings, according to reports.

· Illinois Governor J.B. Pritzker urged Biden to address the nation to explain his strategy and allay concerns after his disastrous debate performance against Trump.

· Have you noticed? Trump is being smart by mostly shutting up … letting the Dems attack themselves.

· What others are saying:

o Axios: Democratic lawmakers are more upset at President Biden’s “denial and deflection” about his poor debate night than they are about the performance itself, and some are even hoping that Democratic leader Hakeem Jeffries (D-N.Y.) and Senate Majority Leader Chuck Schumer (D-N.Y.) privately push Biden to leave the race.

o Washington Post: Former President Barack Obama told allies that Biden’s already tough path to reelection grew more challenging after his debate performance on Thursday. Link.

o Punchbowl News: “Democrats are also angry with White House and Biden campaign aides. A Democratic senator who was granted anonymity to candidly assess the situation told us that ;we kind of just feel lied to’ about the president’s condition. They’ve been shielding him from those types of settings for months and even after it became undeniable, they’re still lying to us,’ the Democratic senator said. ‘There’s just a lot of frustration right now in the caucus.’”

o Economist: “Now that prominent Democrats have started to publicly question Mr Biden’s candidacy, doubts about his ability to hang on are certain to grow.”

o Sabato’s Crystal Ball: “President Biden’s debate performance was so bad that it has forced us to reassess some of our assumptions about the race. Michigan and Minnesota move to more competitive categories in our ratings. This is the second time in less than a month that we’ve downgraded Democrats in our Electoral College ratings.” Link

(Crystal Ball )

Bottom line: While top Democrats like Pelosi and Clyburn have acknowledged legitimate concerns about Biden’s performance and viability, they continue to support him. However, there is a growing discourse within the party about potential alternatives and the broader impact of Biden’s candidacy on the Democratic Party’s electoral prospects. Meanwhile, some election observers who initially thought Biden would not withdraw or reassessing.

— Increasing discussion about Vice President Kamala Harris as the most viable alternative if President Biden steps aside, though it remains difficult to force Biden out. Other potential candidates include Gov. Gavin Newsom of California and Gov. Gretchen Whitmer of Michigan, both of whom have publicly supported Biden.

Harris is the leading alternative mainly due to financial reasons: as Biden’s running mate, she could directly access the Biden campaign’s $240 million in funds. Any other candidate would face significant challenges in acquiring this money with limited time before the election.

Harris has a coterie of well-heeled supporters, according to the New York Times, including Brad Karp, the chair of the Wall Street law firm Paul Weiss; Jon Henes, the C.E.O. of C Street Advisory Group; and Donna Langley, the chair of NBCUniversal.

A Harris negative surfaces. Semafor reports that top political adviser, Dmitri Mehlhorn, told backers of the super PAC American Bridge that switching to the vice president would drive away crucial undecided voters. “Kamala Harris is more threatening to those swing voters than a dead Joe Biden or a comatose Joe Biden,” Mehlhorn said.

— President Joe Biden’s favorability numbers plummeted after his debate performance last week in “the largest single-week drop” in nearly three years, according to a leaked memo from the pollster for a leading Democratic political action committee. “Underpinning the decline is an increase in already-high concerns about the President’s age, and a growing split among Democrats about what should happen with his candidacy,” says the memo from Open Labs, the research arm of Future Forward, a super-PAC. The Biden campaign has tapped the organization as its vehicle to accept unlimited donations. The leaked memo was first reported by Puck, a news site.

— If Donald Trump is re-elected, he might face challenges in passing his tax plans through Congress. Up to 10 GOP House lawmakers are reportedly open to increasing the corporate tax rate, which could jeopardize Trump’s plans. Trump’s 2017 tax cuts reduced the corporate tax rate from 35% to 21%, and he aims to further reduce it to 20%. These tax cuts are set to expire at the end of 2025, and some Republicans are concerned about the $4.5 trillion cost of extending them. With Republicans likely to have a slim majority in the House, every vote will be crucial. Rep. Chip Roy (R-Tex.), skeptical of further business tax cuts, emphasized the need for careful consideration, noting the difference between the context in 2017 and 2024.

— U.S. is prepping another $2.3 billion military aid package for Ukraine. Meanwhile, Chinese and Russian companies are developing an attack drone like an Iranian model deployed in Ukraine, according to European officials, a sign that Beijing may be moving closer to providing the sort of lethal aid western governments have warned against.

— Prime Minister Justin Trudeau’s government is considering several measures to deter Chinese-made electric vehicles (EVs) from accessing the Canadian market. These measures include imposing tariffs on imported Chinese EVs and blocking Chinese investment in new Canadian factories. The options are part of a broader strategy to protect Canada’s EV industry from what the government describes as unfair competition due to China’s state-directed policies, which include significant subsidies and lower production costs due to lax labor and environmental standards.

— China launches first SAF center. The Civil Aviation Authority of China (CAAC) launched the country’s first technical center for sustainable aviation fuel (SAF) that focuses on standard setting and product research. The center, based in the southwestern city of Chengdu, will take the lead in mapping out industry policy and setting standards for products and quality control, two SAF industry executives with direct knowledge of the launch told Reuters. China is expected to unveil this year its policy on the use of SAF for 2030 that could spur billions of dollars of investment. The country currently does not produce SAF commercially for domestic use.

— China’s beef prices plunge. Chinese wholesale beef prices have dropped 18% from last year’s peak to around 62 yuan ($8.53) a kilogram as supplies outpace demand. Beijing pushed farmers to increase domestic beef production and encouraged more imports. But the slowing economy has dragged local prices to a five-year low as supplies pile up in frozen storage.

— Global merchandise trade volumes increased by 1% in the first quarter of 2024, following a period of stability in 2023, according to data from the WTO and UN Trade and Development. This rise is in line with WTO projections for a 2.6% increase in merchandise trade volumes for 2024. If the current growth rate continues, trade volumes for the entire year will be 2.7% higher than in 2023. Despite the increase in trade volumes, trade values fell by 2% compared to the same quarter last year due to lower export and import prices.

Additionally, U.S. agriculture is expected to continue showing a monthly trade deficit, with projections pointing towards a record trade gap of $32 billion for fiscal year 2024.

— Iowa leads ethanol production. According to data from the Iowa Farm Bureau, about 50%-70% of Iowa’s corn production is used to make ethanol compared to the national average of about 35%-40%. Iowa alone accounts for nearly 30% of the nation’s ethanol production. In 2023, Iowa produced about 4.6 billion gallons of ethanol.

— Refiners are shifting towards sustainable aviation fuel (SAF) to counter low returns from renewable diesel. Major producers like Valero Energy, Phillips 66, and Calumet Specialty Products are retrofitting facilities to produce SAF, which is derived from sources like cooking grease. Government incentives aimed at reducing aviation emissions are expected to support SAF production despite its higher costs and complex logistics, according to a Bloomberg account (link).

SAF is crucial for reducing airline emissions but is more expensive to produce and involves more rigorous refining compared to renewable diesel. Current SAF production yields smaller volumes and more low-value byproducts like naphtha and propane.

Diamond Green Diesel is converting half of its southeast Texas plant to SAF production, benefiting from its access to inedible animal fats and used cooking oil.

Phillips 66 has converted a San Francisco-area refinery to produce SAF and other renewables, reducing its crude-based fuel output.

Calumet is expanding SAF production at its Montana Renewables facility.

Of note: SAF currently makes up only 0.1% of global jet-fuel supplies, compared to green diesel’s 4.5% share of the diesel market. Government mandates and subsidies are seen as essential for the expansion of both fuels.

— Food prices are worrying central banks. Climate change is causing permanent shifts in weather patterns, which are negatively impacting crop yields. This is evident in various regions, such as oranges in Brazil and coffee in Vietnam. These reductions in supply are driving up food prices. What was once seen as temporary price increases are now becoming a long-term source of inflation, creating concerns for central banks. Link to more via the Financial Times.

— FDA has issued a rule (link) revoking the authorization for the use of brominated vegetable oil (BVO) in food, specifically in stabilizing flavoring oils in fruit-flavored beverages. The decision is based on the lack of reasonable certainty regarding the safety of BVO’s continued use in food. Although the FDA has not authorized BVO for any other food uses, it recognizes that food companies will need time to reformulate products and work through distribution chains. Therefore, compliance with this rule is required one year after the effective date, allowing companies time to reformulate, relabel, and deplete existing BVO-containing inventory. FDA first proposed this revocation in November 2023, and indications suggest that very few beverages still contain BVO.

— Denver court allows Colorado’s antitrust lawsuit against Kroger-Albertsons merger to proceed. A Denver District Court has ruled that the lawsuit filed by the state of Colorado to block the $24.6 billion merger between Kroger and Albertsons will proceed. The court rejected Kroger and Albertsons’ motion to dismiss the case, allowing the state’s antitrust challenge to move forward. Colorado Attorney General Phil Weiser argues that the merger would significantly reduce competition in the grocery market, potentially creating a monopoly. This could lead to higher prices, fewer choices, and worse service for consumers, as well as negative impacts on workers and suppliers. Kroger and Albertsons are the two largest grocery chains in Colorado, with Kroger operating 148 stores under the King Soopers and City Market brands, and Albertsons operating 105 stores under the Safeway and Albertsons brands. The lawsuit also addresses an alleged illegal “no-poach” agreement between the two companies during a labor dispute in 2022, which prevented them from hiring each other’s employees. The U.S. Department of Justice and the state of Washington have also filed suits against the merger, citing similar antitrust concerns.

The lawsuit will now proceed to further hearings and potentially a trial. The outcome could include a preliminary injunction to halt the merger or require divestitures to maintain competition in Colorado. The Federal Trade Commission (FTC) has also scheduled a hearing for August 26 to address its own concerns about the merger.

Kroger and Albertsons maintain that the merger would benefit consumers by lowering prices and increasing choices, and they are prepared to defend the merger in court.

— OSHA proposes new rule to protect workers from extreme heat exposure. Link to our special report on the topic, released Tuesday.

WASDE | Crop Production | USDA weekly reports | Crop Progress | Food prices | Farm income | Export Sales weekly | ERP dashboard | California phase-out of gas-powered vehicles | RFS | IRA: Biofuels | IRA: Ag | | Russia/Ukraine war, lessons learned | | SCOTUS on WOTUS | SCOTUS on Prop 12 pork | New farm bill primer | | Gov’t payments to farmers by program | Farmer working capital | USDA Ag Outlook Forum |