U.K. PM Truss Sacks Finance Minister, Announces Replacement and U-Turns on Tax Policy

China’s party congress starts Sunday and China watcher lists topics to be monitored

USDA daily export sales for marketing year 2022-23: 392,000 MT of soybeans to China, 198,000 MT of soybeans to unknown destinations, and 230,000 MT of soybean cake and meal to the Philippines.

Soybeans main export sales activity for China. USDA Export Sales data for the week ended Oct. 6 noted 2022-23 activity to China including net sales of 3,405 tonnes of wheat, 6,561 tonnes of corn, 622,256 tonnes of soybeans, and 14,427 running bales of upland cotton. No sales activity for sorghum was reported. For 2022, there were net reductions of 334 tonnes of beef and net sales of 5,913 tonne of pork.

China’s Communist Party congress will highlight Xi Jinping’s power as no one in the new Politburo will be a threat to the party chief. See more in China section. Meanwhile, a rare protest in Beijing targeted Chinese President Xi Jinping ahead of the Communist Party’s twice-a-decade congress. Video footage and photographs of the smoke and two banners — one of which had “Depose the Traitorous Dictator Xi Jinping” scrawled on it in red — circulated widely on Chinese social-media platforms Thursday.

Support for U.K. PM Truss’ spending/tax cut plan has totally eroded, and markets are hopeful the plan will be scrapped entirely, and that’s helping global bond yields fall. The pound rebounded, to about $1.13, as did the price of gov’t bonds. The rally in gilts, as the bonds are known, is impressive considering that a Bank of England gilt-market rescue program expires today. Today, Truss fired her finance minister Kwasi Kwarteng and appointed Jeremy Hunt to replace as chancellor. Truss on Friday scrapped more key tax-cutting policies, in a bid to placate markets after the government’s controversial “mini-budget.” “It is clear that parts of our mini-budget went further and faster than the markets were expecting,” Truss said in a brief press conference. Truss scrapped the pledge to reverse predecessor Rishi Sunak’s hike of corporation tax from 19% to 25%, a decision estimated to restore around £19 billion ($21.4 billion) to the Treasury’s coffers by 2026. Of note: The S&P 500 was trading around 3,800 before the U.K. fiscal debacle.

CME Fed funds futures put the probabilities of a 75-basis-point increase at 96.7% with only a 3.3% probability for a 50-basis-point rise.

China’s consumer inflation rose at the fastest pace in more than two years in September, lifted by higher pork and other food prices. The country’s consumer inflation index increased 2.8% from a year earlier, accelerating from a 2.5% rise in August, the National Bureau of Statistics said. More in China section.

Kroger and Albertsons have entered into a definitive agreement to merge in a deal valued at $24.6 billion. Under the terms, which both boards have unanimously approved, Kroger will buy all outstanding shares of Albertsons for $34.10 each. In the agreement, Albertsons said it is prepared to create a subsidiary, which would be spun off immediately prior to the merger closing and operate as a standalone public company. The transaction is expected to close in early 2024, subject to regulatory approval. The merger would bring together the second- and fourth-largest grocery chains in the United States.

The House Jan. 6 committee voted to subpoena Donald Trump for testimony and documents, a major escalation of the probe. Legal experts said it was unlikely that Trump would cooperate, and the former president issued a statement criticizing the committee.

Election Day 2022 is 25 days away. Election Day 2024 is 753 days away.

Equities today: Global stock markets were mostly firmer overnight. U.S. Dow opened around 140 points higher and then went to 250 higher, only to reverse and go lower, then higher and another trip lower in another volatile day of trading. Wall Street banks are kicking off their earnings season. Citigroup shares fell after bank reports 25% decline in third-quarter profits. JPMorgan posted profit and revenue above analysts’ expectations, as its results were driven in part by gains from interest income. In Asia, Japan +3.25%. Hong Kong +1.21%. China +1.84%. India +1.13%. In Europe, at midday, London +1.04%. Paris +1.17%. Frankfurt +0.78%.

U.S. equities yesterday: All three major indices bounced back after an initial plunge following CPI data. The Dow rose 827.87 points, .283%, at 30,038.72 (a 1,508-point trough-to-peak intraday rebound). The Nasdaq gained 232.05 points, 2.23%, at 10,639.15. The S&P 500 was up 92.88 points, 2.60%, at 3,669.91. The S&P 500 went from down nearly 3% pre-market (after the CPI) to up nearly 3% by the close, completing a 6% turnaround. “The term roller coaster is one of the most overused, lazy terms to describe markets, but the last 24 hours are best summed up by being a major roller coaster ride and actually home to one of the biggest intraday turnarounds in living memory,” Jim Reid, a markets strategist at Deutsche Bank, said in his morning note today.

Agriculture markets yesterday:

• Corn: December corn rose 7 cents to $6.97 3/4, 1/2 cent below the 3 1/2-month closing high posted Monday.
• Soy complex: November soybeans fell 1/4 cent to $13.95 3/4, after dropping as low as $13.78 3/4 earlier. December soymeal fell $3.30 to $411.00. December soyoil rose 84 points to 66.43 cents.
• Wheat: December SRW wheat rose 10 cents to $8.92 1/4. December HRW wheat gained 12 1/4 cents to $9.82 1/4. December spring wheat rose 12 1/4 cents to $9.79.
• Cotton: December cotton fell 13 points to 84.79 cents.
• Cattle: December live cattle fell 52.5 cents to $147.925. November feeder futures slid 57.5 cents to $176.10.
• Hogs: December lean hogs fell 10 cents to $80.60. The CME lean hog index fell to an eight-month low Thursday at $92.49 but is expected to rise 18 cents today to $92.67.
  

Ag markets today: Markets reversed their price trends from Thursday in overnight trade, as corn and wheat pulled back while soybeans firmed. As of 7:30 a.m. CT, corn futures were trading 2 to 3 cents lower, soybeans were 3 to 4 cents higher and wheat futures were 3 to 7 cents lower. Front-month crude oil futures were around $1.20 lower and the U.S. dollar index was nearly 600 points higher this morning.

Technical viewpoints from Jim Wyckoff:

On tap today:

• U.S. retail sales for September are expected to increase 0.3% from the prior month. (8:30 a.m. ET)
• U.S. import prices for September are expected to fall 1.1% from the prior month. (8:30 a.m. ET)
• USDA Weekly Export Sales report, 8:30 a.m. ET.
• U.S. business inventories for August are expected to increase 0.9% from the prior month. (10 a.m. ET)
• University of Michigan’s consumer sentiment index is expected to tick up to 59 in the opening weeks of October from 58.6 in September. (10 a.m. ET)
• Baker Hughes rig count is out at 1 p.m. ET.
• Federal Reserve speakers: Kansas City’s Esther George on the economic outlook at 10 a.m. ET, governor Lisa Cook on the economic outlook at 10:30 a.m. ET, and governor Christopher Waller on central bank digital currency at 12:15 p.m. ET.

U.S. mortgage rates may push toward 8.5% if they breach 7%, according to the chief economist of the National Association of Realtors (NAR). Rates on 30-year fixed mortgages have hit 20-year high at 6.92%. The 8.5% possibility is based on a technical analysis of mortgage rates from NAR’s Lawrence Yun, who studied key levels of resistance that borrowing costs will face after Thursday’s news that a closely watched measure of inflation hit a 40-year high. “[Thursday’s] inflation rate report is going to test that 7% level,” Yun said during a presentation at the National Association of Real Estate Investors in Atlanta. “Once it’s broken, the next level of resistance is 8.5%, which would be another big shock to the housing market.”

Inflation watch: Shelter, which includes rent of a primary residence, rose in September at the fastest seasonally adjusted one-month pace since 1990, up 0.8% from August. Housing costs make up nearly 40% of the inflation report. At the same time, the average rate on a 30-year fixed mortgage is 6.92%, the highest since April 2002. Just a year ago it hovered around 3%. In October 2021, the principal and interest payment on the median-priced American home was about $1,500 a month. Now: It’s nearly $2,400 a month — almost $900 more. But analysts note the CPI report showed wide-spread service inflation as the labor market remains tight and the economy remains relatively solid.

“The problem for the Fed is not shelter, or used cars, or new cars, or any other one-off component that is used to explain any one report. The problem is that underlying, persistent inflation has risen,” says Tim Duy, chief U.S. economist at SGH Macro Advisors, in a research note.

India’s post-pandemic revival shot its economy to the fifth largest in the world, surpassing the U.K. even as the nation’s stock market fell slightly from the year-ago period, led by a 10% hit to the rupee. Nevertheless, India’s 100 richest grew their combined wealth by $25 billion to $800 billion. Link to how Forbes determined the nation’s highest rollers.

Market perspectives:

• Outside markets: The U.S. dollar index was higher amid weakness in the euro and British pound. The yield on the 10-year U.S. Treasury note eased to trade around 3.87% with a mixed tone in global government bond yields. Crude was under pressure, with U.S. crude around $87.40 per barrel and Brent around $92.95 per barrel. Gold and silver futures were under considerable pressure, with gold around $1,660 per troy ounce and silver around $18.63 per troy ounce.

• The dollar may keep rallying until the global economic slowdown is over and growth starts to accelerate again, Citi said. Until then, it’s the “safest place to hide,” particularly as it offers a yield premium over global peers.

• WTI crude oil has broken a longstanding downtrend but also failed at support in the low $90s, which leaves WTI currently corralled between support at $78/barrel and resistance at $93/barrel.

• Fertilizer trade: India is the fourth quarter’s largest buyer of urea — a form of nitrogen — but high inventories and a strong dollar could push the world’s largest importer to the sidelines after October’s tender, according to Bloomberg Intelligence.

• Demand destruction: A combination of a strong dollar, high commodity prices and rising interest rates are creating a mix that’s driving a “demand destruction” in crops, according to the head of Cargill Inc.’s World Trading Group. Developing countries in parts of North Africa, Middle East and southeast Asia are struggling with access to dollars that are needed for importing commodities, said Alex Sanfeliu, world trading head for Cargill in Geneva. That means in the upcoming months global trade flows may be reduced by 5% to 6% for wheat and 2% to 3% for corn and soybean meal, he said.

The question of how much the Black Sea region can export will help guide the short term, Sanfeliu said, but fundamentally the market is different. “I don’t think you’re gonna make the same kind of highs,” should the Ukraine deal fall through. “I don‘t think we are going to reach $13.50 a bushel of wheat like we had before,” Sanfeliu said.

• China may start importing corn from Brazil as early as December, part of a drive by the world’s top buyer to reduce dependence on the U.S. and replace supplies from Ukraine cut off by the Russian invasion, Bloomberg reports (link). Some 45 facilities owned by companies including Bunge, Cargill and ADM have been pre-approved by Brazil to export to China, according to a list seen by Bloomberg. The final total will be higher because of many requests, a person familiar with the matter said.

• NWS weather: Flash Flooding concerns shift from the Northeast today to the Southwest/Southern Plains this weekend... ...Critical Fire Weather Risk for Central Plains today.

Items in Pro Farmer’s First Thing Today include:

• Corn and wheat weaker, soybeans firmer overnight
• Russia wants Turkey to serve as gas hub (details in Russia/Ukraine section)
• China to step up economic policy support (details in China section)
• Malaysia keeps crude palm oil export duty at maximum 8%
• Cash cattle trade higher
• More signs of short-term stabilization in cash hog index

— Summary: Russian-backed forces have made some advances in eastern Ukraine, British intelligence said, even as Moscow’s hold weakens in the south, where a Russian-installed official has advised residents to flee a region Russia claims to have annexed. A British intelligence update said forces led by the private Russian military company Wagner Group had captured the villages of Optyine and Ivangrad south of the fiercely contested town of Bakhmut, the first such advance in more than three months.

• French food company Danone will shed control of its dairy food business in Russia in a deal that could lead to a write-off of up to $978 million. Joining a lengthening list of global companies making costly exits, Danone will be offloading a business representing about 90% of its operations in Russia.
• Russia wants Turkey to serve as gas hub. Russian President Vladimir Putin touted Turkey as the best route for redirecting gas supplies to the European Union after Nord Stream pipeline leaks. Turkish President Tayyip Erdogan ordered his country’s energy ministry to immediately begin work on building a gas hub in Turkey following talks yesterday with the Russian leader. Meanwhile, European leaders focused on efforts to cut energy consumption.
• Ukraine grain export accord update. Russia’s Geneva U.N. Ambassador Gennady Gatilov told Reuters the country has submitted a list of concerns to the U.N. on the agreement which was brokered to allow shipments of grain and agricultural products from Ukraine to resume via the Black Sea and they are prepared to reject renewing the deal next month unless those demands are met. “If we see nothing is happening on the Russian side of the deal — export of Russian grains and fertilizers — then excuse us, we will have to look at it in a different way,” he said, noting there was a “possibility” that Russia could withhold support for renewing the deal. “We are not against deliveries of grains, but this deal should be equal,” he said. “It should be fair and fairly implemented on all sides.”
  

— USDA requests comments on financial aid to those discriminated in USDA farm lending programs. The aid comes via provisions in the Inflation Reduction Act (IRA), which earmarked $2.2 billion for the effort for those affected by prior to January 1, 2021. The aid is limited to not more than $500,000 per recipient. In the Federal Register notice (link), USDA said while the IRA provisions provide financial assistance to those affected, the effort is “more fundamentally about providing USDA the tools to rebuild that trust by directly acknowledging the wrongs that have been committed and taking concrete actions to offset those wrongs.”

USDA seeks input on how to identify those who experienced discrimination and what kind of evidence should be submitted to back up the claims, factors that should be considered relative to the aid including whether only economic loss should be considered, whether previous payments for discrimination should be considered, and where there are non-monetary ways to provide relief.

USDA is also seeking feedback on using third-party entities in determining delivery of the financial assistance and on how USDA should use other programs in conjunction with the financial assistance to those who have been discriminated against in USDA loan programs.

Comments are due by Nov. 14. USDA has also set three public listening sessions on implementing the aid on Oct. 20 and 26 and Nov. 1.

— Farm Bureau seeks ‘unified’ farm bill of ag and nutrition aid. The American Farm Bureau Federation (AFBP) released its general new farm bill recommendations. “It makes perfect sense” to combine commodity supports and SNAP (food stamps) in the same piece of legislation, said president Zippy Duvall in announcing the group’s farm bill priorities on Thursday. The AFBF called for higher reference rates and loan rates, at a still-to-be-determined level and cost, and more emphasis on stewardship on working lands rather than long-term idling of cropland. “We believe that because of the higher cost of production, it justifies the increase in the reference prices for Title I commodities to ensure farmers remain economically viable,” said Duvall. Farm Bureau knows fully well not to be too specific ahead of their January annual confab. Link to four-page AFBF list of farm bill priorities. Link to Farm Bureau announcement of its priorities

The Farm Bureau’s agenda: First on the AFBF’s list: “protect farm bill program spending,” followed by “maintain a unified farm bill that keeps nutrition programs and farm programs together.” They also want a robust federally subsidized crop insurance system and “adequate” staffing and funding of the USDA’s technical assistance programs for farmers and ranchers. The AFBF suggested three minor changes to public nutrition programs, including one to allow food banks to buy fruits, vegetables, and other specialty crops directly from farmers. Farm Bureau also said more milk should be eligible for the Dairy Margin Coverage subsidy program.

The enrollment cap for the Conservation Reserve Program (CRP) should be lowered from its current 25.5 million acres, Farm Bureau said, and landowners should be encouraged to return prime cropland now in the reserve to production. “We believe that the right way to do it is through working land projects,” he said. Land set-asides limit the land available for new and beginning farmers and constrict crop production in a hungry world, said Duvall.

Comments: Farm bill math: Around 85% of all farm bill spending is on food and nutrition programs, primarily food stamps. So, there is usually a concerted battle by various groups and lawmakers over the remaining 15%. That process has begun. Therefore, total funding beyond food and nutrition spending should be increased for adequate farm policy support. One of the ways but by no means the only way to do that is via a large boost in maximum spending for the Commodity Credit Corporation (CCC).

— What to expect from China’s five-yearly congress and the new Politburo and Politburo Standing Committee. Chinese President Xi Jinping will take the stage on Sunday to kick off a historic congress of the ruling Communist Party, where he is poised to win a third term that solidifies his place as China’s most powerful ruler since Mao Zedong. In 2018, Xi eliminated presidential term limits, paving the way for him to reign indefinitely, and immortalized “Xi Jinping Thought” in the party constitution. That has laid the foundation for him to likely secure a third five-year term at Sunday’s 20th Party Congress — defying the established convention of two-term rules and further consolidating his grip on power. Here are some topics Trivium China is noting:

• How powerful will Xi Jinping emerge from the 20th Party Congress? It is all but certain that Xi will stay on for an unprecedented third term as Party General Secretary. But will he get everything he wants?
• Will Xi take on new positions or titles — like “Party Chairman,” “People’s leader,” or “Great Helmsman”?
• Will any candidates to succeed Xi be identified?
• Will current Premier Li Keqiang retire — or move to another role?
• Who will be designated to take over as the premier?
• Who will be designated to take over as the new vice premier in charge of finance?
• Will the Party Congress report suggest a tactical or strategic shift in China’s foreign policy, as competition with the West intensifies?
• Will the Party Congress herald a shift in the mainland’s Taiwan policy. Trivium says the “most significant would be for the mainland to put forward a concrete timeline for reunification, which would represent a huge geopolitical gamble, implying the strong possibility of military action against Taiwan. Alternately, the Party Congress may simply reaffirm Beijing’s commitment to the cross-strait status quo (most likely) or extend an olive branch to Taipei (rather less likely).”

— Banners featuring defiant political messages and sharp criticism of Chinese President Xi Jinping briefly dangled from an overpass in Beijing on Thursday, in a rare — and dangerous — expression of dissent just days before China’s 20th Party Congress on Sunday. The banners, which were surrounded by waves of smoke that drew attention to them, displayed slogans that demanded Xi’s removal and the end of China’s rigid zero-Covid policy. Photos of the protest initially spread on social media, although authorities swiftly wiped them from the internet.

— Some upcoming Xi meetings with foreign leaders include:

• On Nov. 3-4, German Chancellor Olaf Scholz will head to Beijing, the first leader of a G7 country to visit China since the outbreak of Covid-19.
• From Nov. 15-19, Xi will make his second trip out of China since the beginning of Covid-19 to attend the G20 Summit in Bali and the APEC Summit in Bangkok. Of note will be whether Xi has one-on-ones with President Joe Biden and/or Russian President Vladimir Putin.

— Chinese consumer inflation hits 29-month high, producer prices ease. China’s consumer price index rose 2.8% versus year-ago in September, up from a rise of 2.5% the previous month and the highest reading since April. Food prices jumped to a 25-month high of 8.8% above year-ago, driven by a 36.0% surge in pork prices. Non-food inflation eased to 1.5%. China’s producer price index fell to a 20-month low of 0.9% in September.

— China to step up economic policy support. China will step up implementation of prudent monetary policy and provide stronger support for the country’s economy, the People’s Bank of China (PBOC) announced ahead of the Communist Party Congress on Sunday. PBOC will put emphasis on supporting infrastructure construction and quicken the pace to utilize loans to deliver home projects. The central bank also will support financial institutions to issue loans for equipment upgrade to key sectors, including manufacturing. PBOC has increasingly relied on structural, or targeted policy tools, including low-cost loans, to support the slowing economy, as it faces limited room to cut interest rates for fear of fueling capital flight and inflation.

— EU wants to work quickly with U.S. on concerns over climate law. The European Union is ready to engage in ad hoc talks with the U.S. to prevent its concerns over Biden’s tax and climate legislation spiraling into a trade dispute, the bloc’s trade commissioner said. Speaking on the sidelines of the International Monetary Fund Meetings in Washington, Valdis Dombrovskis said the EU is concerned that several provisions in the recently passed Inflation Reduction Act discriminate against European companies. Provisions related to tax credits for American-made electric vehicles are the thorniest issue since many EU nations have set up subsidies and tax credits that have no requirements for local production. Dombrovskis said the disputes are too urgent to wait until the next meeting of the Trade and Technology Council that Biden the U.S. and EU set up last year.

— Biden: New action on U.S. gasoline prices coming next week. President Joe Biden again criticized high U.S. gas prices and said he would announce new actions next week to combat what he described as a key driver of inflation. The White House didn’t elaborate on the plans. According to AAA, the national average price for regular unleaded gasoline stood at $3.903 today, up 20 cents (5.4%) from a month ago and 60.6 cents (18.4%) higher than last year at this time.

— Kroger to buy Albertsons in a $24.6 billion deal. Albertsons shares jumped 11.5% Thursday after reports that it was talking about potentially merging with Kroger to create a supermarket giant with nearly 5,000 U.S. stores. Bloomberg and the Wall Street Journal both said the chains could reach a deal by the end of the week. The WSJ today reports Kroger said it is buying rival Albertsons in a deal that values the company at $24.6 billion, one of the biggest ever grocery-industry purchases.

The deal could face antitrust scrutiny, because both companies operate stores in the same regions, including Southern California, Texas, and Chicago. They are the two largest U.S. supermarket operators, but trail Walmart, the largest seller of groceries. Wells Fargo analysts estimated that at least 25% of Albertsons’ store base may need to be sold to a third party to overcome potential regulatory hurdles. Lina Khan, chair of the FTC, has expressed doubts on whether divestitures are sufficient to allay antitrust concerns. “They’re going to face a level of scrutiny that grocery mergers have not in the past,” William Kovacic, a former FTC chairman, told the New York Times (link).

Background. Cincinnati-based Kroger operates 2,723 stores under numerous brands, has a market value of $33 billion, and generated $137.9 billion in sales in fiscal 2021. Boise, Idaho-based Albertsons operates 2,273 stores, is valued at nearly $14 billion, and generated $71.9 billion in 2021 sales.

The Biden administration last year vowed to step up regulatory oversight of segments of the food chain, starting with meatpackers, where corporate concentration is believed to be keeping profits and retail prices high.

— HPAI update. USDA’s Animal and Plant Health Inspection Service (APHIS) this week confirmed additional cases of highly pathogenic avian influenza (HPAI) in commercial poultry operations, including in Beadle County, South Dakota (71,400 commercial turkey meat birds) and Utah (47,200 commercial turkey meat birds). There have now been 240 commercial flocks confirmed with HPAI during the current outbreak.

Trade restrictions. The discovery of HPAI in a flock of 56,000 commercial broiler breeder pullets in Madison County, Arkansas, has also prompted fresh trade restrictions from some countries, with New Zealand, India, Jordan, Mexico, and Qatar blocking imports from Madison County, Arkansas, and Singapore blocking them from an area within the county (includes small portions of Washington and Benton counties).

— Summary:

• Global Covid-19 cases at 623,895,684 with 6,565,111 deaths.
• U.S. case count is at 96,911,305 with 1,064,798 deaths.
• Johns Hopkins University Coronavirus Resource Center says there have been 624,198,981 doses administered, 266,373,101 have received at least one vaccine, or 81.46% of the U.S. population.

— The Biden administration extended the Covid-19 pandemic’s status as a public-health emergency for another 90 days, preserving measures such as expanded Medicaid and higher payments to hospitals.

— The U.S. should prepare for a spike in Covid-19 cases this winter as more people gather indoors and infections already begin to rise in Europe, White House Covid-19 Response Coordinator Ashish Jha said. Link for details.

— Republican Herschel Walker’s bid to unseat Democratic Senator Raphael Warnock of Georgia comes to a head today when they meet for their sole televised debate in a contentious race that could help determine which party controls the Senate.

Polling shows the race shifting away from Walker, the New York Times’ Nate Cohn reports (link). “If the latest polls are any indication, the recent allegations against Walker might be big enough not only to decide his race but also control of the Senate.” Compared with previous polling, the latest surveys show him slipping by an average of about 2.5 percentage points since an ex-girlfriend said he paid her for an abortion she had in 2009. Walker has made opposition to abortion a cornerstone of his campaign and has denied the woman’s account. Cohn adds “it’s possible this will represent Mr. Walker’s low-water mark. With the news about him still fresh, there may be some Republicans reluctant to say they support him now, but who may ultimately come back to his side if or when the heat of the issue fades.”

Every new poll shows Warnock in the lead (on average by more than three percentage points).

— Confused about midterm elections? Amy Walter of the Cook Political Report with Amy Walter writes: “It’s likely that some of the races that many are expecting to go in different directions — like Pennsylvania toward Democrats and Nevada toward Republicans — may not turn out to be the case.”

— Trump subpoenaed. The House of Representatives committee probing the Jan. 6, 2021, attack on the Capitol by Donald Trump’s supporters voted unanimously to subpoena the former president. The committee is now working to present a final report by the end of the year on whether to make any criminal referrals to the Justice Department. The former president is “required to answer for his actions”, said Bennie Thompson (D-Miss.), the chairman. “We want to hear from him.” They are unlikely to: Trump will probably not comply.

Separately, the Supreme Court denied Trump’s request to secure access to classified documents seized from his estate in Florida.

— Cotton AWP slightly higher. The Adjusted World Price (AWP) for cotton edged up to 77.45 cents per pound, effective today (Oct. 14), up from 77.19 cents per pound the prior week. The increase in the AWP did not prompt USDA to resume announcing any Special Import Quota for upland cotton, with the last one having been announced Sept. 22. The recent downturn in prices saw the trigger for establishing the quota not being met as USDA is required to establish one if the U.S. Far East price exceeds the prevailing world market price for any consecutive four-week period.

— Beyond Meat exec Doug Ramsey leaves company after arrest for allegedly biting man’s nose. The move came weeks after he was arrested for allegedly biting a man’s nose.

Meanwhile, Beyond Meat announced layoffs and cut its revenue forecast. The company reduced its full-year annual revenue forecast to around $400 million to $425 million, down from a previously reduced level of $470 million to $520 million, with the plant-based meat firm also announcing it would cut 200 jobs. The firm said that demand for its products and plant-based proteins have stalled as consumers have opted for cheaper alternatives amid food price inflation that is the highest in more than 40 years. “We are significantly reducing expenses and sharpening our focus on a set of key growth priorities,” Chief Executive Officer Ethan Brown said.

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 | Student loan forgiveness | Russia/Ukraine war, lessons learned | Election predictions: Split-ticket | Congress to-do list | SCOTUS on WOTUS | SCOTUS on Prop 12 |