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Water level at Port of Manaus on Amazon River lowest in 122 years... The Amazon region of northern Brazil continues to suffer under the worst drought in 120 years, resulting in the lowest water level at the Port of Manaus in 122 years. A state of emergency has been declared in 62 municipalities along the river.
The Amazon River is formed near the city of Manaus when the Negro River joins with the Solimoes River. The Negro River, which is the largest northern tributary to the Amazon, is also at record-low levels. Water levels on the southern tributaries such as the Madeira River and Tapajos River are also record-low, which is impacting grain shipments. Barge operations on the Madeira River have been suspended and barges on the Tapajos River are only being loaded to 60% of capacity.
South American crop consultant Dr. Michael Cordonnier says some grain shipments out of Mato Grosso that were scheduled to go north to the Amazon River have been diverted to the Port of Santos in southeastern Brazil at an additional cost of approximately $21 per metric ton.
FEMA to investigate conspiracy theories hampering Hurricane Helene relief efforts... FEMA Administrator Deanne Criswell announced plans to investigate the source of conspiracy theories that are hindering relief efforts for Hurricane Helene. Misinformation, including false claims about diverted funds and aid discrimination, is creating distrust and demoralizing FEMA staff. While Criswell does not yet know if foreign adversaries are involved, she stressed the seriousness of the situation. The spread of disinformation is discouraging disaster survivors from seeking aid and undermining FEMA’s operations.
USDA announces new rules to boost fairness and transparency... USDA announced several initiatives to promote fair competition in American agriculture and reduce food prices for consumers, in line with President Biden’s Executive Order on Promoting Competition in the American economy. These actions are part of the administration’s efforts to: Open new markets for farmers; provide more competitive choices; lower food costs for consumers; and support small businesses and family farms.
Seed competition framework. USDA introduced a three-part strategy to enhance seed system diversity, competition, and resilience:
· Improving patent-related disclosure for seeds to clarify research opportunities.
· Providing guidance to USDA researchers on using protected germplasm.
· Encouraging the sharing of federally funded germplasm for research and plant breeding.
Meat retail industry report. USDA published an interim report assessing competitive conditions in the meat retail industry, focusing on beef markets as a case study. The report identifies:
· Increasing market concentration among top packers, distributors, and retailers.
· Concerns from farmers and small to midsize processors about problematic practices by intermediaries.
Cattle price discovery initiative. USDA announced steps to enhance price discovery and fairness in cattle markets through an Advanced Notice of Proposed Rulemaking (ANPR). This initiative aims to:
• Improve the base prices in fed cattle purchasing agreements.
• Address concerns about the negative effects of Alternative Marketing Agreements (AMAs) on the spot market.
USDA said it will continue its investigative study, including through subpoenas, and seek public input on potential next steps to ensure fair competition in the agricultural sector. Additionally, in the upcoming months, USDA will issue an Advance Notice of Proposed Rulemaking seeking public input around how best to address practices used in meat merchandising that may violate the Packers and Stockyards Act.
EU rejects China’s proposal for 30,000 euro minimum sales price in EV dispute... The European Union rejected a proposal by the Chinese government for imported electric vehicles (EVs) made in China to be sold at a minimum price of 30,000 euros ($32,946), three sources familiar with the situation told Reuters, a move Beijing hoped would avert EU tariffs being imposed next month. The European Commission said it dismissed minimum price offers from EV makers in China a month ago as part of an anti-subsidy investigation that has thrown Beijing and the EU into their biggest trade dispute in a decade. In rejecting the Chinese proposal, Brussels said at the time that it was not only about the prices carmakers charge for their China-made EVs, but also the subsidies they received producing them and removing the impact of such support payments.
World is abandoning the WTO as U.S. and China lead the way... Kristen Hopewell, writing in Foreign Affairs, says the World Trade Organization (WTO) is facing a crisis as global cooperation on trade erodes. Hopewell is Director of the Liu Institute for Global Issues and Professor and Canada Research Chair in Global Policy at the School of Public Policy and Global Affairs at the University of British Columbia. She writes that the U.S. and China, once champions of the global trade order, are now undermining WTO rules through tariffs, subsidies and economic coercion. She says the U.S. has paralyzed the WTO’s dispute-settlement mechanism by blocking appointments to its Appellate Body, allowing countries to violate rules with impunity. Other nations, such as Indonesia and India, have followed suit by appealing WTO rulings “into the void.” With negotiations stalling and enforcement mechanisms collapsing, the future of the multilateral trading system is at risk, she cautions. Her bottom line: The potential collapse of the WTO could lead to protectionist policies, economic instability and global conflict, resembling the conditions that led to the Great Depression and World War II.
North Dakota nears decision on Summit Carbon Solutions Pipeline project... North Dakota’s Public Service Commission is closer to deciding on Summit Carbon Solutions’ proposed carbon capture pipeline, which would link 57 ethanol plants across five states to a storage site in North Dakota. The project, touted as the world’s largest carbon capture pipeline, would store captured emissions underground. The commission previously denied Summit’s route permit, but after public hearings and route adjustments, such as moving the pipeline farther east of Bismarck, a decision is pending. Summit has secured 80% of the necessary land through voluntary easements, though concerns over eminent domain and property impact persist.
Port of Vancouver grain workers ratify new contract agreement... Port of Vancouver terminal grain workers voted about 67% in favor of the collective agreement with the Vancouver Terminal Elevators Association (VTEA). Now ratified, the new contract will run through the end of 2027.