1. Producer Price Index and Consumer Price Index came in higher than market expectations
The Consumer Price Index jumped to 9.1 percent in June, which is higher than the 8.8 percent expected, and up significantly from May. It is the largest 12-month increase since November 1981. The energy complex led the way, jumping 42 percent on the year, the largest since early 1980.
The Producer Price Index is much worse than the markets were expecting. For June, it jumped 1.1 percent, which is far higher than the expected 0.8 percent. On the year, wholesale prices are 11.3 percent higher, just shy of the record set in March. The PPI is a leading, not lagging, indicator of inflation, meaning it measures increases before they are passed onto the consumer.
2. Dutch farmers receive growing support in protest
Support continues to grow for Dutch farmers in their protest of the Netherland’s strict climate regulations. Videos on social media show concert attendees throwing hay in the air and shouting, “farmers! Farmers! Farmers!”
Other videos show German farmers filling the freeways, and clogging up a bridge with their tractors. A separate video on TikTok shows Dutch firefighters joining the fray.
Farmers say the government is more interested in stealing their land than they are in reducing nitrogen. One farmer was quoted saying, “we want to turn out government back to reality.”
3. Ukrainian farmers continue to harvest... under fire
Latifundist Media has partnered with us to provide boots-on-the-ground coverage for an update on harvest conditions and a first-hand account from a farmer in a war-stricken country.
Farmers have already harvested almost 40 million bushels of wheat, barley, and rapeseed. According to analysts’ forecasts, in 2022, Ukraine can harvest about 665 million bushels of wheat from an area of 11 million acres on the territories under government control.
According to data provided by NASA, 22 percent of Ukrainian agricultural land is under occupation, other parts of this are mined. Somewhere, farmers simply did not have enough funds to sow the fields. Due to the constant shelling, it is extremely difficult to extinguish such fires in the occupied territories; the Russians do not allow Ukrainians to do this. Nevertheless, the occupied Kherson region continues to actively harvest crops.
As of July 11, Ukraine has exported 15 million bushels of grain since the beginning of the 2022-2023 marketing year. According to the Ministry of Agrarian Policy, this indicator is 30 percent or 7 million bushels less than in the same period last year.
Click HERE for the full story.
4. Food inflation outpaces the general economy
Dairy products on grocery store shelves
Inflation ballooned to 9 percent last week, a new record-high. That is the number for the general economy and it is not even the highest one. The price inflation for food is even greater, up 12 percent from last June. USDA economists say they were surprised to see inflation climb that high.
Those numbers spell trouble for President Biden’s climate agenda. Climate regulations usually come at a cost, and some lawmakers, including Democratic Senator Joe Manchin, are now warning that with inflation, that cost is too great.
Click HERE for the full story.
5. NMCGA settles lawsuit over estray cattle shooting
Unsplash/Geronimo Giqueaux
New Mexico Cattle Growers settled a lawsuit filed to prevent the U.S. Forest Service from shooting cattle from a helicopter in the Gila wilderness.
The group’s president told Market Day Report why it is happening, how it could be a problem for cattle producers, and what has been decided in the lawsuit.
Click HERE for the full story.
