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In an opinion piece in the FT<\/a>, economists from CRU argue that there is nothing super about this commodity cycle. They believe that the current supply and demand imbalances will soon be resolved. Goldman Sachs seems to agree<\/a>. In a research note this week, the bank writes that the US is in a one-time in\ufb02ationary blip that will eventually become a one-off \u201cdisin\ufb02ationary drag\u201d. They see no signs that the US economy is overheating.<\/p>\n We may worry about Covid variants, but China\u2019s pork producers are concerned over the spread of new variants of African Swine Fever<\/a>. The new variants have a more extended incubation period, making them difficult to diagnose before the infection spreads across farms.<\/p>\n In a setback to the US biofuels industry<\/a>, the US Supreme Court has made it easier for small oil refineries to win blending exemptions for ethanol and other renewable fuels. The court ruling gives the US Environmental Protection Agency (EPA) wide latitude to exempt refineries<\/a> from federal mandates. Meanwhile, I recommend the latest HC Insider podcast; it <\/a>shines a spotlight on the future of the biofuels sector.<\/p>\n Bloomberg takes a deep dive into the Suez Canal<\/a> with one maritime captain saying, \u201cI\u2019d rather have a colonoscopy than go through the Suez.\u201d Meanwhile, Egypt expects to finalize soon an agreement for compensation over the Evergreen container ship<\/a> that blocked the Suez Canal in March \u2013 and that has been kept in the country ever since. \u00a0And while we are on the subject of canals, the Turkish president has inaugurated work on the controversial Kanal Istanbul<\/a>.<\/p>\n Still on the subject of shipping, the port of Yantian in southern China is now fully operational after being closed due to a Covid outbreak. However, bottlenecks still exist elsewhere<\/a>, for example, in the Port of Hamburg, where there is \u2018high (container) yard density and exceptional waiting times\u2019 for vessels.<\/p>\n Tanzania has started talks with China to revive the planned $10 billion Bagamoyo port project<\/a>, 75 kilometres north of Dar es Salaam. Construction began in October 2015, but the government suspended the work shortly after.<\/p>\n The Guardian has seen a draft of FuelEU Maritime<\/a>, the green fuel law for EU shipping, due to be published on 14th<\/sup> July. The European Commission has rejected requiring specific green fuels and instead opted to set stringent greenhouse gas intensity targets. The newspaper describes the draft law as an environmental disaster, saying it will lock in the use of fossil fuels for decades to come and make the EU\u2019s target of net emissions neutrality by 2050 unreachable\u2019.<\/p>\n A senior shipping official has also criticized the draft law<\/a>, telling the FT that it will mean vessels will have to slow down. He argues that this will result in more ships on the seas, thus raising, not lowering, carbon emissions<\/p>\n The Nigerian central bank has restricted the use of the US dollar to import grain<\/a>. Nigeria is Africa\u2019s biggest buyer of wheat, and flour millers struggle to find dollars to pay for imports.<\/p>\n Remaining in West Africa, C\u00f4te d\u2019Ivoire<\/a> is building an electricity generating plant using waste biomass from cocoa farms. The facility will meet the electricity needs of 1.7 million people.<\/p>\n California\u2019s drought has led to a shortage of irrigation water irrigation for the state\u2019s almond producers<\/a>. Farmers are letting many of their trees die.<\/p>\n In the UK, Foundation Earth, a government-backed NGO, has joined forces with Nestl\u00e9, Marks & Spencer, Sainsbury\u2019s, the Co-op and Costa Coffee to introduce a pilot scheme for environmental traffic lights on food packaging<\/a>, possibly a world first.<\/p>\n A new report<\/a> by The Economist Intelligence Unit, commissioned by the WWF, has highlighted consumers\u2019 growing awareness of the environmental impact of what they buy, particularly in the cosmetics, pharmaceutical, fashion and food sectors. The most dramatic growth in engagement and awareness<\/a> has occurred in Asia, notably India, Pakistan and Indonesia.<\/p>\n In what might be another world first, the UK is considering a tax on meat<\/a> to reduce consumption and help the environment. Meat processors around the globe are under pressure<\/a> both to reduce their carbon footprint and prove that their cattle do not come from recently deforested areas.<\/p>\n Environmental and animal welfare activists are not just attacking the meat industry: they also have dairy in their sights<\/a>. \u00a0\u00a0The good news is that meat lovers in Israel can already try out lab-grown or cultured chicken<\/a>.<\/p>\n The Guardian reports that the UK will face food shortages<\/a> this summer due to a lack of lorry drivers. The lorry driver shortage is already affecting deliveries of fresh food. The newspaper highlights the looming shortage of tinned tomatoes<\/a> \u2013 and what it may mean for the cost of your favourite pizza.<\/p>\n The Guardian also writes about the mismatch between the public perception of farming<\/a> and its reality. The newspaper warns that the future of agriculture is at risk. \u00a0However, in a separate article, the Guardian argues that traditional farming could one day become obsolete<\/a>. Food in the future will come from microbes grown in bioreactor vats and processed into dry protein powders.<\/p>\n Until then, the Wall Street Journal argues that combatting climate change and environmental damage will come at a cost to food companies<\/a>. But there is hope. Scientists have published a study<\/a> that shows innovation in technologies and agricultural practices could reduce GHG emissions from grain production by up to 70 per cent within the next 15 years.<\/p>\n As for this week\u2019s long read, you might enjoy the FAO\u2019s Biannual Report on Global Food Markets<\/a>. I confess that I didn\u2019t read many of its 188 pages. However, I did enjoy this piece on the history of palm oil<\/a> \u2013 and how it became the most used and the most hated vegetable oil.<\/p>\n \u00a9 Commodity Conversations \u00ae 2021<\/p>\n","protected":false},"excerpt":{"rendered":" In an opinion piece in the FT, economists from CRU argue that there is nothing super about this commodity cycle. They believe that the current supply and demand imbalances will soon be resolved. Goldman Sachs seems to agree. In a research note this week, the bank writes that the US is in a one-time in\ufb02ationary … <\/p>\n