The Standard Chartered loan will be guaranteed by UK Export Finance and Poland’s export credit agency KUKE and supports a solar project in Turkey.
Picture (2023) from Kalyon’s Karapınar Solar Power Plant (Scada Building), the previous Kalyon project which UKEF financed in 2021.
Export credit support enables the construction of Turkey’s second-largest solar project to date.
Deal supports UK jobs in renewable-energy sector supply chain, particularly in the Midlands, and creates new business opportunities for Polish companies in Turkey.
Upon completion, the solar project has the potential to power over 65,000 households per year in Turkey with renewable energy.
UK Export Finance (UKEF) and KUKE, the UK and Polish export credit agencies, have guaranteed a €249 million loan being arranged by Standard Chartered Bank for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Turkey’s second-largest solar project to date. This deal is expected to support UK jobs in the renewable-energy sector supply chain, particularly in the Midlands.
The 390MWp project entails the construction and operation of solar power plants at seven separate sites, with aggregate power generating capacity of 390 MWp across the provinces of Bor-Nigde, Gaziantep and Sanliurfa-Viransehir. Upon completion, the project could generate enough renewable electricity to power over 65,000 households in Turkey annually.[1]
British exporter GE Vernova – via its subsidiary UK Grid Solutions Ltd – will supply and install inverter stations, power-plant controllers and other critical equipment. This is expected to directly support British jobs at GE Vernova’s Staffordshire site, as well as jobs in the wider UK supply chain.
Polish exporters will deliver security systems (including both software and equipment) and steel components for the project. This is set to create jobs in manufacturing and logistics sectors.
Standard Chartered acted as Structuring Bank, Green Loan Coordinator, Lead Arranger and Lender. The financing is guaranteed by a 100% UKEF guarantee, with over €122 million reinsured by KUKE, Poland’s export credit agency.
Renewable energy represents 54% of the total installed electricity capacity in Turkey.[2] This new project will increase the availability of renewable energy in Turkey and deliver on UKEF’s commitment to supporting the global transition towards low-carbon economies.
Gareth Thomas, UK Minister for Exports, said:
“Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world. This announcement will support jobs and businesses across the country, especially in the Midlands, and support the global transition toward cleaner energy. It also demonstrates how UK Export Finance can help businesses grow, export and boost economic growth.”
Piotr Maciaszek, Director of Insurance and International Relations Department, KUKE, said:
“This contract in the green technology sector proves that Polish companies have broad competences and can provide products and services of the highest quality. Thanks to the support of KUKE, Polish entities are more often involved in the implementation of infrastructure projects in Africa, the Middle East and Asia. We hope to announce further transactions this year with significant involvement from Polish businesses, meeting large investment needs around the world whilst improving many people’s quality of life.
Uday Mathur, Global Leader, Capital Markets, GE Vernova, said:
“We have a long-term, successful partnership with UK Export Finance in Türkiye, enabling GE Vernova to continue offering clients competitive financing solutions for solar and storage technology. GE Vernova has helped deliver approximately 2.8 GW of solar capacity in Türkiye with an extended equipment scope and a services package. We are proud to have delivered yet another landmark financing in Türkiye through successful collaboration with Kalyon Enerji and UK Export Finance.”
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered, said:
“Through this important multi-site solar project in Türkiye, we were able to showcase our expertise to structure this Green Loan financing supported by UKEF and KUKE and contribute to our strategic priorities to help accelerate our clients’ transition to net zero. With our unique expertise in sustainable finance and a track record in financing renewable projects, we are proud to help shape the future of communities in our footprint.”
Dr. Murtaza Ata, CEO of Kalyon Enerji, added:
“We are proud to be a driving force behind Türkiye’s transition to clean energy. In 2023, we became fully operational in Kalyon Enerji’s Karapınar Solar Power Plant, which is the largest solar power plant in Türkiye and Europe, contributing 11% of the solar power generated in Türkiye. This is Kalyon Enerji’s second transaction with UKEF and GE Vernova, for the second largest solar project in Türkiye to date. Thanks to our business partners for their support, by investing in renewable energy projects, we’re not only providing sustainable energy solutions, but also creating jobs and contributing to Türkiye’s energy independence using renewable energy sources.”
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GUYMON, OKLA. — The Guymon Police Department and Seaboard Foods confirmed that a vehicular accident led to an employee dying at the Guymon, Okla. pork processing facility. The incident occurred in the trailer lot area of the plant according to the company.
The police stated that around 12:30 a.m. on July 12, officers received a 911 call to the Seaboard plant. Before arriving on scene, a second 911 call was placed regarding the crash.
An adult male, who was the pedestrian, was pronounced dead at the scene, according to Guymon Police. The incident remains an ongoing investigation. The employee killed was not identified.
Seaboard said it expressed its deepest condolences to the employee’s family and friends during this difficult time.
“We are fully cooperating with all investigations conducted by local law enforcement and regulatory authorities,” a company spokesperson said. “As Seaboard Foods’ focus is on the safety and well-being of our people, we are providing counseling services to all employees who express interest in such services.”
The company noted that operations have resumed following the accident.
KANSAS CITY, MO. — Most people in the US consume too much sodium, with the majority coming from processed, packaged and prepared foods. This includes dairy products, with cheese, cheese ingredients, and dips and spreads being the largest contributors.
Formulators should explore all ingredients that contribute sodium and make cuts and swaps where possible.
The US Food and Drug Administration (FDA) has provided food manufacturers with guidance for sodium reduction. While the guidance is voluntary, taking action is the right thing to do, especially if one is a supplier for foods intended for school meals.
The US Department of Agriculture (USDA) recently released a final rule to update meal patterns for the National School Lunch Program and School Breakfast Program to align school meal nutrition standards with the goals of the Dietary Guidelines for Americans, 2020-2025. This rulemaking became effective July 1, 2024; however, program operators are not required to make any changes to their menus as a result of this rulemaking until school year 2025-26, at the earliest.
The updated standards provide schools with time to gradually reduce sodium in school meals by instituting one achievable sodium reduction. These limits apply to the average amount of sodium in lunch and breakfast menus offered during a school week. For the next three school years, schools will maintain current sodium limits. Beginning July 1, 2027, schools will implement an approximate 15% reduction for lunch and 10% reduction for breakfast from current sodium limits.
“The FDA has followed a methodical, iterative process that has encouraged a gradual approach to sodium reduction, with realistic targets, established timelines and ongoing monitoring,” said Jordan Timm, research and development lead, salt, for Cargill. “Regulators put a lot of thought into this approach, recognizing that salt is highly functional in many applications, contributing to taste, texture, food safety and more. Throughout the process, their goal has been to give the right guidance and set realistic targets so that the industry can be successful.
Why it matters
Most Americans 14 years and older consume 50% more than the recommended limit for sodium, according to the Dietary Guidelines for Americans. When it comes to children aged 2 to 13 years, more than 95% exceed the recommended limits of sodium for their age groups. This could have profound impacts on later health outcomes.
“Public awareness and education about the health risks of excessive sodium have been addressed by physicians and health advocates for decades,” said Matt Buss, director of research and development, Allied Blending. “We have created low-sodium and sodium-free versions of hundreds, if not thousands, of products. This can include replacements for sodium in preservatives, leavening agents and other functional ingredients.”
FDA’s voluntary guidance for sodium reduction is one of many efforts to improve dietary patterns in the United States, according to Robin McKinnon, senior advisor for nutrition policy for FDA’s Center for Food Safety and Applied Nutrition.
“[It’s about] reducing the burden of diet-related chronic diseases and advancing health equity,” McKinnon said. “Excess sodium intake is associated with hypertension and cardiovascular disease, the leading causes of death in the US.”
Most sodium intake does not come from shaking on salt by the consumer. More than 70% comes from outside the home, she said.
“It is extremely difficult to meet recommended sodium intakes with the current food supply,” McKinnon said. “There’s much variability in sodium across similar foods in the food supply.”
Other countries have implemented sodium reductions in the food supply successfully. It can be done in the United States, but FDA believes it will need to occur over time.
“This creates a level playing field,” McKinnon said. “Consumers’ palates will adjust as long as adjustments are broad and gradual.”
Many marketers think it is best to not flag sodium reduction on product labels, as it is suggestive of less flavor and an inferior product. Simply make the reduction — carefully — and let label-reading consumers be pleasantly surprised when they view the reasonable sodium content of their favorite dairy products. Suppliers are ready to help through the use of varied ingredient technologies.
“The uncertainty of how the US consumer will react to sodium-reduced products may be influencing companies to be very calculated and perform their due diligence to strategize the best approach in reducing sodium,” said Christine Shiinoki, technical applications manager, CJ Food & Nutrition Tech. “Consumers say they want one thing, such as reduced-sodium food products, but may not like the resulting flavor. No company wants to disappoint their customer.”
With many varied sodium-reduction solutions on the market, there is no one product-fits-all ingredient. In many instances, reduction requires a systems approach.
Source: Allied Blending
Salt substitutes
One of the most common swaps is replacing sodium chloride with potassium chloride. Since December 2020, the term potassium salt may be used on ingredient statements rather than potassium chloride. This is considered a more consumer-friendly term, according to McKinnon.
“Potassium salt helps with reducing sodium,” McKinnon said. “Consumers understand it’s a salt, one that is substituting for sodium salt.”
Another FDA initiative to assist with sodium reduction is in the works. The agency proposed to amend standards of identity (SOI) that specify sodium chloride as a required or optional ingredient and to permit the use of salt substitutes in these standardized foods. This impacts many standardized cheeses. There are four types of revisions to the applicable SOI in FDA’s proposed rule.
When the current text of the SOI lists “salt” as an optional ingredient, the proposed rule would amend the SOI to state, “salt or salt substitute.” When the current text of the SOI provides for the use of “salt” in a paragraph, the proposed rule would amend the SOI to state, “salt or salt substitute.” When the current text of the SOI uses terms such as “salted,” “salted with dry salt or brine” or “salting,” to provide for use of salt in the food, but does not specify salt as an ingredient, the proposed rule would amend the optional ingredient list to add “salt substitute.” And lastly, when the current text of the SOI uses terms such as “salted” or “salted in brine” to provide for the use of salt in the food, but does not provide a list of optional ingredients, the proposed rule would amend the SOI to add a paragraph to state: “During the cheesemaking process, where the curd is salted, salt substitute may be used.”
Toolbox of ingredients
There are many sodium salt replacements available to formulators. While potassium chloride tends to be a favorite in the dairy industry, it is smart to look at all sources of sodium and possibly make little cuts here and there.
In addition to Cargill offering potassium chloride/potassium salt, the company also has a uniquely shaped sodium chloride salt crystal. The shape influences salty perception, with a little having a great impact.
“It’s important to consider how the consumer’s taste receptors will interact with the food item,” said Elizabeth Kreger, innovation and analytical manager-research and development, Sensient Flavors & Extracts.
Sensient has several offerings for sodium reduction. They are characterized as flavor enhancers.
“Our proprietary taste technology mimics a full sodium taste perception in a reduced-sodium application,” said Wara Pirzada, senior application scientist at Sensient Flavors & Extracts. “One of the key aspects of all our sodium reduction solutions is the ability to label as a natural flavor. We can also tailor each solution to meet the individual needs of a specific product formulation; it’s not one-size-fits-all.”
Sensient’s sodium flavor enhancer technology is not a 1:1 replacer for sodium. The company recommends using between 0.3% to 0.5% to replace up to 40% sodium in the formula.
NuTek Natural Ingredients offers a variety of potassium-salt based solutions that have been designed to not taste bitter.
“Our clean-label salt solutions are produced using a proprietary washing and drying process to eliminate potassium’s bitterness, without the use of bitter blockers, flavor modulators or synthetic additives,” said Steve Zimmerman, senior director technical sales at NuTek Natural Ingredients. “These cost-effective solutions deliver a healthier nutrition balance, while delivering the same great taste and functionality as regular salt.”
The potassium versions of most sodium-based ingredients are typically used in the same manner. However, there will be changes to the ingredient declaration statement and the sodium and potassium content on the Nutrition Facts. The latter is viewed favorably, as many consumers strive to reduce sodium intake while at the same time increase potassium intake, as sufficient potassium intake is lacking in many diets.
“While sodium substitutes such as potassium chloride have been on the market for a considerable period, they bring their own set of risks, including heart palpitations and hyperkalemia,” said Sowmi Raju, food scientist at Allied Blending. “Simply swapping one ingredient for another in an effort to address health concerns can inadvertently introduce new, potentially more severe, problems.”
Yeast extracts have become a label-friendly alternative to added salt in cheese spreads and dips. They are recognized for their ability to provide umami flavor. Yeast extracts are used in a similar way as sodium chloride and are declared on ingredient decks simply as yeast extract.
Permeate, a co-product of the manufacture of high-protein dairy ingredients, contains a unique concentration of minerals with flavor-potentiating properties. Three varieties are available — whey permeate, milk permeate and delactosed permeate — each possessing different beneficial functions.
Permeate is most widely utilized in the dried form, which requires no special handling from distribution through storage. The dried powder flows readily and is easy to mix in with the other ingredients in the formulation.
KANSAS CITY — There was a bit of something for everyone in the US Department of Agriculture’s Aug. 12 Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports: a record forecast for US soybean production, the third-largest corn crop on record, slightly less wheat than in July but 9% more than in 2023, higher corn and soybean exports, and steady wheat exports, as well as lower cash corn, soybean and wheat prices.
August brought the first survey-based USDA production estimates for corn, sorghum, soybeans and other oilseeds, rice, cotton, sugar beets and cane and several other crops, plus revisions for all classes of wheat. Revisions for planted and harvested acres also were included in the Crop Production report, with many crops adjusted from the USDA’s June Acreage report. Favorable weather during the planting and growing seasons and improved moisture conditions resulted in summer crop condition ratings well above a year ago.
High yields were projected for many crops, including record-high yields nationally for soybeans, corn and spring wheat other than durum, and for certain individual states for those and several other crops. The new production estimates are key for supply and carryover revisions to the major crops included in the WASDE report for the 2024-25 marketing year.
Soybean futures closed at fresh four-year lows after the USDA data were released, while corn futures closed higher after trading near four-year lows during the Aug. 12 session. Wheat futures were mixed, with Kansas City and Chicago contracts lower but Minneapolis spring wheat futures higher.
Hanging over the corn and soybean markets was the adage, “Big crops get bigger,” which some expect will be the case in later USDA estimates. Others contend that since the USDA started at higher levels for corn and soybean yields and production, there may be limited upward potential.
Record soybean forecasts
The USDA on Aug. 12 pegged 2024 US soybean production at a record-high 4,589 million bus, up 154 million bus, or 3.5%, from its July trend-line projection, and up 424 million bus, or 10%, from 2023. The average pre-report trade estimate for soybean production was nearly 3% lower at 4,469 million bus.
The outlook for a record-high average yield also was unexpected with the USDA’s forecast at 53.2 bus per acre, up 5% from 50.6 bus per acre last year and nearly a bushel above the average pre-report trade expectation of 52.5 bus per acre.
“You can’t look at this any other way than a significantly bearish report,” said Brian Harris, executive director and owner of Global Risk Management. Indeed, after the reports were released midday on Aug. 12, soybean futures began tumbling, settling down 17½¢ at $9.71 a bu in the September contract. The following day, the September contract endured a steeper drop of 24¢, settling at $9.47¼ a bu. At midday on Aug. 14, the September contract had fallen about 23% to near-four-year lows since its rally in May.
The USDA forecast the carryover of soybeans on Sept. 1, 2025, at 560 million bus, up 29% from its July outlook of 435 million bus and up 62% from the current year’s carryover of 345 million bus. The USDA left unchanged nearly all 2024-25 US soybean meal and soybean oil projections. Harris said such adjustments may be forthcoming after the new-crop soybean crushing season starts in early October.
US Soybean Production Credit: Sosland Publishing Co.
In addition to high yields, the record-large soybean crop forecast also was the result of a sharp increase in planted and harvested acres. The USDA said 87,100,000 acres had been planted to soybeans this year, up 4.2% from 83,600,000 acres in 2023, and the August acreage data also was 1,000,000 acres higher than the June Acreage report. The trade had expected reduced acres due to severe flooding in June and July across major growing areas in the Upper Midwest. Lost acreage was likely not reflected in the June Acreage report since that data was collected via surveys in early June and damage from the floods began later that month.
“All that flooding in the Midwest should have taken the total down somewhere between 250,000 and 500,000 acres, but instead the planted area was up a million acres,” Harris said.
Acreage was reduced in some Midwest states that experienced excessive summer rainfall. The August report did show soybean-planted area had been reduced from June by 150,000 acres in North Dakota and by 200,000 acres in Minnesota, but other flood-impacted states showed an increase in acres. Since the June report, soybean area in Iowa rose by 150,000 acres, and South Dakota was up by 350,000 acres. Parts of both states received more than 12 inches of rain in late June.
Surplus moisture may prove more beneficial than harmful, since heavy rain helped offset the impact of heat stress. Most row crops were maintaining their above-average condition ratings.
In the Aug. 12 Crop Progress report, the USDA rated soybeans in the 18 major growing states at 68% good-to-excellent, unchanged from the prior week, well above 59% at the same time last year and 8% higher than the five-year average for the date. Iowa, the second-highest producing soybean state, set a new season high with a rating of 77% good-to-excellent.
Also, some analysts said they believed a significant number of soybean acres had yet to be planted during the time of the flooding, and the saturated soils had likely provided ample moisture for the crop to endure the remaining summer months. The USDA showed a deficit of 410,000 soybean acres between its March Prospective Plantings and June Acreage reports, indicating there were areas that had yet to be planted, but the difference between the March and August reports was significantly higher, showing an increase of 610,000 acres.
Erin Nazetta, director of food and agriculture research at Broadview Group Holdings, LLC, said a shift from corn to soybean acres may explain the discrepancy.
“It could have been that farmers were intending to plant corn when they filled out the June Acreage survey but then ended up not planting corn and planted soybeans instead,” Nazetta said. “But I don’t know if there’s a way to necessarily confirm that.”
Regardless of when the acres had been planted and calculated, the latest data prove the US soybean market will likely be saturated with supplies in 2024-25. Despite the back-to-back days of double-digit declines in soybean futures after the Aug. 12 reports, Harris said he believes the soybean futures market has nearly reached its downside potential and pegged new crop soybeans at $9.60 a bu.
“We’re probably not going to have much more room on the downside just simply because we’re getting so close to the cost of production,” Harris said.
Nazetta, however, indicated there still may be some downside potential left.
“I would love to say that markets historically correct to the production cost levels,” she said. “But I think we have quite a bit of time between now and when the next US crop needs to be planted, and markets do have a tendency to overcorrect both to the upside and to the downside. I do think that is going to play a factor, but I would unfortunately be hesitant to say that hitting the US cost of production for the farmer is going to be setting a strong floor to prices.”
With its tumbling prices, the US soybean market has been more competitive on the global stage. Harris said US soybeans were cheaper than the world’s top soybean suppliers from South America. However, amid economic struggles, the world’s top soybean importer, China, has delayed US soybean purchases in favor of abundant and relatively inexpensive South American supplies.
While the bears appear to be firmly in control of the soybean market, there were some bullish factors lurking in the background. Weather was still a swaying component for the crop.
“If we turn on the rain spigot and don’t shut it off during harvest, then there could be some quality damage across certain sections of the soybean belt, and the price could climb back up to around $10.25 a bu,” Harris said.
Record yield; large corn crop
The USDA forecast 2024 US corn production at 15,147 million bus, up 47 million bus from the WASDE’s trend-line projection in July and down 195 million bus, or 1.3%, from record-high production of 15,342 million bus in 2023. If realized, this year’s corn production will be the third highest on record.
The average yield based on conditions as of Aug. 1 was forecast at a record-high 183.1 bus per acre, up 5.8 bus, or 3.3%, from 177.3 bus in 2023. Harvested area was forecast at 82.7 million acres, down 700,000 acres, or 0.8%, from the prior forecast and down 3.8 million acres, or 4.4%, from 2023. Record-high yields were forecast in most Corn Belt states.
The USDA corn production and yield forecasts were above average trade expectation, while the USDA harvested area estimate was below. Although corn futures closed higher on the day of the report, the gains did not hold in trading on Tuesday, Aug. 13.
“It’s a buyers’ market right now,” said Arlan Suderman, chief commodities economist at StoneX.
Because of the favorable weather outlook for the rest of August, Suderman sees the potential for corn production to go still higher.
“It’s difficult to confirm a low from the August report,” he said. “It’s hard to sustain a rally. The market is uncomfortable confirming a (price) bottom until September.”
July weather mostly was favorable during the key yield-making pollination period, and a cooler, wetter August could boost kernel size, which would result in more bushels. The September USDA production estimate adds field sampling to satellite images and farmer surveys used in August that will give a better idea of the crop’s size and the market more confidence in the USDA number.
US Average Corn Yield Credit: Sosland Publishing Co.
The USDA rated the corn crop in the 18 major producing states as of Aug. 11 at 67% good-to-excellent, up from 59% at the same time last year. The good-to-excellent ratings in the two largest producing states of Iowa and Illinois were 77%. Pollination in the 18 states was nearly complete, with 94% in the silking stage as of Aug. 11. Crop development was ahead of the five-year average pace at 18% dented (drying down), compared with 12% as the 2019-23 average for the date, with Iowa at 30% and Illinois at 28%.
The USDA acreage adjustments were “reasonable,” Suderman said. He expected a lower harvested area estimate, a number that also will be fine-tuned in September, but said that “yield is the primary market factor going forward.”
In its WASDE report, the USDA projected the carryover of corn on Sept. 1, 2025, at 2,073 million bus, down 24 million bus, or 1.1%, from the July forecast but up 11% from 1,867 million bus in 2024 and up 52% from 1,360 million bus in 2023.
For 2023-24, the USDA lowered use of corn to make glucose, dextrose and starch by 15 million bus but raised exports by 25 million bus, resulting in a drop of 10 million bu in carryover from July. For 2024-25, the USDA raised supply 36 million bus as higher production more than offset lower beginning stocks, carried forward the drop of 15 million bus in the use of corn for sweeteners and starch, and raised exports by 75 million bus (up 50 million bus from 2023-24).
“I think the USDA created some new-crop (2024-25) demand to lessen the pain for farmers,” Suderman said. “I’m not sure you can justify some of the demand numbers.”
He suggested the USDA’s increase in corn exports did not jibe with its forecasts for production estimates in some other countries, especially Argentina, Brazil and Ukraine, all important export competitors. He posited that US corn exports may be 20 million to 30 million bus too high for 2023-24 and said that with the 2024-25 export forecast even higher, “I just don’t see it.”
Suderman suggested it will be difficult for corn prices to sustain a rally over the next two quarters. Supportive “black swan” events include a possible rally in futures if managed funds are prompted to cover their large net short position. But the funds are comfortable with a large net short as long as growers hold large on-farm stocks, which they are likely to do amid current low prices. Some farmers were forced to sell stored old crop corn into a weak market to make room for new crop corn with harvest a couple months away in the key Corn Belt states.
“And you have to respect the wheat market,” Suderman said, adding that the USDA may not have accounted for lower wheat production in some key areas around the world that could boost US wheat exports and prices, pulling corn prices higher.
Smaller wheat crop estimate
The USDA’s revised wheat forecasts offered plenty to digest but had fewer fireworks than in corn and soybeans.
Perhaps the biggest surprise was the USDA lowering its 2024 all-wheat production estimate to 1,982 million bus, at the low end of the range of analysts’ expectations. The hard red winter wheat harvest in its final stages in the Dakotas and Montana came in higher at 776 million bus, and white winter wheat was raised to 243 million bus. Those increases were fully offset by the completed soft red winter wheat harvest estimated at 342 million bus, plus other-spring and durum forecasts that came in below analysts’ expectations at 544 million and 77 million bus, respectively.
Spring and durum crops in the Northern Plains are still projected to top 2023 by 8% and 30%, respectively. Spring wheat harvested acres were forecast down 6% from 2023 (to 10,330,000 acres), with reductions in North Dakota, South Dakota, Minnesota and Montana offsetting an increase in Idaho. Durum harvested acres were projected higher in all states, for a 25% overall increase from 2023 to 2,017,000 acres.
Enduring dryness in Montana compelled the USDA to lower expected yields there for spring wheat and durum. The expected North Dakota durum yield was reduced by 2 bus to 44 bus per acre, which still would be a record high if realized. North Dakota spring wheat production was forecast at 295 million bus, up 10% from 2023, and the state’s durum crop was forecast at 48 million bus, up 49% from last year.
“Together, that’s about 342 million bus, but concurrent with North Dakota corn production at 524 million bus and soybeans at 238 million bus,” said Bill Lapp, founder and chief economist with Advanced Economic Solutions, Omaha, Neb. “Between corn and soybeans, they’ve got a lot of bushels to market, especially in the eastern half of the state, and it might be that they sell those crops and hold onto durum and spring wheat.”
Also on Aug. 12, the USDA slightly raised its forecast 2024-25 domestic use of wheat, left exports unchanged and lowered carryout on June 1, 2025, to 828 million bus, down 28 million bus, or 3.3%, from July but up 18% from 702 million bus this year.
US All Wheat Production Credit: Sosland Publishing Co.
“That’s a modest change on the demand front, slightly better, but not where the market needs to be to absorb all those supplies,” Lapp said. “So we’re still in pretty tall clover on stocks. We’ve got increased corn stocks, increased soybean stocks, and it sure looks right now like we’ll have plenty of wheat stocks.”
The USDA reduced its projection for hard red spring wheat exports by 5 million bus from July to 255 million bus, but that still was an increase of 20 million bus, or 9%, from 2023 and relatively strong compared with spring wheat exports in the past five years. Hard red winter wheat exports were left unchanged from July at 240 million bus (a 79% increase from 2023), and soft red winter wheat exports were left unchanged at 110 million bus (down 30% from 2023).
“Hard wheat export projections are up in comparison to very weak year-ago numbers, but the market is having a more normal start to export demand than we had last year,” Lapp said. “It’s worth keeping an eye on. We’re still uncompetitive in Europe to a large degree, despite their weather problems.”
The USDA lowered its global wheat carryover forecast by 620,000 tonnes from July to 256.62 million tonnes, down 5.74 million tonnes from this year. The lower carryout projections were a product of lower US and EU production estimates and increased world consumption that offset increased production forecasts for Ukraine, Kazakhstan and Australia.
“USDA added a million tonnes production in Australia; Canada at 35 million tonnes production probably has 2 million to 3 million tonnes upside; and more wheat in Ukraine offset a decline in Europe,” Lapp said. “So there still seems to be adequate supplies of wheat for sale out of major origins. Canada’s production prospects look pretty good, and at some point, the market needs Canada to let go of some of their wheat, but at lower prices. Canadian and North Dakotan farmers can be pretty reluctant to do that.
“The market hasn’t reflected the need for US wheat yet, something we’ve been waiting for since 2022. We’re still not competitive, and it’s hard to say what’s going to change that. The market still seems to be one that has difficulty earning the carries.
“I think most end users would say we’re still historically high, not terribly so, but on the high side of where we’ve been in the past, which is a fair assessment. But unless the yield on corn goes up another 4 bus per acre or soybeans get 100 million bus larger, we’re close to finding a floor on prices, even at this early stage in mid-August.”
Wheat futures prices could move in mixed directions nearby, Lapp said.
“I’m biased marginally lower in Kansas City, where it’ll be tough to earn the carries,” he said. “KC December may go to plus-or-minus $5.50 per bu, with some spikes maybe lower. Putting 40¢ on top would get close to where Minneapolis December should be, and perhaps a dime discount to $5.40 a bu in the Chicago December.”
In the durum market, Chicago gateway prices were hovering around $10 per bu, down about $4 from a year ago but still historically strong.
Wheat and flour market watchers would be wise to keep an eye on funds.
“Funds’ actions are so hard to predict, and grouping them into one monolith is wrong, in my view,” Lapp explained. “They have proven over the past 60 days their ability to really press markets. If things go smoothly weather-wise, and we get a steady-to-larger crop, funds could make one more run into lower prices in the market. Earlier this year, funds were buying anything in sight. Those are 30¢- to 50¢-a-bu moves that have no fundamental backing. I won’t predict that, but it remains a possibility that could bite us.”
Corn, soybean and wheat supplies appear ample for 2024-25, which is good news for buyers. The USDA lowered from July its forecast of average prices paid to farmers in 2024-25 by 80¢ a bu for wheat and 10¢ a bu for corn and soybeans, while nearby futures prices for all three commodities have been hovering near four-year lows.
Japanese shipping line Nippon Yusen Kaisha (NYK) has reached a basic agreement with three other partners for the marine transport of green ammonia to Japan.
NYK partnered with Kyushu Electric Power Company, Sojitz Corporation, and a wholly owned subsidiary of Sembcorp Industries, Sembcorp Green Hydrogen.
Sembcorp will be in charge of producing competitively priced green green ammonia in India. NYK, meanwhile, will handle the maritime transportation to Japan. Sembcorp said it currently has a 4.7GW renewable energy portfolio in India.
In June, Kyushu Electric, Sojitz, and Sembcorp reached a basic agreement to supply green ammonia produced in this project to various industrial customers in Japan, primarily in the Kyushu region.
The agreement with NYK is based on the premise that approximately 200,000 metric tonnes of green ammonia will be produced annually through this project and transported to the Kyushu region meeting end-user demand using its experience and knowledge in the marine transport of ammonia.
NYK stated that it would continue to contribute to establishing supply chains of next-generation energy such as ammonia in the Kyushu region and elsewhere in Japan through marine transport.
AMSTERDAM, THE NETHERLANDS — Corbion has promoted Peter Kazius from senior vice president investor relations, corporate development and M&A to chief financial officer. He succeeds Eddy van Rhede van der Kloot, who has been CFO since 2014.
Before his time with Corbion, Kazius was most recently finance director of dry sweet systems EMEA for Kerry and previously senior manager finance planning and analysis, Western Europe for Unilever. He also has held leadership positions at PepsiCo, Inc.
Kazius joined Corbion in 2014 and has held such leadership positions as senior finance director for the food business unit, vice president group business control, and vice president group finance.
“I would like to thank Eddy for his partnership over the five past years,” said Olivier Rigaud, chief executive officer at Corbion. “His long-term dedication and leadership to Corbion have been instrumental. I want to welcome Peter to his new role and very much look forward to working closely with him to continue the Corbion journey.”
Prior to Corbion, Rhede van der Kloot was most recently division finance director for Vopak and previously in technical and financial units for Unilever.
SPRINGDALE, ARK. — Tyson Foods Inc. confirmed on Aug. 12 that it plans to cut jobs at its Wilkesboro, NC, poultry processing plant.
“Due to increasing demand, we are shifting production in our Wilkesboro, NC facility to support our Tyson fully cooked products,” a Tyson Foods spokesperson said. “As a result of these process changes, fewer positions will be required in the facility. Our priority is to help team members impacted by this change, and we are working with them to offer other opportunities at Tyson Foods.”
According to a report by the Wilkes Journal-Patriot, the move by Tyson could affect nearly 500 employees jobs. Approximately 2,500 people work at the Wilkesboro plant.
When asked to confirm how many jobs would be affected, Tyson Foods did not respond.
David Rhoades, communications director for the North Carolina Department of Commerce, told MEAT+POULTRY that the agency could not confirm if Tyson’s actions and circumstances meet the threshold to require the filing of a Worker Adjustment and Retraining Notification (WARN).
Rhoades confirmed that Tyson has not filed a WARN notice with the NC Dept. of Commerce.
“We here at the state Department of Commerce do not regulate nor enforce the requirements of WARN filings – those are a matter of federal law,” Rhoades stated. “The reason we are in the loop to receive WARN letters is because we are the state-level workforce development agency, and so are alerted in order to provide services to any worker impacted by job actions.”
He said his team would support any workers affected by the changes at Tyson.
In the last year, Tyson’s poultry business restructured operations at its Wilkesboro location and other sites nationwide.
For Wilkesboro, about 250 workers were laid off by Tyson during October 2023.
In August 2023, Tyson announced plans to close four poultry plants — its North Little Rock, Ark.; Corydon, Ind.; Dexter, Mo.; and Noel, Mo., facilities.
The company cited the decision as its commitment to bold action and operational excellence as it strives to lower costs and improve capacity utilization.
In March, Cal-Maine finalized its acquisition of Tyson’s former processing plant, hatchery and feed mill in Dexter. Cal-Maine plans to convert the site into a shell egg operation. A few months later, poultry producers in Missouri filed a lawsuit claiming anticompetitive and fraudulent practices were involved in the closure and subsequent sale of the Dexter, Mo., processing plant.
During November 2023, Tyson Foods also opened its new poultry plant in Danville, Va. The company invested $300 million in the project and expects to hire nearly 400 employees.
Last month Tyson also sold its Vienna, Ga., poultry facility to House of Raeford Farms.
WASHINGTON – Nearly 7 million commercial chickens and turkeys were scheduled to be euthanized following outbreaks of highly pathogenic avian influenza (HPAI) the week of March 28, according to the Animal and Plant Health Inspection Service of the US Department of Agriculture. Outbreaks were verified in Iowa, Minnesota, North Dakota and South Dakota during the week, with the largest outbreak at an operation in Osceola, Iowa, with more than 5 million commercial layer chickens. A commercial pheasant flock in Erath County, Texas, tested positive for the virus on April 3.
Egg and dried egg product prices continued to surge during the week as cases of HPAI increased. Dried egg product prices have more than doubled since early March, according to Milling & Baking News, a sister publication to MEAT+POULTRY.
More than 17 million birds have been destroyed. An egg processor told Milling & Baking News animal health experts believe the current strain is five-times more virulent than previous variants. Even with improved and industry-standard control measures in place, the high rate of prevalence in this year’s strain was making it difficult to control. The virus is spread by migrating wild birds.
A research brief published by CoBank, Denver, said the spread of HPAI is straining the egg supply chain.
“US egg producers have been hard-pressed to align supplies with market demand over the last two years,” said Brian Earnest, lead animal protein economist with CoBank. “The US layer flock typically expands ahead of the surge in demand for Easter and contracts during the summer months. But recent losses due to HPAI have combined with high feed costs and other challenges that are severely limiting flock size management.”
The US table egg layer flock trended ahead of target growth in 2019, however, the annual supply has declined by more than 5% since then, according to CoBank. The decline in supply stems from extreme shifts in consumer behavior during 2020. Although grocery demand skyrocketed during the onset of the pandemic, egg producers were not initially set up to shift lost foodservice volumes into retail channels.
SPRINGDALE, ARK. – Tyson Foods Inc. announced that six of its plants achieved Zero Waste to Landfill (ZWTL) gold level validation. UL validated these efforts to UL 2799 Environmental Claim Validation Procedure (ECVP) for ZWTL.
The company was recognized for reducing the production of all by-products like animal fats, hides and inedible proteins and reusing or recycling the remaining by-products to support conservation and efficiency.
Six plants have earned gold status, meaning that 95%-99% of their waste has been diverted from landfills. The facilities are located in Newbern, Tenn., Obion County, Tenn., Nashville, Ark., Hope, Ark., Albany, Ky. and Camilla, Ga.
“We’re proud of our team members and the work they are doing to reduce waste to landfills,” said Katherine Pickus, vice president of sustainability and global impact at Tyson Foods. “These validations reflect Tyson Foods’ dedication to making a positive difference in the communities where we live and operate.”
Tyson said it designed an integrated waste management system to ensure resources are reused and reduce greenhouse gas (GHG) emissions through the reduction of energy use needed to create new materials.
“Tyson Foods’ participation in this voluntary third-party validation marks their leadership in the pursuit of waste reduction and recycling,” said Doug Lockard, vice president and general manager of UL’s retail and consumer products group. “We look forward to validating more Tyson Foods’ facilities and continuing to support their circular economy journey, which provides a clear way for the company to measure and track progress to meet sustainability goals.”
To achieve ZWTL goals, each location identifies methods for handling waste in ways to avoid disposal at landfills. The ZWTL approach provides criteria for how to dispose of materials such as packaging, compost, liquids and food.
