Update on Brazilian trucker strike aftermath
The slow unwinding of a Brazilian trucker strike continues. Terminal operators at Latin America’s largest port Santos reported that no trucks were arriving or leaving the port as of Wednesday. Port administrators at Parangua, Brazil’s second busiest export hub, estimate that 643,000 MT of products have not been shipped due to the protests, including 280,000 MT of soybeans and soy meal. The meat industry group ABPA reports that 46 of Brazil’s 167 meat producing operations have restarted operations.

Senate farm bill update
Senate Agriculture Chairman Pat Roberts said he wants to introduce the Senate farm bill as soon as June 6 and expects it to go from committee to the Senate floor in short order. "We have a target date of June 6, and that could be a moving target, so we can get the bill out and have everybody discuss it and hopefully have it on the floor [the] next week," Roberts said. He also said the bill could be put on the floor on June 12, adding the legislation has "clear path," as Senate Minority Leader Chuck Schumer (D-N.Y.) promised him he wouldn't file cloture on the bill, which would delay consideration.

Groups sue EPA over RFS obligation waiver exemptions
Ethanol and farm groups filed a lawsuit against the Environmental Protection Agency on Tuesday over some of the waivers it granted to small refineries that allow them to shed their Renewable Fuel Standard (RFS) requirements on blending biofuels. The groups filed suit over three specific waivers granted via the small refiner waiver provision: waivers granted to CVR Refining's operation in Wynnewood, Oklahoma, the HollyFrontier refineries at Cheyenne, Wyoming, and Woods Cross, Utah. Those refineries have collectively saved $170 million in compliance costs, according to the court filing by the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and the National Farmers Union. The groups said they are not challenging EPA's authority to grant the waivers, which are aimed at small refiners that can show economic hardship due to complying with the RFS. The groups instead are challenging the three specific waivers. "EPA should be forced to explain why an otherwise profitable refinery faces disproportionate hardship from compliance with the RFS," the groups said in a release.

Brazilian strike comes at big cost to its beef industry
Brazilian beef processors say they have lost around 40,000 MT of potential exports worth about $170 million since the strike began. Abiec, a beef trade group, reports that just two of the country’s 109 beef processing plants were still operating as of Tuesday, and those two plants were working at half their capacity. But on a more encouraging note, Brazil’s third largest poultry and pork processor, Cooperative Central Aurora Alimentos, says it hopes to restart 16 plants today.

Farm bill update: Another House vote not expected until mid- to late-June
House farm bill proponents are actively meeting with individual members to press their case for the controversial bill. A House vote on another controversial measure dealing with immigration reform must take place before some conservative GOP holdouts decide whether to change their prior no vote for the farm bill to yes. The House now has until June 22 to reconsider the bill in its present form. Some congressional sources say another vote will likely take place before June 22.

Chinese buyers don’t have much incentive to buy U.S. soybeans at present
China’s government has given state-owned companies the green light to start buying U.S. soybeans in order to smooth trade tensions with the U.S., but these companies don’t have much incentive to step-up purchases of U.S. supplies. For one, U.S. beans are roughly $15 per MT more expensive than Brazilian supplies, plus Chinese crushers are already facing thin margins. In addition, Cofco and other big traders stocked up on Brazilian beans when tensions were high and a trade war seemed like a real possibility. China’s soymeal inventory stands at 1.15 MMT, near its highest level in nine months, while its soybean stockpile has surged 25% since mid-April to 7.01 MMT, its highest level since September.

Changes coming for H-2A, E-Verify
The Trump administration is working on a proposed rule to streamline the H-2A farmworker visa program while providing new incentives for agribusiness and farmers to use the E-Verify system to check the legal status of employees. The Agriculture, Labor, State and Homeland Security departments are working together on the topic. In a conference call with agricultural groups, officials said the goal was to finalize the changes in time for the 2020 growing season, with USDA the center spot for farms to apply for H-2A workers.