Good morning. Here’s your Daily Situational Awareness for Monday, 28 November 2022.
CHINESE PROTESTORS, POLICE CLASH OVER ZERO-COVID POLICIES: Demonstrators clashed with Chinese state security forces across China’s major urban areas Sunday night, according to multiple international media outlets and social media accounts reporting from China. The clashes are part of protests over China’s draconian zero-COVID policies and erupted after a deadly fire that killed 44 residents of a high-rise building in Urumqi, Xinjiang province. The residents were physically locked in their apartments under COVID restrictions and unable to flee while firefighters attempted to access the locked-in residents. Social media images show protesters fighting with security forces, setting up roadblocks with automobiles, and refusing to comply with COVID lockdown procedures in Beijing, Shanghai, Chengdu, Lanzhou, and a number of cities in China’s western provinces.
UKRAINE GRAIN EXPORTS DOWN 31.9%: Ukraine’s agriculture ministry reported grain exports are down 31.9% from last year’s numbers and down 25% from last month. Ministry officials said they only expect to export 3 million tons during the month of November, significantly less than last month’s 4.2 million tons. They blamed the decrease on Russia’s reduction of cargo inspections, which are part of the United Nations sponsored Black Sea grain agreement. A Ukrainian official also claimed that Black Sea ports were only operating at 50% of their capacity.
CALIFORNIA FARMS FACE $3 BILLION LOSS, GOVERNOR CONSIDERING ORGANIC FARM RULE: According to a report by the California Department of Food and Agriculture, the driest three-year period on record has resulted in a $3 billion revenue loss for California farmers after a total of 1.3 million acres went unplanted in 2021 and 2022. The Central Valley, which grows about one quarter of all food in the U.S., has experienced the majority of revenue loss. According to the report, 70% of irrigated land in the Colorado River Basin is used to grow feed for livestock, and drought has already pushed prices higher. Governor Newsome is considering a push to increase organic farming to 30% of all agricultural production. According to an analysis by ERA Economics, this policy could crash the organic produce market and increase consumer prices.
CHEVRON CORP RECEIVES LICENSE TO EXPAND VENEZUELA OIL PRODUCTION: According to U.S. Treasury officials, Chevron Corporation has received a license to operate alongside Venezuela’s PDVSA state-backed energy company and export its oil to U.S. markets. The decision grants broader rights for the last big U.S. oil company still operating in U.S.-sanctioned Venezuela. However, it restricts any cash payments to Venezuela, which could reduce the oil available to export. A U.S. Treasury official said the license would last for six months and then receive automatic review thereafter.
In today’s Early Warning, we give you the latest domestic and global indicators, including a note on worsening drought conditions and their effect on farming. You can get the full report by subscribing at https://forwardobserver.com/subscribe