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Speaking of Wheat

“The abrupt termination of the implementation of the Black Sea Grain Initiative is a matter of grave concern. Global food security should not become a casualty of war. People in poor countries struggling with food and energy price inflation stand to be hit hardest by the termination of the initiative: Prices for future delivery of wheat and corn are already rising. Therefore, I urge all parties to make every effort to come back to the negotiating table.” — World Trade Organization Director-General Ngozi Okonjo-Iweala, from an Inside U.S. Trade article. Read more here.

Political cartoon by Michael de Adder, The Washington Post, of Russian President Putin holding a bag labelled "Grain" hostage with a gun.

Copyright Michael de Adder, The Washington Post

Club Wheat Outlook

Matthew Weaver with Capital Press interviewed Washington Grain Commission Executive Director Casey Chumrau about the 2023 club wheat crop and the outlook for 2014. The region’s wheat industry anticipates lower yields overall this year compared to last. Outlook for club production is unclear at this point, Chumrau said. “A lot of the planted area for club is in regions in Washington where it still is looking promising for production,” she said. “The club acres seem to be in some of those areas with better prospects.” Read more here.

Prepare for Global Drought

In a World-Grain.com article, World Weather, Inc., agricultural meteorologist Drew Lerner writes about the risk of future global drought and the need to prepare for a serious food shortage. “A series of serious droughts occurred in 2007-08 that resulted in reduced food supply in portions of North America, eastern Asia, Southeast Asia, Australia and parts of South America,” he wrote. “Most of the droughts at that time did not impact each of the listed regions of the world at the same time, but enough production cut occurred to lead to the first modern day grain and oilseed supply shortage. The world muddled its way through that event mostly unscathed, but what about the future? Will we be lucky enough to get along with limited food stocks?” Read more here.

South Dakota State University wheat breeder Dunish Sehgal in a wheat field.

Dr. Sunish Sehgal. Photo copyright South Dakota State University.

Honored Wheat Breeder

Sunish Sehgal, associate professor and South Dakota State University (SDSU) winter wheat breeder, was honored by the Wheat Quality Council with the 2023 Millers Choice Best of Show Award for the second consecutive year. The honor annually recognizes the wheat breeder of the variety that is most well-liked by U.S. millers participating in the WQC’s evaluation program. The main goal of the SDSU hard winter wheat breeding group is to develop high-yielding wheat varieties with resilience to biotic and abiotic stress and provide end-use quality for the milling and baking industry. “At SDSU, we lay as much emphasis on wheat quality as on yield,” Sehgal said. Read the full story here.

Grain Sciences Event Calendar

Dr. M. Hikmet Boyacioglu, Applications Development Specialist with KPM, shares a monthly “Cereal & Grain Sciences Events Calendar. The August calendar is now online. See it and upcoming monthly calendars at https://lp.kpmanalytics.com/en-us/cerealgrain-science-event-calendar.

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News and Information from Around the Wheat Industry

Speaking of Wheat

“The big news in wheat was the hard red winter number — shock-and-awe for USDA to increase it that much. The average trade guess was 532 million bushels, so the number was way above what anybody anticipated. We had a broad-based increase in yields, including Kansas, Oklahoma, and Texas. Big increases in Colorado and Nebraska with the rainfall. Montana yield up 5 bushels an acre, although that’s not yet certain, and then a little bit of an offset in South Dakota.” — Bill Lapp, founder and president of Advanced Economic Solutions in Omaha, Nebraska, as quoted in the World-Grain article “U.S. Winter Wheat Forecast Surprises Analysts.”  Read the full story here.

Russia Suggests Revival of Black Sea Grain Deal Dependent on ‘Improved Exports’

As Reuters and several other news organizations reported, a deal allowing the safe Black Sea export of Ukraine’s grain expired on July 17 after Russia quit and warned it could not guarantee the safety of ships. Russian officials suggested that if demands to improve exports of its own grain and fertilizer were met it would consider resurrecting the Black Sea agreement. However, U.N. Secretary-General Antonio Guterres said that a U.N. pact that aimed to help facilitate Russia’s shipments over the past year was also terminated. Read the full story here.

Climate and Violence Hobble Nigeria’s Push to Rely on its Own Wheat

The Associated Press published a story July 19 from Abuja, Nigeria revisiting the fact that Nigeria is trying to become self-sufficient. The government has launched programs to provide loans to farmers and boost domestic grain production. But extreme weather and violence from both gangs and farmers and cattle herders clashing over resources have hindered those efforts. It’s left Nigeria unable to produce enough wheat to bridge a gap in supply of more than 5 million metric tons. Read the full story here.

Nestle Investing in Wheat Supply Chain

In a July 19 article, World-Grain.com reported that Nestle USA, Inc. is investing in regenerative agriculture practices across its DiGiorno pizza brand supply chain in an effort to reduce the company’s overall carbon footprint.  The company’s investment will impact more than 100,000 acres of wheat-producing farmland. Nestle has partnerships with ADM and Ardent Mills, the two primary wheat flour suppliers for DiGiorno products, to support wheat farms in Kansas, Missouri, North Dakota, and Indiana.  Read the full story here.

Peters: Educational Efforts Build Relationships

In a July 17 interview with farm broadcaster Lorrie Boyer, U.S. Wheat Associates Board Chairman Michael Peters discussed U.S. Wheat’s upcoming work building export markets for wheat. He pointed out that, not surprisingly, one of the biggest challenges has been Russia. “Russia has still been shipping out a lot of wheat over this past year when they’ve shipped it out at a lot cheaper price than what we’re able to grow and produce it here in the U.S. So that has created some issues for us, with our overseas customers.” Listen to the Ag Information Network Report here.

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News and Information from Around the Wheat Industry

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The international [grain] price in Ukraine will be on the level of the cost of production. Harvested grains and oilseeds will be level of 62 million (tonnes), exports about 40 million. We have only three seaports operating at capacity and [under the ‘fragile agreement’ to ship grains and other commodities via the Black Sea] Russia uses every possibility… to complicate these exports. [Ukraine’s] intention is to ensure freedom of navigation to and from Ukrainian seaports.” — Taras Kachka, deputy minister for Development of Economy, Trade and Agriculture of Ukraine, Trade Representative of Ukraine, from an article about the 2023 International Grains Council Conference by Chris Lyddon, World Grain.com. Read more here.

Russian Government Seeks Wheat Export Control

Bloomberg included an article June 29 suggesting “The Kremlin” is looking to exert greater control of Russian wheat production and trade. Reporter Aine Quinn wrote: “Russia’s growing market power is part of a broader effort. International traders such as Cargill Inc., left after facing pressure to clear the way for domestic companies. The changes put more control in domestic hands and could potentially make it easier for local companies to ship grains grown in occupied Ukrainian territory — and for Moscow to influence prices.” The article also suggested more government control of wheat would help it keep “the Global South on their side.” Read the article here.

Challenge from China on Black Sea Deal?

Agri-Pulse trade reporter Bill Tomson reported this week that China’s deputy permanent representative to the United Nations has stated that the Black Sea Grain Initiative needs to be renewed this month. The article indicates that China is most concerned about supplies of corn to feed its massive swine herd according to Collin Watters, director of exports and logistics for the Illinois Corn Marketing Board. Read more about the politics of war and grain here. Russian officials on July 5 said a final decision on whether to extend the grain deal has not been made.

National Wheat Foundation Tour for Government Staff

On June 27, 2023, the National Wheat Foundation and Maryland wheat grower Eric Spates, hosted a wheat farm tour for congressional staff and USDA employees. The attendees had the opportunity to explore the farm, witness the wheat harvesting process, and listen to speakers who specialize in the agriculture industry. The discussions centered around crucial topics such as risk management, conservation, pesticide programs, and environmental issues. Read more about the tour here.

Welcoming New NAWG Government Relations Representative

The National Association of Wheat Growers (NAWG) has hired Jack Long as the new Government Relations Representative. Long is a recent graduate from Oklahoma State University, where he received a Master’s in Agribusiness. Long is originally from Cole Camp, MO, and comes from a multigenerational farming operation. He has worked for Cornerstone Government Affairs and the Oklahoma State Senate, which provided him with a fundamental understanding of policy and current issues within the wheat industry. Read more here.

Communications Job in Montana

The state of Montana is accepting applications for the position of Marketing & Communications Director with the Montana Wheat and Barley Committee (MWBC), a state wheat commission member of U.S. Wheat Associates (USW). This position is responsible for managing marketing and outreach activities, content development and communications efforts for the MWBC. Primary obligations include planning and implementation of domestic marketing and international trade efforts aimed at increasing purchases of Montana grown wheat and barley. Read more or to apply, visit Montana’s government website here.

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USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

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Without a trade agenda that also advances U.S. economic interests by addressing barriers to U.S. exports through free trade agreements, the United States will lose influence globally. Other countries welcome U.S. products and benefit from the two-way relationship that free trade agreements promote. The U.S. government’s trade policy should be comprehensive … strengthening our global economic presence through proactive policies that support our export competitive industries such as U.S. food and agriculture.” – Sharon Bomer Lauritsen, founder of AgTrade Strategies and former assistant USTR for agricultural affairs and commodity policy, in a story by Agri-Pulse Trade Reporter Bill Tomson.

President Peterson Looks at Wheat Export Opportunities

U.S. Wheat Associates (USW) President Vince Peterson was in Montana this week for a meeting of the Montana Wheat and Barley Committee. He was interviewed by local media about the current challenges to U.S. wheat exports and future opportunities. “We’re trying to work in that environment where we’re facing a lot of competition globally,” Peterson said. “But at the same time, the carrot is out there … We’re going to have nearly 10 billion people by 2050, we’re going to consume a billion tons of wheat globally, and we’re going to have to trade 350 million tons of that globally.” Read more here.

Drought Expansion

University of Illinois FarmDoc says as of middle June, much of the U.S. corn production region is either dry or in drought according to the U.S. Drought Monitor, raising the prospects of a serious drought like that which occurred in 2012. Typically, prices continue to rise in drought years and, as an alternative to corn as a feed grain, winter wheat’s weather market appears to have momentum. European analyst Strategie Grains mentioned wheat production is confirmed at low levels in Spain and North Africa, and drought is starting to take hold across northern Europe, affecting yield potentials.

This illustration shows a U.S. map with corn production and drought indicating 65% of corn production area is in drought as of June 20, 2023.

This illustration from government sources shows a U.S. map with corn production and drought indicating 64% of corn production area is in drought as of June 20, 2023.

EU Softening Toward Gene Editing?

Agri-Pulse reported this week that a European Commission draft proposal could lead to a loosening of regulations on new genetic engineering techniques like gene editing. A draft regulatory document leaked and posted online by advocacy group ARC2020 proposes a streamlined path for certain new genomic techniques, or NGTs. An official proposal is expected early next month. “To see the European Commission edging toward welcoming gene editing is just a great thing,” Matthias Berninger, Bayer Crop Protection’s senior vice president of public affairs, science and sustainability, told Agri-Pulse at the company’s Crop Science Innovation Summit in New York City. Read more here.

NAWG: Dam Removal Endangers U.S. Wheat Export Competitiveness

At a at a Congressional Western Caucus Forum on the Importance of Hydropower to Rural Communities, National Association of Wheat Growers Chandler Goule provided a wheat perspective on the importance of the river system and barging play in helping feed the world. “The Lower Snake River Dams are a critical infrastructure system required to move U.S.-grown wheat to high-value markets around the world,” said Chandler Goule. “More than 55 percent of all U.S. wheat exports move through the Snake River system by barge or rail. Specifically, 10 percent of wheat that is exported from the United States passes through the four locks and dams along the Lower Snake River. This corridor is the third-largest grain export corridor in the world and is the single largest corridor for U.S. wheat exports.” NAWG remains opposed to breaching the dams as the agricultural, clean energy, and transportation benefits from the lock and dam system are irreplaceable and will continue to advocate on behalf of wheat growers to maintain this vital infrastructure. Read more here.

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USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

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News and Information from Around the Wheat Industry

Speaking of Wheat

The market dynamics with the Russian invasion of Ukraine disrupting traditional wheat movements, the disastrous drought in the Kansas resulting in a high amount of wheat fields abandoned and short overall production, and increased rail transportation costs are all market factors leading to the recent announcements of U.S. flour mills purchasing wheat for import by water, which is a very rare occurrence.” — Justin Gilpin, Kansas Wheat CEO.

Congratulations to Dalton Henry

The Agricultural Business Council of Kanas City has selected U.S. Wheat Associates (USW) Vice President of Trade Policy Dalton Henry (photo above) as one of its 2023 Young Leaders in Agribusiness. “We are pleased to recognize these young people who have been nominated by their employers and have shown exemplary passion, leadership, and business acumen,” said Council Chair Dustin Johansen, adding that individuals like Henry “represent the future, the next generation of executives who will lead the agribusiness sector.”  Read more here.

Rain in China Hurts Wheat Harvest

Wheat farmers in China are apparently facing significant crop losses after two weeks of heavy rains that have left their fields sodden. The losses may lead China to rely more heavily on grain imports this year, the impact of which would be felt across the global grain economy. Read more here.

Global Factors Also Push Italian Pasta Prices Higher

Despite seeing a significant drop in inflation, prices are still posing a pinch to shoppers in Italy, particularly when it comes to pasta. Read more and view a video online here.

Women Making Inroads in Milling

At its recent annual conference in Minneapolis, Minnesota, a large contingent of women participated in the event as part of the Women in Milling program that was inaugurated several years ago and continues to grow. Approximately 135 women attended the conference, which was about 13% of the total number of delegates. Many of them were first-time attendees and had met one another virtually on the association’s monthly Women in Milling session. Read more here.

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USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

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News and Information from Around the Wheat Industry

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CBOT wheat futures reached the $14.2525 per bushel all-time high in March 2022 when Russia invaded Ukraine, turning Europe’s breadbasket and critical logistical hub at the Black Sea ports into war zones. While the battle for Ukraine continues to rage, CBOT wheat prices have steadily declined. [A] pattern of lower highs and lower lows that took the most liquid wheat futures to a $5.9550 low in May 2023. Wheat remains in a bearish trend, at just under the $6.10 level on May 22, but the price is higher than the level from August 2015 through September 2020. Wheat’s war premium has declined, but the price remains elevated.” – Barchart Analyst Andrew Hecht, May 22, 2023.

Fiber In; Keto Out?

Key issues impacting the grain-based foods industry are the popularity of fiber, an apparent decline in keto diets and sustainability concerns, according to the International Food Information Council’s 2023 Food and Health Survey released May 23. The IFIC survey involved 1,022 Americans of the ages 18 to 80 who were contacted April 3-10. When asked what dieting patterns they followed in the past year, 4% said ketogenic or high fat, which was down from 7% in last year’s survey. The percentage of consumers following gluten-free diets fell to 6% from 9% last year. Low-carb dieting remained the same at 6%. Read more here.

National Wheat Foundation Partners with My Plate

The National Wheat Foundation is pleased to join the USDA Center for Nutrition Policy and Promotion as a USDA MyPlate National Strategic Partner. The partnership aims to enlighten individuals about the advantages of incorporating wheat into their dietary choices. At its core, MyPlate is a scientifically grounded initiative, crafted to impart knowledge on the merits of wholesome eating and encourage adjustments in our dietary habits that can yield significant long-term benefits. “We are looking forward to working with MyPlate as we help educate the benefits wheat can have in a person’s diet …,” said Bernard Peterson, Chairman of the National Wheat Foundation and a wheat farmer from Kentucky. Read more here.

India: Wheat Export Ban Stays Put

The Indian government has ruled out lifting a ban on wheat exports implemented one year ago as a measure to control rising domestic prices. Asked if wheat exports will be allowed, Consumer Affairs Secretary Rohit Kumar Singh said, ‘No chance at all.’ The government is supplying some quantity of wheat to a few countries like Nepal and Bhutan via a government-to-government trade arrangement. Citing reasons for continuing the export ban, Additional Secretary of the Food Ministry Subodh Kumar said India is not a traditional wheat exporting nation. However, the country exported wheat in the last three years owing to surplus supplies. Read more here.

U.S. Hard Red Spring Crop Planted?

Do not be surprised if the next USDA NASS weekly report shows most of the 2023 spring wheat crop is seeded. As of May 21, U.S. spring wheat planting progress was seen as 60% complete, up from 40% previously, with estimates ranging widely from 51% to 75% complete. However, with a warm, dry forecast over the next several days, farmers will make amazing progress. North Dakota Wheat Commission Policy and Marketing Director Jim Peterson told U.S. Wheat Associates on May 24 that farmers seeded fully half the total expected crop just last week.

A Tale of Two Crops in Colorado

Colorado Wheat Director of Communications and Policy Madison Andersen reported recently that a portion of eastern Colorado is now free of drought. The “excellent,” “good” and “fair” categories all gained points, however, so did the “very poor” category. She said she thinks this continues the tale of two crops reported in Colorado several times this year. There is wheat in the northeast corner that has the potential to make 70 bu/ac, while the abandonment rate in the southeast corner continues to rise, she added. The photo at the top of this page is from a northeast Colorado farm, courtesy of Dr. Phil Westra, Professor of Weed Science at Colorado State University.

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News and Information from Around the Wheat Industry

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“[The] recent counter notification at the World Trade Organization (WTO) regarding India’s rice and wheat subsidies is a step in the right direction in publicly addressing India’s blatant disregard for the commitments they made when they joined the WTO … India subsidized up to 81% of the value of their wheat crop in the 2020/21 crop year, far exceeding the … limit they are obliged to adhere to.” – Several members of the U.S. Congress in a letter to USTR Katherine Tai and USDA Secretary Tom Vilsack. Read more here.

Farmer’s Wheat Crop a Complete Loss

Western Kansas farmer Jim Sipes tells Brownfield Network he has abandoned 4,000 acres of his winter wheat crop due to on-going drought. “All of our wheat for the first time in my farming career was a complete loss, zeroed out on appraisal about four weeks ago.” Sipes says the region received up to 3 inches of rain last week and that might help get the sorghum crop off to a good start. “If that doesn’t work, then we’ll plant it back to wheat a third time [as a cover crop].” Read more here.

Is Whole-Wheat Bread Healthier Than Whole-Grain Bread?

Fortunately, both types of bread can be healthy. Reproductive dietitian Rachelle Mallik, MA, RDN agrees, adding that “including whole-grain or whole-wheat bread to your diet can be an easy way to increase your whole grain intake.” The word “whole” implies all three parts of the kernel—the bran, germ and endosperm—were included when the grain was processed into flour. That maximizes its nutritional composition. Read more here.

EU’s Wheat Export Restrictions Explained

Reuters reports that farmers in eastern Europe initially benefitted from the Ukraine conflict as prices for their crops rose sharply in line with global grain markets. They have, however, faced increased competition in local markets from Ukrainian grain and oilseeds. The farmers have also found it more difficult and more expensive to transport their crops because of the added Ukrainian volume. Read more here.

American Woman Named 2023 World Food Prize Recipient

Heidi Kühn of the United States will receive the 2023 World Food Prize for her farmer-focused development model that revitalizes farmland, food security, livelihoods and resilience after devastating conflict. For more than two decades, she has shown more than a million people living in war-torn regions around the world a way forward for restoring peace and prosperity through agriculture. Read more here.

CIMMYT Director Wins Borlaug CAST Communications Award

The Council for Agricultural Science and Technology (CAST) announces the 2023 Borlaug CAST Communication Award goes to Dr. Alison Bentley, Director of the Global Wheat Programme at the International Maize and Wheat Improvement Center (CIMMYT). Bentley is known for her global research on wheat genetics and proficiency in science communication. Bentley has a passion for delivering practical applications from innovation to farmers, extensive reach through communicating and influencing, and mentoring and support of individuals and community efforts. Bentley’s exceptional work in raising awareness about the importance of wheat as a food crop is also evidenced by her wide-ranging list of communication activities. Read more here.

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USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

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“The ongoing fighting [in Sudan] is preventing WFP from delivering critical emergency food, providing school meals for children, or preventing and treating malnutrition. WFP also cannot carry out its work to support farmers to boost agriculture productivity in a project that aims to more than double Sudan’s annual wheat production, nor help people rebuild their livelihoods.” – UN World Food Programme (WFP) Executive Director Cindy McCain. Read more here.

Obscuring Price Discovery

Cargill’s world trading head Alex Sanfeliu told Bloomberg recently that Russia’s increased control of its wheat exports threatens to obscure prices and curb efficiency in the global grains market. “The price discovery is going to be way more opaque,” and because Russian wheat tends to be the price setter “that puts an additional difficulty for all the wheat traders across the globe.” Read more here.

Bearish News

Barchart Analyst Sean Lusk noted three bearish market factors for wheat this week: rain (finally) in the parched Southern Plains; Canadian spring wheat planting intention estimate coming in above trade expectations; and a UN-confirmed Russian export deal that may have side-stepped Western sanctions. Lusk also commented that “managed funds have pushed out to a net short of approximately 130,000 contracts…that seems to be nearing the record managed short of 171,000 last decade.”

Canadians to Seed More Wheat

Statistics Canada reported this week that farmers will seed 26.968 million acres of wheat, up 6.2% from 2022, the largest area since 2001, if achieved. Spring wheat area is expected to increase 7.5% to 19.39 million acres, durum wheat is expected to edge up 0.9% to 6.06 million acres, while winter wheat area (mostly soft red winter in eastern Canada) is forecast up 12.7% to 1.52 million acres. Mike Jubinville with MarketFarm said, “The gain in spring wheat was anticipated. The one surprise … is a rise rather than slight decline registered in this report on durum acres.” Read more here.

Striking Workers Target Canadian Port

The Wheat Growers Association has called for the Canadian government to allow outside workers to weigh and inspect grain at a Vancouver port as a massive strike by public sector workers threatens shipments. Unionized inspectors at the Cascadia Terminal have purposely targeted the port, according to a news release by the group, which advocates for farmers. The protests could further tighten global supplies already affected by the war in Ukraine.

Rain Arrives; Too Late for Regional HRW Wheat?

Local media are reporting on a good, soaking rain over much of the exceptional drought areas in Kansas, Oklahoma, Texas, and Colorado this week. Southwestern Kansas farmer and U.S. Wheat Associates (USW) director Gary Millershaski told Brownfield Network rain is “going to help me plant some dryland corn and a lot of milo [sorghum],” but it will not help his winter wheat. In Okarche, Okla., northwest of Oklahoma City, wheat farmer and USW Vice Chairman Michael Peters said rain this week will help with grain fill and could help push his winter wheat yields up to an average of about 25 bushels per, lower than normal but more than expected before the rain.

National Weather Service map of southwest Kansas showing accumulated rainfall on April 26, 2023

Rain At Last. Substantial rain fell in southwestern Kansas April 26, the literal center of an area of exceptional drought. The rain was welcome but mainly as an opportunity to plant spring crops like corn or grain sorghum (milo).

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News and Information from Around the Wheat Industry

 

Speaking of Wheat

Until some of these geopolitical conflicts are resolved — it’s difficult to envision a return to the level of free trade we enjoyed through the late 20th and early 21st centuries. Difficult as it may be, governments must resist the urge to limit or ban grain exports unless the food security situation in their countries is truly dire. The fate of a growing number of food insecure people on this planet — estimated at nearly 350 million people (more than the population of the United States) in 2023 by the World Food Programme — depends on it.” – Arvin Donley, Editor, World Grain. Read more here.

SW Kansas: “One of the Worst Wheat Crops in 50 Years”

That is how wheat farmer and agricultural journalist Vance Ehmke described the situation in the southwestern corner of Kansas. Ehmke said there will be “no dryland [winter] wheat at all” this year there and extending about 160 kilometers into the Texas and Oklahoma Panhandles and southeastern Colorado. “I looked at 30 to 35 years of Kansas wheat crops and abandonment runs about 10%. I could see 25% abandoned here this year with very low yields on the rest,” he wrote in The Hutchinson News. See also Bloomberg News’ video summary here.

Winter Wheat Conditions Still Lower

Farm broadcaster Ron Hays’ Oklahoma Farm Report notes the April 10 USDA NASS Crop Progress Report shows U.S. winter wheat conditions are tied with 1996 for the lowest rating in 40 years. Nationwide, winter wheat is 27% good to excellent. That is down one point from the previous week and compares to 32% good to excellent at the same time in 2022. Read more here.

The Passing of Joe Kejr

U.S. Wheat Associates (USW) joins so many others in our industry in expressing our condolences to the family of Ottawa County, Kan., farmer Joe Kejr, who passed away suddenly April 8, 2023. “Joe loved being a wheat farmer — thoughtfully growing, observing and discussing the crop throughout each unique season,” said Justin Knopf, immediate past president of the Kansas Association of Wheat Growers and close family friend. “We will miss his focus and efforts on building relationships, trust and unity throughout the industry. His example, steady presence, leadership and friendship will be sorely missed by so many of us here in his community and across the country.” Learn more about the Kejr’s farm operation here.

China to Lead 2022/23 Wheat Import Volume

USDA reports that Chinese wheat imports are forecast up to 12.0 million tons in 2022/23—the country’s highest level of imports since 1995/96 when imports reached 12.5 million. Domestic grain prices have remained high given the country’s minimum support price policy and reduced auction activity amidst uncertainty surrounding the government’s COVID-19 policies. Competitive pricing has prompted China to import large volumes of both milling and feed quality wheat. Australian wheat is especially competitive following 3 consecutive years of record crops. China continues to aggressively purchase Australian wheat supplies, with July-February imports up 66% compared to the previous year. Read more.

2023 Hard Winter Wheat Quality Tour Registration Ends May 1

The tour, sponsored by the Wheat Quality Council, will be May 15 to 18. Register for the Wheat Tour at wheatqualitycouncil.org. The tour brings in participants from around the world who interact with Kansas farmers, network with their peers, learn more about wheat production while they assess the condition and yield potential of the hard winter wheat crop across the state of Kansas. USW will report on tour results in Wheat Letter.

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News and Information from Around the Wheat Industry

 

Speaking of Wheat

In my view, [news that Cargill and Viterra will stop loading Russian grain] puts more questions around Russia’s ability to export. Russian state exporters claim that they’ll be able to keep grain moving out at the same pace, but major speculative funds holding large short positions may lack confidence in that currently, supporting the recent price recovery as they exit short positions. [March 29] Chicago wheat showed modest gains. All eyes will be focused on [upcoming USDA reports].” Sean Lusk, analyst with Barchart.com.

UK Establishes Scientific Plant Breeding Regulation

On March 23, a United Kingdom (UK) Genetic Technology (Precision Breeding) Bill received Royal Assent and became an Act of Parliament and law. The regulation covers precision-bred plants and animals developed through techniques such as gene editing, which is different from genetic modification, and create a new science-based and streamlined regulatory system to facilitate greater research and innovation in precision breeding while maintaining stricter regulations for genetically modified organisms (GMOs). Read the entire story here.

Cooperators Call for Increased Export Promotion Funding

In a period when inflation has raised the cost of everything in the U.S. wheat export supply chain, agricultural producers and processors have asked Congress to double the funding for the Market Access Program (MAP) and the Foreign Market Development (FMD) Program. Both have not had funding increases since 2006 and 2002 respectively. According to USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor, requests for MAP and FMD monies have far exceeded current funding. U.S. Wheat Associates (USW) is one of the organizations that cooperates with USDA’s Foreign Agricultural Service programs to conduct trade service and technical support for export customers. Read the entire story here and visit www.AgExportsCount.com.

National Ag Day Celebration

On March 21 the United States celebrated 50 years of National Ag Day. Started in 1973, National Ag Day increases public awareness about agriculture’s vital role in society. This year, events included grassroots activities across America, and strong social media coverage. Events in Washington, D.C. highlighted U.S. ag’s global impact. The day began with Secretary of Agriculture Tom Vilsack addressing a lively crowd at the USDA, saying “every day should be Ag Day.” Later in the day, a Taste of Ag reception was held at the Library of Congress. Here’s a short video tribute to U.S. farmers, ranchers, and dairy operators:

 

Cargill to Suspend Grain Export Elevations in Russia

Food and agricultural company Cargill announced March 28 it “will stop elevating Russian grain for export in July 2023 after the completion of the 2022-2023 season.” In addition, Viterra announced March 29 it will also stop loading Russian grain. Cargill owns a stake in the grain terminal in the Black Sea port of Novorossiisk but did not specify if it was selling the stake. Reuters reported that Cargill’s shipping unit will continue to carry grain from the country’s ports. Reuters added that the move stoked concerns about global grain supplies disrupted by the Russian invasion of Ukraine, lifting benchmark wheat futures prices this week from earlier losses.

India Cuts Wheat Harvest Estimate

The Indian government could reduce its wheat harvest estimate as unseasonal showers and hailstorms led to sizable damage to the wheat crop in the Indian states of Punjab, Uttar Pradesh and Madhya Pradesh, sources in the agriculture ministry told S&P Global Commodity Insights. According to government sources, the production estimates for marketing year 2022-23 (April-March) are likely to reduce by up to 2 million metric tons (MMT) from the projected output of 112.2 million mt, a record harvest. S&P Global noted however that surveyed market participants expect Indian’s wheat harvest to be lower.