Wheat Letter Blog Archive - Page 12 of 104

Wheat Food Council Launches U.S. Campaign Highlighting Nutritional Power of Wheat Foods

The Wheat Foods Council (WFC) launched a social media campaign on Nov. 20 to help inform fitness professionals and trainers about the benefits of incorporating wheat foods into healthy diets.

Recognizing the increased emphasis consumers are placing on nutrition, the Wheat Foods Council (WFC) launched a social media campaign that educates fitness professionals and trainers about the benefits of incorporating wheat foods into healthy diets.

U.S. Wheat Associates and the WFC are both U.S. farmer-led organizations that promote the value and benefits of U.S. wheat. International customers of U.S. wheat are encouraged to look to the WFC for resources and ideas to increase awareness of wheat foods nutrition.

Wheat’s Nutritional Role

The new WFC campaign on Facebook and Instagram officially launched Nov. 20. It provides evidence-based information on the nutritional and performance advantages of wheat foods. Among those advantages is how wheat foods serve as a reliable and efficient source of energy. The campaign also helps dispel myths about wheat foods and fosters a deeper understanding of the positive impact they have on performance and overall wellbeing.

Instagram users are able to follow the campaign on @wheatfoodscouncil. Users can post the hashtag #WonderofWheat to share and view experiences and recipes.

“By harnessing the power of social media, the campaign creates a dialogue, encourage knowledge-sharing, and inspire a paradigm shift in how the fitness industry views the role of wheat foods in a healthy lifestyle,” WFC President Tim O’Connor said. “The Wheat Foods Council, along with our partners, are committed to fostering a community of educated and informed fitness professionals who understand the crucial connection between nutrition with wheat foods and fitness.”

Ron Suppes, a Kansas wheat farmer and former USW Chairman, is currently Chairman of the WFC.

Built by Wheat Farmers

U.S. wheat farmers established the WFC in 1972 as a national non-profit organization to promote wheat-based food categories. Baked goods, cereal, crackers, pretzels, pasta, sweet goods and tortillas make up those categories. WFC’s membership is made up of state wheat commissions, millers and bakers, baking suppliers, life science companies and cereal manufacturers. Grain farmers have become actively involved over the years.

Ron Suppes, a former U.S. Wheat Associates (USW) Chairman and a wheat farmer from Kansas, is currently WFC Chair. Suppes was seated during the organization’s 2023 Summer Board Meeting. Other members of the WFC officer team for 2023-24 are Vice Chair Mark Hotze, of Corbion; and Treasurer-Secretary Britany Hurst Marchant, Executive Director of the Idaho Wheat Commission.

A Large and Varied Audience

WFC develops programs and materials for various audiences. Health and nutrition professionals, educators, athletes and personal trainers, chefs and consumers use the WFC as a resource for important information.

These resources are available on the WFC website, www.wheatfoods.org. Viewers can visit the site for general information on wheat. General information on flour and baking, gluten, how wheat is grown and more is found there, too. There are also educational tool kits, infographics, recipes, and a quarterly e-magazine, “Kernels.”

November 29, 2023/by Ralph Loos

Crop Quality Report, Market and Crop Analysis, Trade Service Activities, Tyllor Ledford

Market Analyst Shares Crop Quality Seminar Experience, Customer Feedback

Following is USW Market Analyst Tyllor Ledford’s report on her participation in the 2023 Crop Quality Seminars. She appears on the left in the photo above with Regional Vice President for South and Southeast Asia Joe Sowers and Assistant Regional Director Joe Bippert at the Crop Quality Seminar in Bangkok, Thailand.

For many, the month of November includes preparations for an upcoming holiday season and a time of reflection as many cultures around the world look ahead to a new year. At U.S. Wheat Associates (USW), the month of November marks Crop Quality Seminar season, a time when USW staff from around the world inform customers about new wheat crop quality characteristics, provide insight on current market conditions, and highlight opportunities for customers as they make purchasing decisions into the coming year.

Cover of the 2023 USW Crop Quality Report including photos of a wheat field, pasta, sponge cake, and bread.

Download the 2023 U.S. Wheat Crop Quality Report here.

From November 6 to 10, I had the pleasure of joining a team of USW staff, state wheat commission staff, partner organizations, exporters, and wheat farmers on the Southeast Asia Crop Quality tour in Manila, Philippines, Jakarta, Indonesia, and Bangkok, Thailand. The seminars represent a cumulation of the years’ work, from when the winter wheat crop was planted in 2022 through spring fieldwork, harvest, rigorous quality testing, and finally, the compilation of the 2023 crop quality booklets.

A Unique Gathering

Differing from other USW sponsored events, the Crop Quality seminars provide an annual opportunity for representatives from across the U.S. wheat supply chain to gather in one location with major flour milling stakeholders from the region. Attendees included a mix of producers, country elevator managers, U.S. export companies, flour mill staff, and end product manufacturers. With a wide range of representation from across the supply chain, this year’s event provided the opportunity to address special topics of concern, including how farmers make planting decisions and the future of wheat acreage, new technology implementation by wheat producers, and the grain origination process from a country elevator point of view. The U.S. supply chain is large and complex; therefore, perspectives from different aspects of the supply chain help bridge the gap between the producers of U.S. and the end users.

In our region alone we reached over 250 customers from Thailand, Malaysia, Myanmar, Singapore, Vietnam, the Philippines, and Indonesia throughout three seminars. It was enlightening to witness firsthand the great relationships USW has with the flour milling industry in the region and reconnect with familiar faces that have visited farms in the U.S. or participated in other USW sponsored activities and events.

Photo from the front of a large conference room at the 2023 USW Crop Quality Seminar in Bangkok, Thailand.

Nearly 150 flour mills staff, end product manufactures, and industry stakeholders gathered at the 2023 USW Crop Quality Seminar held in Bangkok, Thailand.

Timely Information Aids in Future Planning

Throughout the week, a common focus of questions and hallway conversations centered on future purchasing decisions, potential threats, and the key question of “where will prices go next?”

Market sentiment is ever changing and now more than ever, lurking factors that are not yet reflected in current market prices continue to play a role in wheat market dynamics. Even in years with less variability, accurately predicting price direction is a challenge, but this year, with many more unknowns than knowns in the market, making predictions is more difficult than ever.

Nevertheless, the questions and conversations highlight the continued need for information sharing as customers navigate the complexities of the world wheat market. Regardless of the year, crop conditions, and market outlook customers rely on USW to provide accurate, timely, and transparent information, in addition to the high-quality wheat on which customers know they can rely.

November 29, 2023/by Steve Mercer

Crop Quality Report, Hard Red Spring, Hard Red Winter, Northern Durum, Soft Red Winter, Soft White, Wheat Quality

Farmers, Industry Leaders Travel the Globe to Share Crop Quality Information

A month-long effort that had U.S. wheat farmers and industry experts presenting the 2023 Crop Quality Report to customers in more than two dozen countries is winding down with a collective sense of accomplishment.

It is believed at least one attendance record was set this year.

The annual series of U.S. Wheat Associates (USW) Crop Quality Seminars, which provide crucial information to customers and provide an opportunity for wheat buyers to interact and create a dialogue about the quality of the wheat crop, began in Sub-Saharan Africa on Nov. 1. Seminars in Central America/Caribbean and South Asia beginning soon after. Seminars in South America, the European Union and North Asia wrapped up on Nov. 20.

Only two dates remain: Seminars will take place in Dubai on Dec. 5 and Casablanca on Dec. 7.

Large Attendance

“The large attendance we saw this year highlights how much our customers value U.S. wheat’s timely and transparent information,” said USW Marketing Analyst Tyllor Ledford, who participated in her first Crop Quality Seminar. Ledford presented at the South Asia seminars (see photo above), which took place in the Philippines, Indonesia and Thailand. “Throughout the three seminars, we were able to reach customers from Thailand, Malaysia, Myanmar, Singapore, Vietnam, the Philippines, and Indonesia. The seminar in Bangkok was the largest on record, with nearly 140 participants.”

Attendance was strong throughout the 2023 Crop Quality Seminar series including here in Seoul, South Korea.

Producers Cory Kress (Idaho) and Aaron Kjelland (North Dakota) presented on New Technologies in Agriculture and Planting Decisions for Farmers. Likewise, U.S. country elevator managers Jason Middleton and Tyler Krause provided a presentation about grain origination and how it is handled at the first point of sale, in addition to by-class perspectives from exporters.

“The farmers and wheat buyers were happy to reconnect with familiar faces they had seen on trade team visits to the U.S. and other events,” said Ledford.

Positive Feedback

Erica Oakley, USW Vice President of Programs, said there has been a lot of positive feedback from each of the seven regions where Crop Quality Seminars were held.

“Our customers around the world have complimented U.S. wheat staff and presenters from our partner organizations,” said Oakley. “We had a lot of good information to share, so credit goes to the U.S. farmers who produced a high-quality wheat crop.”

Mexico

USW’s Mexico City Office hosted more than 225 participants representing flour millers and wheat buyers from Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Panama, St. Vincent and the Grenadines, Trinidad and Tobago, and Venezuela.

China

The North Asia Crop Quality Seminar team traveled to Suzhou, China, and presented to about 160 flour millers, wheat buyers, and baking industry representatives. Guest of note included Ms. LaShonda McLeod Harper, Director of the USDA Foreign Agricultural Service Agricultural Trade Office in Shanghai, and the senior COFCO Wheat Department Manager Mr. Sun Wei who had just participated in a USW-sponsored trade team visit for COFCO managers to the United States.

About 160 wheat buyers, flour millers, and baking industry executives participated in the 2023 USW Crop Quality Seminar in Suzhou, China.

Japan

Montana wheat farmer Denise Conover greets Japanese wheat industry executives at the 2023 USW Crop Quality Seminar in Tokyo, Japan.

In Tokyo, Japan, 130 customers attended a Crop Quality seminar. Attendees included flour milling companies from across the region, Japanese traders, grain inspectors and members of the media.

“The participants were very satisfied with the presentations and engaged them in active discussions and questions to gain a deeper understanding of the quality of this year’s U.S. wheat crop,” said Rick Nakano, USW Country Director in Japan.

South Korea

A total of 90 participants, including customers from the flour milling and food processing industries, attended the seminar held in Seoul, South Korea. It was the first in-person seminar held in South Korea in three years.

“Customers expressed great satisfaction with the on-site Crop Quality Seminar,” said USW Country Director Dong-Chan “Channy” Bae. “Notably, despite the typically reserved nature of Korean attendees, there was an engaging discussion on the market, wheat quality, and logistics during a question-and-answer session.”

South America

Seminars in South America attracted a good number of customers, reports USW Regional Director Miguel Galdos.

“In the seminar held in Cali, Colombia, participants represented 30% of total wheat imports in Colombia,” he said. “Meanwhile, in Bogota, more than 35% of total wheat imports were represented.”

USW Regional Director Osvaldo Seco welcomes participants to a 2023 Crop Quality Seminar in South America.

USW Assistant Regional Director Osvaldo Seco welcomes participants to a 2023 Crop Quality Seminar in South America.

A seminar In Quito, Ecuador, drew companies accounting for at least 90% of U.S. wheat imports. The same can be said for seminars in Lima, Peru, and Santiago, Chile – both saw more than 90% of U.S. wheat purchases represented.

Sub-Saharan Africa

USW’s Cape Town Office conducted Crop Quality seminars in Nairobi, Kenya; Lagos, Nigeria; and Cape Town, South Africa. Presenting quality data from the 2023 harvest were Dr. Senay Simsek, Department Head for Food Science at Purdue University; Charlie Vogel, Executive Director of the Minnesota Wheat Research and Promotion Council; and Royce Schaneman Executive Director of the Nebraska Wheat Board.

Simsek presented on Solvent Retention Capacity (SRC) and industry analyst Mike Krueger presented via video on the world supply and demand situation for grains.

In Nairobi, USW also conducted a demonstration at the African Milling School using soft red winter (SRW) and hard red winter (HRW) for local products, such as chapati and mandazi.

By Ralph Loos, USW Director of Communications

November 22, 2023/by Steve Mercer

USW Announcements

U.S. Thanksgiving Office and Publication Schedules

Thanksgiving in the United States is a time set aside as a national holiday in late November each year. In 2023, U.S. Thanksgiving is Thursday, Nov. 23.

To celebrate the holiday, the U.S. Wheat Associates (USW) Headquarters and West Coast Offices will be closed Thursday, Nov. 23 and Friday, Nov. 24. In addition, the next Wheat Letter newsletter will be sent November 30, but you can keep up with posts in the Wheat Letter Blog at https://www.uswheat.org/wheat-letter/.

In addition, the USW Price Report will be published Wednesday, Nov. 22.

White dinner rolls in a basket to illustrate bread as part of the Thanksgiving meal

A basket of bread rolls is a part of most traditional U.S. Thanksgiving meals.

Thankful for Our Customers

A traditional U.S. Thanksgiving is centered around a meal that includes wheat foods like warm rolls and sweet pies with wheat flour crusts. As the people who produce, move, promote and bring high quality U.S. wheat to market gather with family and friends this holiday, USW colleagues will also give thanks for our customers around the world!

November 21, 2023/by Steve Mercer

Board of Directors

Video: ‘A Lot Going On’ as USW-NAWG Come Together for Joint Fall Board Meeting in Ohio

Working Together on Behalf of the U.S. Wheat Industry

Wheat farmers and staff from U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) gathered in Cincinnati, Ohio Nov. 7-10 for a Joint Fall Board Meeting. The week was filled with discussion about this year’s wheat harvest and the planting of next year’s crop. There were several committee meetings, including a timely meeting of the Wheat Transportation Working Group. This short video provides a broad overview of what took place in Cincinnati . . .

November 16, 2023/by Ralph Loos

Wheat Industry News

News and Information from Around the Wheat Industry

Speaking of Wheat

“While our wide-open spaces are admired for their beauty, they also create excellent conditions for growing wheat and raising beef. Just a four-hour drive north of Yellowstone National Park sits Montana’s Golden Triangle. There our farmers seed more than two million acres of wheat each year. Hot days and cool nights in the summer make for some of the finest wheat in the world. Earlier this year, we were honored to host a delegation of flour millers in Montana to showcase where and how we grow these crops.” – Montana Governor Greg Gianforte in remarks to Taiwan President Tsai Ing-wen Oct. 31 during a trade delegation visit to Taiwan.

Montana Governor with President of Taiwan.

Montana Governor Gianforte meeting with President Tsai of Taiwan.

U.S. Winter Wheat Conditions

U.S. winter wheat conditions showed incremental improvement over the same time in 2022 according to USDA’s Nov. 7 report. Winter wheat rated good to excellent was at 50%, up from last week and 20 percentage points over 2022. Ratings are based on grower surveys and other measurements. Read more here.

$5 Billion Investment in Rural America

The Biden Administration has announced over $5 billion in funding for Rural America. Agriculture Secretary Tom Vilsack said it includes $1.7 billion for conservation. “It’s the single largest investment in any one year of conservation in the history of our conservation programs and a significant portion of it is $1 billion in regional conservation partnership program opportunities in 35 states. It’s funded from the Inflation Reduction Act which itself is a record level of investment in climate-smart agriculture,” said Vilsack. Read more here.

St. Lawrence Seaway Strike Ends

Union workers ratified a labor contract with the St. Lawrence Seaway Management Corporation and shipping activity in the Port of Duluth has resumed. The 7-day strike shut down the entire St. Lawrence Seaway system and multiple ships were loaded out of Duluth and unable to leave. Read more here.

United Grain to Purchase Pendleton Flour Mill

United Grain Corp. (UGC) announced this week it will acquire Grain Craft’s Pendleton, Ore., grain elevator, more than 19,000 square feet of warehouse and accompanying property. The sale follows a fire last year that destroyed Grain Craft’s flour mill on that property. UGC says the Pendleton acquisition will support UGC’s McNary River Terminal by acting as a wheat satellite and positioning the company for growth in existing and new product lines. Read more here.

USDA Funds Help Advance Wheat Breeding

Montana State University professor Andreas Fischer is using funding from the USDA’s National Institute of Food and Agriculture to fill what he calls a “foundational gap” in plant science knowledge. The work could ultimately help develop new wheat and barley seed varieties to be more specialized towards their end use, a plant breeding benefit for farmers and their customers. Read more here.

U.S. Agricultural Trade Shows Negative Balance

John Newton, Chief Economist, with the Republican side of the U.S. Senate Agriculture Committee posted on “X” that USDA Foreign Agricultural Service agricultural trade data revealed FY23 farm exports at $178.75 billion and imports at $195.37B, resulting in a negative trade balance of -$16.6B, shown in the graphic posted at the top of this page.

November 9, 2023/by Steve Mercer

Board of Directors

USW/NAWG Gather in Ohio for 2023 Joint Fall Board Meeting

USW Board Member Gary Wilson, left, a wheat farmer from Jenera, Ohio, who also serves as Chair of the Ohio Small Grains Marketing Program, chats during the USW/NAWG Joint Fall Board Meeting in Cincinnati.

U.S. Wheat Associates (USW) Board Members, staff, and wheat farmers from around the country are gathered in Cincinnati, Ohio for a Joint Fall Board Meeting with the National Association of Wheat Growers (NAWG).

“It’s an honor to have both organizations get together in Ohio and discuss issues facing the entire wheat industry and come up with ideas for the future,” said USW Board Member Ray Van Horn, a wheat farmer from Mt. Gilead, Ohio, and a Past Chair of Ohio Corn and Wheat. “The interaction and the work to move the wheat industry forward is encouraging.”

A Busy Time

For USW, the Fall Meeting comes at a busy point in the year. USW’s Crop Quality Seminars are underway at locations around the world. Staff, consultants, and partners are presenting details of the 2023 Crop Quality Report to customers throughout November.

“While we are taking care of business here in Ohio, others are spread out in different parts of the world sharing important information about the U.S. wheat crop,” said USW Vice Chair Clark Hamilton, who is leading the Fall Board Meeting in absence of USW Chairman Michael Peters. “Having been a part of the Crop Quality Seminars in past years, I’ve seen and understand the great work that USW staff do to provide information to our customers. Our staff also listens to our customers during the seminars to maintain the good relationships we have in international markets.”

USW’s Wheat Quality Committee meets during the USW/NAWG Joint Fall Board Meeting in Cincinnati.

A Full Agenda in Ohio

The meeting in Ohio features several USW committee meetings during the week, with the Board of Directors meeting scheduled for Friday. A full agenda for the Board Meeting includes updates on the global wheat market, discussions on the new Farm Bill and funding priorities and issues affecting trade.

“We only get to do this a few times a year, meet in person and discuss all the work U.S. wheat has done to this point in the year and the work the lies ahead,” said Hamilton, an Idaho wheat producer. “The Fall Board Meeting always gives us kind of a road map to what the priorities are in the year ahead. It’s a solid look at 2024 and what the plans are on behalf of U.S. wheat farmers.”

November 9, 2023/by Ralph Loos

Mexico, South America

ALIM Meeting Provides U.S. Wheat a ‘Connection’ to Latin American Millers

U.S. Wheat Associates (USW) Chairman Michael Peters and USW Board Member Dana Tuckness discovered there was plenty of interest in what they had to say during the annual Assembly of the Latin American Association of Miller Industrialists (ALIM), held Oct. 29 – Nov. 1 in Cordoba, Argentina.

“When someone learned we were U.S. wheat farmers, they were really eager to hear about our farming operations and, of course, about our crop,” said Tuckness, an Oregon producer who was attending his second consecutive ALIM. “It was nice to meet some new people in the industry and also reconnect with people I had met last year, when the event was in Peru. The connections made during these meetings is an important part of doing business.”

USW Vice President of Overseas Operations Mike Spier presents at the 2023 ALIM meeting in Cordoba, Argentina.

An Effective Platform

Nearly 600 wheat buyers from the region were in attendance in Argentina, and the meeting once again served as an effective and efficient platform for U.S. wheat industry representatives to engage with key contacts.

USW Vice President of Overseas Operations Mike Spier presented as part of a solid lineup of speakers and informational sessions. Staff from USW offices in Santiago and Mexico City also participated, meeting with existing customers and potential customers of U.S. wheat.

“The important thing about ALIM is that it provides a valuable opportunity to connect with our regional wheat buyers,” said USW Regional Director Miguel Galdos. “The topics that fill up the program are of great interest to U.S. wheat and to the broader milling industry. The presentations this year were focused on visions for the future of the regional milling industry – looking at factors such as economics, politics, and commercial trends, and how they impact the Latin American region.”

‘What’s Coming Next’

Peters, an Oklahoma farmer, described ALIM as a “chance to learn about what’s coming next” in the world of flour milling, as least as it applies to Latin America.

“Like everywhere else in the world, there are challenges, including some economic challenges in some countries,” Peters said. “But there are also growing opportunities for U.S. wheat, so it was nice to listen and learn about what’s happening today and the future plans of millers and bakers.”

Nearly 600 wheat buyers attended this year’s ALIM event. USW staff from Portland, Mexico City and Santiago took the opportunity to meet with customers and potential customers of U.S. wheat.

Future Wheat Foods

The development of new wheat foods – along with new methods of making wheat foods – were part of the discussion.

“As a soft white wheat producer, I was naturally interested in anything involving the class I grow,” said Tuckness, who noted that hard red winter (HRW), soft red winter (SRW) and durum wheat continue to draw interest in the region.. “There was a lot of talk about blending of classes, and the millers seem to have a lot of interest in that, because bakers in Latin America are looking at new breads and new ways to make bread.”

November 8, 2023/by Ralph Loos

Sustainability

USW’s ‘Stories of Stewardship’ Project Highlights Efforts of U.S. Wheat Farmers to Care for the Land

Five wheat farmers in five different states share how they work to assure the land they hand over to the next generation of farmers will be in better shape than it was when they started farming it. It’s just one aspect of U.S. Wheat Associates’ (USW) ongoing “Stories of Stewardship” project, but it perfectly demonstrates how producers approach the important job of feeding the world.

Important Project

In this short video, USW Vice President of Communications Steve Mercer gives an update on the Stories of Stewardship project and explains the importance of promoting sustainability efforts by U.S. wheat farmers . . .

November 7, 2023/by Ralph Loos

Market and Crop Analysis, Mississippi River System, Rail Transportation, Wheat Export Supply System

Investments in U.S. Supply Chain Infrastructure Benefit Wheat Importers

Over the last few weeks, we have explored all the major modes of the U.S. supply chain, evaluated recent trends, and highlighted how each type of transportation plays an integral role in the U.S. supply chain. Barging, rail, and oceangoing vessels work together to create the dependable supply chain importers of U.S. wheat expect. In periods of increased risk and volatility, a trustworthy, reliable supply chain is essential for providing customers with the wheat they need.

In the final installment of this series, we will explore the continued investment into the U.S. supply chain and highlight recent projects planned to keep the U.S. inland logistics system running efficiently and effectively.

This Just In

On Nov. 6, the U.S. Department of Transportation’s Maritime Administration (MARAD) recently announced that more than 40 ports across the United States will receive $653 million in funding for improvement projects that will help with the movement of grain. Under the Port Infrastructure Development Program, the funding will help grow capacity and increase efficiency at coastal seaports, Great Lakes ports and inland river ports.

Stakeholder Commitment

With private companies owning and operating grain export infrastructure and assets, the U.S. supply chain benefits from significant commercial investment to ensure the effectiveness of the logistics system. Holding one of the largest stakes within inland transportation, the U.S. Class I railroads value the system’s reliability and understand its importance to wheat buyers worldwide.

One of the latest examples of continued private investment in the U.S. supply chain is the newly constructed rail bridge at Sandpoint Junction in the Burlington Northern Santa Fe (BNSF) rail network. On August 7, the inaugural trip on the new Sandpoint Junction Connector rail bridge occurred, representing the official opening of two-way traffic crossing Lake Pend Oreille in northern Idaho. This junction is crucial because it is a merging point between the BNSF and Montana Rail Network and serves as the primary gateway that links grain grown in the Northern Plains to port access in the Pacific Northwest (PNW).

Map of the Pacific Northwest showing the location of an investment in the U.S. supply chain moving wheat to PNW ports.

The new Sandpoint Junction Connector rail bridge will allow two-way traffic across Lake Pend Oreille in Idaho, helping improve efficiency for wheat and other grain moving by rail from the Northern Plains to the PNW for export. Source: BNSF.

CPKC Network

Another noteworthy project is a $100 million investment commissioned by Kansas City Southern in October 2022 (now part of the Canadian Pacific Kansas City rail network) to construct a new international rail bridge connecting Laredo, Texas, U.S. to Nuevo Laredo, Tamaulipas, Mexico. The bridge expansion will allow trains to operate in both directions simultaneously, granting more economical access to the U.S. supply chain for Mexico, the largest importer of U.S. wheat.

Government Investment

Complimenting private investment into the domestic logistics systems, the U.S. federal government provides significant support to the U.S. grain supply chain to uphold its safety and dependability.

In September, the Department of Transportation Federal Railroad Administration granted $1.4 billion to finance 70 rail improvement projects through the Consolidated Rail Infrastructure and Safety Improvements program. The largest grant (nearly $73 million) is for the Palouse River and Coulee City Railroad (PCC) improvements by the Washington State Department of Transportation. The PCC, a regional shoreline railroad, carries wheat traffic in major wheat-growing counties in eastern Washington, and the upgrades will help improve wheat shipments to elevators and seaports in the PNW by allowing for higher speeds and larger railcars.

Prevention Is the Best Medicine

While capital investment and improvement are vital to maintaining the efficiency of the U.S. rail systems and promoting wheat exports in the face of strong global competition, the U.S. supply chain benefits most from continuous investment in maintenance and repairs by private companies and state and federal governments. The backbone of a dependable, reliable system lies in the safety and proper function of the infrastructure and assets that make up the supply chain.

An important example of the commitment to preventive maintenance is the upcoming lock and dam closure on the Columbia Snake River System. In January 2024, the Army Core of Engineers will be performing maintenance on major components at the John Day and McNary dams on the Columbia River and at the Lower Monumental, Little Goose, and Lower Granite dams on the Snake River, resulting in an extended river closure from January 14 to March 29, 2024. This maintenance represents a forward-thinking investment by the U.S. Army Corps of Engineers (USACE) to ensure this critical waterway remains operational for decades to come.

Mississippi River Study

In addition, USACE is conducting a 5-year, Lower Mississippi River Comprehensive Management Study that it says will yield recommendations for effective and practical management of the Mississippi River from Cape Girardeau, MO, to the Gulf of Mexico, a key U.S. supply chain serving growing export demand for U.S. soft red winter wheat.

According to the USACE, the purpose of the study is to identify recommendations for the comprehensive management of the region across multiple purposes, including navigation, flood risk management, and environmental restoration.

The combined impact of preventive maintenance, efficiency improvements, and significant capital investment are key components that differentiate the U.S. wheat supply chain and help the U.S. wheat export supply system remain the most reliable in the world.

By USW Market Analyst Tyllor Ledford

November 6, 2023/by Steve Mercer