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Ron Rubin grows Desert Durum® under irrigation near Brawley, Cal.,  in the Imperial Valley. He reports that while production is down slightly with a lower planted area, the crop remains consistent and a very reliable source of high-quality durum to end-use customers.

“The 2023 crop produced above average yields with ideal growing conditions throughout the season,” Rubin said. “We estimate that 99 percent of the Imperial Valley crop graded Number One HAD. Harvesting in May and June, the Desert Durum® can help fill a quality or quantity gap in the market when adverse conditions develop in other production regions.”

Desert Durum® is a registered certification mark of the Arizona Grain Research and Promotion Council and the California Wheat Commission, which authorize its use only to designate durum grown under irrigation in the desert valleys and lowlands of Arizona and California.

Desert Durum® exhibits consistently large kernels and low moisture, traits that contribute to efficient transportation costs and high extraction rates. Like previous crops, the 2023 crop will deliver the valuable milling, semolina, and pasta quality traits that customers have learned to expect and appreciate. U.S. Wheat Associates (USW) will soon share a complete report on 2023 crop quality.

2023 Crop Highlights

  • Desert Durum® production acreage in 2023 was lower than 2022. According to USDA, yields were 3.10 metric tons per acre, and quality was uniformly good.
  • The overall grade sample average for the 2023 Desert Durum® harvest survey is U.S. No. 1 Hard Amber Durum (HAD).
  • Test weight indicates sound wheat and a uniform crop with an average of 63.0 lb/bu (82.0 kg/hl).
  • The average vitreous kernel (HVAC) content is 98%, a high average typical of Desert Durum®.
  • Average damaged kernels are 0.1% and total defects are 0.5%.
  • Kernel moisture content is characteristically low at 7.3%.
  • Wheat protein content average is 13.9% (12% mb).
  • The semolina color B* value is 32.9, slightly higher compared to 2022.
  • The wet gluten average is 33.4% and gluten index average is 62%.
  • Spaghetti cooked firmness average is 7.4 g cm, higher than last year’s 6.8.

Desert Durum® can be produced and delivered “identity preserved” to domestic and export markets, which allows customers to purchase grain with quality traits specific to their processing needs. Annual requirements can be pre-contracted with grain merchandisers ahead of the fall-winter planting season for harvest in late May through early July. Varietal identity is maintained by experienced growers planting certified seed and merchandisers who store and ship according to customers’ preferred delivery schedules.

More U.S. HAD Coming

In the Northern Durum production region as of Sept. 22, about 60% of samples have been collected and tested. Protein content is holding steady at 13.7% (12% mb). The low moisture content (10.8%) and high falling Number (424 sec) reflect dry conditions across the growing region and the overall grade remains U.S. No. 1 Hard Amber Durum (HAD). USW will share more information after harvest ends.

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News and Information from Around the Wheat Industry

Speaking of Wheat

Amidst the backdrop of diverse perspectives and conflicts of our times, farmers continue planting seeds of sustenance and resilience, stewarding the land for generations, and producing a safe and reliable food supply. The values of integrity, honesty, and care we see in agriculture offer a model for achieving sustainable progress in society and industries, ensuring that resources are managed in ways that benefit present and future generations. Farmers are at the heart of this truth.” – Jim Britt, Director of Communications, Maine Department of Agriculture, Conservation and Forestry. Read more here.

World Wheat Production Ends Record Run

USDA reported this week that following 3 years of record production 2023/24 global wheat production is now forecast down as year-over-year reductions are forecast in the EU, Russia, Canada, Australia, Kazakhstan, and Brazil. Total wheat use has now exceeded production for 4 years running and tightening supplies in these major exporters puts exportable supplies at their lowest level in 11 years. Analysts suspect this bullish note will not spark a rally in part because USDA also reduced global wheat use estimates. Read more here.

WASDE Turns 50

USDA on Sept. 12 celebrated the 50th anniversary of its “World Agricultural Supply & Demand Estimates” or WASDE report. The report was established in September 1973 to “give the public the timeliest analytical information available officially from the Department.” Commenting on the report, USDA Secretary Tom Vilsack said: “This work behind the scenes gets attention in this moment, but then gets analyzed and utilized for weeks on end and helps to establish the market prices …” It is important for trade and global competition, he added. The U.S. Wheat Associates (USW) Supply and Demand report is based and expands on the monthly WASDE report. Listen to Vilsack’s comments here.

Wheat Disease Impact Much Lower in 2022

According to an analysis by the Crop Protection Network, disease in 2022 reduced wheat production by 3.6% in surveyed U.S. states and by 1.9% in Ontario. Overall reduction in 2022 was less than half that of any other year of data collection (2018-2021), and percentage losses were also much lower than previous years. Total estimated yield loss in 2022 from wheat disease in the U.S. and Ontario was 55.7 million bushels, valued at nearly $500 million. This does not include the economic costs of disease management practices such as fungicide seed treatment or foliar application, crop scouting, and development of disease-resistant varieties. Read more here.

This grid pattern represents the percentage of wheat production in 2022 by U.S. state and the Canadian province of Ontario among the states and Ontario surveyed by the Crop Protection Network for an analysis of wheat disease yield impact.

This grid pattern represents the percentage of wheat production in 2022 by U.S. state and the Canadian province of Ontario among the states and Ontario surveyed by the Crop Protection Network for an analysis of  disease yield impact.

Brabender Introduces New Farinograph

According to a company statement, Brabender has introduced a new “FarinoGraph” that offers new features, the latest technology, optimized user friendliness and more. Farinograph is used to determine water absorption capacity of flour and the rheological properties of dough. “Measurements with the new “FarinoGraph” are now even more automated and timesaving,” said Viktor Schäfer, Brabender business development manager software solutions. “For instance, we have implemented an artificial intelligence based on previous measurements to predict the measurement curve and added a function to save measurement time.” Read more here.

Pellman Makes Rounds with USW Policy Team

The National Association of Wheat Growers (NAWG) brought more than 20 wheat farmers to Washington, D.C. Sept. 12-13 for its annual fall “Fly-In.” The effort included two days of meeting members of Congress. Led by the U.S. Wheat Associates (USW) Trade Policy team, USW Secretary/Treasurer Jim Pellman joined his fellow wheat farmers at the Capitol to voice support USDA’s Market Access Program (MAP) and Foreign Market Development (FMD) program, as well as the American Farmers Feed the World Act of 2023.

Pictured with Jim Pellman (far right) are Oklahoma farmer and NAWG Vice President Keeff Felty (left) and North Dakota Congressman Kevin Cramer (center) .

Pictured with Jim Pellman (far right) are Oklahoma farmer and NAWG Vice President Keeff Felty (left) and North Dakota Congressman Kevin Cramer (center) .

 

Subscribe to USW Reports

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.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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Exploring opportunities for hard red winter (HRW), soft red winter (SRW) and durum wheat in both established and emerging markets, U.S. Wheat Associates (USW) led a team of wheat producers and industry representatives to meet with customers and learn about milling and baking processes in Mexico, Ecuador, and Colombia.

USW’s Latin America Board Team included Chet Creel of Texas, Michael Edgar of Arizona, and Keith Kennedy of Wyoming.

“We had a really good group with diverse interests that visited some very important markets to see how millers and bakers use the quality wheat produced back home – and why the quality is important to them,” said USW Director of Trade Policy Peter Laudeman, who led the team on the 10-day mission. “The goal of these Board Teams is to provide a broad canvas of a region, on-the-ground, face-to-face experiences in the mills, in the bakeries, and at the transportation facilities that support movement of U.S. wheat into the countries.”

USW's Latin America Board Team poses for a photo in front of a Grupo Trimex Facility in Mexico following a tour and discussions about U.S. wheat

USW’s Latin America Board Team poses for a photo with USW staff and milling staff in front of a Grupo Trimex facility in Mexico following a tour and discussions about U.S. wheat.

Mexico: U.S. Wheat’s Top Customer

Stops in Mexico included Guadalajara and Mexico City. Outside of Guadalajara, the team visited the Grupo Kasto mill, shuttle train and elevator facility that receives direct rail shipments of U.S. wheat. shuttle train and elevator facility that receives direct rail shipments of U.S. wheat. From there, the team traveled to the Guadalupe Flour Mill to meet with owners of the mill. The Guadalajara portion of the trip also included a tour of the OhLaLa! baking facilities.

In Mexico City, team members visited the USW office, where they learned more about Mexico’s milling industry and efforts to promote wheat foods in the country. Visits to Grupo Trimex and Harinera Anahuac flour mills followed, helping the team explore opportunities for U.S. wheat.

“It was clear U.S. Wheat’s staff has a great relationship in Mexico and there is a lot of trust,” said Creel, Vice Chairman of the Texas Wheat Producers Board and a HRW wheat producer. “We were able to see how activities like technical servicing and educational courses have helped the Mexican milling businesses. We also saw the value of the relationships the representatives in Mexico been built and maintained over the years.”

Ecuador and Colombia: Markets With Great Potential

After Mexico, the team moved on to Ecuador, where it met up with USW representatives serving South America from an office in Santiago, Chile. In Quito, Ecuador, the team visited flour mills and a cookie factory before moving on to Cali, Colombia, for a mill visit. The next day, in Bogota, the team toured a bakery and a pasta plant that uses U.S. durum wheat.

The USW Board Team during a tour of Grupo Superior in Ecuador.

The USW Board Team during a tour of Grupo Superior in Ecuador.

“We had some very good interactions at each stop and had some chances to discuss opportunities for U.S. wheat as a whole,” said Edgar, a USW Board Member and member of the Arizona Grain Research and Promotion Council. “For me, a durum grower, it was valuable to specifically see where my class of wheat stands and the places where it could carve out a bigger share.”

While Mexico is the top customer of U.S. wheat, both Ecuador and Colombia have great potential to increase imports.

“We were able to meet with some companies that really prefer the quality that they’ve seen in U.S. wheat and want to continue to buy,” said Kennedy, Executive Director of the Wyoming Wheat Marketing Commission. “They have definitely seen some pricing pressures, and the competition is there, but customers in both Ecuador and Colombia were very clear that the quality of the U.S. crop is second to none.”

Developing Customers

Laudeman noted that Colombia and Ecuador have a huge amount of room for per capita wheat consumption growth.

“We are looking toward the mid- to long-term opportunities to be able to sell more wheat and boost wheat foods as part of the diets in each country,” said Laudeman, who added that the team noticed interest in soft red winter (SRW) wheat in Ecuador. “As we see bigger crops and healthier crops in the future, it is going to be an easy decision for them to continue to buy U.S. wheat. Meanwhile, we will continue to work on any policy challenges that might be barriers to our market access in these countries. We will certainly keep monitoring and make sure that we can keep the policy landscape healthy. We will also continue to explore opportunities for U.S. wheat.”

 

 

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The first event as U.S. Wheat Associates (USW) Country Director for Taiwan Yi-I Huang was to lead his staff and 10 Taiwanese customers of U.S. wheat to the USW North Asia Marketing Conference in Bali, Indonesia. He handled it with ease.

In this short video, we hear from Huang (his first name is pronounced “E-E”) and learn a little about his background. He came to USW after a 14-year career in grain merchandizing, working in both Taipei, Taiwan, and Tokyo, Japan.  We also learn that he is fluent in Mandarin, Taiwanese, Japanese, and English. He holds bachelor’s and master’s degrees in agriculture from National Taiwan University in Taipei, and he participated in an international exchange program at Keio University of Tokyo, Japan.

 

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As we continue a series of articles on U.S. supply chain logistics, rail is arguably the most important mode of transporting wheat for export.

According to a recent USDA Modal Share Analysis Study, rail accounted for an average of 59% of inland transportation for wheat exports between 2016 and 2020, or an average annual total of 17.0 million metric tons. This article will focus on the importance of rail freight in wheat exports and address current trends in rail performance.

Two vertical bar charts showing the volume of U.S. wheat shipped domestically and to export locations by truck, rail and barge between 2004 and 2020.

Rail and barging are the main modes of transportation for wheat exports, as they can handle large volumes of grain over long distances. Together, they transport 89% of the total wheat export shipments. Source: USDA Modal Share Analysis Study.

An Interesting Year

In 2022, increased demand for railcars and performance issues sent U.S. rail rates soaring, with Secondary Railcar Auction Market Bids hitting their highest since 2014. Since then, rail rates have eased drastically. From March 2023 to July 2023 secondary bids for railcars have been negative, indicating that the current supply of railcars is sufficient for meeting the needs of shippers.

Decreased volumes and the subsequent decrease in rail tariff rates and Secondary Railcar Market Auction Bids have added additional pressure to already low basis levels, helping boost the competitiveness of U.S. wheat to importers. However, as the 2023 soy and corn harvest progresses, we can expect rail rates to rise due to increased demand and a higher volume of grain moving via rail.

This vertical bar and line chart show a comparison of grain carloads average from previous years to the current 4 week period up to 8/25/23.

According to the latest Grain Transportation Report, grain carloads (corn, soybeans, and wheat) moved by Class I railroads were down 3% from the previous week and are sitting 22% below the three-year average. The current decreased volume alleviates pressure on basis as rail companies have a sufficient supply of cars to meet the current demand. Source: September 3, 2023 USDA Grain Transportation Report.

Even so, the outlook for fall logistics appears positive. In a recent interview with “Freightwaves,” transportation export Jay O’Neil indicated that “Weather is always a question mark that makes it [performance] impossible to predict. But overall, I think the railroads… have some excess capacity because of [reduced grain export volumes]. I think [railroads] are very much looking forward to the harvest season … So, I don’t see any particular influences right now that should get in their way and prevent them from providing a decent service for harvest.”

Part of a Reliable System

U.S. Wheat Associates (USW) is committed to sharing transparent and pertinent information to customers about inland logistics issues. It is beneficial for U.S. wheat importers to be aware of transportation trends, as seasonal shifts and potential issues have a direct influence on export basis and the Free-on-Board export price.

Encompassing the largest share of inland logistics, the railroads are a critical component for moving U.S. wheat to export. After last years’ service disruptions, steps have been taken to help address the root issues such as hiring additional crew and investing in infrastructure. U.S. railroads are committed to moving U.S.-grown commodities. With diverse origination options and numerous modes of transportation, regardless of the class or export point, rail helps U.S. wheat remain the most reliable choice for world importers.

This article is part of a series outlining the inland logistics for U.S. wheat, highlighting barge freight, the railroads, infrastructure investments, and maritime transportation trends.

By USW Market Analyst Tyllor Ledford

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U.S. Senators Debbie Stabenow (D-Mich), Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, and John Boozman (R-Ark), Ranking Member, have urged USDA to use its authorities under the Commodity Credit Corporation (CCC) Charter Act to support opportunities for U.S. farmers.

In a letter to the USDA Secretary Tom Vilsack, Stabenow and Boozman highlighted the need to invest in trade promotion and in-kind international food assistance, both of which support American farmers and producers.

Good for U.S. Farmers

“As Congress works toward reauthorizing critical programs in the Farm Bill, we continue to hear from organizations representing the vast majority of U.S. agriculture about the need to strengthen trade opportunities, increase revenue streams, and help producers grow and thrive in a global economy,” the Senators wrote. “We believe that resources available under the CCC can support similar efforts to open access to markets and promote American-grown products abroad.”

“The letter is intended to convey the strong, bipartisan support for additional market promotion funding but also reflects the challenge of identifying new funding resources for a broader Farm Bill reauthorization,” said Tyson Redpath with The Russell Group, a bipartisan government relations firm that represents the Coalition to Promote U.S. Agricultural Trade, in which U.S. Wheat Associates (USW) is a member.

“There is also bipartisan support for critical U.S. Department of Agriculture international food assistance programs,” the Senators continued. “We urge you to explore using CCC resources to advance food assistance initiatives, which will both address humanitarian needs abroad and support American farmers.”

Chinese wheat foods seminar

USW’s work providing technical support to overseas wheat buyers and end product processors like this healthy Chinese wheat food baking seminar in Taiwan is funded by export market development programs administered by USDA-Foreign Agricultural Service. Congress approves program funding through federal “Farm Bill” legislation.

Good for Importers of U.S. Wheat

“We were quite pleased to see the leaders release their letter to Secretary Vilsack,” said USW President Vince Peterson. “Our friends at the National Association of Wheat Growers are strong advocates in Congress for increased export market development program funding. And the use of CCC funds to enhance both export marketing activities and food aid programs would be to the great benefit of U.S. agriculture and the overseas wheat buyers with whom we work.”

This request from the Chairwoman and Ranking Member comes as the Committee continues working to develop a Farm Bill this year. The full text of the letter can be found here.

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Federal officials including U.S. Secretary of Agriculture Tom Vilsack joined Washington state lawmakers and university leaders in early August for the groundbreaking of a new U.S. Department of Agriculture-Agricultural Research Service (USDA-ARS) Plant Sciences Building on the Washington State University (WSU) campus in Pullman.

ARS is USDA’s “in-house research agency” focused on delivering scientific solutions to national and global agricultural challenges. ARS conducts wheat quality research through four regional Wheat Quality Laboratories (WQLs) focused on wheat types commonly grown in its region, including the Western Wheat Quality Laboratory also located at WSU. U.S. Wheat Associates (USW) has strong partnerships with each WQL as well as universities like WSU.

The new building at WSU is planned for opening in 2025. The WSU Plant Pathology, Crop and Soil Sciences, and Horticulture departments will inhabit the new building alongside federal scientists and four ARS research units: Wheat Health, Genetics and Quality; Grain Legume Genetics and Physiology; Northwest Sustainable Agroecosystems; and Plant Germplasm Introduction and Testing.

At the ground-breaking ceremony, more than 150 guests listened as speakers discussed the 20-year path to securing support for this new facility.

U.S. Secretary of Agriculture Tom Vilsack at a podium with the USDA seal addressing participants in a ground breaking ceremony for a new ARS Plant Sciences Building at Washington State University (WSU).

U. S. Secretary of Agriculture Tom Vilsack. WSU Photo.

Secretary Vilsack asked attendees to think ahead to a future when the facility is completed, bustling with students, faculty, and researchers looking to solve the problems facing farmers in Washington and far beyond.

“There’s an effort to try to make sure that we understand how to deal with a particular disease that is impacting wheat production. And imagine the spark, the passion, the energy, the excitement that occurs when the solution is discovered. That’s what this facility is about, that moment of discovery,” he said.

Vilsack noted the new facility will not only be a place for discovery but also a resource that farmers both local and far afield of the Palouse will benefit from in the form of new techniques and greater insight into the vital work they do.

“To the extent that we have a university and a government research entity in partnership, ensuring that farmer, that rancher, that grower, that producer, can continue to be productive is an enormous opportunity for this country, and each one of us should be thankful at this groundbreaking for the science that’ll take place that’ll help these farmers, ranchers, and producers continue to productive,” Vilsack said.

Elizabeth Chilton, the inaugural chancellor of the WSU Pullman campus, noted that the groundbreaking represented much more than the beginning of a new research facility.

“It is evidence of the incredible partnership that WSU celebrates with USDA and our local, state, and federal legislators, commissioners, and communities,” Chilton said. “The groundbreaking research that this facility will support will literally change lives. This building will support faculty members, students, and researchers partnering together to create better crops and more sustainable farming practices so that we’re able to better feed our planet.”

Guests and dignitaries attending a ground breaking ceremony at Washington State University (WSU) for a new ARS Plant Sciences Building.

Washington Grain Commission Vice President Mary Palmer Sullivan (second from right) was among dignitaries and guests at the USDA-ARS Plant Sciences Building Groundbreaking ceremony on the campus of Washington State University Aug. 1, 2023. WSU Photo.

In addition to representatives from the federal government and Washington state agriculture groups (including Washington Grain Commission Vice President Mary Palmer Sullivan), WSU Board of Regents Chair Lisa Schauer and Regent Brent Blankenship, a Washington state wheat farmer and Past President of the National Association of Wheat Growers, also attended the events.

This article includes excerpts and photographs from an article in “WSU Insider” by RJ Wolcott. Read more here.

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News and Information from Around the Wheat Industry

Speaking of Wheat

“When we went to ethanol production, we had to have significantly more acres of corn and soybeans to a certain degree with biodiesel. You go back to 2006 and 2007, I remember traveling around the states telling Oklahoma wheat producers, ‘You have got a $1.25 to $1.50 free increase in your price simply because of the corn industry and bean industry.’ The corn industry has to increase their acreage dramatically, and soybeans have got to come in there and protect their acres.” – Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discussing a decline in wheat acreage in an interview with Oklahoma Farm Report’s Ron Hays.

Grain Deal Talks Expected to Resume in Sochi

As reported by several news outlets this week, the much-anticipated meeting between Turkish and Russian presidents over the fate of the grain initiative will be held on Sept. 4 in the Russian resort city of Sochi. The top issue will be the resumption of the grain deal that allowed the export of more than 33 million tons of wheat, corn and other food products from Ukraine to the world markets through Turkish straits. Russia canceled it on July 17 as it could not transport its own products due to the sanctions. Red more here.

USDA: Weather Slows U.S. Spring Wheat Harvest

World-Grain.com cited a USDA report that noted the winter wheat crop was “largely in the bin” but the spring crop was just more than half harvested and progressing slowly due to weather delays. The 2023 US winter wheat harvest was 96% complete by Aug. 20, USDA said in the final aggregate winter wheat harvest update in its weekly Crop Progress report. That compared with 94% a year earlier and matched the five-year average for the date. States with winter wheat remaining in fields at that time included California (97% complete), Colorado (99%), Idaho (70%), Michigan (95%), Montana (78%), Nebraska (99%), South Dakota (97%) and Washington (87%). Read more here.

High Pasta Prices Could Set in As Canada’s Durum Crop Suffers

An Aug. 30 report by Reuters suggests pasta lovers must brace to pay even higher prices for their favorite dish, as drought in Canada and bad weather in Europe damages crops of durum wheat and reduces supplies available to flour millers and food companies. Some estimates released prior to the report release pointed to production falling below 4 MMT. Two upcoming estimates will lead to potential revisions to this data, with Statistics Canada to report official estimates for 2022-23 ending stocks on Sept. 8, followed by an updated production estimate on Sept. 14. Read more here.

Quality Survey Shows Reduced French Wheat Protein Levels

Updated quality results from the 2023 French soft wheat harvest showed the percentage of the crop meeting protein requirements for milling had dropped to 91% from an 93%, but remained above a five-year average of 87%, farm office FranceAgriMer said. The survey by was based on data representing 92% of the harvest, compared with 80% the previous week. It also showed that 69% of the crop had test weights above 76 kg per hectolitre (kg/hl), down from 74% the previous week and a five-year average of 79%. Read more here.

Breeding Wheat Plants with Better Starch

A team of UK researchers has figured out how low-quality starch grows in wheat. The discovery, published in The Plant Cell, could help breed plants with more control over their starch. As well as being an important nutritional source of carbohydrates, starch is a valuable ingredient in brewing, glue, paper, textiles, and construction materials. “We discovered that the ubiquitous enzyme, (PHS1) is crucial for the formation of B-type granules in wheat,” says lead author Dr Nitin Uttam Kamble, a postdoctoral scientist at the John Innes Centre, UK. “This is a scientific breakthrough … it shows that the A- and B-type granules of wheat form via different biochemical mechanisms. We can now use this knowledge to create variations in starch for different food and industrial applications.” Read more here.

Subscribe to USW Reports

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.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

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USW Vice President of Overseas Operations (left) meets a U.S. wheat customer from Taiwan (right) introduced by USW Taiwan Country Director Yi-I Huang during the 2023 USW North Asia Marketing Conference.

USW Vice President of Overseas Operations (left) meets a U.S. wheat customer from Taiwan (right) introduced by USW Taiwan Country Director Yi-I Huang during the 2023 USW North Asia Marketing Conference.

In an average year, buyers in Japan, South Korea and Taiwan import 20% of the U.S. wheat crop. It is an impressive statistic that speakers referenced more than a few times during the recent U.S. Wheat Associates (USW) North Asia Marketing Conference. 

The two-day gathering that drew wheat buyers from all three countries to Bali, Indonesia, served as an example of USW’s ability to showcase U.S. wheat quality and key components of the industry’s efficient and effective supply chain efficiently. 

Including, of course, the people who grow U.S. wheat. 

“As a wheat farmer and a new wheat commissioner, this is my first trip overseas, and it didn’t take long to see the bonds U.S. wheat has built in these three markets,” said David Brewer, an Oregon wheat farmer who recently joined the Oregon Wheat Commission 

Speakers Covered All Bases

Conference participants also included USW staff from all three countries, USDA officials, and state wheat commission staff. The speakers selected by USW shared updates on crop production, crop quality outlooks, new technologies, financial forecasts, transportation issues and insights into the global wheat market. 

USW President Vince Peterson pointed out that Japan, South Korea and Taiwan are three countries with separate cultures, industries and languages, yet they share a common interest in U.S. wheat.  

Oregon wheat farmer David Brewer (second from left) listens to speakers at the North Asia Marketing Conference.

Oregon wheat farmer David Brewer (second from left) listens to speakers at the North Asia Marketing Conference.

“Bringing buyers from each country together in one place at one time is a tremendous experience and builds camaraderie amongst the three countries that I think helps us to market wheat to them collectively,” Peterson explained. “Japan, Korea and Taiwan each have customers that we have worked with for decades. We established some of these offices in the 1950s, so we have 60 or 70 years of experience and history with them.” 

Customers Appreciate Information Sharing

Sang-Won Yong, an executive with Daehan Flour Mills in South Korea, expressed appreciation for USW’s ability to organize the conference. A long-time buyer of U.S. wheat, Yong found the opportunity to meet wheat industry people from the U.S. and flour millers from other countries in one place, at one time, both refreshing and encouraging. 

USW Vice President of Trade Policy Dalton Henry presents on new technologies in wheat production - a topic that attracted a lot of attention from wheat buyers from Japan, South Korea and Taiwan.

USW Vice President of Trade Policy Dalton Henry presents on new technologies in wheat production – a topic that attracted a lot of attention from wheat buyers from Japan, South Korea and Taiwan.

“Everyone at this conference was focused on the important things we deal with every day, and that is how to make our customers happy and how to keep our businesses going forward,” he said. “We all find U.S. wheat to be a big part of the formula to do what we do, to produce quality products for our customers. We’ve been able to rely on U.S. wheat farmers to produce the quality wheat we need.” 

Quality is Top of Mind

Shojiro Kubota, Managing Executive Officer at Nitto Fuji Flour Milling in Tokyo, said Japanese consumers expect quality products. Using U.S. wheat has helped keep his company’s customers happy, so he finds value in hearing about the current U.S. wheat crop and other issues that affect the ability to purchase it. 

“Things we learn from the speakers and presentations, and having conversations with those in the U.S. wheat industry is very helpful,” Kubota said. “The millers from each country may be looking for different types of wheat for different types of uses, but we have many of the same questions about importing wheat. It’s a great idea to bring all of us together.” 

(left to right) Japan Country Director Rick Nakano, South Korea Country Director Dong-Chan “Channy” Bae and Taiwan Country Director Yi-I Huang pause for a photo during the welcome reception at the 2023 USW North Asia Marketing Conference.

(left to right) Japan Country Director Rick Nakano, South Korea Country Director Dong-Chan “Channy” Bae and Taiwan Country Director Yi-I Huang pause for a photo during the welcome reception at the 2023 USW North Asia Marketing Conference.

Rick Nakano, Dong-Chan “Channy” Bae and Yi-I Huang – USW Country Directors from Japan, South Korea and Taiwan, respectively – each led groups of U.S. wheat customers to the conference, meeting individually with those customers to make sure all their questions were answered. 

Farmers Happy to Answer Questions

Brewer and USW Chairman Michael Peters had several questions posed to them about the U.S. wheat crop and overall production across all six classes of U.S. wheat. 

“I’ve actually had some of these buyers on my farm for trade team visits, and they were eager to hear about the crop situation back home,” said Brewer. “Seeing those same customers in their environment helps me understand how they make buying decisions.” 

One thing that became evident to Brewer over the two days is how all the U.S. wheat classes are utilized.  

“I’m a farmer from the northwest, but it makes me feel good to hear buyers from these important markets talking about wheat from Ohio, Texas, Kansas, Oklahoma and other states,” he said. “It reminds us that we are unified as farmers. When I get back home and have the chance to share what I learned in Asia, I will emphasize that our customers here really want to know what is available in the U.S. It’s all about the quality we produce.” 

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According to the U.S. Department of Agriculture, approximately 31% of U.S. exported wheat is moved by barge to export points in the Gulf of Mexico and the Pacific Northwest (PNW). Barging is an extremely safe, efficient, and competitive mode of transporting grain for export, contributing to our robust grain marketing system.

As key gateways for wheat exports, this article will explore recent barge freight trends on the Mississippi River (photo above) and Colombia Snake River System (CSRS), highlighting their effectiveness and providing updates about current issues.

Map of the U.S. shows the Mississippi River system, and the Columbia Snake River System to show where barging is important for U.S. wheat export logistics.

The Mississippi and the Columbia-Snake River systems are major transportation routes facilitating exports from the Gulf of Mexico and the PNW. Source: USDA/Agricultural Marketing Service/Transportation and Marketing Program/Transportation Economics Division.

Mississippi River Update

About 8% of all U.S. wheat moves on the Mississippi River system, bringing primarily soft red winter wheat (SRW) from growing regions in the eastern U.S. to export in the Gulf of Mexico via the Mississippi, Missouri, Illinois, and Ohio rivers. The Mississippi River system spans an immense geographic area, originating grain from as far north as Minnesota and as far east as Ohio and Illinois. Barges on the Mississippi River can carry 1,750 MT of grain, and a 15 barge tow can transport over 26,000 MT, the equivalent of 2 unit trains. Exports from the Gulf of Mexico account for 33% of U.S. wheat exports. Though wheat only accounts for 3% of Mississippi River barge movements, it is still an essential and efficient mode of transportation for U.S. wheat.

In the fall of 2022, low water levels on the lower Mississippi River slowed exports at ports on the Louisiana Gulf to their lowest level in 9 years. As a result, barge rates skyrocketed, and grain flows were restricted.

Monthly Downbound Grain Barge Rates

In October 2022, Mississippi River barge rates spiked to a record high of $2,092.83, 150% above the next highest price, due to low water levels and restricted barge flows Source: USDA Monthly Downbound Grain Barge Rates.

Since last fall, Mississippi River barge tariffs have normalized. However, according to the latest Grain Transportation Report, barge movements on the Mississippi River (Lock 27- Granite City, IL) are down 46% from last year and 72% below the three-year average. This decrease is attributed primarily to lower exports for all commodities (wheat, corn, and soybeans). Looking ahead, draft reductions in the lower Mississippi River may be a recurring issue as dryness in the Midwest persists.

this chart of barge movement on the Mississippi River show the downward trend in volumes seasonally and over the past several years.

Barge movements vary by season on the Mississippi River, but are down 46% from last year and 72% from the three-year average, driven primarily by a sharp decrease in grain exports. Weekly inspections for exported grain (wheat, corn, and soybeans) are down 47% from last year and 45% below the three-year average. Source: USDA Grain Transportation Report.

Columbia Snake River System

Shifting our focus to the PNW, the Columbia Snake River System (CSRS) accounts for 60% of all U.S. wheat exports via the deep-water draft ports on the Lower Columbia River. By barge alone, over 10% of all U.S. wheat exports move on the CSRS from as far inland as Lewiston, Idaho (360 miles). From an efficiency standpoint, according to the Pacific Northwest Waterway Association, barges on the CSRS can carry 3,500 MT of grain, and a four barge tow can transport over 14,000 MT, the equivalent of 1.5 unit trains and over 580 trucks.

From January 14 to March 29, 2024, an extended closure of the CSRS is scheduled to replace 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. Routine maintenance assures the waterway remains a reliable mode of grain transportation and helps maintain the competitiveness of U.S. wheat. Similar to the Gulf of Mexico, grain exports from the PNW are down 71% from last year and 65% below the three-year average, subsequently impacting demand for barges.

Due to low export demand, grain exports from the PNW are down 71% from last year and 65% below the three-year average. Source: USDA FGIS Export Grain Inspections Data.

A Reliable System

U.S. Wheat Associates is committed to sharing transparent and pertinent information to customers about inland logistics issues, as domestic transportation makes up a significant portion of U.S. wheat export basis. Though barges only make up a small portion of U.S. inland logistics, barging helps ensure the U.S. remains the most reliable choice for world importers by complementing the use of Class I railroads and trucks. With diverse origination options and numerous modes of transportation, regardless of the class or export point, U.S. wheat is always available.

This is the first in a series of three articles about the efficient and reliable U.S. grain export transportation system. Future articles will focus on rail and ocean freight logistics.

By USW Market Analyst Tyllor Ledford.