Wheat Letter Blog Archive - Page 31 of 104

Russia, Ukraine, Wheat Export Supply System

Ukrainian Wheat Farmers Struggle to Harvest Their Crop

As an export market development organization, U.S. Wheat Associates (USW) represents the interests of U.S. wheat farmers in overseas markets. We are happy to compete fairly with wheat farmers in other countries on the basis of functional quality and value. Yet, working for these hard-working farm families also gives us great empathy for wheat farmers everywhere.

As the U.S. winter wheat harvest rapidly progresses, our thoughts include Ukrainian farmers as they try to harvest their wheat amid the unimaginable challenges of an armed invasion of their lands. There is growing evidence that Russian forces are deliberately targeting ripe winter wheat fields. The Washington Post also reported that in recent fighting in the east devastated a large flour mill and grain elevator.

Failed Strategy

Targeting wheat fields and other agricultural infrastructure is also an attempt to demoralize the Ukrainian people, but that will be a failed strategy.

CNN and its reporter Ivan Watson recently showed why frontline Ukrainian wheat farmers vow never to give up.

“Military drone footage exclusively obtained by CNN shows Russian artillery pounding wheat fields, burning the summer harvest charcoal black,” Watson reported, as wheat farmers race to protect their crops. “Despite the threats, these brave farmers still bring in their harvest only to face another obstacle. [They cannot] sell wheat because the Russian military has blockaded Ukraine’s ports, so there is no way for this to be sold except at an enormous loss.”

German media company Deutsche Welle (DW) recently reported that Ukraine’s infrastructure minister accused Russia of “terrorism,” saying Moscow is “holding people all over the world hostage” by blocking the country’s grain exports. Putin wants to force the international community “to take off some of the sanctions and then the grain can get out,” he said.

A Ukrainian wheat farmer talks to CNN reporter Ivan Watson

Never Give Up. In spite of Russian strikes on his wheat fields, this Ukrainian farmer told CNN his country, its soldiers and the world need his crops. CNN Image.

Why We Keep Working

As a combine operates in the background, CNN’s Watson asked a Ukrainian wheat farmer to explain why he continues his work.

“Our soldiers are fighting and dying to get rid of these occupiers,” the wheat farmer said. “We need to feed our country, these soldiers, and help the whole world with our food. That is why we will keep working.”

The world is fortunate to have wheat farmers like this man and other Ukrainian farmers willing to do everything it takes to help feed us all.

July 19, 2022/by Steve Mercer

Columbia Snake River System, Hard Red Spring, Hard Red Winter, Soft White, Wheat Export Supply System

USW Expresses Support for Maintaining Lower Snake River Dams

On behalf of the U.S. Wheat Associates (USW) Transportation Working Group, we* appreciate the opportunity to provide comments on the draft Lower Snake River Dams Benefit Replacement Report.

The draft report raises serious concerns among U.S. Wheat Associates (USW) and its member states. The USW Transportation Working Group (TWG) questions many of the baseline assumptions argued in the draft report. The draft is incomplete because many of the key variables cannot be quantified. The Lower Snake River Dams (LSRD) provide a critical need that moves U.S.-grown wheat to high-value markets around the world. Breaching the dams would have serious economic consequences for producers and grain handlers. Removing the dams also runs counter to achieving climate-friendly goals.

Barging Benefits

USW strongly supports the sustainability and reliability of wheat transportation by barge. The Columbia Snake River System is an essential part of a logistical web that moves over half of all U.S. wheat exports to more than 20 Pacific Rim countries and encompasses some of the largest U.S. wheat buyers in the world. The Snake River moves more than 10% of all wheat that is exported from the United States. Because of the cost savings conveyed by barging grain and examples used in the draft report, we can conclude that farmers save considerably by using the waterway in place of rail or truck and are able to pass on savings to consumers.

The Lower Snake River Dams provide critical needs for wheat farmers, grain handlers, merchandisers, and millers. The draft report clearly outlines the benefits enjoyed by grain handlers, “barging is the lowest-cost option (per ton-mile) for wheat shipping, an additional benefit for Pacific Northwest producers, as they operate on narrow cost margins and use barging to maximize their profit per bushel.” Shifting the current volume of wheat and other grains moving via barge on the LSRD over to rail or truck is not a viable and straightforward solution as portions of the draft study imply. Rail and truck cost significantly more on a per bushel basis, and trucks have distance limitations.

Breaching Increases Transportation Costs

An excerpt from the draft report outlines the literal costs to farmers: “One of the most significant transportation impacts connected with LSRD breaching is shipping costs. Several studies cite shipping prices during scheduled lock outages for maintenance between December 2010 and March 2011 and found that during the outage, over 90% of the grain by volume was shipped by rail and that shippers experienced a nearly 40% increase in shipping and storage costs.” This example shows that railroads will use their power to raise rates when other alternatives, like the river system, are unavailable.

The Port of Lewiston is the most inland port in the U.S, Pacific Northwest. Its placement on the Snake River allows farmers in Idaho and other states to barge their wheat efficiently and affordably. The U.S. competes with six other primary wheat-exporting countries. According to the Foreign Agricultural Service (FAS), the United States is the third-largest wheat exporter in the world. However, for the U.S. to remain competitive with other wheat exporting nations, export prices must remain competitive. Inland transportation costs are a primary factor in determining the competitiveness of U.S. wheat. Using barges to ship grain is one of the most efficient and cost-effective ways that U.S. wheat farmers stay competitive.

Rail Cannot Make Up Difference

All wheat production zones in the U.S. would be impacted, not just those in close proximity to the Lower Snake River Dams system. The U.S. rail system has some severe issues with service and reliability, and in recent years, tariff costs to move wheat have steadily increased. Adding more volume to the system would raise costs for all farmers and lead to a decline in service for a significant portion of all U.S. wheat producers. This would directly impact U.S. wheat’s global competitiveness as an export market.

Transporting wheat by barge is an environmentally friendly alternative to rail and truck hauling. One four-barge tow can move as much grain as 144 rail cars or 538 semi-trucks. Removing the dams would not only remove clean hydroelectricity but would mandate more significant carbon emissions as grain handlers are forced to rely on railroads and semi-trucks for long-haul delivery to export facilities in Portland and elsewhere.

Map of the Columbia Snake River System from Pacific Northwest Waterways Association

Eight Steps Down. Lock and dam systems on the Columbia Snake River System allow barges to efficiently and safely navigate the 222-meter elevation change from Lewiston, Idaho, to export elevators as far west as Longview, Wash.

More Competition Not Less

The draft report provides no sincere considerations for alternative freight, and what suggestions it does make are unrealistic. While railroads and trucks compete with barge companies to move grain, farmers and grain handlers would be held captive without barges as an alternative.

USW supports the Columbia Snake River System and will continue to emphasize its importance in serving wheat buyers worldwide. Breaching of the dams on the Lower Snake River would have a devastating economic impact on wheat production and market competitiveness, not just in the Pacific Northwest Region, but nationally.

*This article represents public comments by the USW Transportation Working Group to the Lower Snake River Dams Benefit Replacement Report submitted July 11, 2022, by working group co-chairs Jim Peterson, Policy and Marketing Director, North Dakota Wheat Commission, and Charlie Vogel, Executive Director, Minnesota Wheat Research & Promotion Council.

July 12, 2022/by Steve Mercer

USW Announcements

Sincere Condolences on the Death of Shinzo Abe

U.S. Wheat Associates (USW) President Vince Peterson shared this message of condolence following the assassination of former Japanese Prime Minister Shinzo Abe:

“Our colleagues and the wheat grower directors of U.S. Wheat Associates (USW) want to express our sorrow at the tragic loss of former Prime Minister Shinzo Abe.

“His leadership focused in part on creating a positive, beneficial trade environment for the Japanese people that including the successful completion of the U.S.-Japan bilateral agreement. That agreement helped protect our long and fruitful trade partnership of which we are so proud. In fact, past USW Chairmen Darren Padget and Doug Goyings were pleased to meet and shake hands with Prime Minister Abe and President Trump in September 2019 at the ceremony in New York City, N.Y., marking the beginning of negotiations on the U.S.-Japan trade agreement that entered into force in 2020.

“We send sincere condolences to our partners, friends and the Japanese people at this sad time.”

Image from September 2019 signing ceremony for U.S. Japan bilateral trade agreement

Witnessing the Start of Historic Trade Agreement. Former Japanese Prime Minister Shinzo Abe (seated left), former President Trump welcomed U.S. cabinet members, Japanese officials and U.S. industry representatives including Past USW Chairmen Doug Goyings (standing, 4th from left) and Darren Padget (standing, 4th from right) as they officially kicked off negotiations for the U.S.-Japan trade agreement in New York City in September 2019.

July 11, 2022/by Steve Mercer

Wheat Industry News

Recent news and highlights from around the U.S. wheat industry.

Speaking of Wheat

“Virtual meetings, conferences and events have allowed USW to remain in close contact with our customers around the world during the past two years, but there’s nothing like riding in the combine with the U.S. farmer as they harvest their wheat; standing in the field of wheat rolling the wheat head between your hands to check the kernels; or breaking bread together, and we are pleased to be able to share these in-person experiences with our customers again.” – Stephanie Bryant-Erdmann, USW Assistant Regional Director, Mexican, Central American and Caribbean Region, during a recent trade team visit from Mexican flour millers to Kansas and other states. Read more here.

Happy 50^th Anniversary to the Wheat Foods Council

Its members and supporters celebrated this month at its annual meeting in Charleston, S.C. In the early 1970s, wheat foods were under attack in the United States for containing a high portion of carbohydrates, which many people believed made foods fattening. In May 1972, wheat commissions from Kansas, Texas, Colorado, South Dakota and Nebraska met to create a coordinated response, resulting in the establishment of the Wheat Foods Council. Soon other state wheat commissions, along with milling, baking and other allied industry companies, joined WFC to increase its resources and expand its important efforts. Today, WFC uniquely remains an organization whose membership encompasses the entire wheat foods value chain. Read more here.

Washington Grain Commission Announces Leadership Transition

Glen Squires, CEO of the Washington Grain Commission (WGC), has announced he will retire on November 1. The WGC is pleased to announce that Casey Chumrau will be its new CEO and will begin in mid-September. Chumrau has worked in agriculture and international business for most of her career, promoting the U.S. wheat industry for over a decade. She is currently the executive director of the Idaho Wheat Commission and previously worked for U.S. Wheat Associates in its Arlington, Va., headquarters and in Santiago, Chile. Read the full release here.

Export Promotion Funding a Priority

The National Association of Wheat Growers (NAWG) recently shared its priorities as the U.S. Congress works towards reauthorizing the Farm Bill in 2023. With half of all U.S. wheat destined for export, NAWG recommends doubling the funding for the Market Access Program (MAP) and Foreign Market Development (FMD) program administered by the USDA Foreign Agricultural Service. U.S. Wheat Associates (USW) highly values its partnership with NAWG working to ensure U.S. farm families remain economically sustainable to continue meeting the growing global wheat demand.

USW to Fill Director of Communications Position

USW has an opening for a Director of Communications in a hybrid work environment based in its Arlington, Virginia, Headquarters Office. The Director of Communications reports to the Vice President of Communications and helps USW fulfill its mission by working collaboratively to plan and implement producer-focused and market development communications across a range of media; by managing all digital communication touchpoints, including content creation, deployment across the website, social media, email marketing, and other media channels, and performance analysis; and other critical domestic and international communications activities. The job description and application process are posted here.

NAWG Seeks to Hire Communications Intern

NAWG is looking to fill the newly created position of Communications Intern to assist in marketing and communications efforts. The NAWG Communications Intern’s main role is to assist the Director of Communications and Partnerships in implementing organizational communications and marketing strategies. If you, or someone you know, is interested in this opportunity and would like to learn more, find the description and application here.

Nebraska Wheat Board Job Opportunity

The Nebraska Wheat Board (NWB) is looking for a Marketing Specialist to join its team and work on behalf of Nebraska wheat farmers and the industry to communicate and coordinate NWB programs and issues. This position develops communication programs and expands outreach opportunities by managing and coordinating print, radio and television media, and leading the Board’s social media outreach, among other communication projects. Applications close July 7, 2022. Find more information here.

2022 Hard Spring Wheat and Durum Tour

The annual Wheat Quality Council Hard Spring Wheat Tour is scheduled for July 25 to 28, 2022. The tour will provide the first production estimate for the 2022 U.S. hard red spring and durum crops. Tour information and registration are posted here. Customers can follow the tour in real-time by following #wheattour22 on Twitter and keep up to date on the entire U.S. wheat harvest with the weekly USW Harvest Report

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 more on LinkedIn.

July 7, 2022/by Steve Mercer

Market and Crop Analysis, Michael Anderson

Harvest and Much Improved Conditions Pressure U.S. Soft White Market

Volatility remains the key word when looking at wheat prices, and the soft white (SW) market is no exception.

From their rapid increase following the severe drought in 2020/21 and the Russian invasion of Ukraine in March 2022, U.S. wheat futures have declined recently and were down more than 4% on July 5, hitting a multi-month low. While SW does not trade on a futures exchange, as a soft wheat, it reflects the CBOT soft red winter (SRW) futures price that settled July 5 at $8.07, the lowest level since February 18, before the invasion. On July 6, the July contract SRW contracted slipped further, falling below $8.00/MT.

Chart shows soft white and soft red winter export prices over time

Source: USW Price Report

New Crop Arriving

The U.S. SRW and hard red winter (HRW) wheat harvests are underway, helping push futures and SW prices down as the market takes in news about crop conditions and yield potential. An additional bearish factor is improved crop conditions boosting confidence for this year’s hard red spring (HRS) crop.

Abundant moisture and cooler temperatures this growing season have benefited the SW crop but also slowed crop progress, causing a slight delay in this summer’s harvest.

More SW to Come Slightly Late

One wheat trader shared an anecdote about harvest timing from a Washington-based wheat farmer. Each year the farmer looks to when a specific type of flower blooms to indicate when harvest will start. Usually, the flowers bloom around mid-June, and wheat typically matures about three weeks later. But this year, the flowers did not bloom until the end of June, so the farmer expects to start harvest around July 15.

This look ahead at the new SW crop also helps to explain the quick run-up in SW export prices in May when “old crop” stocks were being drawn down and in June when the price started to turn toward a middle ground.

U.S. soft white wheat futures prices over time

Moderating SW Prices. As the harvest of a much improved and potentially high-yielding U.S. SW wheat crop draws near, new crop prices have come down to a level similar to prices in August 2021. Source: USW.

Buyers of SW around the world are all too familiar with the impact of drought and heat on 2021 SW production and functional characteristics, as well as export prices. This year things are different.

“Much Better” Production

The U.S. Drought Monitor keeps statistics comparing changes in drought status from year to year. A recent comparison map (below) shows significant improvement in the Pacific Northwest SW and white club production region, as well as in much of the U.S. HRS and northern durum production region.

U.S. Drought Monitor map from June 2022 showing changes in drought status from June 2021 to June 2022

Source: U.S. Drought Monitor.

In an interview with the Moscow-Pullman Daily News, Glen Squires, chief executive officer for the Washington Grain Commission, highlighted the volatility and numerous factors that fueled and then decelerated the SW wheat market. Weather, he emphasizes, is a key part of what is behind the market right now.

“Our wheat production in the Pacific Northwest is supposed to be a much better this year,” Squires said. “If the estimates are accurate, we could have 20 million bushels (544,366 metric tons) over our five-year average. So that plays into (the market volatility) a little bit.”

Buyers can monitor U.S. Wheat Associates (USW) Harvest Reports for weekly updates on harvest progress and initial crop quality data and follow more news about the 2022 harvest through state wheat commissions and regional USW office updates.

By USW Market Analyst Michael Anderson

July 7, 2022/by Steve Mercer

Dalton Henry, Trade Policy, World Trade Organization (WTO)

Good Things that Did and Did Not Happen at the WTO Ministerial

Late spring is a notoriously busy time on U.S. farms. This may partly explain why last month’s World Trade Organization (WTO) Ministerial meetings in Geneva largely came and went without much notice from U.S. farmers or farm media. Or maybe U.S. farmers have tuned out the inner machinations of a 25-year-old organization that has been promising a new agricultural agreement for more than two-thirds of its existence. Whatever the reason, the actions, both those taken and not taken, will impact U.S. wheat farmers.

The actions taken of note at the WTO Ministerial include a new declaration on sanitary and phytosanitary (SPS)* regulations and a commitment by countries to exempt humanitarian purchases by the World Food Programme from export restrictions. The latter is of little consequence to U.S. producers as U.S. laws around export restrictions are pretty tight, part of what has made the United States the most reliable wheat supplier in the world. The SPS front, though, holds more promise.

Fastest Growing Trade Barriers

Non-tariff barriers to trade (which include SPS regs) represent what we on the U.S. Wheat Associates (USW) policy team have called “the fastest-growing segment of trade barrier impacting wheat trade.” We have worked on more non-tariff barriers than traditional tariff barriers in the last calendar year. Non-tariff barriers include rules such as maximum residue limits (MRL) on pesticides and limits on weed seed species or insects. Many SPS regulations are critically important to protecting plant and human health, but, in recent years, many countries have found they are a convenient way to protect domestic producers or otherwise frustrate international trade. That the SPS rules received a major update for the first time in their existence at the WTO Ministerial and that the notoriously protectionist European Union joined in supporting them notes just how important they have become to facilitating trade.

Attempts at Weakening WTO Rules

It may seem odd to celebrate actions not taken, almost as though no progress represents a successful outcome. However, that has increasingly been the case for U.S. agriculture at WTO Ministerial meetings in the last decade.

With all hopes of securing meaningful new market access for agriculture essentially dashed since 2008, several developing countries have tried to weaken existing rules. India has been notorious for this, insisting that its public stockholding programs be exempt from subsidy limits – despite exporting substantial wheat and rice stocks from those so-named food security programs. India secured a limited exception to those subsidy rules during the Bali ministerial in 2013. Developing countries also substantially, though temporarily, weakened rules on export subsidies – widely recognized as the most trade distorting form of domestic support during the Nairobi ministerial in 2015.

With those two events as background, an informal coalition of U.S. agricultural groups – “Aggies for WTO Reform” – attended the WTO Ministerial, received briefings from the U.S. government and WTO representatives, and advocated with other country delegations to hold firm in the original rules of the WTO.

Trade Rules for the Greater Good

Those original rules have been critical to the expansion of U.S. agricultural trade since the WTO was formed in 1996. The chart below, shared with USW’s board of directors in early 2022 by USDA Acting Undersecretary for Trade and Foreign Agriculture Jason Hafemeister, shows the double-sided value to world economies from the WTO. By standardizing the rules of trade and reducing barriers in its initial agreement, the WTO enabled a tremendous rise in exports of U.S. agricultural products while simultaneously lifting millions of people worldwide out of poverty.

So, in looking back at another WTO Ministerial meeting, there may be much to be said about its shortcomings and the need for improvements, but history shows when countries stick to the rules and agreements, trade – and people – win.

*The U.S. Trade Representative defines SPS measures as rules and procedures that governments use to ensure that foods and beverages are safe to consume and to protect animals and plants from pests and diseases.

By USW Vice President of Policy Dalton Henry

July 7, 2022/by Amanda Spoo

Educational Partnerships, USW Announcements

U.S. Wheat Associates Wishes Janice Cooper Farewell

U.S. Wheat Associates (USW) wishes all the best to our friend and colleague Janice Cooper as she retires as Managing Director of the Wheat Marketing Center (WMC) at the end of the month. A long-time friend of the U.S. wheat industry, Cooper has had various roles putting her in direct contact with U.S. wheat farmers and customers.

Janice Cooper.

“Six years ago, we negotiated an employment contract, signed it and Janice was on the job within an hour at her first Wheat Marketing Center full board meeting. No drama, just a calculated approach to move ahead as managing director. Her background in lab services, market development and education made her perfectly suited to lead the industry’s Portland operation as the technical crossroads of the world,” said Bill Flory, WMC chairperson and Idaho wheat farmer. “Janice’s calm demeanor and consideration for employees, public and proprietary partners, and the board of directors have served us well. WMC is in a great position to continue enhancing growers’ profitability by better understanding U.S. wheat’s strengths and competitive standing worldwide because of our Janice Cooper.”

Before joining the Wheat Marketing Center in 2015, Cooper spent six years as the Executive Director of the California Wheat Commission and earlier managed the California Association of Wheat Growers. In addition to her experience in the wheat industry, Cooper has a broad background in business development and trade policy in the banking, high tech and renewable energy sectors. Cooper was also a member of the Grain Industry Advisory Committee, the private sector group appointed by the U.S. Secretary of Agriculture to advise the Federal Grain Inspection Service on its programs and priorities.

Located in the historic Albers Mill Building in Portland, Ore., WMC is a research and educational bridge between U.S. wheat farmers and their customers, dedicated to linking quality wheat and quality end products. In April 2022, Mike Moran joined WMC as its new executive director, giving him three months of overlap with Cooper to ensure a smooth transition

“I first had the pleasure to meet Janice when she was with the California Wheat Commission, and our paths were destined to cross again after she took the helm at WMC. In both roles, I have appreciated her counsel and her passion for the wheat industry, and farmers in particular,” said WMC Executive Director Mike Moran. “As I have had the opportunity to walk beside Janice these last few months, I am struck by the depth and breadth of the relationships she has developed throughout the wheat world. I am pleased to be following in her footsteps. The legacy she has built inspires me to honor that commitment to ensuring that U.S. wheat farmers and the fruits of their labor remain the quality choice for customers worldwide. I am proud that I can call her both mentor and friend.”

“Janice has helped guide WMC through an unprecedented time of global uncertainty, and her steady leadership has been an asset to both WMC and the industry at large,” said WMC Technical Director Jayne Bock. “While we are sad to see her go, we’re pleased that she has helmed a transition that sets a new path for Mike Moran and WMC going forward. We wish her all the best as she returns to California to spend more time with her family.”

“Janice Cooper’s friendly, outgoing nature and intellectual curiosity gave her the ability to make foreign guests and wheat producers alike feel welcome and included at the Wheat Marketing Center,” said USW Vice President and West Coast Office Director Steve Wirsching. “She brought superior management skills and calm leadership that allowed everyone around her to reach their full potential. She was able to resolve conflicts equitably and move the organization forward. We are all sad to see her leave.”

Janice, thank you for your service to U.S. wheat farmers.

Wheat Marketing Center staff with USW technical experts.

Technical Training. Dr. Jayne Bock, Wheat Marketing Center Technical Director, discusses baguette qualities with David Oh, USW Seoul; Adrian Redondo, USW Manila; and WMC Managing Director Janice Cooper in March during a core competency training session.

In cooperation with the Wheat Marketing Center, Portland, Ore., Oh (fourth from right) helped plan and conduct a Korea Baking Product Development course in 2019. Janice Cooper is pictured third from the left.

June 30, 2022/by Amanda Spoo

Hard White, Mark Fowler, Technical Service Activities

Defining U.S. Wheat’s Comparative (Competitive) Advantage: Hard White

In the increasingly competitive global wheat market, it is important to review the advantages that U.S. wheat delivers to millers and bakers. This post examines the advantages that hard white wheat brings to the market.

Hard white (HW) wheat is the smallest class of wheat grown in the United States, with an annual average production over the last five years of 822,413 metric tons (MMT), about 30.2 million bushels. U.S. HW is the newest wheat class and has developed a strong niche for whole wheat flour products in the U.S. domestic market. In addition, HW varieties are bred to yield flour for both bread and Asian noodles.

The strong demand for a specific use and the relatively small production has created a market where most HW is grown under contract with domestic U.S. milling companies to assure quality standards and provide a premium price incentive to farmers. It is also important to mention that HW wheat includes winter and spring varieties, increasing the protein range and functionality within the class.

Milling Advantages

U.S. hard white wheat performs in the mill much like hard red winter (HRW) wheat. The most apparent HW benefit is higher extraction levels of whiter flour due to its lighter bran color. Higher extraction rates generally improve flour water absorption, benefiting the baker. HW is a true hard wheat creating an advantageous granulation in the primary breaks for the production of coarse semolina, increasing the production of low ash flour.

Baking and Processing Advantages

The most significant advantage of hard white wheat is the quality of baked products made from hard white wheat flour. As mentioned, one of the primary uses of hard white flour in the U.S. baking industry is for whole wheat products. By using ultra-fine white whole wheat flour, whole wheat bread can be produced with the color and texture of traditional bread. This has created a large demand for white whole wheat flour in school lunch programs and other products promoting the health benefits of whole wheat flour and its acceptable taste to children.

Another advantage of HW wheat flour is its low polyphenol oxidase (PPO) content. PPO is an enzyme that can cause the browning of dough. Lower PPO content improves the color of wet noodles and Asian steamed bread products. The starch-pasting characteristics of some HW varieties, as measured by amylograph values, are also an essential trait for noodle production. High peak viscosity is associated with desirable texture characteristics in noodles.

Sourcing Challenges

With all the advantages of HW to the milling and baking industry, the market has challenges in determining its value. Most hard white wheat is grown under production contracts by U.S. milling companies. It is also grown predominantly in the Great Plains, adding to the challenge of marketing HW to Asian customers sourcing wheat off the West Coast. The small size of the HW planted acres creates challenges for a volume-based grain handling system. The need to segregate HW from HRW or hard red spring (HRS) wheat adds cost to the elevators due to the time required to clean equipment and bins. It can also be difficult to accumulate enough quantity to fill a ship hold or a complete unit train. These challenges require creativity and flexibility from both the buyer and seller, who must work together to pull HW wheat through the market and encourage the wheat producer to increase HW wheat planted acres.

U.S. Wheat Advantages

As we highlight each specific class in this series, let us not forget the advantages that all U.S. wheat classes bring to the market. First, and perhaps the most important, is consistency in quality and supply. Although each new crop year brings different challenges and opportunities, U.S. wheat is always available to the global market. Second, U.S. wheat delivers variety. Wheat is a raw material manufactured into a bakery ingredient, flour. The flour made from each unique class of U.S. wheat brings value to the market in the unique quality characteristics to make a variety of baked goods and noodles. It is also important to understand the value of blending flour from one or more types of wheat to optimize the flour performance at a minimal cost.

Each region, country, and culture have wheat-based food products that are uniquely their own. With six unique wheat classes, the United States has the right wheat class to deliver the optimal quality and value for every variety of product on the market.

Learn more about the six classes of U.S. wheat here or leave a question in the U.S. Wheat Associates’ “Ask The Expert” section.

By Mark Fowler, USW Vice President of Global Technical Services

Read more about other U.S. wheat classes in this series.

Hard Red Winter
Hard Red Spring
Soft White
Soft Red Winter
Durum

June 29, 2022/by actualize

Wheat Industry News

Recent news and highlights from around the U.S. wheat industry.