Wheat Letter Blog Archive - Page 31 of 101

The Passing of Linda de Hoog

U.S. Wheat Associates (USW) is sad to report that our former colleague Ms. Linda de Hoog (center, photo above) passed away May 9, 2022. She retired in 2019 from her position as Regional Program and Administrative Manager for USW’s European Region in Rotterdam, The Netherlands.

“Linda loved her work, her family and her friends,” said USW Regional Vice President Ian Flagg (left, photo above). “She passed away at home with the people she loved most at her side.”

Linda held the distinct honor of being USW’s longest-serving colleague, having joined what was then Great Plains Wheat in June 1971. Linda had been a faithful and diligent worker on behalf of U.S. wheat farmers for more than 48 years. At her retirement, she said representing them and being part of the USW family was the best career decision she ever made.

“I believe Linda was the only colleague whose father had to co-sign her original employment agreement because she was only 17 years old,” said USW President Vince Peterson (right, photo above), who served with Linda for 11 years as Regional Director in Rotterdam. “She was a wonderful person, and I join all my colleagues in sharing our deepest sympathy with Linda’s husband Dennis and their family and friends.”

May 10, 2022/by Steve Mercer

War is Just the Latest Factor Behind Higher World Food Prices

Low-income consumers in import-dependent countries will face the greatest hardships as the unprovoked Russian invasion of Ukraine and other factors push world food prices higher. That is one conclusion from a USDA Foreign Agricultural Service (FAS) analysis released in April. U.S. Wheat Associates (USW) is a cooperating partner with FAS export market development programs.

Bullish Since Late 2020

The FAS analysis looked at factors that affected world food prices in late 2020. They include increased demand led by China, drought-reduced supplies, tighter wheat, corn and soybean stocks in major exporting countries, and high energy prices that have raised farm production costs. The report said Russia’s attack on Ukraine has disrupted Black Sea agricultural exports, pushing prices even higher, and exacerbating high energy and fertilizer costs.

China is one of the leading countries ramping up imports, with import volume doubling in 2020/21 as State Trading Enterprises helped replace and rebuild aging government reserves. Demand for feed-quality wheat also surged.

Protecting Domestic Supplies

In addition, the report stated that world food prices were up in part because 11 countries had implemented export bans for products ranging from wheat, wheat flour, barley, rye, corn, and oilseeds, to lentils, fava beans, and pasta. That list includes Russia, which had already imposed an export tax in 2021. And in early May, the potential impact of a severe heatwave in India brought rumors its government was contemplating some export restrictions.

Interestingly, the FAS report acknowledged that global wheat production was adequate in 2020/21 and only one percent below consumption requirements in 2021/22 on an aggregate level.

Related to wheat supply, USW President Vince Peterson recently offered a more nuanced observation of the situation for the world’s wheat buyers.

“The bottom line for wheat-dependent importers in the short term is not necessarily a supply-shortage crisis, but rather an economic-financial crisis caused by having to pay much higher prices in the current market scenario,” Peterson said. “It is also a logistical challenge for the world to efficiently move the wheat supplies to places where they are most deficit.”

Lower Exportable Supplies

And yet, major exporters’ stocks in 2021/22 are forecast to be at their lowest levels in 10 years, putting upward pressure on global prices.

USW agrees that higher world food prices affect the poorest countries and households the most.

“It is so sad to think of more people being pushed into food insecurity around the world, but that is happening,” said Mike Schulte, executive director of the Oklahoma Wheat Commission and chair of the USW and National Association of Wheat Growers Food Aid Working Group.

Schulte’s comment came as USW and NAWG welcomed recent news that the U.S. government will provide more funding for food assistance to countries in need and help cover food aid transportation costs.

“Wheat has long been the most often donated commodity for food aid programs, and wheat growers are ready again in this crisis to help ease the hunger,” Schulte added.

May 9, 2022/by Steve Mercer

Solvent Retention Capacity, Technical Service Activities

Solvent Retention Capacity (SRC): Utilization and Interpretation

As a service to its wheat milling and baking customers, U.S. Wheat Associates (USW) provides a range of technical support that is unmatched in the global wheat trade. One of the most valuable services USW has offered is helping customers apply Solvent Retention Capacity (SRC) analysis to better predict the true performance characteristics of flour for biscuits (cookies), crackers and cakes, as well as many hard wheat flour applications.

A Reflection of Functionality

More specifically, SRC examines the glutenin, gliadin and pentosan characteristics of the flour, and the level of starch damage in the flour. These values describe the flour’s ability to absorb water during the mixing process and its ability to release that water during the baking process. The combined pattern of the four SRC values establishes a practical flour quality profile useful for predicting functionality and how flour products conform to specifications.

USW is showing millers how to use SRC to analyze flour streams to maximize quality while minimizing costs. For bakers, such testing ensures they are using the best possible flour for their products.

In 2020, as part of its virtual Crop Quality Seminar series, USW asked cereal chemist Art Bettge to go into more depth on how millers and bakers can use and interpret SRC results to add value to their processes and products. A cereal chemist with more than 40 years of experience at the USDA Agricultural Research Service Western Wheat Quality Laboratory in Pullman, Wash., and in his ADB Wheat Consulting business, Bettge recorded an in-depth video presentation.

Watch Bettge’s entire presentation from the 2020 USW Crop Quality Seminars below. USW technical staff also shared their recommended Solvent Retention Capacity profiles for cookie and cracker products online. And most importantly, USW representatives in 13 offices around the world, are always ready to help our customers, through technical support and trade service, making buying U.S. wheat a rewarding experience.

May 6, 2022/by Steve Mercer

Hard Red Spring, Mark Fowler, Technical Service Activities

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

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 red spring wheat brings to the market.

This post discusses the value U.S. hard red spring (HRS) wheat brings to the global market. HRS is the second largest wheat class with a five-year annual average production of 13.7 million metric tons (MMT)or about 504 million bushels as of 2020/21. It accounts for about 26% of the total wheat produced in the United States.

The three subclasses of HRS include Dark Northern Spring (DNS) with 75% or more of dark, hard and vitreous (DHV) kernels; Northern Spring (NS) with 25% or more but less than 75% DHV kernels; and Red Spring (RS) with less than 25% DHV kernels.

Milling Advantages

U.S. HRS wheat poses some unique opportunities and challenges to the miller. HRS is the hardest of all the non-durum classes of wheat but also has the smallest average kernel size. Millers experienced with HRS in their grist know excellent results can be achieved with some adjustments.

First, adjusting the screen sizes of separating equipment in the cleaning house will reduce the risk of losing good quality but also results in smaller kernels. A longer conditioning time is needed to ensure the tempering water fully penetrates the harder HRS wheat kernels. Optimal conditioning time is dependent on several factors, but in most cases, HRS will require a minimum of 20 hours for optimal conditioning time. The miller’s reward for these adjustments is higher than average flour yield from the harder, more compact HRS endosperm. The hard endosperm creates excellent granulation through the break system to provide an abundance of stock to the purifiers. This allows the miller to maximize flour with low ash and excellent color throughout the head end of the mill.

Baking Advantages

Because of the high protein content and strong dough characteristic of U.S. hard red spring wheat flour, it is commonly used in a blend to improve the performance of a lower protein base flour. Only a few end products such as artisan-style bread, whole wheat products, and bagels may be made with 100% HRS flour to achieve optimal performance. For nearly any type of bread or leavened bread product such as thick pizza crust, the greatest value of HRS flour comes from blending it with a lower protein, lower-cost flour to create optimal ingredients for individual products. In markets where consumers demand a “clean label,” HRS flour blended with HRW or other wheat flour can create better water absorption and loaf volume while using less or no chemical dough improvers. And many pasta makers around the world know that when traditional durum wheat semolina is not needed, HRS wheat flour or semolina is a very acceptable alternative.

U.S. Wheat Advantages

As we highlight each 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 products 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 White
Soft White
Soft Red Winter
Durum

May 5, 2022/by actualize

Wheat Industry News

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

Speaking of Wheat

“This growing season has the unprecedented combination of geopolitics, weather, and some of the highest fertilizer prices and chemical inputs — but farmers here and abroad will remain resilient reminders of the importance of agriculture as a constant in a world full of conflict.” – Justin Gilpin, Kansas Wheat CEO. Read more here.

Wheat Farmers, Millers Concerned About Rail Performance

This week, U.S. Surface Transportation Board (STB) held a public hearing on recent rail service problems and recovery efforts involving several Class I carriers. Shippers like wheat farmers, elevators, flour millers and others have experienced significant problems for months. North Dakota Wheat Commission Policy and Marketing Director Jim Peterson says the rail situation is as difficult as it has been in many years, with freight backed up for four-to-six weeks. U.S. Wheat Associates (USW), the National Association of Wheat Growers and the North American Millers’ Association submitted written testimony about the impact of service issues. Read more here.

National Wheat Yield Contest Opens for 2022 Contest Entries

The National Wheat Foundation (NWF) is pleased to announce that it is accepting grower enrollment for the 2022 National Wheat Yield Contest! The contest is divided into two primary competition categories: winter wheat and spring wheat, and two subcategories: dryland and irrigated. Winter Wheat entries are due May 16, and Spring Wheat entries are due August 1. Read more about the contest here, or to enter, go online to yieldcontest.wheatfoundation.org.

Meet the Wheat Yield Contest Director

Anne Osborne is the NWF product director for the National Wheat Yield Contest and other initiatives. She is an agricultural educator by training who says she enjoys helping farmers. “It is a big picture thing for me because we all think about why farming is important, but I also think about feeding the world. It is important for us to be able to grow crops that are safe and provide food for the world.” Read more in this profile from the Westbred seed company here.

Ohio’s Place in the World Wheat Market

A recent news story from Ohio provides relevant information about how the timing of winter wheat seeding and development affects the ability of farmers to respond to the market signal that the world needs more wheat. Ohio farmers grow soft red winter wheat and, like all Northern Hemisphere producers, will decide if seeding more wheat later this year is a profitable decision. Read and watch 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 more on LinkedIn.

April 28, 2022/by Steve Mercer

Market and Crop Analysis, Michael Anderson, Soft White, Wheat Production and Harvest

Soft White Wheat Crop Looks Better This Year

Analysis of the wheat market since February has been underscored by volatility, and no less so for the U.S. soft white (SW) wheat market.

The sudden exit of Ukraine from the export market and the uncertainty of Russia’s wheat exports are recent factors in market volatility. Dry weather is another important consideration for winter wheat markets.

The most recent USDA crop progress report rated 27% of the entire U.S. winter wheat crop as good or excellent, a 3-point drop from last week and the lowest level since 1989 for this time of year. The report encompasses all winter wheat, including SW grown in the Pacific Northwest (PNW). And with summer fast approaching, it is a good time to look at the underlying factors for the 2022 U.S. SW crop.

Conditions Improved

The PNW wheat-growing region remains in some form of drought. Yet crop conditions there are considerably better than in the Plains. Following significantly more winter moisture, spring weather has also returned to normal, with rain and mild temperatures reported in Washington’s Palouse region and north-central Oregon.

Idaho wheat conditions are rated 56% good or excellent. Oregon’s conditions rate 55% good or excellent, and Washington state, the leading SW producer, with 52% of the crop rated good or excellent.

Better moisture gave the 2022 U.S. soft white wheat crop an initial boost. If conditions hold, there will be better yields and quality compared to the 2021 crop. Soft white wheat kernel photo by U.S. Wheat Associates.

Better Than 2021

Last year, persistent hot and dry weather hit the PNW, impacting both yield and protein content for soft white wheat. According to the U.S. Wheat Associates (USW) Crop Quality Report, the average soft white protein on a 12% moisture basis in 2021 was 11.3%, 15% higher than in 2020 and 16% above the 5-year average. Production was down 28% compared to the 5-year average. In Washington, the leading SW producer, yields were slashed 47% compared to 2020/21.

Ending stocks are especially tight, with the USDA estimating a 26% decline compared to last year. The relatively high cost of the smaller white wheat crop and week-to-week price volatility has translated to reduced SW export volume this year. USDA’s April supply and demand estimate reduced exports by 46%, and the latest USW Commercial Sales report showed soft white exports 50% lower year-to-date at 3.33 MMT.

Planted Area Up

However, USDA expects SW area planted for harvest in 2022 to be 3.56 million acres (1.44 million hectares), up 2% compared to last year. That is good news for SW wheat millers. Production potential and farmer revenue from SW is complicated by higher input costs like fertilizer, and the volatile futures market make it difficult for farmers to determine their best course of action. Even so, the improved conditions this year should benefit both SW customers and farmers.

New Crop Hope

Oregon SW wheat farmer and current USW Chairman Darren Padget is optimistic about the potential in his SW crop this year. He said this year has been much more normal than last year, with moisture being much more consistent and plentiful in the winter and spring. He said that in his area of the PNW, “we are on track for an average crop.”

Glen Squires, Chief Executive Officer for the Washington Grain Commission, said that spring conditions have been wetter and cooler than last year. He did, however, warn that subsoil moisture is about the same as last year, around 40% short or very short. Overall, Squires noted that they are optimistic that crop quality and yields will rebound from last year.

By USW Market Analyst Michael Anderson

The header photo is courtesy of the Washington Grain Commission.

April 27, 2022/by Steve Mercer

Sustainability, Wheat Foods, Wheat Quality

Wheat Foods Council Holds Future of Food Forum and Chef Workshop

Chefs, food marketers, millers and other wheat industry representatives came together in Napa, California, on April 11 to 14 for the Wheat Foods Council “Chef Workshop” and first “Future of Food Forum.” This seminar was insightful and provided a chance to advocate wheat foods to key people in the U.S. food industry.

At the Chef Workshop, chefs from major fast-food chains, restaurants from around the country, and other food service businesses got to learn more about ingredients, create food from other cultures, and collaborate with others. The Wheat Foods Council chose these chefs to participate in the Chef Workshop because of their influence within their companies. The Culinary Institute of America’s (CIA) Copia campus provided state-of-the-art kitchens, a wide array of spices and ingredients, and professional chefs with real world experiences to help facilitate instruction.

Cindy Falk, Kansas Wheat Nutrition Educator, and event attendee, said “The talented chefs used a variety of wheat-based ingredients, various seasonings and cooking techniques to create pleasing flavor combinations and elegant plates that looked like works of art.”

Future of Food

On April 14, the Wheat Foods Council held its Future of Food Forum. This included a panel discussion with various professionals including farmers, millers, food marketers, food packaging experts, and one of the professional chefs from CIA.

Barb Stuckey from Mattson shared her insights on the latest food trends and explained how food goes from development and research to shelves. Tim York from the Leafy Greens Marketing Agreement explained food safety and business transparency. Hayden Wands from Grupo Bimbo explained how COVID, labor shortages and geopolitical disputes have been putting mills in tough situations and how it might impact consumers down the line. Master Chef Victor Gielisse of the CIA shared about building a quality work environment. He further explained the CIA’s “Plant-Forward” initiative.

Higher Cost of Production

Finally, Ron Suppes, farmer from Dighton, Kan., a board member for the Kansas Wheat Commission [and 2007/08 Chairman of U.S. Wheat Associates (USW)] spoke about his farm. He showed the group a price comparison of fertilizer from a few months prior and prices today. This visual really made the point that … the input price increase is not linear, and costs of farming are dramatically higher. He advocated for the work researchers are doing on wheat to help farmers find solutions and ways to use fewer inputs but still achieve high quality wheat.

Sustainability

A common theme throughout both the Chef Workshop and Future of Food Forum was sustainability, from farming, milling, food packaging and cooking. Everyone along the supply lines is working hard to make sure society is getting safe, quality food without compromising the land. The discussion with panelists examined how generations viewed sustainability and how they relate to trends. Everyone provided great input on what is important in their respective part of the food supply chain regarding sustainability, and it helped everyone understand what each other’s role involves.

The event was an excellent opportunity for everyone to gather and learn about food while connecting with others in different industries. The goal for events such as these is to help close the gap between consumers and producers.

USW shared these excerpts from Mary Marsh’s post in Kansas Wheat’s “Wheat Scoop” blog to help inform overseas milling and baking customers about Wheat Foods Council efforts to increase wheat food consumption in the United States and ideas that may be useful in other countries.

April 22, 2022/by Steve Mercer

Amanda Spoo, Educational Partnerships, Technical Service Activities

Northern Crops Institute Continues Tradition of Adding Value to U.S. Spring Wheat and Durum

Global demand for wheat food grows stronger every year, making exports vitally important to U.S. wheat farmers. As the export market development organization for the U.S. wheat industry, U.S. Wheat Associates (USW) works to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six U.S. wheat classes. USW relies on its successful working relationships with world-class educational partners that, through courses, workshops and seminars, enhance the technical and trade service assistance to help separate U.S. wheat from its competitors. One of those partners is the Northern Crops Institute (NCI) in Fargo, N.D.

NCI is a collaborative effort by North Dakota, Minnesota, Montana and South Dakota to support the promotion and market development of crops grown in the four-state region. Since 1979, NCI has been an international meeting and learning center that brings together customers, commodity traders, technical experts and processors for discussion, education and technical services. Situated on the North Dakota State University (NDSU) campus, this unique facility is only minutes from the farm fields that yield much of the world’s food. From the beginning, USW was involved in helping establish NCI and its mission and, since then, has sponsored hundreds of U.S. durum and spring wheat customers from around the world to participate in NCI programming.

A Global Reputation

NCI’s director, Mark Jirik, understands the institute’s strong tradition and reputation as a reliable resource for the U.S. wheat industry. From the start, he was impressed to witness the relationship NCI has with USW and the supporting state wheat commissions.

“This region is known as the heart of spring wheat country, a crop with a worldwide reputation for quality, so our focus on wheat has always been a baseline here on the upper Great Plains. People have made it their life’s work to make sure the world understands the quality and value of U.S. spring and durum wheat,” said Jirik. “The U.S. wheat industry is visionary and forward-thinking regarding quality. It is humbling to see the U.S. wheat industry’s vision and that its participants continue to support NCI, even when times may be tough.”

NCI provides hands-on programming that enables participants to learn about northern climate crops and their unique qualities, marketability and processing characteristics. Its laboratories are equipped for baking, pasta processing, twin-screw extrusion, grain grading and commodity and product analyses. The pilot-sized swing mill and the Feed Production Center enhance the NCI staff’s ability to demonstrate the varied uses of northern-grown crops. The NDSU Commodity Trading Room offers a live experience for participants to learn how to extract and analyze information and make decisions concerning risk and risk management.

Training for U.S. Wheat Customers

Every year USW sponsors customers from around the world to attend NCI courses focused on contracting for wheat value and grain procurement management for importers. In 2020 and 2021, those courses continued virtually. Joe Sowers, USW Regional Vice President for South Asia, regularly brings customers to NCI and has participated in a course himself.

“The Northern Crops Institute grain procurement course offers innovative training in state-of-the-art facilities, such as the NDSU commodity trading laboratory,” said Sowers. “Participants observe the mechanics of the U.S. wheat marketing system from production to storage, and transport to export, providing them with crucial information fundamental in grain purchasing. Spending nearly two weeks with buyers worldwide, participants gain useful contacts they will maintain throughout their careers.”

When participants complete a course at NCI, Jirik wants them to have a solid understanding of the value and quality — and the heart — that goes into the products they buy. “I want them to think, ‘Wow, what a fantastic experience. I understand now why I should be using U.S. wheat in my products.”

Northern Crops Institute staff with USW technical experts.

Technical Training. USW technical staff visited the Northern Crops Institute in March 2022 for a core competency training session. Our team heard presentations from their peers and industry professionals and participated in demonstrations and tours of NCI’s labs. The main focus of their training was to learn more about solvent retention capacity (SRC) and explore different methods used to obtain results. Read more about their visit to NCI.

Adapting to Digital

In Summer 2020, NCI expanded its offerings to include regular online webinars in order to better reach customers and stakeholders as the COVID-19 pandemic continued to create barriers to connecting in person.

Currently, there are three series. The “NCI Market Update” is featured twice a month. On the first Wednesday of the month, the focus is on hot topics in the commodity markets. The third Wednesday of the month features hour-long commodity market updates where guest speakers share the latest news and analysis impacting the global commodity markets. The “Cereal Innovators” series focuses on new and unique ways to use cereal grains. Topics include new processes, useful information on milling and baking, equipment information, and uses for cereal grains grown in Minnesota, Montana, North Dakota, and South Dakota. The “Future of Feeding” series focuses on using innovation in the processing of animal food, the equipment being used (existing and newly developed), as well as using grains from the region for co-products. View past webinars and register for upcoming webinars here.

“The pandemic forced us to think about how we deliver content and build relationships in ways we’ve never had to do before. The webinars have been instrumental in keeping our global customers informed of market trends and conditions, but have also helped us raise issues and ideas that are helping us produce better courses and other programming for the future,” said Jirik. “Being online has allowed us to connect with customers that we would never have had the opportunity to work with in the past. NCI is looking forward to having people back in Fargo, but the webinars, online courses and other delivery methods allow us to build even better relationships with a wider range of audiences.”

Learn more about the Northern Crops Institute and its programming and services at www.northern-crops.com.

By Amanda J. Spoo, USW Director of Communications

Read about other USW educational partners in this series:

IGP Institute Capitalizes on Resources and Location to Provide Hands-on Training
Wheat Marketing Center Creates Educational Bridge Between U.S. Wheat Farmers And Customers
Wheat Foods Council Is A Leading Source Of Science-Based Wheat Foods Information

April 22, 2022/by actualize

Mark Fowler, Soft White, Technical Service Activities

Defining U.S. Wheat’s Comparative (Competitive) Advantage: Soft 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 soft white wheat brings to the market.

Soft white (SW) wheat is the fourth largest class of wheat grown in the United States, with an annual average production over the last five years of 7.51 million metric tons (MMT), or about 276 million bushels. Although SW is the fourth largest class measured by production, it is the third-largest if measured by exports, with nearly 80% of its annual production exported. As with hard white (HW) wheat, SW wheat includes winter and spring varieties increasing the protein range and functionality within the class. U.S. SW wheat has a strong export demand in Asian markets. From specialty products such as sponge cakes, Asian noodles, biscuits, and crackers, to blending with hard red spring (HRS) and hard red winter (HRW) wheat for improving bread color, soft white wheat flour has the versatility to improve the quality and appearance of a wide variety of products.