Wheat Letter Blog Archive - Page 32 of 101

U.S. Agriculture Jumps Back on the Cuba Relations Roller Coaster

U.S.-Cuba relations have been up and down like a roller coaster in the 11 years since the last U.S. wheat export shipment to Cuba. Last week, U.S. Wheat Associates (USW) staff traveled to the island nation as part of a U.S. agricultural conference to see and hear firsthand about trade opportunities – despite frosty bilateral relations.

There is no clearer example of that roller coaster than in the U.S. embassy. After being shuttered for more than a half-century, the embassy was reopened in 2015 during the Obama administration as a sign of goodwill and a hopeful return to a bilateral relationship. Closed in 2017 after never-proven allegations Cuba had perpetrated a “sonic attack” on diplomats, it now operates on a limited basis. Yet relations are so low that the U.S. government has refused to repair recent hurricane damages.

Image shows a meeting in Cuba of the U.S. Agriculture Coalition for Cuba

Cuban Meeting. The U.S. Agriculture Coalition for Cuba sponsored a recent meeting for U.S. agricultural representatives, including USW, with Cuban officials and business interests.

Demanding Respect

That roller coaster in relations continued in the recent conference, where high points about the potential of increased trade and renewed relationships were mixed with harsh rhetoric. Throughout three days of meetings and events with government officials, private business owners and conference attendees, the U.S. delegation repeatedly heard about the harm of the U.S. embargo on Cuba, and especially about tightened measures put into place under the Trump administration. Listing Cuba as a state sponsor of terror and further restricting the ability of U.S. business operations garnered a great deal of ire from the Cuban speakers.

Though conducting business with Cuba is more bureaucratically challenging for U.S. companies than nearly anywhere else on earth, Cuba can and does still purchase some U.S. commodities. The prime example is chicken. Cuba now ranks as a top-three destination for U.S. chicken exports.

Complex Situation

The competitive situation for wheat is much more complex than the products they currently purchase. While the United States has a proximity and logistical advantage over any other wheat supplier, Cuban officials said other countries routinely offer generous credit terms of one to two years. Access to any level of financing has proved particularly important to Cuba, given its relative shortage of hard currency.

Agricultural trade with Cuba was authorized under strict terms with the passage of the Trade Sanctions Reform and Export Enhancement Act of 2000. However, the act required onerous payment terms such as full cash payment in advance of exports, use of third-country banks and travel restrictions on cargo vessels between the two countries. Though that policy sparked sales of U.S. commodities for a few years, the Cuban economy continued to struggle, and those terms have become overbearing. The result has been widespread economic distress for the Cuban people, who are now challenged to secure affordable food. Their stories include bread shortages and state-sponsored food ration supplies being unavailable.

Cuba Needs Wheat

Before COVID, Cuba regularly imported an average of 750,000 metric tons of wheat. That volume would likely make Cuba a top-ten market for U.S. wheat under a normal trading relationship. However, a true “normal” relationship would extend beyond just access to private credit and connections between U.S. and Cuban banking sectors to facilitate trade. For Cuba to reach its full potential as a U.S. commodity export destination, it would likely require the enablement of two-way trade – selling Cuban produce and processed products in the U.S. market. That development would go beyond the agricultural sales provisions of the laws that currently allow one-way trade with Cuba.

End the Embargo

While that may be a worthy goal of opening up to Cuba, in the meantime, U.S. growers need Congress to act. Access to the same payment and shipping terms offered to any other wheat market is a good and reasonable starting point.

The United States has long had a policy of not using food as a weapon. It is past time for us to be honest with our own rhetoric in the case of our closest Caribbean neighbor.

By USW Vice President of Policy Dalton Henry, who represented USW on the trip sponsored by the U.S. Agriculture Coalition for Cuba.

April 14, 2022/by Steve Mercer

Hard Red Winter, Market and Crop Analysis, Michael Anderson

U.S. Hard Red Winter Wheat in Drought Adds Supply Concerns

While the Russia-Ukraine conflict remains the biggest driver of wheat futures prices, U.S. winter wheat in drought conditions across the Plains is becoming an increasingly bullish factor. This latest concern is likely to overshadow USDA’s recent estimate for a slight increase in winter wheat acres with potentially serious implications for supplies heading into summer.

On Tuesday, Chicago Board of Trade (CBOT) soft red winter (SRW) wheat futures reached their highest level since March 23, while Kansas City Board of Trade (KCBT) were up nearly $0.21 Tuesday and up 50% since the start of the year. The Washington Post this week reported that winter wheat conditions are the poorest in more than two decades for this early in the growing season.

Drought Monitor

Dry weather is not unique in the Plains states, but some years are worse than others. The current USDA drought monitor data indicates that most hard red winter (HRW) wheat is in drought. USDA reported just 32% of winter wheat is in good or excellent condition. That is a two-point improvement compared to last week but far from the 53% good or excellent rating at this time last year. The last time crop conditions were at this level so early was in 1996. According to USDA, total wheat yields that year were 2.41 MT/HA, 24% behind 2021/22, a year that also saw substantial wheat in drought.

USDA map showing where U.S. winter wheat in drought is located

Too Much Wheat in Drought. Of the 69% of winter wheat production USDA shows growing under drought conditions, almost all the 2022/23 HRW wheat crop is struggling in dry top- and subsoil.

Tough Conditions

Growing conditions for the 2022/23 HRW crop have been tough from the start. Last fall, plantings were sown in very dry soil, and precipitation was light. Snowfall was limited, and now above average temperatures with limited rainfall have only added to the stress. Weather forecasts point to more dry weather ahead.

Kansas, the leading HRW producing state, is dry. The U.S. Drought Monitor reports severe drought in the western half of the state. However, Kansas Wheat published a recent story about varied HRW conditions, perhaps unsurprising for a state that is 400 miles (644 kilometers) long. Nevertheless, all the farmers agreed that rain is needed.

State-by-State

To the west of Kansas, conditions are also dry and windy in Colorado. High winds rob the soil of moisture, exacerbating a lack of rainfall. Topsoil moisture conditions were rated 16% very short, while subsoil moisture was rated 17% very short across the region. Both were unchanged from the week before. Nebraska’s wheat conditions are above the national average, with 32% rated good or excellent and 46% rated fair. Soil moisture is short for the state, but decent moisture in the fall has provided some relief. In South Dakota, where winter wheat planting is 4% higher than last year, conditions are rated 58% fair and 22% good to excellent. Given the overall winter wheat conditions, the crop in South Dakota looks strong. Montana also looks good compared to the average. Wheat rated fair is 62%, while 15% is good to excellent. But like so much of the winter wheat growing area, soil moisture is poor. Most of the state is either in extreme drought or severe drought.

In Oklahoma, the second largest winter wheat producing state after Kansas, conditions improved week-over-week, with 29% of HRW rated good or excellent, up 6 points from a week ago. Texas has the most wheat in drought, with 56% of the statewide crop rated very poor. Long-term drought conditions have impacted the growth of this year’s crop. One Texas Farm Bureau member noted that some farm areas hadn’t seen measurable rainfall at all this calendar year.

April Showers Needed

April is critical for HRW development, and timely rain is needed. And while conditions are not ideal right now, farmers as ever remain optimistic.

You can follow weekly updates on the HRW crop by reading the U.S. Wheat Associates (USW) Price Report or the weekly USDA crop progress publication. In May, USW will begin publishing weekly Harvest Reports for the 2022 U.S. wheat crop.

By Michael Anderson, USW Market Analyst

April 13, 2022/by Steve Mercer

Mark Fowler, Soft Red Winter, Technical Service Activities

Defining U.S. Wheat’s Comparative (Competitive) Advantage: Soft Red Winter

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 red winter wheat brings to the market.

Soft red winter (SRW) wheat is the third-largest class of wheat grown in the United States, with an annual average production over the last five years of 8.28 million metric tons (MMT), or just over 300 million bushels. Although SRW is the third largest class measured by production, it is the fourth largest as measured by export sales. U.S. SRW wheat is predominantly grown east of the Mississippi River and the South as far west as northeast Texas and southeast Kansas.

Importers of SRW are served from ports on the Lakes, East Coast, Gulf, and Western Gulf. Mexico imports a substantial portion of its SRW purchases via direct rail shipment. Importers and the domestic milling and baking industries use SRW for specialty products such as cookies (biscuits), crackers, snack foods, and cake flour. SRW is a versatile wheat for blending with hard red spring (HRS) and hard red winter (HRW) wheat to lower grist cost and improve bread crumb texture, or to improve the quality and appearance of a wide variety of products.

Milling Advantages

SRW can be challenging to mill. Some advantages to milling SRW are reduced energy requirements, and fewer rollermills for mill flows designed specifically for soft wheat. Few mills are designed for only SRW as it is generally a specialty wheat used for specialty products. The real advantage for milling companies is the cost reduction of the mill grist and increased diversity of products when SRW is included in a long-term, strategic wheat procurement plan. SRW performs best on the mill at a lower moisture content (14.5%) compared to hard wheat (16%) and requires increased sifter area per metric ton.

Baking Advantages

The target market for SRW is confectionary products, but it also performs well as a blending flour in a wider variety of products such as crackers and cookies. The lower moisture content of the flour creates an advantage for the baker by increasing the amount of water added while optimizing water absorption and product quality for the consumer. The finer particle size generally increases the water absorption rate, decreasing mix time and improving production efficiencies. As is the message with most U.S. wheat classes, blending SRW flour with other flour types creates opportunities to create the optimal flour type for any number of end-use products. Some markets have found success blending SRW wheat flour with HRS and HRW wheat flour to improve crumb texture and even the loaf volume of pan bread by improving the dough development and mixing properties.

Sourcing Opportunities

Soft red winter wheat is lower in protein than hard wheat classes and is generally lower in cost. It is most often available for export out of the Mississippi River but at times can be shipped via rail to the center Gulf or Mexico. Another critical factor to consider when purchasing SRW is to include a maximum value for deoxynivalenol (DON), particularly in years when SRW matured during wet, humid conditions.

Optimal purchases of SRW are combined with HRW or HRS to minimize storage constraints at the destination mill. There is a high demand for SRW in the domestic U.S. market. In years where acreage and production are lower than average, the price can be inverted in comparison to higher protein classes.

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 through unique quality characteristics that make a variety of baked goods and noodles. Further, blending flours from one or more types of wheat is an important component for customers to understand as part of optimizing 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 our “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
Hard White
Soft White
Durum

April 7, 2022/by actualize

Food Aid, National Association of Wheat Growers, Trade Policy

Export Market Development and International Food Assistance Grow in Importance, NAWG President Tells Congress

U.S. Wheat Associates (USW) thanks National Association of Wheat Growers (NAWG) President Nicole Berg for highlighting the vital role of international food aid programs and export market development programs to the U.S. House Agriculture Committee’s Livestock and Foreign Agriculture Subcommittee. Berg, a wheat farmer from Paterson, Wash., testified on April 6 at the subcommittee’s hearing on the 2022 Farm Bill. Her testimony focused on the Title III programs: international food aid and agricultural trade promotion.

In her testimony, Berg described how food aid helps stabilize economies and populations impacted by climate change, famine, and war. She also reinforced the critical role trade promotion programs play in sharing the abundance of U.S. agriculture across the world.

USW is a cooperator with USDA’s Foreign Agricultural Service in the Market Access Program (MAP) and Foreign Market Development (FMD) program. Berg noted that while these programs benefit U.S. agricultural producers and their overseas customers, program funding has been static for over 15 years. She highlighted a study that concluded that doubling annual MAP and FMD funding would incentivize private industry to increase their investments by 50%, creating yearly increases in agricultural exports by $4.5 billion. The Title III programs are essential to building trust with buyers and end-users, Berg told the member of Congress.

Food Aid Will Be Needed

“While there is still uncertainty about how the Russian invasion of Ukraine will impact world markets, we know that the invasion will exacerbate global food insecurity,” Berg said.

Wheat makes up the largest volume of in-kind U.S. food aid. In her written testimony, Berg said the looming humanitarian crisis from the Russian invasion of Ukraine will need U.S. food aid programs to curb the effects of hunger.

“Our food aid programs are the best suited for U.S. wheat to help support the humanitarian needs of those involved,” Berg said. “As the subcommittee continues to evaluate the 2018 Farm Bill programs, our food aid programs must receive continued support, and the MAP and FMD programs dollars must be enhanced to support cooperator needs.”

People standing near bags of U.S. wheat donated by International food assistance in Kenya.

In 2019, NAWG President Nicole Berg, center in blue shirt, witnessed the life-changing efforts of international food aid on a visit to Kenya and Tanzania. At the Kakuma Refugee Camp in Kenya, the World Food Programme (WFP) was feeding 98% of the more than 200,000 residents from nine countries. Over half of their food supplies, including wheat, comes from the United States. A man named Nelson told Berg that they were always happy with the high quality of the U.S. food they received, especially due to the quality of wheat flour.

From their offices on Capitol Hill, NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national level. NAWG staff is in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Read Berg’s full testimony here.

April 6, 2022/by Steve Mercer

Columbia Snake River System, Exports, Michael Anderson, Soft White, Wheat Export Supply System

Riding a Tugboat Carrying U.S. Wheat On Its Way to Export

It is 3:00 on a brisk and overcast Tuesday afternoon, and the sun is already low in the sky. I am sitting in the galley of a tugboat — state of the art, I am told. The tugboat has all the amenities any crew would need with five staterooms, a kitchen, a washer and dryer, and even a weight room. There is some tension on board, with a hurry-up-and-wait attitude, when the phone finally rings. The deck mechanic answers and the barge we are waiting on is finally loaded with 1,500 metric tons (MT) of soft white wheat. The motor hums to life, and we start moving, slowly, toward the grain elevator. It is growing dark as two grain barges are tethered together, and we begin downriver from Lewiston, Ida., headed to Portland, Ore. It will be a two-and-a-half-day journey first down the Snake River, connecting to the Columbia River and finally to the Willamette River, to reach our Portland export elevator destinations, about 360 miles.

“This river, in general, is very handsome, except at the rapid, where it is risking both life and property to pass.” – From the Journal of Sgt. Patrick Gass, a member of the Lewis and Clark Expedition.

Michael Anderson is picture front, left with the crew of the tugboat crew.

We follow the same route that Lewis and Clark took as the “Corps of Discovery” traveled west. The rivers were different in 1805, untamed by today’s intricate system of dams and locks. The eight dams that we will pass through have made it possible to harness the rivers into a major artery carrying U.S. wheat bound for export from farm to port.

The boat rocks side to side on my first night. It is comfortable, but the unfamiliar feeling makes it hard to settle in. Suddenly the boat lurches, and the light outside gets brighter. The first lock, Lower Granite, comes into view from the deck. Two spotlights illuminate our way as we creep up to the lock. Slowly we approach the brightly lit lock and are guided in along a long concrete wall. The force of the shallow water beneath us is the only thing that keeps the tug and barges moving forward. With inches to spare on either side, we have entered the lock. Behind the boat, a gate rises from underneath the water; it is about three feet above the surface when suddenly the gate stops rising, and our boat starts sinking below the surface. It is a rapid movement, but it continues for a long time. The watermark rises above us as we descend below the surface, protected by thick concrete walls. Finally, we stop moving. We are now 100 feet below the level at which we entered the lock. I walk to the front of the boat just in time to see the gates in front, towering above us, start to open, revealing the river ahead, and slowly we make our way out of the lock and down the river.

As a crew member aboard a tug, your day is not a simple “9-to-5.” With one crew on and one off, the day is broken into shifts of six hours each, from 12 to 6 and 6 to 12. The environment shared by the crew is family-like, cooking meals together and watching TV. Only the person driving the boat, the captain or the pilot, is constantly on watch. The deck mechanics jump into action when the boat enters a lock or when we pick up another barge, and this journey is a four-barge tow, meaning four barges being pushed by one tugboat.

From the bridge, the captain has a sweeping view on all sides, and plenty of sophisticated equipment helps him navigate even when we are surrounded by fog, which in the Pacific Northwest is common. Another lock is just ahead. The boat only moves about nine miles per hour. We fit into the lock with precision, again with just a foot on each side to separate us from the massive concrete walls. Unlike the lock last night, this lock is too short to fit the whole tow in at once, but that is nothing out of the ordinary for this crew. Once the barges are tethered in place, the captain skillfully maneuvers the tugboat like a game of Tetris into a tiny space giving the back of the boat just enough room for the lock keeper to close us in. Again, a large iron gate rises from the water behind us, and like an elevator, we start moving down inch by inch. In front is what looks like a massive garage door. The lock opens, revealing the next stretch of the river ahead.

The mechanics of the lock are simple: we are moving down river with the flow of the water, so when we enter a lock, it is full of water. The lock seals behind us, and a valve is released to allow the water to rush out of the lock. The tow itself is being moved to the same level as the river we are moving down. Once the tow is at the same level as the water outside the lock, the valve is closed, and we wait for the massive concrete door ahead of us to open so the tow can move out. It is a similar procedure for ships going upriver against the flow, but instead of the valve releasing water, the valve fills the lock. It takes about 30 minutes to pass through each lock.

The Columbia Snake River System is a superhighway for moving wheat and other agricultural products from farm to market. The barges and rail lines that run on both banks of the Columbia River carry more than 55% of all U.S. wheat bound for export each year. Barges are the most efficient way to move large volumes of grain, making the river system a cost-effective and “green” logistical option. The Army Corps of Engineers maintains the lock system; its history goes back to the 1930s when President Franklin Roosevelt personally inaugurated Bonneville, the first of the eight dams and locks east of Portland.

After about 60 hours on board the tugboat, we arrive in Vancouver, Wash., on the north bank of the Columbia River. We drop off two barges at an export elevator and proceed west again, up the north-flowing Willamette River that bisects Portland. It is my third river in a week, and we are taking the last barge to an export elevator just across the river from the U.S. Wheat Associates (USW) West Coast Office. There is a vessel at berth waiting for the wheat we carry. The crew drops the barge, and me, at the elevator. I walk up a set of metal stairs connected to a hoist and hop off, touching land for the first time since Tuesday. I walk across the river on Portland’s Steel Bridge, under which the wheat from our tow will pass on its way overseas, to my office.

By Michael Anderson, USW Market Analyst

This story was originally published on October 21, 2019.

April 5, 2022/by actualize

Wheat Industry News

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

Speaking of Wheat

“Because Ukraine is a major producer of food and livestock feed, as well as a leading export hub, suppression of the nation’s media … can have destructive impacts on a global scale…IFAJ vigorously urges an immediate end to attacks on Ukraine’s population, including our colleagues in the media and communications fields, and a resumption of the free flow of news and information.” — The International Federation of Agricultural Journalists, from a statement on the Russian invasion of Ukraine

Congratulations Colleagues

We are fortunate to have devoted, loyal colleagues at USW. This month Pansy Shepherdson, an accounting technician in the USW Singapore Office, is celebrating 40 years, while Aska Tam, a program coordinator in the USW Hong Kong Office, is celebrating 35 years. Thank you, Pansy, and Aska, for your service to our organization, U.S. wheat farmers, and our customers worldwide.

Congratulations, Don Schieber!

U.S. Wheat Associates (USW) 2010/11 Chairman Don Schieber of Ponca City, Okla., was recently honored with the 2022 Governor’s Outstanding Achievement Award in Agriculture and will be the 25^th inductee into the Oklahoma Agriculture Hall of Fame. “He is an exceptional agriculturist, is extremely passionate about what he does, and has truly raised the bar for Oklahoma wheat producers,” said Oklahoma Secretary of Agriculture Blayne Arthur. Don, you were already in the USW hall of fame, but congratulations on a well-deserved honor! Read more here.

USW Participates in Ag on the Mall for National Ag Day

On March 21 to 22, USW was out on the National Mall in Washington, D.C., with the National Association of Wheat Growers and North American Millers’ Association for the Celebration of Modern Agriculture for National Ag Day! Staff from all three organizations enjoyed great weather while talking to visitors from all over about U.S wheat and flour milling. The exhibit included an interactive display for people to mill wheat into flour, a trivia game, and wheat food snacks. USW friend and consultant Didier Rosada baked several beautiful loaves of bread for the display (picture above), which were great conversation starters with people from all walks of life. Rosada is an award-winning Master Baker with his own bakery, Uptown Bakers, in Hyattsville, Md. Thank you, Didier!

Threat to Snake River Dams Growing

Pacific Northwest newspapers recently reported growing bipartisan support in Washington, D.C., for breaching dams on the Lower Snake River. Rep. Dan Newhouse, R-Wash., organized a roundtable discussion in Richland, Wash., on National Agriculture Day (March 22, 2022) to discuss and build awareness of the threat to the four federally managed dams on the Snake between Lewiston, Idaho, and Washington’s Tri-Cities. Read more here.

NAWG Launches Farm Bill Survey

Current Farm Bill programs will expire or lapse with the 2018 Farm Bill on September 30, 2023. As the National Association of Wheat Growers (NAWG) continues to develop its Farm Bill priorities, it has launched a Farm Bill Survey to gather feedback from wheat farmers about policies of most importance to them and the wheat industry. Access the survey on the NAWG website here.

Farm Bill Hearing

The U.S. House Subcommittee on Livestock and Foreign Agriculture will hold a hearing on “A 2022 Review of the Farm Bill: International Trade and Food Assistance Programs” Wed. April 6, 2022, at 10:00 a.m. EDT. A live stream of the hearing will be available on YouTube 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.

March 31, 2022/by Amanda Spoo

Market and Crop Analysis, Supply and Demand, Wheat Production and Harvest

Wheat Facts from USDA’s Grain Stocks and Prospective Plantings Reports

The USDA’s National Agricultural Statistics Service (NASS) released its latest Grain Stocks report and Prospective Plantings report March 31. The report echoed what many market analysts expected, tighter U.S. wheat stocks and higher planted winter wheat area. One significant exception was a slight decline in spring wheat planted area intentions compared to USDA’s previous prediction that planted area would be up.

The Grain Stocks report placed wheat storage at 27.2 MMT, down 22% from last year. The Prospective Plantings report estimated all wheat plantings up 1% compared to 2021 to 47.4 million acres (19.1 million hectares). Despite the increased planted acres year-over-year, if realized, the all-wheat planted area is the fifth-lowest since USDA began keeping records in 1919.

The initial market reaction reflected the relatively unchanged expectation for U.S. winter wheat and the more bullish spring wheat reports.

Grain Stocks

In the quarterly Grain Stocks report, all wheat stored as of March 1, 2022, was 1.02 billion bushels (27.7 MMT), down 22% from a year ago and the lowest in 14 years. On-farm stocks were estimated to fall 39% to 174 million bushels (4.7 MMT).

In North Dakota, the largest spring wheat producer, stocks were down 33%. In Kansas, the largest winter wheat producer, stocks were down 16%. Durum wheat, last updated on December 1, 2021, was reported to fall 30% year-over-year to 43 million bushels (1.1 MMT). Corn stocks were up 2% from last year at 7.85 billion bushels (213.6 MMT).

The latest Grain Stocks report, with reduced supplies, shows the impact drought had on the crop harvested in 2021. The March World Agricultural Supply and Demand Estimates (WASDE) reported U.S. ending stocks for all wheat classes at 17.8 MMT, 23% lower than last year. The next report will be published Friday, April 8.

U.S. Wheat Stocks Down. Following severe drought, U.S. wheat stocks are down significantly, according to the USDA 2022 Grain Stocks report.

Prospective Plantings

The 2022 Prospective Plantings report confirmed a predicted 2% increase in U.S. winter wheat planted area while indicating a similar percentage decline in U.S. spring wheat and durum planted area. This report is based on a farmer survey taken earlier in March.

In February, USDA expected U.S. winter wheat planted area of 34.4 million acres would be up 2% overall compared to the 2021 crop. Projections now are slightly less at 34.2 million acres, including 23.7 million acres of HRW, 6.89 million acres of SRW, and 3.62 million acres of white wheat (99% soft white).

However, the hard red spring (HRS) and durum prediction are down 2% from USDA’s February estimate to 13.2 million acres and 2% down from planted area in 2021. The report indicates that farmers intend to plant 11.2 million acres of HRS, down from 11.5 million acres in 2021. But durum intentions are pegged up 17% at just under 2.0 million acres.

USDA will update these farmer intentions at the end of June 2022 and provide a final planted area in its annual production report in January 2023.

Alternative Crops Expected Up

Farmers are now considering the profit potential of crops other than spring wheat. In fact, USDA’s survey shows farmers in the Northern Plains spring wheat and durum production area intend to plant 584,000 more acres of barley, dry peas, sunflowers, lentils and flax this year compared to 2021. That is what USDA expected based on the favorable prices of those alternative crops.

Field of barley to illustrate alternative crops

Alternative Spring Crop Planting Predicted Up. USDA’s 2022 Planting Intentions report suggests that U.S. farmers will plant more alternative crops like barley (above) in the spring wheat and durum production area.

There can be significant differences between the March Prospective Plantings, June Acreage, and final planted area of crops like spring wheat and durum. In addition to decisions about alternative crops, total planted area of spring wheat and durum will also be affected by the weather. DTN Contributing Analyst Joel Karlin provided perspective on these potential differences in a Progressive Farmer column published March 30.

The report suggests another crossover of U.S. corn and soybean planting intentions. Farmers told USDA/NASS they expect to plant 4% less corn and 4% more soybeans in 2022. If realized, soybean planted area of 91 million acres would be a record amount.

March 31, 2022/by Steve Mercer

Amanda Spoo, Educational Partnerships, Technical Service Activities

Wheat Marketing Center Creates Educational Bridge Between U.S. Wheat Farmers and Customers

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 enhance its technical and trade service assistance to help separate U.S. wheat from its competitors. One of those partners is the Wheat Marketing Center (WMC) in Portland, Ore.

Located in the historic Albers Mill Building, WMC is a research and educational bridge between U.S. wheat farmers and their customers, dedicated to linking quality wheat and quality end products.

“Consumer tastes are evolving in domestic and international markets,” said Janice Cooper*, WMC Managing Director. “WMC’s programs demonstrate how U.S. wheat can be used to meet changing consumer demand with products that are nutritious and cost-competitive.”

In the mid-1980s, several state wheat commissions saw a need for a research and training facility to help U.S. wheat customers understand how to utilize U.S. wheat best. With the help of the late Oregon Senator Mark Hatfield – who helped secure a federal grant to renovate the Albers Mill Building – WMC opened in 1988. Its charter members, state wheat commissions from Oregon, Washington, Idaho, Montana, North Dakota, Colorado, Nebraska and the Port of Portland, and five additional industry members make up its board leadership. The building is also home to the Oregon Wheat Commission, Federal Grain Inspection Service, and the USW West Coast Office.

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.

Three Pillars of Work

WMC programming focuses on three pillars: technical training, research and crop quality testing.

Every year, USW identifies U.S. wheat market needs and works in partnership with WMC to provide technical training courses focused on addressing those topics. In March, WMC welcomed USW technical staff from around the world to a dynamic course focusing on technical solutions to customer challenges. And USW has commissioned several new research projects from WMC related to rapid visco analysis (RVA), sponge cake methodology, U.S. wheat flour blending options and other studies that will benefit overseas customers.

WMC also hosts a variety of other technical training courses, including independent courses that it organizes itself, partnerships with other entities and custom proprietary company courses.

In addition to technical training, WMC is involved in innovative research and product development.

“We identify research projects based on market need and market opportunity,” said Cooper. “If there is a challenge with the wheat harvest, we identify what research can be done to help navigate U.S. wheat customers through those challenges. Likewise, we study market demand and look for opportunities to help the industry move in new directions with new products.”

WMC uses its several pilot-scale lines to give participants a hands-on experience.

“From crackers to Asian noodles and cookies to a full baking lab, we have the ability to make a wide array of wheat products in-house,” said Cooper. “This equipment is the perfect size to link what is done in a research and development lab and a full-scale food production facility, which is ideal for research, training and product development.”

Bon Lee, WMC Operations Manager, displays noodle dough

Noodle Line Ready. Bon Lee, Wheat Marketing Center Operations Manager, holds dough strips to be used in the educational partner’s pilot noodle line. In the background, Claudia Gomez, USW Santiago; David Oh, USW Seoul; and Wei-lin Chou, USW Taipei, were at the WMC with other USW technical colleagues in March for a training conference.

Testing the quality of the crop is also an important service WMC provides. Each year it tests the quality of the Pacific Northwest (PNW) harvest and makes those results available in weekly reports on its website, as well as in USW’s weekly harvest report. WMC is responsible for the soft white (SW) and hard white (HW) wheat analysis featured in the annual USW Crop Quality Report and an additional, more extensive SW regional report.

Customer Focus

While many of its programs are focused on U.S. wheat customers, it is also important for the WMC to share why striving for better wheat quality is important and at the root of its mission. Throughout the year, WMC hosts several grower workshops and programs for other visiting food and agriculture groups.

“The best way to explain what we do and why is for people to visit,” said Cooper. “With the other wheat industry partners in our building and our proximity to the many export elevators here, it makes visiting the Wheat Marketing Center a well-rounded opportunity.”

For those searching for more information instead of a visit, the WMC website serves as a gateway for valuable multi-media resources on research, the facility’s equipment, crop quality and testing. Ultimately, Cooper wants U.S. wheat farmers and customers to understand how WMC is helping the industry continue to move forward.

Building Knowledge

“We are unique because our focus is on end products, technology and giving customers a hands-on opportunity to take products made with a control flour that they are already using and compare it side by side with U.S. wheat and see the difference for themselves,” said Cooper. “Customers leave with a better appreciation of how valuable U.S. wheat really is and an understanding of the commitment made by U.S. wheat farmers to provide the flour they need to make the highest quality end products they are looking for.”

Learn more about the Wheat Marketing Center and its programming and services at https://www.wmcinc.org/.

*Cooper plans to retire from WMC in 2022, and the search for her successor is underway. Also, WMC has hired Ms. Liman Liu to train with Bon Lee. Liu has extensive commercial baking and product development experience, having spent the last eight years at Dave’s Killer Bread (now part of Flowers Foods.)

By Amanda J. Spoo, USW Director of Communications

Read about other USW educational partners in this series:

Northern Crops Institute Continues Tradition of Adding Value to U.S. Spring Wheat and Durum
IGP Institute Capitalizes on Resources and Location to Provide Hands-on Training
Wheat Foods Council Is A Leading Source Of Science-Based Wheat Foods Information

March 30, 2022/by actualize

Hard Red Winter, Mark Fowler, Technical Service Activities

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

Let us start with the value that the largest wheat class, hard red winter (HRW) wheat, brings to the global market. With annual average production over the last five years of 22.64 million metric tons (MMT) or more than 831 million bushels, U.S. HRW accounts for more than 41 percent of the total wheat produced in the United States.