thumbnail

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

Speaking of Wheat. “Wheat, and especially grain, have become valuable sources of foreign capital in a sanctions-hit economy. Some even anticipate Russian grain becoming the Kremlin’s new oil — a commodity through which to keep some countries dependent on its resources — or to at least open doors to others.” – Nastassia Astrasheuskaya, author of a Sept. 9, 2021, article in Financial Times.

Rail Merger Announced. Kansas City Southern (KCS) railroad and Canadian Pacific (CP) Rail announced on Sept. 16 they have entered into a merger agreement, under which CP has agreed to acquire KCS in a stock and cash transaction. This would create the first single-rail network serving Canada, the United States and Mexico. In a release, CP stated that “the U.S. Surface Transportation Board review of CP’s proposed control of KCS is expected to be completed in the second half of 2022. Upon obtaining control approval, the two companies will be integrated fully over the ensuing three years.” Read the CP announcement here.

Influencing Future Crops. The U.S. National Science Foundation is working to find “better ways for people to monitor what crop plants need,” noted an article in AgriPulse. It is one goal of a research center dubbed CROPPS (Center for Research on Programmable Plant Systems) focused on the new field of digital biology. The National Science Foundation has funded the center at Cornell University where researchers at the University of Illinois-Urbana Champaign and the University of Arizona will use a multidisciplinary approach to develop tools to generate new data to help breed plants that can reach their full production potential under variable growing conditions.

British Prime Minister addressing Parliament.Why Was Boris Johnson Wearing Wheat on His Lapel? The British Prime Minister, members of the British Parliament recently wore wheat heads as a symbol honoring British farmers and the United Kingdom’s food production. The British National Farmers’ Union (NFU) created the symbol to improve awareness for local farming by celebrating “Back British Farming Day.” U.S. Wheat Associates (USW) honors wheat farmers around the world who provide healthy, wholesome food every day.

U.S. Wheat Associates Publishes Commercial Sales every Thursday, documenting wheat export sales-to-date by country and class for the current marketing year compared to the previous marketing year on the same date. The report includes a 10-year commercial sales history by class and country. Data is sourced from the USDA Foreign Agricultural Service Weekly Export Sales Report. Read the latest report on the USW website.

Subscribe to USW Reports. USW publishes various reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, 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.

thumbnail

In 2020, U.S. Wheat Associates (USW) introduced the first digital map of the U.S. wheat export supply system as a visual planning tool for its overseas representatives and their customers. The “USW Wheat Export Supply System” map is posted here on the USW website and was built in cooperation with Heartland GIS using funds from the USDA Foreign Agricultural Service Agricultural Trade Promotion program.

“With six distinct wheat classes grown across many states and delivered by many different routes, the U.S. wheat supply chain truly is driven by geography,” said USW Vice President of Overseas Operations Mike Spier. “The map provides a geographical information system that our team of representatives can use to help the world’s wheat buyers literally see where the wheat they are buying is grown and how it can be transported to the export elevator.”

“Assisting overseas customers is a very important service that helps add value to U.S. wheat,” said USW Vice President of Communications Steve Mercer. “This map is a unique and very useful addition to the trade service our representatives conduct all around the world.”

Picture of U.S. wheat export supply map.

The map includes a selection tool that allows the viewer to identify, in any combination, U.S. wheat production by class, wheat shuttle loading terminals, Class 1 U.S. rail lines and spurs, river terminals, major rivers and export elevator locations.

“Working with U.S. Wheat Associates and its state wheat commissions, we used data from multiple sources, including satellite imagery, to identify wheat planted area between 2013 and 2019,” said Todd Tucky, Owner and Senior Consultant of Heartland GIS. “I believe this is the most accurate representation ever developed of where individual wheat classes have been produced in the United States.”

thumbnail

On Tuesday, Sept. 14, 2021, U.S wheat futures gained as much as 2% after key wheat-producing nations lowered their production outlooks. With harvest nearly wrapped up in the Northern Hemisphere, the most recent USDA Supply & Demand (WASDE) report brought an updated look at key exporting countries and regions.

USDA currently expects 2021/22 world exportable wheat supplies will be about 221 MMT, down from an estimated 231 MMT in 2020/21.

United States

The 2021 harvest is virtually complete with only a few pockets of hard red spring (HRS) remaining to be harvested and about 10% of the durum crop still in the field. Except for soft red winter (SRW), all U.S. wheat classes saw lower production compared to 2020/21. Proteins were all higher than the 5-year average and growing regions that saw longer periods of hot, dry weather, including the Pacific Northwest (PNW) soft white (SW) region and the state of North Dakota, where the bulk of HRS and durum wheat is grown, saw protein averages reach as much as 1.8 points above the 5-year average.

USDA forecasts U.S. wheat production in 2020/21 will total 46.2 MMT, down 7% compared to 2020/21 following lower than average yields for SW, HRS and durum. Total U.S. wheat exports are expected to reach 23.8 MMT, which is down significantly from last year.

Click here to read more about the 2021 U.S. wheat harvest.

U.S. wheat supply and demand

Source: USDA, September 2021

Canada

After a record-setting 2020 wheat harvest, Canada’s total 2021 wheat crop is forecast to drop sharply. Stats Canada, in its latest report released this month, used satellite images and other data to estimate production. The Western Canadian spring wheat crop is expected to be 15.3 MMT, a 41% drop compared to last year, which would be the smallest spring wheat crop since 2007. Total wheat production is projected at 21.7 MMT, down 38% compared to 2020/21. The decline in production is blamed on hot, dry weather that persisted throughout the growing season.

Canadian wheat supply and demend

Source: USDA, September 2021

European Union (EU)

France’s farm ministry lowered its estimate for 2021 soft (non-durum) wheat by more than 600,000 MT this month following a wet summer. Despite the reduction, the ministry emphasized that the forecast was 24% higher than last year’s harvest and 8% higher than the 5-year average. Strategié Grains noted that wet weather towards the end of the growing cycle led to disappointing yields in France and Germany, while hot, dry weather early in the summer challenged the wheat crop in Poland and the Baltics. On the other hand, Romania and Bulgaria had record-setting yields this year. According to Romania’s agriculture minister, yields there were 5.34 MT/ha (79.4 bu/ac). Bulgarian wheat production was up 51% compared to last year reported AgriCensus. Despite the increased production, persistent rain caused concern about milling quality with decreased test weight and falling number reported.

EU wheat supply and demand

Source: USDA, September 2021

Russia

The latest USDA WASDE report put Russian wheat production at 72.5 MMT, 12.5 MMT less than the USDA’s original forecast of 85.0 MMT. Russia’s agriculture ministry reported 69.3 MMT of wheat harvested as of Sept. 9 on 23.7 million hectares (58.5 million acres), 12% less than the same time last year.

Russian wheat supply and demand

Source: USDA, September 2021

Ukraine

An autumn drought last year reduced Ukraine’s winter grains planted area, but officials said farmers plan to plant 10% more winter wheat this year. The agriculture ministry reported the wheat harvest complete with 32.8 MMT in the bin with a yield of 4.66 MT/ha (69.20 bu/ac). The current wheat harvest is a record for the Black Sea exporter, and yields are 22% higher than last year’s reported AgriCensus. In 2021, Ukraine’s grain exports could reach 80.6 MMT according to their agriculture ministry. The latest WASDE report forecasts Ukrainian wheat exports to be 23.5 MMT, up significantly from last year.

Australia

Australia’s Bureau of Agricultural and Resource Economics (ABARES) reported “exceptionally favorable” growing conditions for the second year in a row and adjusted its wheat forecast up 17% to 32.63 MMT. The latest WASDE report forecast Australian wheat production at 31.5 MMT, up 1.5 MMT compared to the August report.

Argentina

The Buenos Aires Grains Exchange (BAGE) reported 79% of all the wheat planted area had normal or excellent moisture levels. BAGE emphasized that Argentina’s wheat crop improved significantly following rainfall in the central and southern planted areas. The USDA left its production forecast unchanged from last month at 20.5 MMT.

By Michael Anderson, USW Market Analyst

thumbnail

The United Nations (UN) is set for a major discussion on the world’s food system when it hosts the Food System Summit (FSS) in New York City on September 23. The Food and Agriculture Organization (FAO), World Food Program and International Fund for Agricultural Development (IFAD) will jointly host the summit.

On the agenda are discussions and attempts at resolutions on all 17 global health, sustainability, and food systems “Sustainable Development Goals” (SDGs). A pre-summit was held in Italy this summer where much dialog took place on these topics.

The summit features five action tracks in which a variety of groups (such as governments and NGOs) can hold dialog events to express their many different views on how to work towards the UN’s SDGs. The five action tracks are:

  • Ensure access to safe and nutritious food for all;
  • Shift to sustainable consumption patterns;
  • Boost nature-positive production;
  • Advance equitable livelihoods;
  • Build resilience to vulnerabilities, shocks and stress.

Agriculture to Engage

U.S. wheat producers and their flour milling customers should not be overly concerned about the UN discussing sustainability and the food system, but they should remain cautious. These discussions will not likely lead to immediate actions. Yet the event may be cited later to develop FAO guideline documents, which other countries and activist NGOs may then use to develop their own domestic policies and agendas.

Such a result may or may not correlate to sustainable agricultural production. A good example of this is the EU’s recent “Farm to Fork” plan to drastically reduce fertilizer use by 20% and pesticide use by 50% by 2030 without any regard to curbing actual waste or with a specific environmental goal in place. If this idea were to be promoted by the UN or adopted by other countries, the impact on the global food supply and the environment could be devastating.

Therefore, it is important for the U.S. agriculture industry to be actively involved in these discussions at the UN FSS to help guide and influence science-based discussions for the future of agriculture and trade. USDA hosted three dialog events during 2021 in a lead up to the full summit this month.

Science-Based Approaches

The United Nations Food System Summit is highly focused on the food system, which goes from production to consumption. To continuously improve the world’s food system, a science-based approach must be used that allows the use of new technologies such as plant breeding innovations (PBIs) and environmentally safe use of fertilizers and pesticides. By using new technologies in agricultural production, it leads to a more sustainable world that uses fewer inputs while also producing more food on less land to meet the growing food demands of the world.

By Shelbi Knisley, Director of Trade Policy

thumbnail

The United Grain Corporation (UGC) wheat, corn, and soybean export elevator in Vancouver, Wash., on the Columbia River, is the largest of its kind on the U.S. West Coast with storage of more than 220,000 metric tons. It was originally built in the 1920s and purchased by United Grain in 1970.

Like other U.S. facilities serving U.S. wheat buyers, the United Grain export elevator is part of the world’s most efficient supply system and is constantly improving.

“Every year we do upgrades and maintenance that make the facility the cutting edge operation it is today,” said Brian Liedl, UGC Director of Merchandising.

Video Tour

Earlier this year, U.S. Wheat Associates (USW) worked with United Grain to record a video tour of this amazing export elevator facility. USW Vice President and West Coast Office Director Steve Wirsching joined Liedl on a walk around the entire elevator and a detailed discussion of its systems. The program covers shuttle trains arriving from interior elevators and rapidly unloading wheat, explains how the facility separates and stores wheat by class and quality, discusses its investment in high-speed cleaning systems, and the essential work of federal grain inspectors.

Federal Control

Inside the inspection office, Liedl explained to Wirsching that under U.S. law, grain weight is measured and quality is tested by the Federal Grain Inspection Service before it is loaded onto a vessel for delivery.

“After our shipping bins are filled, those independent inspectors have control of the grain and only release it to be loaded after they determine it meets that customer’s specifications,” he said.

This program was created originally as part of a three-day USW seminar called “Contracting for Wheat Value” for Chinese customers. We are sharing it here to demonstrate how U.S. grain companies and the federal government are working to ensure all importers get the wheat they want as efficiently as possible.

Thank you to United Grain Corporation for their collaboration on this video.

thumbnail

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

Speaking of Wheat. “I am already looking forward to the next [year]. Cautiously. Hopefully wiser. Praying for rain. For more understanding. Thankful for what we have, have had, and will have. That this one is behind us, and better times are on the horizon. We’ll see you in ‘22.” – Cassidy Marn, Executive Vice President, Montana Wheat and Barley Committee, in a message to industry as a challenging crop year was ending in the state.

Ask the Wheat Foods Council Anything. On Sept. 9, 2021, at 11 a.m. EDT, the Wheat Foods Council is bringing all four of its expert advisors together in its first “Ask Us Anything” webinar. Sports Nutrition, Diet & Exercise, Gut Health, and Wheat Breeding questions will all be addressed. Learn more and register for the webinar here.

High Prices, Strong Demand Mean Back-to-Back Records for U.S. Ag Exports. USDA recently projected that U.S. farm exports will set a sales record of $173.5 billion during the current fiscal year, far above the previous record of $156.8 billion. Sales in fiscal 2022 could reach $177.5 billion. China will account for $1 of every $5 in exports during the two-year span, USDA predicted. Read more here.

Borlaug Dialogue 2021. Offered in a virtual format October 20 to 22, this event will focus on several critical areas in food systems transformation including Research & Innovation; Gender Equity & Equitable Livelihoods; Nutrition-Sensitive Food Systems; and International Cooperation. The World Food Prize sponsor of the Borlaug Dialogue believes there is an opportunity to gain momentum toward improved food systems surrounding its event, the UN Food Systems Summit and other global events, Click here for more information.

Upcoming IGP Institute Flour Milling Courses. The IGP Institute in Manhattan, KS, has several upcoming flour milling short courses on its schedule. Courses in this curriculum area cover all aspects of managing the process from grain selection to finished products. Courses will explore technical milling, mill management practices, quality control, food safety, flowsheet design, process automation and controls, process efficiencies, hard and soft wheat milling, maintenance, and more. Learn more about course details and how to register here.

U.S. Wheat Associates Publishes Commercial Sales every Thursday, documenting wheat export sales-to-date by country and class for the current marketing year compared to the previous marketing year on the same date. The report includes a 10-year commercial sales history by class and country. Data is sourced from the USDA Foreign Agricultural Service Weekly Export Sales Report. Read the latest report on the USW website.

Subscribe to USW Reports. USW publishes various reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, 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.

thumbnail

An August 2021 survey of 737 farmers across the United States conducted in late July by Farm Progress Publications suggests that wheat, corn and soybean planted area will be up for 2022.

Jacqueline Holland, writing in www.farmprogress.com, said the surveyed farmers estimated they will plant a total of 46.7 million acres of wheat. Farm Progress also noted recently that, if realized, 46.7 million acres of wheat would exceed “the smallest wheat acreage in history in 2020…by an astounding 5.4 million acres.”

USDA’s National Agricultural Statistics Service (NASS) will release it’s annual Small Grains Summary report including wheat acreage, area planted and harvested, yield and production on Sept. 30, 2021.

Even with a potentially large 2022 U.S. wheat crop, the Farm Progress survey showed why wheat stocks could actually decline slightly through the next marketing year. The publication said it estimates 2022/23 U.S. wheat usage at just under 58 million metric tons (2.13 billion bushels) in part because of “higher export targets.” That would be the highest usage rate since 2016/17 and “consume all new production that comes online” in 2022 and, if realized, create the lowest stock-to-use percentage since 2013/14.

The image shows a table giving estimated acres farmers expect to plant as of August 2021.

The planted area estimate of 94.3 million acres of corn and 87.6 million acres of soybeans from the survey would mean the combined total planted area with wheat would be the third largest combined acreage on record.

Where Will Those Acres Come From?

Ms. Holland suggested that farmers in the Plains have some flexibility to change their crop rotations compared to farmers in the Eastern U.S. Corn Belt. She added that cattle herd numbers are down which could allow a shift from forage crops. And double-cropping wheat after soybeans remains a profitable choice.

The writer goes on to describe reasons why these rather bullish estimates may be tempered. For wheat, as for corn and soybeans, the estimates from the survey assume optimal weather conditions. Too many U.S. wheat farmers know optimal conditions are rare. In fact, the threat of continued drought through the winter wheat planting season will have an impact on seeded area for 2022.

China’s Influence

The author also noted that China will continue its outsized influence on global wheat, corn and soy supply and demand. Export demand levels could grow if China’s livestock feed demand grows and that will affect U.S. grain production profitability.

“Global livestock rations will likely waver between wheat and corn depending on market prices,” Ms. Holland wrote. “Any potential usage shifts could have significant impacts on pricing and acreage allocations in the 2022/23 marketing year.”

The rising cost of production inputs may also come into play as U.S. farmers make their cropping plans and weigh heavier on decisions should crop prices start to fall back.

Wheat Will Compete

Ms. Holland’s final point about the survey estimates is important for the world’s wheat buyers.

“…With winter wheat sowings just around the corner and wheat futures trading at lucrative prices,” she wrote, “expect wheat to be a strong competitor against corn and soybean in the 2022 acreage battle.

By Michael Anderson, USW Market Analyst

thumbnail

The world keeps changing rapidly through new technological advances such as gene editing. Agriculture, fortunately, benefits from many of these new technologies, helping feed more people on less land into the future.

In addition, diets and consumer preferences are changing around the world. There is increased demand for animal protein (leading to more feed grain demand), for higher quality baked products as incomes increase, a greater desire to understand product sustainability and where and how food is produced.

For centuries farmers have selected desirable traits to improve crops and livestock, including such innovations as shorter wheat plants needed to support the dramatic increase in yield potential resulting from the Green Revolution. Agriculture advances rapidly and keeps up with the changing demands largely because of advancements in production practices and plant breeding technologies through selective breeding, cross breeding, hybrids, marker assisted selection, genetic modification, and now gene editing.

Benefits of Gene Editing

Gene editing is the ability to precisely select genes in an organism’s genome to make targeted changes. This can also occur through conventional breeding – but with much more precise outcomes in less time due to gene editing. There are different types of gene editing technologies, such as CRISPR and TALENS. The advantages of these innovative breeding techniques will help bring more specific advancements in wheat to market more quickly and at a lower development cost, which would allow for a wide range of developers in the field to bring new products to market.

An image showing a wheat variety trial field to illustrate the article on gene editing in agriculture.

Gene editing offers more precise outcomes and less time getting improved wheat varieties to commercialization. For public wheat breeding programs seen in this trial at Colorado State University, gene editing also has the potential to reduce research costs.

According to a study by North Dakota State University (NDSU), the average cost of the process from research and development to market is greater for GMOs than gene editing. The study estimates that the average cost for gene editing is $13.3 million while GMOs averaged $80.7 million.

Like genetically modified organisms (GMOs) and other breeding methods, science and regulators demonstrate the safety of gene editing. Gene editing also holds excellent promise as a technology that supports sustainable food production. Desirable traits such as improving a crop’s ability to tolerate drought, producing more on less land, and improving disease resistance. Just as GMO technology has done, gene editing can help sustain a long-term reduction in the use of crop protection products and fertilizer.

Gene Editing Research

The gene editing research happening today is looking at edits that would be positive for producers, consumers and the environment. For example, Calyxt has developed high fiber wheat using gene editing. The company hopes to release that trait through a closed-loop system – potentially in the next few years. To help consumers get enough fiber in their diets, this trait would positively improve human health. There is also research to develop a modified gluten wheat variety, which could be helpful to those that have a gluten intolerance.

Gene Editing Around the World

Several signs point to this innovative technology garnering more acceptance around the globe than GMOs have received. The world is beginning to recognize gene editing as a valuable tool, and many countries are currently revising their biotechnology regulations to positively incorporate gene editing technology in agriculture.

To date, the United States, Canada, Australia, and Japan have released guidance or proposed guidance on how to regulate gene edited crops. Those concepts mainly indicate that if there is no plant pest risk or foreign DNA in the final product, the gene edited crop would not be regulated.

In 2018, the Court of Justice of the European Union ruled that gene editing technology was to be treated equally to GMOs, which are essentially banned in the EU. This spring, in a surprising announcement, the EU Commission released a report on gene editing stating that gene editing is different than GMO technology and should not be regulated in the same way. Although this is exciting, it is expected to take some time for the EU to determine its final regulations. However, this report opens the discussion for the EU to consider this new technology and see the benefits of embracing it to meet the needs of the world today, including the EU’s sustainability goals and feeding a growing population.

UK Consultation

Since separating from the EU, the United Kingdom (UK) held its own consultation on gene editing. The results from the consultation are expected to be released this year, but historically the UK has had a more positive view on science-based decisions than the EU. The UK’s Department for Environment Food and Rural Affairs (Defra) stance is that “organisms produced by [gene editing] or by other genetic technologies should not be regulated as GMOs if they could have been produced by traditional breeding methods.” The consultation only impacts England, meaning the other UK countries would have to revise their own biotech regulations. This creates a challenge for some, including Northern Ireland, since it is still treated as part of the EU customs union under the BREXIT agreement.

Should the EU accept the safety of this technology, it can positively influence regulators in other countries. Positions on gene editing in many African and Asian countries are still in the early development phase, but it is believed that China will likely embrace this new technology and regulate gene editing the same as conventionally bred crops.

If the world can take a science-based approach to gene editing, there is the potential for several positive outcomes and advancements for trade, science, sustainability, food production, and agricultural advancement. However, if the EU and other countries continue enforcing anti-science agendas, there could be a negative impact on this promising new technology. With a growing global population to feed, agriculture cannot afford setbacks.

Image is a close up of wheat breeding work to illustrate the article on gene editing in agriculture.

In the wheat breeding program at Oklahoma State University scientists work long days crossing thousands of wheat prodigy using genetic stock from around the world. Gene editing can help breeders develop varieties that produce more and better quality wheat for a growing world.

As technology advances around the world, USW hopes to see it embraced without disrupting trade. Therefore, it is essential to use a science-based approach when developing policies affecting gene editing and other new technologies. USW and the National Association of Wheat Growers (NAWG) share a joint Wheat Breeding Innovation Committee (WBIC) that has informed breeders that it expects to be notified as early as possible of any wheat trait developed through plant breeding innovation technology. In that way, USW can gain input from major importing customers before such a product enters the U.S. commercial market to mitigate and eliminate potential trade barriers. You can access WBIC principles for commercialization here and the position statement here.

By Shelbi Knisley, USW Director of Trade Policy

 

Visit these websites for more information about the benefits of gene editing innovations.

https://geneticliteracyproject.org/

https://innovature.com/

https://www.bio.org/ 

https://www.bestfoodfacts.org/category/gene-editing/

https://www.nationalgeographic.com/environment/article/food-technology-gene-editing

thumbnail

Private grain companies in the U.S. wheat export system in the Pacific Northwest (PNW) overcome challenging logistics to deliver wheat that consistently meets contract specifications to buyers around the world. Grain sellers based in Gulf, Lakes and Atlantic ports operate very similar logistical systems to export wheat and other grains.

We are sharing a video and written look at how these successful companies do their work serving U.S. wheat farmers and overseas wheat buyers.

Sourcing Wheat From the Interior

An overseas buyer contracts with an exporter for wheat of specific class, grade, quality and price. It is then up to the exporter to source that wheat and get it loaded at the contracted price.

They do this reliably through a very efficient, system that moves the wheat to market using trucks, barges and rail to the vessel, often within a two-week shipping window.

U.S. wheat export system starts at country elevators.

U.S. wheat export system starts at interior elevators where wheat purchased from farmers is loaded onto train cars for delivery to export elevators.

In the U.S. wheat export system, grain sellers source U.S. wheat supplies from local elevators close to the farms.

Hard red spring (HRS) wheat comes mainly from the Dakotas and Montana. Hard red winter (HRW) wheat originates mostly in Montana, Wyoming, Nebraska and some from PNW states.

Those classes are loaded onto dedicated 110 car unit trains that haul the wheat over the Rocky Mountains and down the Columbia River Gorge to the export elevators.

Farmers deliver much of the soft white (SW) and white club wheat grown in Washington, Oregon and Idaho to grain facilities on the Snake, Columbia or Willamette Rivers where it is loaded onto barges or trains for the ports.

In the U.S. wheat export system, barge transportation is efficient and safe.

In the U.S. wheat export system, barges are the most cost-efficient transportation method. In the Pacific Northwest, wheat can move by barge to export elevators from as far away as Idaho because of the series of locks and dams that make safe, efficient navigation possible on the Columbia-Snake River System.

Because U.S. wheat is graded and segregated by class and quality at every step of the supply system, the export elevator knows they will receive the wheat they need to fill their customer’s contract.

Highly Automated Process

The receiving process at elevators in the U.S. wheat export system is highly automated. Numerous sensors and cameras allow only a few people to unload the wheat very quickly into temporary holding bins segregated by class, grade and quality.

Barges in this tributary can discharge 600 metric tons of wheat per hour. Unit train cars are opened and unloaded in less than 18 hours.

The export elevator’s shipping system is also automated. One person from a control room can select wheat from different storage bins and blend them together to be loaded onto the bulk vessel the buyer has chartered.

But, under U.S. law, that cannot happen until the wheat is inspected to certify that the quality loaded matches the customer’s specifications.

This highly regulated, standardized process is conducted by the USDA’s Federal Grain Inspection Service, or a state inspection agency supervised by and subject to the same standards as FGIS.

FGIS inspection and certification is required by law in the U.S. wheat export system.

FGIS inspection makes  the U.S. wheat export system uniquely valuable. A random sample of every sub lot of wheat is broken down into specified quantities by FGIS officials and weighing, inspection and certification is standardized and objective. FGIS inspection data also yields information that buyers can use to get the most value from their tenders. 

In this process, a specific amount of wheat is sampled every 15 to 20 seconds as it flows from the elevator into designated shipping bins holding from 1,000 to 2,000 metric tons.

The sample is collected in the FGIS lab at the elevator and the shipping bins remain closed while FGIS inspects each sample.

When the inspectors certify that the sample meets the customer’s contract specifications, FGIS opens the shipping bins, allowing the elevator to load that wheat onto the vessel. If not, the wheat in the shipping bin is returned to the elevator to be re-blended.

Quality Assurance

FGIS saves sub-lot samples from each shipping bin for 90 days in case an issue comes up when the wheat arrives at its destination.

To give the buyer additional quality assurance, about 10 percent of all samples are sent to a national FGIS Board of Appeals and Review to be re-inspected for quality control monitoring.

Those inspections generate valuable data that customers can use to get even more value from their purchases of high-quality U.S. wheat. Your U.S. Wheat Associates (USW) representative can help you make good use of this information as you write your tenders.

In the U.S. wheat export system, grain companies move wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

In the U.S. wheat export system, grain companies move wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

It is very reassuring to wheat importers that U.S. grain handlers segregate wheat by class and quality, and maintain its wholesome character, while moving wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

Learn More

More information about the U.S. wheat export supply system is available from USW online or from your local representative, including an interactive map of the system, a section on “How to Buy U.S. Wheat” and other resources.

 

 

thumbnail

As they did in 2020, U.S. wheat farmers have produced an excellent 2021 soft red winter wheat crop for the world’s weak gluten wheat buyers and food processors.

Analysis of 263 samples from elevators in 18 reporting areas across 11 states that account for an estimated 73% of total U.S. SRW production indicates the crop delivers very good performance characteristics. This year’s composite characteristics demonstrate uniformly excellent kernel characteristics, benefited by timely mild temperatures and rainfall.

Other quality factors include less extensibility than in 2020 and the 5-year average, and excellent quality for cookies and crackers. There were pockets of higher enzymatic activity resulting in lower falling numbers and higher damaged starch from the East Coast and isolated portions of the Gulf Ports region, but overall, buyers should be extremely happy with the quality of the entire 2021 SRW crop. Buyers are encouraged to review their quality specifications to ensure that purchases meet their expectations.

U.S. Wheat Associates (USW) has posted the full Soft Red Winter Wheat 2021 Quality Survey on its website here.

Planting and Harvest

USDA estimates the 2021 soft red winter wheat crop seeded area at 6.59 million acres (2.67 million hectares), up from 5.63 million acres (2.28 million hectares) seeded for the 2020 harvest and up from the five-year average. Good growing conditions were overall can be seen in the excellent quality of this crop. Although harvest started slowly with cool, wet conditions, a warm-up helped growers finish in line with the 5-year average. U.S. soft red winter (SRW) wheat production, estimated at 362 million bushels or 9.85 million metric tons (MMT), a 37% increase over 2020 and a 28% increase over the 5-year average.2021 map of soft red winter wheat production and sampling.

Samples were collected and analyzed by Great Plains Analytical Laboratory, Kansas City, Mo. The results were weighted by the estimated production for each reporting area and combined into “Composite Average,” “East Coast” and “Gulf Port” values.

2021 Crop Highlights

  • Grade – the overall average for the 2021 SRW harvest survey is U.S. No. 2 SRW.
  • Test Weight averages are indicative of sound wheat and a uniform crop with Composite 59.7 lb/bu (78.6 kg/hl), Gulf average 60.0 lb/bu (79.8 kg/hl), and East Coast 58.8 lb/bu (77.4 kg/hl).
  • 1000 Kernel Weight, Kernel Diameter and Wheat Protein values reflect a relatively uniform crop.
  • Wheat Protein content demonstrates a uniform crop. The Composite average of 9.3% (12% mb) and Gulf Ports average of 9.2% are lower than the 5-year averages. The East Coast average of 9.5% is slightly higher than 2020 but below the 5-year average.
  • Wheat Falling Number trended lower this year due to localized rainfall during harvest with Composite (297 sec), East Coast (257 sec) and Gulf Ports (307 sec) all below 2020 and 5-year averages. USW Regional Technical Director Peter Lloyd said while low falling number values are not eliminated from the survey, “the very few problem areas resulting from late rains will most likely never come to market.” Buyers will have no problems when they use a minimum 250 second falling number in their specifications.
  • Vomitoxin (DON) averages are well below the USDA threshold of 2.0 ppm with Composite at 0.8 ppm, Gulf Ports 0.9 ppm and East Coast 0.2 ppm. “DON levels are among the lowest we have seen in some time,” Lloyd said.
  • Laboratory Mill Flour Extraction for Composite (65.9%), East Coast (65.4%) and Gulf Ports (66.1%) are below 2020 and the 5-year averages but still indicate a good milling crop.
  • Damaged Starch values are slightly higher this year and can be attributed to higher enzymatic activity in isolated areas.
  • Amylograph averages indicate relatively high levels of amylase activity in portions of the crop with low falling numbers. Averages for Composite (440 BU), East Coast (290 BU) and Gulf (477 BU) are lower than last year and 5-year averages.
  • Solvent Retention capacity values generally indicate excellent quality for cookies and crackers. Lactic Acid values are above 100 and below 120, indicating excellent quality for crackers
  • Dough Properties suggest that this crop has similar protein qualities to last year but weaker than the 5-year average.
  • Alveograph L averages for Composite, East Coast and Gulf are 56 mm, significantly lower than 2020 and 5-year average values and indicate low extensibility.
  • Average Loaf Volumes are lower than last year and 5-year averages.
  • The Cookie Spread Ratios for Composite (10.6), East Coast (10.8) and Gulf (10.5) are all higher than last year and 5-year averages, indicating good spreadability.

2021 Crop Quality Data on Other U.S. Wheat Classes

Hard Red Spring
Soft White
Hard Red Winter
Northern Durum
Desert Durum® And California Hard Red Winter
Hard White