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Global Audience Watching “Wholesome: The Journey of U.S. Wheat” Film

U.S. Wheat Associates (USW) is excited that so many people around the world have seen the new film titled “Wholesome: The Journey of U.S. Wheat,” which had its premiere on Jan. 12, 2021, on the USW Facebook page. The film is also available for viewing online on Vimeo at https://bit.ly/WholesomeTheJourneyofUSWheat.

USW produced the 23-minute film in cooperation with the USDA Foreign Agricultural Service and Federal Grain Inspection Service, state wheat commissions, local elevators and export elevators. It is now available to USW’s 13 overseas offices and is the foundation of USW’s messages to world wheat buyers and users about U.S. wheat export quality throughout 2021.

“The people at every step of U.S. wheat’s journey to export featured in the film tell their own stories about how they thoughtfully produce new varieties, care for the land and the crop, and handle the wheat responsively to ensure it meets customer needs,” said USW Vice President of Communications Steve Mercer. “Functional quality is a crucial part of the reliable U.S. wheat supply and the people play such an important role in maintaining quality, so we wanted them to help remind our customers about why U.S. wheat is so valuable.”

USW has also produced individual short subject programs covering chapters featured in the film. Each of these programs will be available for viewing on the USW website.

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Capital Press Reports on Proposal to Remove Snake River Dams

By Matthew Weaver. Reprinted from Capital Press with permission.

Editor’s Note: The image at the top of this story shows the Columbia-Snake River System with wheat export loading facilities on the rivers. Blue color indicates areas of soft white wheat production, Gold color indicates hard red spring production area, and Green color indicates hard red winter production area. View this interactive U.S. Wheat Export Supply System map produced by U.S. Wheat Associates (USW) here.

U.S. Rep. Mike Simpson says his plan to end all salmon litigation and remove four Snake River dams would offer agriculture unprecedented legal protection, but industry stakeholders say it’s a nonstarter.

Simpson, R-Idaho, has not proposed legislation, but on Feb. 7 released a $33.5 billion concept for salmon recovery, which includes removing the Lower Granite, Little Goose, Lower Monumental and Ice Harbor dams on the lower Snake River in 2030 and 2031.

“It’s such a different approach,” said a Simpson representative, speaking on background. “We’re not saying, ‘Take the dams out and save salmon.’ We’re saying, ‘Save agriculture, replace everything and then save salmon.’” If the dams are removed, each interest group would need sufficient resources to replace the benefits they currently receive, the representative said.

Replacement power generation would have to be built and online by 2030, prior to breaching the dams.

The concept includes an automatic 35-year extension of licensing for all remaining public and private dams generating more than 5 megawatts in the Columbia River Basin. This would “lock in” the dams and eliminate the “slippery slope” argument of, “If you allow them to remove these four dams they will go after the other main-stem Columbia River dams and others,” the representative said. Under the concept, if the dams are removed, any litigation related to anadromous fish within the Columbia River system under the Endangered Species Act, National Environmental Policy Act or the Clean Water Act would be immediately halted and stayed for 35 years.

The plan combines many different elements that are not necessarily related, including fish recovery, energy generation and electricity rates, said Kristin Meira, executive director of the Pacific Northwest Waterways Association.

Each element requires its own intense inquiry and study, she said.

“Unfortunately, the idea of Snake River dam breaching is a non-starter when it comes for how we move cargo and ultimately for our energy portfolio,” she said. Taking out the dams would make that stretch of the Snake River impassable for barge traffic.

Ice Harbor Dam and navigation lock near Burbank, Wash., on the Lower Snake River

The Ice Harbor Dam and navigation lock near Burbank, Wash., on the Lower Snake River provides navigation, hydroelectric generation, and incidental irrigation. iStock photo.

Stakeholders also say breaching the dams won’t achieve salmon recovery, pointing to fish declines along the West Coast due to ocean temperatures, runoff and other factors.

Four of 13 endangered salmon populations listed traverse the Snake River dams, said Glen Squires, CEO of the Washington Grain Commission.

“Everybody knows salmon are not doing well regardless of the rivers that have dams, don’t have dams,” Squires said.

Removal of the dams and the navigation system would affect reliability and timeliness of wheat delivery to customers overseas, Squires said.

“When we visit with overseas buyers, very seldom, if ever, do they ask about what’s going on with the barge system,” he said. “What they ask about is, what’s going on with the rail system?”

Transportation costs to get wheat to West Coast ports would increase by 50% to 100%, said Michelle Hennings, Washington Association of Wheat Growers executive director.

Barging is the most carbon-friendly mode of transportation, Hennings said. Switching to trucks and trains would likely increase carbon dioxide and other harmful emissions by over 1.25 million tons per year.

“This is not a plan that gets us on a greener path when it comes to cargo movement,” Meira said.

Read additional information about this issue at the following links:

https://www.wawg.org

https://www.owgl.org/p/resources/latest-news

IGPA Press Release

https://www.pnwa.net/wp-content/uploads/20210204-Simpson-plan.pdf

https://nwriverpartners.org/wp-content/uploads/2021/02/2021-NWRP-Simpson-Plan-PressStatement.pdf

https://www.tri-cityherald.com/news/local/article248998910.html 

https://simpson.house.gov/salmon/

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat. “Sixty-five percent of the varieties in the U.S. are produced by … the public sector. … That has made the international community of wheat a very collaborative group of people, so we try to share as much as possible.” says Dr. Jorge Dubcovsky, plant geneticist and professor of plant sciences who leads the small grains breeding program at the University of California-Davis.

Family Farms Comprise 96% of all U.S. Farms, account for 87% of land in farms, and 82% of the value of all agricultural products sold, according to the 2017 Census of Agriculture Farm Typology report. Released by the USDA National Agricultural Statistics Service (NASS), the report defines a “family farm” as one in which the producer and individuals related to the producer own the majority of the business.

Vilsack on Way Back to USDA. The U.S. Senate Committee on Agriculture, Nutrition, and Forestry has voted in favor of President Biden’s nominee for Secretary of Agriculture, Tom Vilsack, who served as Secretary for eight years in the Obama Administration. The full Senate must now approve the nomination. National Association of Wheat Growers (NAWG) CEO Chandler Goule said, “Secretary Vilsack demonstrated his qualifications … and his vast knowledge of issues important to production agriculture.”

NCI Cereal Innovators Webinar Series. The Northern Crops Institute’s “Cereal Innovators” interactive webinar series focuses on new and unique ways to use cereal grains. This month’s webinar on Feb. 10, will feature Andrew Ross, Oregon State University professor in the Crop and Soil Science Department covering “WHY cereal and whole grains, WHAT cereal grains, the HOW of cereal grains: milling and other processes, the WHERE of cereal grains and more.” Sign up for this webinar here.

NAWG is Hiring a Director of Communications and Partnerships. This position will focus on implementing a strategic communications and partnerships plan that will increase the organization’s exposure at the national and state levels as well as on Capitol Hill. Read the full job description and more information on how to apply here.

IGP Institute Flour Milling and Grain Processing Course Schedule. The IGP Institute at Kansas State University in Manhattan, Kan., has several flour milling and grain processing courses planned in 2021, covering all aspects of managing the flour milling process from grain selection to finished products. View the full course schedule and register here.

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.

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Fundamental, Technical Factors Lifted U.S. Wheat Futures Prices

Given the strong surge in U.S. wheat futures prices over the past several weeks, U.S. Wheat Associates (USW) wants to share more information about the market factors behind the rise.

Some of the bullish factors do not appear to be short-lived. Driving the recent highs was remarkably higher Chinese demand for U.S. soybeans, corn and wheat; increased investments by managed money in U.S. agricultural commodities exchanges; news that the Russian government increased its wheat export tax; and continued dryness in the High and Southern Plains.

U.S. wheat futures prices for nearby delivery

By late January 2021, CBOT soft red winter (SRW) and KCBT hard red winter (HRW) futures prices reached their highest level in more than six years and MGE hard red spring (HRS) futures prices reached their highest level since late 2017. Source: DTN

U.S. Corn, Soybean and Wheat Exports to China

Historic U.S. commodity sales to China are supporting high wheat futures prices. To date, the United States has sold 11.8 million metric tons (MMT) of corn to China, completely eclipsing the last record of 4.90 MMT shipped to China in 2013. According to Reuters, China is on track to be the largest importer of U.S. corn for the first time in history. And sales aren’t slowing down: on Jan. 29, USDA reported a flash sale of 2.10 MMT of corn to China, the largest sale of U.S. corn to an overseas customer in a single day since 1991.

U.S. soybean sales to China have also set records. To date, the U.S. has sold 34.7 MMT of soybeans to China, 190% more than this time last year and 74% more than the 5-year average.

China’s demand for U.S. wheat has also been strong. Total sales to China, now the third-largest market for U.S. wheat, are substantially higher than this time last year at 2.58 MMT, more than 5 times greater than the 5-year average. HRW sales to China now total 1.13 MMT, the first major Chinese HRW purchase in many years. HRS sales to China of 566,000 metric tons (MT) are nearly nine times greater than the same period in 2020 and white wheat (soft and hard) sales are up more than 400% at 714,000 MT.

Source: USDA FAS export sales data as of Jan. 21, 2021

Technical Strength

Joining the trade excitement are managed futures funds, an investment where professionals actively manage a futures contract portfolio. These speculative commodity funds are buying significant amounts of U.S. corn, soybean and wheat futures contracts. They are “long” in the markets with the expectation that the contracts will gain value over time.

“Simply put: China is driving the boat,” said one U.S.-based trader. “Funds are pouring money into Chicago and other exchanges because of our massive balance sheet of sales to China.”

“If corn jumps 19 cents per bushel in one day, wheat is going to follow in a big way,” said another trader.

Managed fund participants serve an important role in futures markets, giving buyers and users of a commodity like wheat the opportunity to hedge their price risk through speculators that accept the risk of price movements.

Russian Wheat Export Tax

What happens in a leading wheat exporting nation can move the market. On Jan. 26, the Russian government announced it would increase the country’s wheat export tax from €25 per MT to €50 per MT for March 1 to June 30 deliveries in an attempt to secure domestic food supplies and stabilize domestic prices. After Russia’s government approved the tax increase, Minister of Economic Development Maxim Reshetnikov said: “We hope in the near future the price situation will stabilize and we will be able to switch to a permanent mechanism of export duties.” Even so, USDA expects total Russian wheat exports in 2020/21 will reach 39.0 MMT, up 13% from last year and 18% more than the 5-year average, if realized.

The increased wheat export tax and minimal domestic selling by Russian farmers have also supported global wheat export prices. According to AgriCensus, between early December 2020, before the initial €25 per MT tariff was announced, and early February 2021, Russian 11.5% protein wheat (dry matter basis) free on board (FOB) prices increased 15% to $292 per MT. By comparison, Texas Gulf 11% HRW (12% moisture basis) FOB traded at $280 per MT at the beginning of February.

Source: AgriCensus

Drought Stress Across the Great Plains

Despite recent precipitation in some areas, extreme dryness continues to plague U.S. winter wheat producers, an all too familiar situation for wheat farmers in eastern Colorado, western Kansas, western Nebraska and eastern Wyoming.

“Dryness in the Plains adds underlying support to wheat futures prices,” said a grain trade representative.

As of Jan. 28, according to USDA, Colorado winter wheat ratings slipped from 19% good to excellent in early January to 17% by late January and 43% of Kansas winter wheat was rated good to excellent, down from 46% in late December 2020. USDA also reported that as of Jan. 26, 2021, “an estimated 32% of U.S. winter wheat production is within an area experiencing drought,” including major sections of U.S. hard red spring and northern durum production regions.

Every Friday, USW compiles information from market sources, including U.S. wheat exporters of all classes from various U.S. ports.

By Claire Hutchins, USW Market Analyst

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Technology, Innovative Farming Practices Advance Wheat Farm Sustainability

Across the United States, farmers produce more and better quality wheat using innovative farming practices including fewer natural resources, including land. According to an American Farm Bureau Federation report, in 2018, farmers needed about 8 million fewer acres (3.24 million hectares) to produce the same amount of wheat as in 1990.

The Biden Administration is currently establishing clear policy goals to fight climate change and reward conservation. It is more important than ever to share the success stories of how U.S. wheat farmers employ sustainable, innovative farming practices to protect their land and positively impact the environment.

U.S. wheat farmers are more economical and sustainable today by implementing agronomic practices and investing in technologies, research and development. Technology plays an essential role in making U.S. agriculture sustainable. When wheat breeders use advanced techniques and technologies to produce high-yielding, high-quality wheat varieties, it contributes to preserving the land’s natural resources through water and soil nutrient conservation that work in harmony with local conditions.

In their production, U.S. wheat farmers apply many aspects of the following sustainable tools and practices:

Reduced Tillage

The USDA Economic Research Service reports that reduced tillage has grown in popularity, and farmers implement the practice on nearly 70% of U.S. wheat acres. While at times a necessary tool, traditional plowing and other deep tillage can be concerning. Continuous wheat production with deep tillage contributed to the infamous U.S. “Dust Bowl” of the 1930s. The introduction of reduced-till and no-till practices has helped reduce soil erosion and increase water retention on dryland crops. This practice also reduces fuel use and promotes carbon sequestration. Read more about the sustainability of practicing no-till farming here.

Crop Rotation and Cover Crops

After harvest, most wheat farmers practice crop rotation and switch to a different crop in the same fields. However, more and more farms are planting “cover crops” after harvest. Farmers incorporate this crop into the soil before planting the next crop. Both these practices are beneficial in preserving soil health as well as conserving water. Cover crops add soil nutrients and organic matter and help prevent soil and water runoff. In one study, Desert Durum® wheat farmers who rotate to lettuce crops following their durum harvest reduced water use on average about 30%.

On his family’s Kansas farm, Justin Knopf has invested in soil health through cover crops, no-till and crop rotations.

Water Conservation

Wheat is a naturally water-efficient crop. In much of the United States, wheat is grown during cooler months and has a longer growing season – providing more opportunity for it to capture naturally occurring precipitation. Only about 10% of U.S. wheat acres are irrigated. Even when farmers irrigate their wheat, it often needs less irrigation than many other crops.

California grower Roy Motter innovative farming practices like crop rotations. rotation crop to

California grower Roy Motter uses Desert Durum® as a rotation crop to let the soil rest between vegetable crops and to help control weeds and disease. Growing durum in a rotation with lettuce reduces water use on his farm by 24% to 50%.

Precision Agriculture

Farmers use technologies such as crop yield monitors, soil maps and global positioning systems (GPS), and drones. These technologies allow farmers to apply inputs more precisely, monitor plant health and collect data on soil nutrients and other natural resources. For example, such technology enables farmers to adjust seed, fertilizer and crop protection inputs with near pinpoint accuracy, ensuring the correct rates are applied or seeded in the right location while on the go in their fields. Greater efficiency through precision agriculture practices means greater economic and environmental sustainability.

Oregon soft white wheat grower Bob Johns (right in the photo at the top of the page) and his farming partner Chris Williams (left) say technology from improved breeding to drones help them make better-informed decisions about how inputs and management affect their yields, soil and crop health, and profitability.

U.S. Wheat Associates (USW) supports finding new ways to improve wheat quality and increase production with less impact on the environment. To learn more about how U.S. wheat farmers are using innovative farming practices to produce more food and fiber sustainably, visit the “Innovation and Sustainability” section of our website.

By Shelbi Knisley, USW Director of Trade Policy

Read other stories in this series:

Special Climate and Sustainability Committee Launched on Earth Day
Precision Agriculture Improves Environmental Stewardship While Increasing Yields
U.S. Farmers Always Think About Economic and Environmental Sustainability
Minnesota Farmer Spread the News with His Conservation Practices
U.S. Farmers Embrace Conversation Practices
Farmers Look to New Technologies to Foster Precision Agriculture
Cargill CEO Highlights Farmers Role in Pandemic and Promoting Sustainability

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Public Wheat Breeding Programs Serving Southern and Central Plains Farmers

Throughout 2021, the U.S. Wheat Associates (USW) Wheat Letter is featuring the many stories of the people, processes and passions that go into producing and delivering high-quality U.S. wheat to the world. Our focus will be on quality that starts with dedicated private and public wheat breeding programs, is fostered by hard-working farm families, is maintained by grain handlers and observed in hundreds of wholesome, nutritious wheat foods.

There is a wide range of U.S. public and commercial breeding programs working to develop wheat classes and varieties adapted to the production constraints in different regions while meeting customer end-use needs. An estimated 65% of all U.S. wheat varieties across six distinct classes were developed by public university breeding programs, funded in part by state wheat commissions, royalties from the sale of public varieties, and the USDA Agricultural Research Service (ARS).

In this post, Wheat Letter offers broad information about public university wheat breeding programs in Texas, Oklahoma, Kansas, Colorado and Nebraska. Future posts will cover breeding programs in other states.

Texas A&M

With support from research grants from the Texas Wheat Producers Board (TWPB), Texas A&M University puts a major focus on projects aimed at enhancing end-use wheat quality to produce a product with more functionality for domestic and overseas customers. For example, TWPB points to the recent development of two new Texas A&M winter wheat varieties that performed well with fewer inputs, decreasing farm financial burdens while showing exceptional milling and baking characteristics.

Dr. Amir Ibrahim is a professor and the project leader of the Texas A&M Small Grains Breeding program. He manages wheat cultivar development for South and Central Texas among other responsibilities. Dr. Jackie Rudd, Texas A&M AgriLife Research wheat breeder in the Texas Panhandle is also working to develop better wheat varieties for breadmaking and farmers alike. An associate research scientist in the AgriLife Cereal Quality Lab and other specialized researchers are part of the Texas A&M wheat team.

Texas A&M Wheat Breeding

Texas A&M geneticists Dr. Shuyu Liu (second from left) and Dr. Chenggen Chu (right) are using doubled haploid plants to shorten the time to develop genetically pure lines in a traditional winter wheat breeding scheme.

Oklahoma State University

Wheat Improvement research in Oklahoma is driven by an interdisciplinary team of Oklahoma State University (OSU) scientists charged with developing highly adapted winter wheat cultivars with marketable grain quality, in partnership with the Oklahoma Wheat Commission (OWC) and the Oklahoma Wheat Research Foundation. Dr. Brett Carver directs the program as OSU Wheat Genetics Chair.

OWC Executive Director Mike Schulte says the wheat genetics program is committed to excellence in creating varieties to meet the specific needs of Oklahoma wheat producers and the milling and baking industries. OSU varieties are sold to farmers through Oklahoma Genetics, Inc., a non-profit organization directed by Oklahoma farmers.

“OSU wheat varieties, thanks in large part to significant investment by producers through the check-off OWC manages, have led the state in planted area every year since 2010,” said Dr. Carver. “In addition, the top planted varieties from OSU almost always appear on preferred variety lists publicized by the U.S. domestic milling industry over the past five years. The emphasis by the OSU Wheat Improvement Team is, and will continue to be, on a quality yield, not just yield alone.”

OSU wheat genetics lead Dr. Brett Carver (right) in 2019 discussed cross breeding techniques to select  for functional quality in hard red winter wheat with British officials at the OSU research facilities.

Kansas State University

The wheat breeding team at Kansas State University (K-State), led by Dr. Allan Fritz in Manhattan, Kan. and Dr. Guorong Zhang at K-State’s Agricultural Research Center in Hays, Kan., has produced the most widely planted varieties in Kansas in nine of the past 10 years through the Kansas Wheat Alliance.

The world-renowned Wheat Genetics Resource Center (WGRC) has established a national and international network to conduct and coordinate genetic studies in wheat. Located in the Kansas Wheat Innovation Center, the state’s single-largest, farmer investment in wheat research, the WGRC has also been recently designated as a National Science Foundation Industry/University Cooperative Research Center. This is the first I/UCRC focusing on plant sciences. The main K-State breeding team works with the WGRC on genomic mapping and marker-assisted breeding. Other cooperators include the USDA-ARS Hard Wheat Quality Laboratory and wheat programs in the Plant Pathology and Grain Science Departments. Some germplasm lines are also released in conjunction with USDA’s hard winter wheat genetics program.

There is tremendous producer support in the state and region for K-State’s wheat varieties and breeding program. Generous funding for its efforts comes from the Kansas Wheat Commission. Wheat quality is also a priority. Varieties tested for two years and earmarked for release are entered in the Wheat Quality Council (WQC) Milling and Baking Test Program to ensure the varieties meet WQC milling and baking standards. Grain Craft has recently moved its Wheat Quality Lab to the Kansas Wheat Innovation Center, which completes the missing piece in the puzzle in the facility, from variety development through end-use quality testing.

In addition, in 2020, the USDA’s National Institute for Food and Agriculture awarded K-State a $1 million grant to establish the International Wheat Yield Partnership (IWYP) Winter Wheat Breeding Innovation Hub. K-State will lead the effort to evaluate research findings from several IWYP projects that contribute to “significantly improve” wheat yields.

The research team led by Dr. Allan Fritz (above) in Manhattan, Kan., and Dr. Guorong Zhang at K-State’s Agricultural Research Center in Hays, Kan., has produced the most widely planted wheat varieties in Kansas in nine of the past 10 years.

Colorado State University

Thanks to help from Colorado farmers through the Colorado Wheat Administrative Committee, the Colorado State University (CSU) wheat breeding program has built a reputation for success. The goal is to develop varieties that are adapted to Colorado’s unique growing conditions but also have excellent end-use quality to meet milling and baking needs. In 2019, Wheat Quality Lab Manager John Stromberger, now retired Wheat Breeder Dr. Scott Haley, and Extension Agronomist Jerry Johnson, reported on the quality of CSU trial varieties and encouraged producers to carefully consider planting agronomically acceptable varieties with better quality. CSU wheat breeding will continue under the direction of Dr. Esten Mason.

The Colorado Wheat Research Foundation (CWRF) works hand in hand with CSU to help develop and distribute new wheat varieties. As the university develops new varieties, CWRF takes ownership and works with eligible certified seed growers. CWRF collects royalties for certified seed that supply funding for more CSU wheat research. These varieties are sold under the brand name PlainsGoldTM.

A portion of funding for wheat breeding and research at Colorado State University comes from the sales of public wheat varieties.

University of Nebraska-Lincoln

The Nebraska Wheat Board supports research and breeding programs at the University of Nebraska-Lincoln (UNL) and USDA-ARS efforts to improve agronomic performance for producers, and end-use quality characteristics for millers, bakers and consumers. Dr. Stephen Baenziger heads the UNL small grains breeding program and says the work is highly dependent on a wide range of researchers and public and private support.

For example, Dr. Baenziger has spent several years studying hybridization of wheat in partnership with Dr. Ibrahim of Texas A&M. Ibrahim and Baenziger have tested more than 600 lines of hybrid wheat varieties in Nebraska and Texas. They are now developing the necessary knowledge base, germplasm and enhanced trait pools or patterns from these lines to support the development of hybridized wheat.

The team’s newest project, “Plant breeding partnerships: Continuing to develop and validate the tools for hybrid wheat,” is supported by a $650,000 USDA National Institute of Food and Agriculture grant.

Dr. Stephen Baenziger leads Public Wheat Breeding Programs at University of Nebraska - Lincoln

Dr. Stephen Baenziger heads the University of Nebraska – Lincoln small grains breeding program.

Read about other U.S. wheat public breeding programs:

Programs Serving Northern Plains Producers
Programs Serving Soft Red Winter Producers
Programs Serving West Coast Producers

Read about other U.S. wheat commercial breeding programs:

BASF Corp. and Corteva
AgriPro and WestBred

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U.S Wheat Associates Shares Winter 2021 Wheat Supply and Demand Outlook

The U.S. Wheat Associates (USW) Board of Directors includes wheat farmer leaders appointed to represent each of the 17 state wheat commissions that are members of USW and meets three times during each marketing year (June to May). For each of the meetings, the USW Market Analyst prepares a “Wheat Supply and Demand Outlook” report based on USDA market data to provide an update on the global and U.S. wheat market. The full Winter 2021 report is posted at https://bit.ly/MarketSummary012721.

The report includes sections on world wheat supply and demand, wheat production in the major wheat exporting countries and regions, including U.S. wheat production by class, timely reports such as U.S. wheat seeded area, and U.S. commercial wheat sales.

World Production and Use data from the Winter 2021 Wheat Supply and Demand Outlook

The latest report, prepared Jan. 27, 2021, indicates marketing year 2020/21 is a significant one, with several records set. For example, USDA expects global wheat production to reach 773 million metric tons (MMT) following increased annual production in Australia, Russia and Canada among exporting countries. World wheat trade is expected to increase 1% to a record 194 MMT, which would be 7% more than the 5-year average. With strong carryover from 2019/20 and increased production, global wheat ending stocks are projected at 313 MMT, with China expected to hold 159 MMT and India 31.3 MMT of that total at the end of 2020/21. U.S wheat ending stocks, however, are expected to be the lowest since 2014/15.

USDA has also reported that U.S. winter wheat seeded area (including hard red winter, soft red winter, fall seeded soft white, hard white and Desert Durum®) increased for the first time since 2013/14. Hutchins notes in the report that beneficial field conditions and strong farmgate price potential at planting time motivated hard red winter and soft red winter wheat producers to increase planted area from last year.

U.S. Winter wheat planted area data from the Winter 2021 Wheat Supply and Demand Outlook

View the full Winter 2021 Wheat Supply and Demand Outlook at https://bit.ly/MarketSummary012721.

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Wheat Industry News

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

Speaking of Wheat. “American strength in agricultural exports has been built on … the principle that all markets matter. Cuba … imports $2 billion in food each year, less than ten percent from the United States. U.S. exports of potatoes, wheat … and other products stand to grow significantly.” – From a Letter to President Biden from the United States Agriculture Coalition for Cuba.

Group to Biden: Open Relations with Cuba. In a Jan. 14 letter to now President Biden, United States Agriculture Coalition for Cuba (USACC) urged “a return to policies of engagement toward Cuba, for the sake of the U.S. national interest, to boost U.S. food exports to Cuba, and to support the development of beneficial relations between our countries’ agricultural sectors.” U.S. Wheat Associates (USW) is a USACC member and signed the letter to the President. 

In Case You Missed It, USW’s new film “Wholesome: The Journey of Wheat” can now be viewed on Facebook and Vimeo. USW premiered the film Jan. 12 and it has now been shared with USW’s 13 overseas offices to support U.S. wheat export market development. The film was produced with funding from the Agricultural Trade Promotion program administered by USDA’s Foreign Agricultural Service and in cooperation with USW state wheat commission members.

Wheat Industry Well-Represented on USDA Advisory Panels. Retired Washington wheat farmer and USW Past Chairman Randy Suess was recently appointed to USDA’s Agricultural Trade Advisory Committee (ATAC) for Trade in Grains, Feed, Oilseeds and Planting Seeds. He joins North Dakota Wheat Commission Administrator Neal Fisher, Kansas wheat farmer and USW Director Ron Suppes and USW Vice President of Policy Dalton Henry on that committee. In addition, USW President Vince Peterson serves on USDA’s Agricultural Policy Advisory Committee (APAC). The advisory committee system was created to ensure U.S. trade policy and trade negotiating objectives adequately reflect U.S. public- and private-sector interests.

Sincere Sympathy to USW/Cape Town Regional Programs and Marketing Specialist Domenique De Oliveira Opperman and her family on the recent passing of her father.

National Wheat Foundation (NWF) Hires Project Manager. NWF has hired Anne Osborne to manage the National Wheat Yield Contest (NWYC) and educational projects. Osborne, formerly a sales agronomist for the Farmers Union Oil Co-op, will replace Steve Joehl, who is retiring in early 2021. Read the full release here.

Subscribe to USW Reports. USW publishes a variety of 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 at 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.

 

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U.S. Wheat Associates Finds Success in Virtual Programs in 2020

In 2020, the COVID-19 pandemic quickly brought on challenges that no industry in modern history had experienced on such an immediate, global scale. For the U.S. wheat industry and its overseas customers, who share a long history of connection, meeting face-to-face and connecting personally has always been paramount to its successful relationships. When that was no longer possible, U.S. Wheat Associates (USW) quickly pivoted and adapted to virtual programs to maintain its ties with customers and reassure them that the U.S. wheat store remained open.

In 2020, USW conducted over 296 virtual programs from March to December, which is approximately one virtual program per day since its staff and customers started experiencing office closures and event cancellations due to COVID-19. These programs reached over 11,000 people, more than double the number of individuals reached in same time span in 2019.

“According to our trade contacts, U.S. Wheat Associates has been an emerging leader in providing virtual programming,” said Mike Spier, USW vice president of overseas operations. “We reached a lot of people because our customers were also working from home and online platforms allowed them to expand these opportunities throughout their companies.”

2019 vs 2020 estimated program participants show impact of virtual programs

USW’s 2020 virtual programming included its annual crop quality seminars. In a typical year, as the organization’s largest program, USW sends teams of staff, U.S. wheat farmers, state wheat commission staff and other industry experts to host 20-plus regional, local in-person seminars. Instead, this year USW videotaped 17 original presentations, each translated into as many as nine languages, and provided the videos to overseas offices to share with customers through email marketing campaigns and live webinars.

“The biggest takeaway from conducting webinars is the range and number of participants we’ve been able to reach through virtual programs. For example, we saw several participants that may be junior staff that doesn’t always get the opportunity to participate in courses or trade delegations that are usually reserved for senior staff,” said Chad Weigand, regional vice president, USW Cape Town Office. “We’ve been able to include many more people in webinars than we could if we had held the activities in person. A group traveling for a trade delegation or course typically needs to be capped at around 10 participants because of logistics and expenses. Our virtual Kansas trade delegation had over 40 participants that logged on from multiple countries throughout the region.”

USW staff also saw that the webinar format provided some anonymity that allowed participants to be more open about questions and challenges they were experiencing.

One USW technical consultant shared, “What was most noticeable was that the level of interactions with the presenters was higher than typically seen during trainings…and, without exception, the webinars ran over the allocated time due to follow up questions from the delegates.”

Looking ahead, USW will continue to stay in close contact with its customers and monitor the possibility of travel and in-person meetings on a case-by-case basis, while continuing to adapt and embrace virtual meeting opportunities.

“There are elements of meeting face-to-face with our customers and stakeholders that will always be invaluable for our industry, but the silver lining of 2020 for U.S. Wheat Associates, was that we were able to reach a larger audience,” said Spier. “Moving forward, as the world opens up, we will embrace both in-person and virtual opportunities to connect.”

By Amanda J. Spoo, USW Director of Communications; and Catherine Miller, USW Program and Planning Coordinator

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Favorable Weather and Strong Income Potential Support 2021 Winter Wheat Seeding

For the first time since 2013/14, total U.S. winter wheat planted area increased on the year as producers took advantage of dry seeding conditions and strong prices through fall 2020. USDA’s 2021/22 Winter Wheat Seeding report, released Jan. 12, reported U.S. farmers planted 32.0 million acres (12.9 million hectares) of winter wheat for harvest in 2021, up 5% from marketing year 2020/21. Increases for hard red winter (HRW) and soft red winter (SRW) more than offset a slight decrease in white winter wheat planted area.

Hard Red Winter

USDA assessed HRW planted area at 22.3 million acres (9.02 million hectares), up 4% on the year. Planted acreage is up year-over-year in several major HRW-producing states with the largest increases reported in Montana, South Dakota and Kansas. Montana planted area increased 10% on the year to 1.70 million acres (688,000 hectares) and South Dakota planted area jumped 13% from last year to 710,000 acres (287,000 hectares). In both states, dry planting conditions from September to October were a welcome change compared to sodden, impassable fields in fall 2019.

“To look at this year, we have to first go back to fall 2019 planting when fields were extremely wet and producers left many acres to prevent plant,” said Reid Christopherson, executive director, South Dakota Wheat Commission. “Finally, in fall 2020 there was optimism around wheat. Conditions for seeding were good and prices were giving us encouragement, which boosted HRW planted area.”

In Kansas, HRW planted area for harvest in 2021 is up 10% from last year at 7.30 million acres (2.95 million hectares) as extreme dryness deterred producers from planning to plant corn, which is more water intensive than wheat.

Strong markets also incentivized the expansion of U.S. winter wheat acres. According to Justin Gilpin, CEO, Kansas Wheat Commission, many fallow acres in western Kansas went back into winter wheat last fall as producers reacted to a spike in futures prices. Between late August and mid-October, Kansas City Board of Trade (KCBT) HRW futures prices for nearby delivery jumped 18% to $5.59/bu, the highest since August 2018, as “managed money” or commodity funds bought significant amounts of U.S. wheat futures contracts with the expectation that the contracts would gain value over time.

HRW planted area in Colorado and Oklahoma, two other major winter wheat producing states, also increased several percentage points on the year as producers jumped on higher HRW prices.

Soft Red Winter

Total SRW planted area of 6.23 million acres (2.52 million hectares) is up 12% from 2019 and 8% from the 5-year average as producers took advantage of pristine planting conditions and strong Chicago Board of Trade (CBOT) futures prices. Increases in major SRW-producing states more than offset decreases in Ohio and Maryland.

Planted area is up significantly in states tributary to the Gulf of Mexico, namely Wisconsin, Illinois, Missouri and Tennessee. Wisconsin planted area is up 72% from last year, Missouri planted area is up 38%, Illinois planted area is up 11% and Tennessee planted area is up 33%.

“Strong futures prices, strong farm gate prices and a quick soybean harvest in many Midwestern states incentivized SRW producers to plant more wheat acres this year, specifically in Wisconsin and Missouri,” said a grain trade manager.

Like with HRW futures prices, SRW futures prices also saw a significant jump during the fall planting season as commodity funds poured money into the Chicago futures exchange.

Every Friday, U.S. Wheat Associates (USW) publishes its Price Report, compiling information from market sources, including U.S. wheat exporters of all classes from various U.S. ports. Subscribe here to receive the weekly report.

By Claire Hutchins, USW Market Analyst

 

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