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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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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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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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By Dalton Henry, USW Vice President of Policy

Just over a year ago, on Jan. 15, 2020, the U.S.-China “Phase One” agreement was signed, leading to the eventual waiver of China’s retaliatory tariffs against U.S. agricultural products. Those actions opened the door again to the largest wheat consumer in the world after nearly two years in which U.S. wheat producers were all but shut out.

While the final results of the Phase One agreement will not be written for several months, early returns show the agreement paid off in a big way for U.S. wheat producers and their Chinese customers.

The Phase One agreement contained both specific purchase targets for agricultural commodities, and structural changes to China’s import systems. To date, much of the celebration and criticism has centered on the purchase targets — with very little attention paid to the structural changes that in some instances resolved disputes decades in the making.

One dispute of relevance to wheat had been at the center of a WTO case dating back to 2015 on China’s administration of their grain tariff rate quotas (TRQ). In a case the U.S. won in mid-2019, the WTO panel found that China had not administered the quota in such as way as to be “transparent, fair or predictable.” With the WTO case entering compliance at roughly the same time as Phase One agreement was being negotiated, U.S. negotiators included additional language in the agreement to build on the WTO case win and ensure eventual Chinese compliance. That language included stipulations making clear that Chinese “State Trading Enterprises” are subject to the same rules as private companies and specific transparency requirements to make it possible to evaluate Chinese compliance with the allocation and reallocation provisions that are so important to the proper functioning of their TRQ.

With those new rules in place, China is projected to import 9 million metric tons (MMT) of wheat this marketing year — a 25-year high, and almost double their previously highest TRQ purchases. China turned to U.S. wheat producers for a significant portion of that higher import volume. Since the signing of the Phase One agreement, U.S. wheat sales to China have totaled more than 2.8 MMT — nearly 90% above USW’s long-term pre-trade war average. Those imports have come from four different classes of U.S. wheat and helped meet the demand for U.S. wheat from China’s private flour millers. This import volume is likely to make China the fourth largest export market for U.S. producers in marketing year 2020/21, which ends May 31.

Chinese wheat buyers and flour milling managers visited the Wheat Marketing Center in Portland, Ore., in May 2019.

Chinese wheat buyers and flour milling managers visited the Wheat Marketing Center in Portland, Ore., in May 2019 during a Contracting for Wheat Value seminar sponsored by USW. USW/Beijing Country Director Shirley Lu (second from right) translates as Wheat Marketing Center Technical Director Dr. Jayne Bock (third from left) and a colleague demonstrated falling number analysis.

There are likely to be substantial trade negotiations between China and the United States in the coming months — something wheat producers should welcome. The Phase One agreement was never supposed to be an “end-all agreement” — in fact, when it was announced, plans were already in place to start on “Phase Two,” which were eventually scrapped after COVID-19 turned the world on its head.

With a new U.S. administration taking office this week, many in agriculture are watching closely to see which way the political winds will blow those discussions with China. While there may be a desire by some for a “fresh start” in the China relationship, the Biden administration would do well for U.S. agriculture to pick up where Phase One left off and continue to build on the tremendous export potential for China. President-elect Biden’s early statements and plans to keep tariffs in place on Chinese goods until they can be reviewed are an important first step in the right direction.

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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 public and private wheat breeders and researchers, is fostered by hard-working farm families, is maintained by grain handlers and observed in hundreds of wholesome, nutritious wheat foods.


“Virtual reality is transforming research and outreach activities in the Plant Sciences Department at North Dakota State University, and the wave is just beginning,” says Dr. Senay Simsek, professor and director of the Wheat Quality and Carbohydrate Research Program.

Virtual reality is a three-dimensional, computer-generated experience that allows a person to interact with spaces and objects within an entirely virtual environment. Simsek worked with Be More Colorful, a virtual reality solutions firm in Fargo, N.D., that created 360-degree images of the wheat quality and carbohydrate labs. Then they embedded informational videos provided by Simsek about the lab tests and equipment into the 360-degree images to create a complete virtual tour of the wheat quality and carbohydrate chemistry laboratories.

Designated users of this technology access the virtual tours using a VR headset or as a desktop experience in any web browser. During the tour, they experience wheat quality facilities in 3D, which creates the feeling that they are visiting in person, even though they may be thousands of miles away. Now, anyone can explore from the comfort of their home or office how wheat kernels are tested for quality, how wheat is milled, how flour and dough samples are analyzed, how bread is baked for end-product quality, and many other tests.

 

Student Ana Magallanes explores the Virtual Reality tour of Dr. Senay Simsek's Wheat Quality and Carbohydrate Research Program at North Dakota State University.

Student Ana Magallanes explores the Virtual Reality tour of Dr. Senay Simsek’s Wheat Quality and Carbohydrate Research Program at North Dakota State University.

The VR tours containing Simsek’s training videos are not publicly available but the 360-degree images of the labs can be viewed at https://tours.bemorecolorful.com/v/rNj79kPE1Jd. Move the computer mouse around to view different parts of the room. Click the drop-down menu in the top left corner of the image to access other rooms. To learn more about wheat quality in the world of VR, contact Dr. Senay Simsek at [email protected].

Dr. Senay Simsek is using virtual reality tools to enhance the research and outreach of her wheat quality and carbohydrate chemistry program.

Dr. Senay Simsek is using virtual reality tools to enhance the research and outreach of her wheat quality and carbohydrate chemistry program.

Simsek often meets with various trade teams and farmer groups, and visits K-12 schools. Now, she can utilize VR technology to show what type of research she is conducting at NDSU. “Leveraging virtual reality helps enhance the research and outreach experiences for the people we work with,” she says.

Simsek implemented the browser-based 3D experience during this year’s Hard Red Spring Wheat Crop Quality meeting. Incorporating the 3D tour experience at the virtual crop quality meetings was met with great appreciation by the attendees.

“Virtual reality is offering some promising benefits to our research and outreach capabilities,” says Simsek. She believes the trend will not slow down any time soon, so researchers and other should expect to see more virtual reality technology enter their lives and laboratories in the future.

Dr. Simsek contributed this article to Wheat Letter, with editing support from Kamie Beeson, North Dakota State University. In addition, Dr. Simsek recently recorded two video presentations on how U.S. hard red spring (HRS) wheat can reduce the need for additives in a “Clean Label” end-product, and on 2020 U.S. HRS Crop Quality.

 

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After spending 2020 celebrating its 40th anniversary, U.S. Wheat Associates (USW) ended the year saying a fond farewell to a colleague who was with the organization almost from the beginning. Ms. Sonia Muñoz retired from her Regional Program Director position at the USW Santiago Office after 39 years.

“Sonia has managed the South American regional programs efficiently and in a professional manner,” said Miguel Galdos, Regional Director, USW Santiago Office. “Starting 39 years ago with USW as a Secretary/Receptionist, she assumed greater responsibilities over the years due to her abilities and outstanding performance. Her good nature and dedication to her job was present always.”

Sonia Muñoz and Luisa Tornero

Sonia Muñoz in 1989 with Luisa Tornero, former USW Executive Secretary, enjoying our working time.

During her time with USW, Muñoz was responsible for planning and executing various market development programs, seminars and other activities, arranging travel logistics, collaborating with colleagues on reports, and more. During her long career, Muñoz says the most notable change she saw was in the way people communicated and utilized technology.

1981 USW Crop Quality Seminar

1981 – My first year at USW at a Crop Quality Seminar.

“I started when the typewriter and the Telex were in vogue, so to be a secretary in that time was a challenge. We sent large amounts of mail through the post office and email wasn’t even in our imagination,” said Muñoz. “The first computer we had was the ICOM, which we used to send direct messages to the USW Headquarters Office. Through the years, I saw how distances were closer thanks to technological advances in communication.”

Past USW Regional Vice President, Alvaro de la Fuente worked closely with Sonia until his retirement in 2018.

“Sonia was always willing to go the extra mile for the organization’s benefit and had no problem in taking on added responsibilities. Her spirit of loyalty and hard work was recognized over the years and her good nature and friendliness contributed substantially to making the USW Santiago Office environment one that was extremely pleasant to work in,” said de la Fuente. “I can vouch for that, having worked with Sonia for thirty-eight years. I wish her a very happy and much deserved retirement.”

USW Santiago colleagues in 1994

At a farewell dinner for Luisa Tornero, former USW Executive Secretary (left), with Alvaro De La Fuente, former USW Regional Vice President, (middle) and Sonia Muñoz (right) in 1994.

Muñoz says what she enjoyed most about working at USW was the opportunity to grow and develop as a professional and the wonderful people she worked with over the years.

“I am proud and happy that I was privileged to work for this great organization. This experience was one the best things I’ve had in my life. I have worked with excellent professionals and wonderful people and many of them have become good friends. I will keep very good memories of these years,” said Muñoz. “My special thanks to Mr. Alvaro de la Fuente, my former boss for his guidance, trusting me and giving me the opportunity to show my abilities. I would also like to thank my colleagues over the years who enriched me in so many ways. Miguel Galdos, Casey Chumrau, Andres Saturno, Claudia Gomez and Osvaldo Seco, I will miss working with you and the experiences we shared, and specially to my dear friend Paola Valdivia, with whom I shared so much with over the years. To María Fernanda Martinez who will replace me, I wish all the best.”

USW program staff visiting headquarters in 2005

Several USW program staff from overseas visit the USW Headquarters Office in Washington, D.C., in 2005.

In her retirement, Muñoz says she plans to seize and enjoy the things she now has time for, and that now that her kids are also grown, she plans to dedicate time for herself.

All of us at U.S. Wheat Associates thank Sonia for her work and friendship and wish her and her family a long and happy retirement.

Sonia Muñoz with several members of her family.

Sonia Muñoz with several members of her family.

Header Photo: Current USW Santiago Office staff (left to right); Osvaldo Seco (Assistant Regional Director), Paola Valdivia (Finance Manager), Sonia Muñoz (Retiring Regional Program Director), Andres Saturno (Technical specialist), Claudia Gomez (Marketing Manager) and Miguel Galdos (Regional Director).

 

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Recent news and highlights from around the wheat industry.

Speaking of Wheat.The wheat industry told me that they wanted better quality varieties. They needed better milling and baking properties, so we spent a lot of time working on those improvements.” – Dr. Scott Haley, Retired Project Leader, Wheat Breeding and Genetics Program, College of Agricultural Sciences, Colorado State University. Full Story.

National Pasta Association Consumer Program Relaunches to Share the Pasta.
The National Pasta Association (NPA) has re-branded consumer communications to “Share the Pasta” to “celebrate the joys of pasta and increase consumption.” NPA’s previous public outreach called “Pasta Fits” emphasized health benefits, versatility and value, attributes that will still be promoted as part of the new communications theme.

Press Release: NAWG Shares Wheat Priorities with the Biden-Harris Transition Team. The National Association of Wheat Growers (NAWG) recently sent a letter to the Biden-Harris transition team to introduce NAWG, outline pending policy issues needing immediate attention from the upcoming Administration and provided a primer on the wheat industry. Read NAWG’s release highlighting the letter here.

Sincere Sympathies to Mark Fowler, U.S. Wheat Associates (USW) Vice President of Global Technical Services, and his family on the passing of Mark’s father, Thomas Fowler, on Jan. 4, 2021.

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. Courses will explore many areas including; technical milling, mill management practices, quality control, food safety, flowsheet design, process automation and controls, process efficiencies, hard and soft wheat milling, maintenance, and much more. View the full course schedule and register here.

The January Cereal Grain Sciences Event Calendar is available online and for subscription. The calendar is compiled and updated monthly by cereal scientist and editor Dr. M. Hikmet Boyacioglu.

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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By Claire Hutchins, USW Market Analyst  

Seven months into marketing year 2020/21, USDA currently forecasts total U.S. wheat export sales will reach 26.8 million metric tons (MMT), which, if realized, would be 2% more than 2019/20 and 7% more than the 5-year average. As of Dec. 24, U.S. wheat commercial sales are 9% ahead of last year’s pace at 20.6 MMT, led by hard red winter (HRW), hard red spring (HRS) and white wheat (soft and hard).

U.S. hard red winter wheatHard Red Winter

Total HRW sales of 7.10 MMT are 3% ahead of last year and are 7% ahead of the 5-year average as significantly increased exports to Nigeria and China more than offset reduced sales to Mexico, the largest market for HRW.

Current sales to Nigeria of 758,000 metric tons (MT) are up 30% on the year due to greater export elevation capacity out of the Texas Gulf compared to other U.S. export terminals. While exporters in the Center Gulf and Pacific Northwest (PNW) have to balance massive commodity export programs, which makes it comparatively more expensive to elevate wheat, exporters in the Texas Gulf have fewer commodities and lower volumes to balance, making it easier and less expensive to elevate and ship HRW.

As of Dec. 24, China has purchased 1.12 MMT of HRW after no purchases in 2019/20. Strong HRW export sales so far in 2020/21 can be attributed to the Phase One agreement between the United States and China. So far in MY 2020/21, China is the second-largest market for HRW behind Mexico.

Export sales to Mexico are down 8% on the year at 1.65 MMT due to volatility in the value of the peso and significantly reduced restaurant demand following the COVID-19 outbreak.

U.S. hard red spring wheatHard Red Spring

Total HRS export sales of 5.78 MMT are 9% ahead of this time last year and are 4% ahead of the 5-year average. Sales to the Philippines and Japan, the top two markets for HRS, are up 5% and 6% respectively on competitive prices and increased focus on food stability following the COVID-19 outbreak, says the trade.

Export sales to China, now the third largest market for HRS, are up more than 700% on the year at 518,000 MT following the Phase One trade agreement.

U.S. soft white wheatWhite Wheat

Total U.S. white wheat sales, represented mainly by soft white (SW) wheat, are 47% ahead of this time in 2019/20 at 5.52 MMT and are 49% ahead of the 5-year average. In the Philippines, the largest market for U.S. SW, export sales are up 5% from this time last year and 29% from the 5-year average on competitive SW prices compared to other classes of U.S. wheat. The increased demand by Philippine millers is also partially due to early customer buying in response to tight export elevation capacity in the PNW. Strong U.S. Wheat Associates (USW) educational programs in the Philippines helped customers stay informed and make timely buying decisions in the first half of MY 2020/21.

SW sales to key Southeast Asian markets like Vietnam, Thailand, Malaysia and Indonesia are more than 20% ahead of last year’s pace as customers work to secure inexpensive, high quality supplies for 2020/21 delivery before the large Australian harvest comes to market.

U.S. soft red winter wheatSoft Red Winter

SRW export sales remain sluggish. Total SRW export sales are down 25% on the year at 1.57 MMT, down 28% from the 5-year average. SRW export sales to 7 of the country’s top 10 overseas markets are behind last year’s pace.

“SRW prices are just too high right now,” said one grain trader, “the United States is priced out of the world market, especially to our buyers in Latin America and Nigeria.” Limited exportable supplies of SRW along the Mississippi River due to lower planted area in key states and extremely tight export elevation capacity in the Center Gulf due to increased export demand for soybeans and corn supported SRW export prices in the first half of MY 2020/21.

Between early June and late December 2020, the average SRW free on board (FOB) price was $247/MT, 12% higher than the same period last year. According to AgriCensus, over that period, the average SRW FOB price was 11% higher than Russian 11.5% protein wheat (on a dry matter basis), a key competitor into Latin America and Nigeria.

To date, sales to Mexico and Colombia, the two largest markets for SRW, are down 10% and 26% from this time last year, respectively. Though SRW sales to Mexico are down on the year, sales of SW to Mexico are up 289% from last year at 92,000 MT as customers take advantage of the significant price difference between the two classes.

As of Dec. 24, there are no SRW export sales to Nigeria compared to last year’s volume of 171,000 MT.

U.S. durum wheatDurum

Year-to-date durum sales in 2020/21 are 25% behind last year’s pace at 590,000 MT but are 20% ahead of the 5-year average. Total sales to Italy, the largest market for U.S. durum, are only 6% behind last year’s pace at 433,000 MT, which is 63% more than the 5-year average.

 

U.S. Wheat Associates (USW) publishes a commercial sales report every week on Thursdays on it’s website.

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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 public and private wheat breeders and researchers, is fostered by hard-working farm families, is maintained by grain handlers and observed in hundreds of wholesome, nutritious wheat foods.


By Linc Thomas, Staff Writer, Colorado State University. Reprinted with Permission

Plant breeders are Promethean individuals, oftentimes sacrificing their blood, sweat, tears, money, and time for their craft. This bridge between the chasm of art and science is a task humans have participated in since the dawn of agrarian societies.

Since 1999, Scott Haley has served as the Project Leader of the Wheat Breeding and Genetics Program in the College of Agricultural Sciences at Colorado State University (CSU). In December, Haley will embark from CSU into the next chapter of his life, retirement. But not before one last accolade: Haley was recently awarded the Crop Science Research Award from the Crop Science Society of America. Only one other person from CSU has ever received it.

Haley’s work to improve Colorado wheat

Improving the performance and reputation of Colorado wheat has been a through-line for Haley since he began his work at CSU in 1999. At the time, the major insect pest in wheat production was the Russian Wheat Aphid, which he set out to combat while also addressing the general quality of the state’s wheat.

Although the significance of the Russian Wheat Aphid has declined, Scott Haley’s work to create better-quality, disease-resistant wheat varieties continued.

“The wheat industry told me that they wanted better quality varieties,” said Haley. “They needed better milling and baking properties, so we spent a lot of time working on those improvements.”

When Scott Haley arrived at CSU, 40-percent of Colorado’s wheat crop was planted with a variety called TAM 107, which had notoriously low-quality.

“When we’d have foreign buyers come in from around the world, they would ask how much TAM 107 was growing in Colorado,” said Darrell Hanavan, former executive director of the Colorado Wheat Administrative Committee (a member of U.S. Wheat Associates) and Colorado Wheat Research Foundation. “I had to tell them, and they wanted to exclude purchasing wheat from Colorado entirely. The same was true in the domestic market. The flour millers didn’t want to buy Colorado wheat because TAM 107 quality was so bad.”

TAM 107 was such a low-quality wheat variety because it was bred to be high-yielding, largely disregarding quality. Haley and his team worked diligently in his early years at CSU to identify wheat varieties that were both high-yielding and higher-quality, dispelling the commonly held perception that quality and yield cannot be put into the same variety. The release of Hatcher in 2004 was a landmark variety in this regard, as it showed significantly improved quality and roughly 10% higher yield than TAM 107.

Haley also bred a variety of wheat called Snowmass, which is a unique hard white (HW) wheat variety that is used exclusively in Ardent Mills Ultragrain High Performance Flour. Ardent Mills has praised this wheat variety, calling the wheat, “unprecedented.”

Haley was also one of four co-inventors who developed a patented non-GMO herbicide-tolerant wheat trait that is the basis of the CoAXium Wheat Production System, which is an alternative to Clearfield wheat. Currently patented in 53 countries, CoAXium wheat varieties are projected to return up to $5-million annually in royalties to further support the CSU wheat research program.

Most recently, Haley turned his attention to the Wheat Stem Sawfly, which has now become increasingly prominent in wheat production, as the presence of Wheat Stem Sawfly larvae can decrease yields up to 50%. Most wheat varieties have hollow stems, so to resist damages by the Wheat Stem Sawfly, Haley and his team developed a solid-stem wheat variety that hinders the ability of the larvae to damage wheat in the same way as if they were hollow-stemmed. The first variety of its kind released in Colorado was released in 2019 under the name “Fortify SF.”

“I think about what I do in terms of helping the farmer,” said Haley. “The farmers in these rural communities have to stay profitable, for one because our population needs the food, but if they aren’t profitable then they’ll stop farming. If we develop wheat that’s resistant to rust, then the farmer doesn’t have to apply a fungicide – because farmers don’t want to use fungicides. Let’s say fungicide costs $10 an acre, and a farm is 10,000 acres – you think the farmer wants to spend $100,000? That’s what we do as breeders: we lower the cost of production by enhancing yield and improving insect and disease resistance so the farmer can stay on the land and keep producing food.”

Scott Haley

“That’s what we do as breeders: we lower the cost of production by enhancing yield and improving insect and disease resistance so the farmer can stay on the land and keep producing food.” Dr. Scott Haley. Photo Copyright Colorado State University.

Relationship with the Colorado Wheat Industry

The Colorado wheat industry, comprised of the Colorado Wheat Administrative Committee and Colorado Wheat Research Foundation, has a strategic priority of ensuring a best-in-class wheat research program at CSU to provide Colorado producers with the best varieties designed specifically for local conditions. This unique public-private partnership between CSU and the Colorado wheat industry provides collaboration and funding for this world-class program from a combination of state and federal funds provided by the Colorado Agricultural Experiment Station (CSU AES), the Colorado Wheat Administrative Committee (CWAC), the Colorado Wheat Research Foundation (CWRF) and Ardent Mills. CWAC funding comes from a producer-approved assessment on each bushel of wheat sold, and CWRF funding comes from royalties collected on the CSU-developed wheat varieties and novel traits (i.e. non-GMO herbicide tolerance trait) which are owned and commercialized by CWRF; royalties are returned to CSU to further enhance wheat breeding and wheat-related research.

“Scott Haley has turned the Colorado wheat market from a poor-quality market into a high-quality market,” said Hanavan. “All of the varieties that are released are phenomenal quality and recognized by the domestic milling industry and the export market buyers.”

When Scott Haley took his position at CSU, the College of Agricultural Sciences was releasing one wheat variety to CWRF every two or three years. Today, 22 years later, they often release multiple new varieties each year, as the scope of the wheat breeding program has evolved. CSU-developed wheat varieties make up 80 to 90% of all wheat varieties grown in Colorado. This high level of adoption of publicly-developed wheat varieties is not seen anywhere else in the U.S.

“I feel that over the last 22 years, one of the things that I’m most proud of is the way that we’ve strengthened the relationship between CSU and the wheat industry in Colorado – and this relationship is second to none,” Haley said. “It hasn’t been only about the numbers of varieties or their adoption in Colorado, but the fact that together we built a national brand called “PlainsGold.” I was involved with the CWRF in the development of the PlainsGold brand going back over 10 years, and it was built to market the CWRF varieties which are now available from Texas to Washington and everywhere in between.”

Looking back at a legacy, and moving forward

Looking back on his time at CSU, Haley is proud of what he and his team have accomplished over the years.

“I grew up in the suburbs, far away from agriculture, and initially wanted to work in international agriculture helping subsistence farmers in developing countries. Various things changed in my personal life, and I responded by channeling my energies into trying to help wheat farmers in Colorado. I took my responsibilities very seriously, sometimes too seriously, and feel good that I gave 110% effort throughout my tenure at CSU. Together we have accomplished great things, and in that regard, I feel very proud of what we have accomplished. The other thing I’m most proud of is what I’ve done to try to help develop people, be them students or full-time researchers, that are working in the department or in the breeding program. Being a fair, supportive, and understanding project leader and mentor was very important to me, and in fact, it was just as important to me as doing right by the growers.”

The wheat breeding program at CSU will continue under the direction of Dr. Esten Mason, Associate Professor of Plant Breeding and Genetics, but the legacy of Scott Haley will live on through the relationships built with Colorado wheat growers, students, and the North American agricultural community at large.

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The U.S. Grain Chain, a farm to fork coalition of stakeholders in the grain industry chaired by the American Bakers Association (ABA), is celebrating the recommendation published Dec. 29, 2020, in the 2020-2025 Dietary Guidelines for Americans (DGAs) to “consume half of your grains from whole grain sources” and the remainder from enriched grains. A foundational piece of the DGAs, the guidelines recognize whole grains are “one of the three food groups that are fundamental constituents of a healthy dietary pattern.”

The United States Department of Agriculture (USDA) and Health and Human Services (HHS) oversee and publish the Dietary Guidelines, the cornerstone of all Federal nutrition policy and nutrition education guidelines. The guidelines shape consumer health decisions and doctor recommendations.

Of importance, the DGAs maintained the existing recommendation for the average healthy American adult to consume six one-ounce (28.4 gram) servings of grain foods daily, with half of those servings coming from whole grains.

For the first time, the DGAs included recommendations for birth to two years. The Grain Chain applauded the recognition of grains as one of the traditional, nutritious first foods for infants. Numerous research studies have demonstrated significant, positive effects of nutrient absorption, improved nutrition quality, and overall wellness from enriched grains at various life stages.

Source: www.gograins.org.

The key takeaways from the 2020-2025 Dietary Guidelines for Americans for the grains-based foods industry:

  • Grains, both enriched and whole, play a key role in healthy dietary patterns and diet quality;
  • Grains are a significant contributor of dietary fiber, a generally under-consumed nutrient for Americans;
  • Grains contribute to overall diet quality through key essential nutrients;
  • Grains are a delicious, versatile, affordable, and sustainable plant-based food;
  • Enrichment and fortification of grains are key contributors to positive public health impacts.

Since folic acid fortification of enriched grain foods became required in 1998, the prevalence of babies born with neural tube defects (NTDs) has decreased by 35% in the United States, leading the Centers for Disease Control & Prevention (CDC) to name folic acid fortification of enriched grains one of the top 10 public health achievements of the first decade of the 21st century.

The DGAs included guidance on enriched grains, maintaining the existing recommendation of three one-ounce servings of enriched grains daily. While the guidelines cite science-backed evidence of positive health outcomes from the inclusion of enriched grains, the Grain Chain is extremely concerned to see the DGAs include contradictory language linking “refined grains” with poor dietary patterns and health outcomes.

Published scientific research clearly and unequivocally illustrates the key roles of grains – both enriched and whole – in healthy dietary patterns and their significant contributions to diet quality. To clarify and correct potential consumer confusion resulting from this contradictory language, the members of the Grain Chain look forward to partnering with the USDA and HHS to help educate the public on the value of both enriched and whole grains.

Source: www.gograins.org.

More information about grains can be found at GoGrains.org.