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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “[It has been] an immense honor to represent the people of the 11th district of Texas in Congress for the past 16 years. [I am] humbled [by] witnessing the hard work of Americans to feed, clothe and fuel the world and used it to help fight for America’s farmers, ranchers and the entire agriculture industry in the decisions that affect their lives and future generations.” – Former House Agriculture Committee Chairman Michael Conaway, R-Texas, at the ceremony unveiling his official Chairman’s portrait for the House of Representatives’ art collection.

Vince Peterson Talks Trade, COVID-19 and more on Episode 195 of the “Wheat All About It!” podcast produced this week by the Washington Grain Commission (WGC). WGC Director of Communications Scott Yates talked to USW President Peterson about the Phase One China deal, the bi-lateral trade deal with Japan and the USMCA treaty. A second episode with Peterson will be posted next week. 

Grain Craft Relocates to the Kansas Wheat Innovation Center. On Sept. 10, Grain Craft announced plans to relocate its corporate laboratory to the Kansas Wheat Innovation Center in Manhattan, Kan., in 2021. The laboratory will be housed in newly finished space within the innovation center, which is located on the Kansas State University Campus. Grain Craft said the move is consistent with the company’s commitment to enhancing wheat quality as well as to flour quality and consistency and to “ongoing exploration of innovation activities.” Read the full announcement here.

Idaho Wheat Commission (IWC) Plans New HQ. The IWC plans to replace the building it owns near the state Capitol building in downtown Boise. The commission since 2003 has owned a 7,500-square-foot building with a partial second story. IWC aims to construct a three-story, 27,300-square-foot building that it hopes to be a central hub for many of the state’s agricultural organizations. Former USW colleague Casey Chumrau is the IWC Executive Director. Read more here.

Golden State Grains Community. The California Wheat Commission (CWC) is the prime mover behind a new “Golden State Grains” online community of participants in California’s grain economy. Golden State Grains is designed to be an innovative and sustainable marketplace for California grown and processed grain. In addition, this web tool is intended to bring all participants together to support production practices that improve the environment, increase profitability and sustainability, and provide food that improves human health. Find out more about Golden State Grains here.

NAWG Leads on Science Behind Glyphosate. Writing in a recent edition of “Agri-Pulse,” National Association of Wheat Growers (NAWG) President Dave Milligan detailed the effort of NAWG and top agricultural groups across the country to fight an unjustified California law that would have forced food manufacturers to put a warning label on products made from agricultural products that may have been treated with the herbicide glyphosate. NAWG and the other organizations cited the risk to the national agricultural economy and sustainable wheat production that would result from the loss of glyphosate as a valuable farming tool, as well as confusion among consumers when glyphosate has undergone decades of regulatory and safety review.

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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Deadly Wildfires, Smoky Air Has Not Interrupted U.S. Wheat Exports

By Michael Anderson, USW Assistant Director, West Coast Office

For the past several days, many wildfires across the western United States have left devastating damage and loss of life. Across the Pacific Northwest. Unusually high winds on Sept. 7 dramatically expanded the fires in Washington state and Oregon. While many of the fires have been contained, the smoke has caused dangerously high levels of air pollution over the entire region.

Despite the choking smoke and destructive force of the blazes, damage to the U.S. wheat crop and infrastructure has been limited. Export facilities and wheat export logistics are still operating as usual. The export facilities in the Columbia River system continue to operate normally and without delay.

Smoke from massive wildfires obscures the familiar view of a vessel being loaded across the Willamette River from USW’s West Coast Office in Portland, Ore.

 

While there were no delays in vessel loading, sadly, fires in Eastern Washington state ignited recently harvested wheat piles next to the Pine City Grain Elevator south of Spokane. Rural communities in both Washington and Oregon have been heavily impacted. Some wheat fields in both Oregon and Washington received some low-level fire damage but much of the crop was already harvested. Far worse, the fires have killed many people.

Low visibility has caused barges to limit the amount of wheat they can carry west to Portland, but the barge companies are accustomed to such hazards as limited visibility caused by fog is common in the Pacific Northwest.

Smoke is expected to continue expanding east across the continent with haze reported as far east as New York, N.Y., and the Arlington, Va., headquarters of U.S. Wheat Associates (USW) nearly 3,000 miles away.

Everyone at USW shares concerns about the people who grow and deliver U.S. wheat and our colleagues in the Pacific Northwest. A change in the weather pattern that will help end this natural disaster is very much needed.

Photo at top by Bongil Lee.

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2020 Global Wheat Harvest Update

By Claire Hutchins, U.S. Wheat Associates Market Analyst

As the 2020 wheat harvest nears its end in the Northern Hemisphere, U.S. Wheat Associates (USW) surveyed industry sources to assess the global harvest situation.

United States. The 2020 U.S. hard red winter (HRW) and soft red winter (SRW) harvests are officially complete and preparations for the 2021 crop are now underway. The Pacific Northwest (PNW) soft white (SW) harvest made strong progress last week on favorable field conditions. Farmers in Washington have harvested 95% of the expected SW crop. Idaho’s SW crop is 99% harvested and Oregon’s SW harvest is now complete.

Warmer weather next week is expected to push spring wheat harvest nearly to its end across the Northern Plains.

USDA forecasts U.S. wheat production in 2020/21 will total 50.0 million metric tons (MMT), down 4 percent from last year on reduced planted area and lower average yields. Total U.S. wheat exports are expected to reach 26.5 MMT, up 1 percent from last year and 5 percent more than the 5-year average, if realized.

Click here to read more about the 2020 U.S. wheat harvest.

Canada. Canada is set to reach its second-highest level of wheat production in more than a century.

“The projected increase in wheat area is largely attributable to the durum wheat and winter wheat area remaining after winterkill, which offset the decrease in spring wheat area,” said Statistics Canada (Statscan) on Aug. 31.

USDA expects total Canadian wheat production will reach 36.0 MMT, up 11 percent from last year and 16 percent more than the 5-year average. Total wheat harvested area at 9.9 million hectares (24.5 million acres), is up 2 percent from last year and 5 percent more than the 5-year average.

In Saskatchewan, Canada’s largest wheat producing province, as of Sept. 8, official data showed 32 percent of spring wheat in the bin, the durum harvest at 62 percent complete and winter wheat at 99 percent harvested.

In Alberta, the second-largest wheat producing province in Canada, as of Sept. 8, spring wheat is 13 percent harvested, durum is 58 percent complete and winter wheat is 92 percent harvested. Recent frosts have been reported, but it is too early to determine if there was any crop damage as a result, said Alberta’s Department of Agriculture and Forestry.

This year, USDA forecasts total Canadian wheat exports will reach 25.0 MMT, the highest in more than 10 years.

Russia. According the Russia’s Ministry of Agriculture, Russian farmers have harvested 78.8 MMT of wheat as of Sept. 9, 24% more than this time last year. The average yield is up slightly this year at 48.0 bu/acre (3.23 MT/ha). Increased harvested area is expected to augment increased average yields. USDA predicts Russian wheat harvested area will jump 4 percent from last year to 28.3 million hectares (69.9 million acres), 6 percent more than the 5-year average. SovEcon, a Russian agriculture consultancy, increased the country’s wheat production forecast from 82.6 MMT last month to 83.3 MMT on Sept. 10.

USDA’s estimate for Russian wheat output differs from SovEcon’s report. USDA did not change its forecast of 78.0 MMT in 2020, unchanged from the August forecast, but 6 percent more than last year, if realized. USDA forecasts Russian wheat exports in 2020/21 will reach 37.5 MMT, up 9 percent from last year and 14 percent more than the 5-year average.

Ukraine’s 2020 wheat harvest ended on Sept. 7. The country’s Ministry of Agriculture reported final production at 26.9 MMT, in line with USDA’s estimate, and down 7 percent on the year as continued dryness through the growing season challenged average yields. A 3 percent decrease in harvested area from last year, at 6.80 million hectares (16.8 million acres), pressured overall production. USDA predicts total Ukrainian wheat exports will total 18.0 MMT in 2019/20, down 14 percent from last year’s record, but in line with the 5-year average, if realized.

European Union (EU). According to Stratégie Grains (SG), a European agriculture consultancy, estimated soft (non-durum) wheat production in the EU (including the United Kingdom) decreased by more than 2.0 MMT between July and August to 128 MMT.

“With the harvest ending in France and poor results in southeastern Europe, new reductions to growing areas in France and Germany accentuated the forecasted decline. Soft wheat production has therefore fallen by almost 20.0 MMT, or 13 percent, from last year,” said SG.

Poor planting conditions in the fall of 2019 followed by an extremely warm, dry growing season challenged soft wheat production in the EU’s two largest producing countries, France and Germany. According to USDA, total EU wheat harvested area is expected to fall 5 percent from last year to 24.7 million hectares (61.0 million acres), down 6 percent from the 5-year average, if realized. The total wheat average yield is expected to drop 7 percent from last year to 82.0 bu/acre (5.51 MT/hectare), down 3 percent from the 5-year average.

SG estimates that total EU durum production will fall slightly below last year to 7.30 MMT. USDA predicts total EU wheat production, including soft wheat and durum, will fall to 136 MMT, 12 percent less than last year, 9 percent below the 5-year average and the lowest output since 2012/13.

European Commission (EC) data shows that, so far in marketing year 2020/21, the EU and the United Kingdom have exported 3.60 MMT of wheat to all non-EU destinations. That is 41 percent behind their export pace this time last year. USDA forecasts the EU will export just 25.5 MMT of wheat this marketing year, 34 percent less than last year and 13 percent less than the 5-year average.

USW will continue to monitor global conditions as farmers in the Northern Hemisphere start the 2021 winter wheat planting campaign.

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2020 Soft Red Winter Crop Will Please Buyers and End Users

The world’s wheat buyers should be extremely happy with the quality of the entire 2020 U.S. soft red winter (SRW) crop. This year’s composite characteristics for East Coast supplies are very good with pockets of higher enzymatic activity (lower falling number) and Gulf Port supplies offer uniformly excellent characteristics.

U.S. Wheat Associates (USW) has posted the full Soft Red Winter Wheat 2020 Quality Survey on its website here.

USDA estimates the 2020 SRW seeded area at 5.63 million acres (2.28 million hectares), up slightly from 2019 but less than the 5-year average. After generally good growing conditions, harvest ended in some areas ahead of the five-year pace. Total SRW production, estimated at 277 million bushels or 7.54 million metric tons (MMT), is up 15% from 2019 but below the five-year average of 304 million bushels (8.28 MMT).

Great Plains Analytical Laboratory, Kansas City, Mo., collected and analyzed 191 samples from elevators in 18 reporting areas across 11 states. The number of samples collected this year is significantly less than in 2019 because of COVID-19 pandemic restrictions at country elevators. Test weight, moisture, protein, thousand kernel weight, wheat ash, falling number and DON were determined on individual samples; the remaining tests were determined on 18 composite samples.

Here are highlights of data from this very good, 2020 SRW wheat crop.

Wheat and Grade Data: 

  • Grade – the overall average is U.S. No. 2 SRW.
  • Test Weight for the Gulf Port average of 59.8 lb/bu (78.7 kg/hl) and East Coast test weight average of 59.3 lb/bu (78.0 kg/hl) are both higher than 2019 and 5-year averages.
  • Total Defects for the East Coast average of 1.5% is lower than last year but above the 5-year average. The Gulf Port average is 0.6%, significantly lower than 2019 and 5-year averages.
  • Dockage and moisture for both regions are lower than last year and 5-year average values.
  • Wheat Protein content for the Composite average of 9.4% (12% mb) is lower than last year and the 5-year average. The Gulf Port protein average of 9.4% is equal to 2019 but slightly below the 5-year average. The East Coast average of 9.4% is significantly below the 2019 and 5-year average.
  • Wheat Falling Number – The Gulf Port falling number averages are higher this year and indicate a sound crop. The East Coast average is equal to last year but lower than the 5-year average.
  • Vomitoxin (DON) averages for Composite (0.5. ppm), East Coast (0.2 ppm) and Gulf Port (0.6 ppm) are significantly below 2019 and 5-year averages, indicating that the crop sampled is relatively free of DON.

Flour and Baking Data: 

  • Laboratory Mill Flour Extraction for Composite (66.8%), East Coast (67.0%) and Gulf Port (66.7%) are below 2019 and the 5-year averages.
  • Dough properties – data suggest this crop has stronger protein qualities than last year; slightly less extensible and more resistant.
  • Farinograph peak and absorption values are similar to 5-year averages, but the stability values are all below the 5-year averages.
  • Alveograph L averages for Composite (78), East Coast (75) and Gulf Port (78) are lower than last year and the 5-year average and indicate low extensibility.
  • Amylograph Gulf Port average of 760 BU is significantly higher than last year and the 5-year average. The East Coast average of 322 BU indicates relatively high levels of amylase activity in the crop and is consistent with low falling numbers.
  • Solvent Retention Capacity (SRC) values generally indicate excellent quality for cookies, cakes, pretzels and crackers; sucrose values in particular indicate good performance.
  • Cookie spread ratios for Composite (10.2), East Coast (9.7) and Gulf Port (10.3) are all higher than last year and the 5-year averages, indicating good spreadability.
  • Loaf volume averages are significantly lower than last year and the 5-year averages, as the dough is relatively more resistant/less extensive

Buyers are encouraged to review their quality specifications to ensure that their purchases meet their expectations.

View other summaries of the 2020 U.S. wheat crop:
Hard Red Winter 
Hard Red Spring
Hard White
Soft White
Durum

View the full 2020 U.S. Crop Quality Report and other related resources here.

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Dependable People: A Spotlight on the South Dakota Wheat Commission

For 40 years, U.S. wheat farmers have supported U.S. Wheat Associates’ (USW) efforts to work directly with buyers and promote their six classes of wheat. Their contributions to state wheat commissions, who in turn contribute a portion of those funds to USW, qualifies USW to apply for export market development funds managed by USDA’s Foreign Agricultural Service. Currently, 17 state wheat commissions are USW members and this series highlights those partnerships and the work being done state-by-state to provide unmatched service. Behind the world’s most reliable supply of wheat are the world’s most dependable people – and that includes our state wheat commissions.

Member: South Dakota Wheat Commission
Member of USW since 1980

Location: Pierre, S.Dak.
Classes of wheat grown: Hard Red Winter (HRW) and Hard Red Spring (HRS)
USW Leadership: Milo Schanzenbach, 1983/84; Stanley Porch, 1994/95; Darrell Davis, 2012/13.

The South Dakota Wheat Commission (SDWC) was established in 1961 when the legislature passed the South Dakota Wheat Resources Act declaring it “the public policy of the state of South Dakota, by protecting and stabilizing the wheat industry and the economy of the areas producing wheat.” Its mission “to stabilize and improve South Dakota’s wheat industry through research, market development and education,” has grown the footprint of South Dakota wheat to over 100 countries around the world. Research has allowed farmers to produce high-quality, high yielding wheat that has enhanced the overall appeal of wheat grown in the Great Plains state.

Darrell Davis, 2012/13 USW Chairman and South Dakota wheat farmer at the 2012 USW Summer Board Meeting.

Why is export market development important to South Dakota wheat farmers and why do they continue to support USW and its activities?

South Dakota is historically the sixth largest U.S. wheat producing state. Production is nearly equally split between U.S. HRW and HRS wheat. Unfortunately, despite its production size, there are no flour mills in South Dakota, so every bushel of wheat produced must leave the state. The final destination of the wheat varies between domestic and global markets. Without a strong global market for high quality milling wheat, South Dakota wheat farmers would lack the competition that is necessary to also enhance the value of domestic sales. Collaboration with other wheat producing states, through a USW membership, greatly strengthens South Dakota’s global promotion and export opportunities.

2015 USW Nigerian Trade Delegation visit to South Dakota.

 

2019 Taiwan Goodwill Mission visiting South Dakota.

How have South Dakota wheat farmers recently connected with overseas customers?

South Dakota wheat farmers enjoyed hosting the Taiwan Flour Mills Association Goodwill Mission in 2019. It was a pleasure to once again jointly sign a Letter of Intent that confirms their desire for the procurement of high milling quality, U.S. wheat. A special fellowship develops in the opportunity to connect outstanding wheat farmers with outstanding global wheat customers. When health precautions prevented the visit of a Sub-Saharan Africa trade delegation to South Dakota in 2020, that opportunity for information exchange and a face-to-face experience was repackaged into a virtual visit. The virtual format provided exposure to an even larger group of customers than might be included in a normal trade delegation visit.

Ralph Bean, Agricultural Counselor, USDA Foreign Agricultural Service, U.S. Embassy Manila (far right), met with farmers from South Dakota, North Dakota and Montana during their trip to South Asia as a part of the 2017 USW Board team. Pictured second from the right is Clint Vanneman, South Dakota wheat farmer. The farmers were guests of honor at the 9th International Exhibition on Bakery, Confectionary and Foodservice Equipment and Supplies, known as “Bakery Fair 2017,” hosted by the Filipino-Chinese Bakery Association Inc.

 

1994/95 USW Chairman and South Dakota wheat farmer Stanley Porch (far left) hosted the 2015 USW Nigerian Trade Delegation on his farm and is pictured here with past USW Cape Town and Lagos staff, Gerald Theus (middle left) and Muyiwa Talabi (middle right), as well as 2012/13 USW Chairman and South Dakota wheat farmer Darrell Davis (far right).

What is happening lately in South Dakota that overseas customers should know about?

Recent wet climatic conditions have reduced the wheat acres seeded across South Dakota in recent years. Although acres were reduced, the 2020 harvest was phenomenal! A new state record was established for HRW wheat. Harvest results consistently revealed high yielding fields with desirable test weight and protein. Throughout the season, the wheat had strong straw strength with extremely limited disease challenges. Results from the 2020 HRS wheat harvest also showed strong yields, test weight and protein with limited disease challenges. The exceptional wheat harvested in South Dakota in 2020 will produce equally exceptional milling potential for our customers!

Learn more about the South Dakota Wheat Commission on its website here and on Facebook and Twitter.

 

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “Every month, the top leaders of [NAWG and USW] … discuss our shared priorities. I feel both organizations are realizing more and more that when we work together, we are able to move the wheat industry forward and make it prosperous.” – Dave Milligan, 2020/21 President of the National Association of Wheat Growers and a wheat farmer from Cass City, Mich. Read more.

Congratulations. We are fortunate to have devoted, loyal colleagues at U.S. Wheat Associates (USW). This month, Ian Flagg is celebrating 15 years with the organization. Ian is the Regional Vice President for the European, Middle Eastern and North African Regions and is based in the USW Rotterdam Office. Thank you, Ian, for your service to our organization, U.S. wheat farmers and our customers.

Farmer Concerns About Climate Change. A 2020 study for Syngenta by IPSOS Mori found that 72% of large-scale farmers in the United States, France, China, Brazil, India and across Africa are worried about the impact climate change will have on crop yields, animal health and their ability to do business over the next five years. Globally, two-thirds (63%) of large farmers surveyed say they have already taken actions to reduce their greenhouse gas emissions – and two-thirds would like to take (more) action in the next 12 months. Read more here.

U.S. Farmers More Optimistic. According to the Purdue University-CME Group Ag Economy Barometer, U.S. farmers surveyed in mid-August were more optimistic about farmland values in the short and long term and about trade prospects. The sponsoring organizations cite the expectation of excellent crop yields and a rally in agricultural commodity prices for the more optimistic sentiments among the farmers they surveyed.

SHP to Host “Wheat Week” Series of Virtual Field Days

U.S. wheat farmers will share their challenges and goals for soil health on their operation during virtual field days Sept. 8 to 10, 2020, sponsored by the Soil Health Partnership (SHP). Farmers who partner with SHP will show participants their field trials Sept. 9 and 10. Click here for more details and to register.

Impact of COVID-19 on World Agricultural Trade. The World Trade Organization (WTO) Secretariat has published a new report noting that agricultural trade has fared better than other sectors during the pandemic, and that initial measures focused on guaranteeing the immediate availability of food have been followed by a second phase of policies seeking to mend broken supply chains and help producers to cope with the “new normal” situation. Read the report here.

Central Plains Farmers Try Spring Wheat. For many growers in Nebraska and Kansas, dryland rotation does help hold moisture and fight weed pressure, but it also leaves an entire year between corn harvest and winter wheat planting. That’s why some growers in the area are experimenting with hard red spring wheat, which is currently grown in the northern plains. Read more about this interesting opportunity for farmers in this article from Nebraska Farmer magazine.

Wheat Foods Council Videos Prove Popular. During the pandemic, the U.S. based Wheat Foods Council pivoted from presentations and exhibits to short, educational videos about health and nutrition targeting “personal trainers” who increasingly influence food choices. This week, WFC shared the news that those videos have now surpassed 1 million views. See the work for yourselves at the WFC YouTube channel, the WFC website or the Center for Nutrition and Athletics website.

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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Inland grain elevator with grain rail cars to help demonstrate rail rates.
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Secondary Rail Rates, Tight Elevation Capacity Continue to Support Wheat Export Prices

By Claire Hutchins, U.S. Wheat Associates Market Analyst

Gulf and Pacific Northwest (PNW) hard red spring (HRS) and hard red winter (HRW) basis values have jumped significantly in the last month due to increased domestic secondary rail rates and limited export elevation capacity, both driven by stronger-than-expected U.S. agricultural export sales to China.

It is important for overseas wheat buyers to understand the potentially significant impact of price movement in the domestic secondary rail market on export prices.

U.S. railroads auction domestic freight in the “primary railcar auction market.” Grain shippers can meet their need for rail capacity by trading this freight among themselves in the secondary railcar auction market at prices above or below the primary tariff rate, depending on national supply and demand conditions. According to the USDA Agricultural Marketing Service (AMS), the secondary railcar market evolved to enable rail movements of grain to be more responsive to market pressures, like increased commodity exports or reduced railcar availability.

This year, AMS data show the average secondary rate for shuttle trains to be delivered in October was up 36 percent between July 30 and Aug. 20 to $1,172/car, nearly three times greater than the previous 3-year average.

Over the same period, Gulf HRS 14.0 (12% moisture basis) export basis increased 16 percent to $2.20/bu, PNW HRS 14.0 export basis increased 21 percent to $2.00/bu. Gulf HRW 12.0 export basis increased 11 percent to $1.95/bu and PNW HRW 12.0 increased 24 percent to $2.55/bu.

According to U.S. grain traders, the unexpectedly swift pace of agricultural commodity exports to China and rail labor shortages due to COVID-19 furloughs are supporting secondary rates and, in turn, wheat export basis levels.

“If rail logistics through October, November and December run smoothly, we could see secondary rail rates plateau,” said one grain trader. “But if things go wrong in terms of weather or continued labor shortages, we could see more upside to secondary rail rates in the near future.”

Limited export elevation capacity out of the Gulf and PNW due to the swift uptick in Chinese demand for U.S. agricultural goods continues to add support to wheat export basis values.

“September and October are at capacity; we can’t add a lot more business for those months. If anyone were to sell anything for delivery in those periods, it would raise elevation costs substantially,” said another grain trader. Additionally, export elevators are going to charge more to elevate wheat in the next couple of months because they expect to store more corn and beans at that time of year. It is more complex and expensive for export elevators to handle multiple commodities at the same time, said a representative from the U.S. grain trade.

Soybeans. “A lot of customers are surprised by the fact that export capacity is filling up so quickly with soybeans,” said a U.S. grain trader. The reason, however, is no surprise: China’s dramatic increase in U.S. soybean purchases this year compared to previous years. According to USDA, China bought 17.0 million metric tons (MMT) of U.S. soybeans for delivery in the soybean marketing year 2019/20, which ended Aug. 31. That is 21 percent more than the 14.1 MMT China purchased for delivery in marketing year 2018/19.

Corn.  Export sales to China for marketing year 2019/20, at 2.24 MMT, are more than five times greater than the amount sold in 2018/19.

Wheat. It is no secret China has re-emerged as a buyer of U.S. wheat in a big way. According to USDA, as of Aug. 20, total U.S. wheat export sales to China total 1.22 MMT, for delivery in the current wheat marketing year. magnitudes greater than the 60,500 metric tons (MT) sold this time last year. China is currently the second largest market for U.S. wheat in marketing year 2020/21, which started June 1.

“If China wants to purchase more U.S. wheat for October, November and December deliveries, we could see export basis levels go higher in the near future,” said an industry contact.

 

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A Legacy of Commitment – NAWG, USW Lead the Way Through Issues Affecting Wheat Farmers

Research by USW Communications Intern Dylan Davidson

U.S. farmers working hard to produce six distinct, high-quality classes of wheat must manage a multitude of risks to put bread on tables at home and across the globe. Beyond the agronomic and economic challenges, the decisions and policies of the U.S. government and international trade policy have affected wheat farm families for decades.

In April 1950, Clifford R. Hope was a U.S. Congressman from Garden City, Kan. He told wheat farmer leaders that “there are many questions that come before Congress that need answering by wheat-oriented people.” He was speaking to farmers meeting in Kansas City, Mo., who would go on to create the National Association of Wheat Growers (NAWG) to represent the interests of wheat farmers with members of Congress. After leaving Congress, Hope was hired as the first president of Great Plains Wheat.

As U.S. wheat stocks piled up, the government created federally managed grain reserves and in 1954, with support from NAWG and state wheat associations, the U.S. Congress passed Public Law (PL) 480 to help expand exports of surplus agricultural products. This was a huge incentive to form commissions and, by 1960, to create Great Plains Wheat and Western Wheat Associates to promote U.S. wheat in designated countries under PL 480 and other commercial overseas markets. The final details of the merger that created U.S. Wheat Associates (USW) were developed on the sidelines of a NAWG conference in 1980.

Celebrating Together. Representatives of NAWG and the Kansas Association of Wheat Growers participated in the January 1959 opening of the first European office of Great Plains Wheat. At the office in Rotterdam, left to right: KAWG Vice President Ora Root of Garden City, Kan.; NAWG President Floyd Root, Wasco, Ore.; USDA/FAS Assistant Agricultural Attache Henry Baehr; and GPW/Rotterdam Director Harvey E. Bross.

In many ways, NAWG and USW have grown up together. In coalition with its state wheat associations, NAWG lobbies Capitol Hill and the Administration on behalf of U.S. wheat growers. USW works to develop and maintain export markets.  While their missions are different, they share a goal to work for the common good of U.S. wheat farm families.

Essential Organizations

“This is a positive relationship where each organization’s role helps the other,” said NAWG CEO Chandler Goule. “For instance, NAWG is able to lobby to Congress in an effort to create policies that improve the livelihoods of wheat farmers. USW cannot lobby members of Congress but does have the capabilities to promote wheat abroad, creating international markets where U.S. wheat farmers sell their crops. Both organizations are essential.”

As the wheat industry continued to develop domestically and abroad, both organizations continued evolving to meet farmer needs. As with any long-term partnership, the relationship at times proved challenging. Yet with the positive influence of the farmers who fund and direct each organization, NAWG and USW have worked through any issues to work more closely in representing the U.S. wheat industry.

“Working together means we can share resources and provide a better voice for our farmers and our customers abroad,” said Ron Suppes, Dighton, Kan., wheat farmers and the 2007/08 USW Chairman.

Kansans Ron Suppes (above, testifying on Capitol Hill on the crucial role of wheat in food aid programs) and John Thaemert established joint board meetings when they were leading USW and NAWG in 2007/08.

Meeting Together

As USW Chairman, Suppes worked with fellow Kansan and NAWG President John Thaemert to establish joint board meetings of the two organizations. Today, that effort has evolved into two joint board meetings each year and joint committees that evaluate and propose policies that cross over both U.S. government oversight and the NAWG and USW missions, such as trade policy, wheat breeding innovation, food aid and wheat quality.

Each committee includes four members of each organization and a chairman. The chairmanship of each committee rotates annually between the USW and NAWG to promote equal representation for each organization.

The Joint USW/NAWG International Trade Committee meets together two times each year to review trade policies that affect U.S. wheat farmers and their overseas customers.

“The committees are critical for both organizations,” said USW President Vince Peterson. “They really get into the details of policy issues and it is where some of the main collaboration between the two organizations happen.”

In Kenya, November 2019, representatives of NAWG and USW visited a refugee camp to observe direct donations of U.S. wheat by the World Food Programme. U.S. rice and sorghum organizations also participated in the visit to Kenya and Tanzania.

Policies developed in these joint committees and working groups are reviewed and approved by each organization’s full board of directors. Often, these policy positions are shared publicly through joint statements shared with domestic and international media, such as on trade agreements and wheat breeding innovation.

In addition, “every month, the top leaders of each organization get on a call to discuss our shared priorities,” said Dave Milligan, a wheat farmer from Cass City, Mich., and current President of NAWG. “I feel both organizations are realizing more and more that when we work together, we are able to move the wheat industry forward and make it prosperous.”

NAWG President Dave Milligan, a wheat farmer from Cass City, Mich.

“With shared trade issues, technological changes and economic stresses, there has never been a more important time for all wheat farmers in the country to work together,” said Darren Padget, a wheat farmer from Grass Valley, Ore., and current USW Chairman. “I am glad that our two organizations continue to lead the way, together.”

USW Chairman Darren Padget, a wheat farmer from Grass Valley, Ore.

 

Then NAWG President Wayne Hurst (center,  just right of Pres. Obama) and then USW Chairman Randy Suess (just right of Hurst) represented wheat growers at a reception celebrating the signing of the Trade Adjustment Assistance (TAA) for workers, and the Korea, Panama and Colombia Free Trade Agreements, in the Rose Garden of the White House, Oct. 21, 2011. Official White House Photo by Pete Souza.

 

NAWG President Ben Scholz (standing left) and USW President Vince Peterson (2nd from left) represented wheat farmers at the formal signing of the U.S.-Japan Trade Agreement Oct. 7, 2019, as President Donald Trump and other representatives watch U.S. Trade Representative Ambassador Robert Lighthizer and Japanese Ambassador to the U.S., Shinsuke Sugiyama, do the honors. Official White House photo.

Read other stories in this series:

Western Wheat Associates Develops Asian Markets
Great Plains Wheat Focused on Improving Quality and HRW Markets
Evolution of a Public-Private Partnership
The U.S. Wheat Export Public-Private Partnership Today

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Dependable People: A Spotlight on the Colorado Wheat Administrative Committee

For 40 years, U.S. wheat farmers have supported U.S. Wheat Associates’ (USW) efforts to work directly with buyers and promote their six classes of wheat. Their contributions to state wheat commissions, who in turn contribute a portion of those funds to USW, qualifies USW to apply for export market development funds managed by USDA’s Foreign Agricultural Service. Currently, 17 state wheat commissions are USW members and this series highlights those partnerships and the work being done state-by-state to provide unmatched service. Behind the world’s most reliable supply of wheat are the world’s most dependable people – and that includes our state wheat commissions.

Member: Colorado Wheat Administrative Committee
Member of USW since 1980

Location: Fort Collins, Colo.
Classes of wheat grown: Hard Red Winter (HRW) and Hard White (HW)
USW Leadership: Harrell Ridley, 1982/83; Ray Selbe, 1991/92

The Centennial State has a proud history of wheat farming that goes back to the state’s formation in 1876. Despite the rough topography and arid climate that Colorado is famous for, wheat is grown in more than 40 of its 64 counties, with more than two million acres of wheat on average planted in Colorado each year. The Colorado Wheat Administrative Committee (CWAC) is a producer-elected board whose goal is to help wheat farmers in the state produce, develop, maintain and increase domestic and export sales, consumption and utilization of Colorado Wheat, while also supporting education, research and promotional programs.

The Colorado Wheat Administrative Committee Board takes a picture before taking a tour of the National Laboratory for Genetic Resources Preservation in Fort Collins, CO.

Why is export market development important to Colorado wheat farmers and why do they continue to support USW and its activities?

Roughly 80 percent of Colorado’s wheat crop is exported, and as one of Colorado’s top ranked exports, it averages $234 million in value each year, second only to beef exports. Hard red winter (HRW) and hard white (HW) wheat produced in Colorado is sought after in many of the world’s major wheat markets, including Mexico, Japan, Southeast Asia and Africa. This makes developing overseas markets a top priority. Colorado wheat farmers are devoted to producing a high-quality product for millers and bakers around the world. They recognize the value brought by USW staff living and working in these areas, promoting the quality of Colorado and U.S. wheat to these competitive markets.

Steve Beedy (R) on a USW board team trip to Asia in 2012.

How have Colorado wheat farmers recently connected with overseas customers?

Over the years, Colorado has hosted several USW trade delegations and has also sent several of its board members overseas. In the last nine years, Colorado has focused more on funding improved quality characteristics in public varieties than on trade missions, but we have continued to connect with overseas customers through representation by the USW overseas offices and continued board member involvement at national meetings. Most recently, CWAC Executive Director Brad Erker, took part in a virtual crop quality seminar with Chilean flour millers. During the seminar, he discussed the production conditions and quality of the U.S. HRW crop.

What is happening lately in Colorado that overseas customers should know about?

Colorado wheat farmers help fund the public wheat breeding program at Colorado State University (CSU) through a two cent per bushel assessment. Thanks to the help from Colorado farmers, the CSU wheat breeding program has built a reputation for success. The program has focused on developing varieties that not only are adapted to Colorado’s unique growing conditions, but also have excellent end use quality to meet the needs of millers and bakers. Varieties developed help with common issues the Colorado wheat farmer often faces. The Colorado Wheat Research Foundation (CWRF) and CWAC funded development of the CoAXium Wheat Production System, which helps farmers control winter annual grassy weeds in their fields and reduce dockage factors. The CWRF is licensing the technology to other breeding partners to help the entire production system be more efficient. The foundation also helped develop HW varieties with low polyphenol oxidase (PPO), which reduces browning in baked goods, a benefit in whole grain applications. A lot of attention is now turning to development of semi-solid varieties that resist the wheat stem sawfly, an emerging and devastating pest. Better genetic resistance to wheat stem sawfly will help Colorado farmers continue producing some of the highest quality wheat for customers around the world.

Learn more about the Colorado Wheat Administrative Committee on its website here and on Facebook and Twitter.

The CSU Wheat Breading team planting plots at the Agricultural Research, Development and Education Center (ARDEC) outside of Fort Collins, CO.

 

 

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USW Demonstrates Hard Red Winter Wheat Performance to Chinese Customers

Chinese trading concern COFCO, as part of a commitment to purchase U.S. farm products, for the first time in recent history purchased hard red winter (HRW) wheat in marketing years 2019/20 and 2020/21. COFCO has purchased about 672,000 metric tons (MT) of HRW for immediate sale to Chinese flour mills.

On behalf of the farmers we represent, U.S. Wheat Associates (USW) helps buyers and end users make the best use possible of U.S. wheat. Because HRW has not been commonly used in China, the USW team in China decided to sample and test the wheat purchased to demonstrate the usefulness of this versatile class.

A representative sample of HRW for the study came directly from a COFCO shipment taken at a port in southern China’s Guangdong Province.

Thoughtful Test Design

USW Technical Specialist Dr. Ting Liu thoughtfully designed the study. After referring to some customer inquiries and previous studies done on HRW for various regional markets, Dr. Liu and USW Country Director Shirley Lu selected several end use applications to test using different flour blends with HRW that could be measured for performance against locally produced control flours.

The USW team worked closely with local flour mills and the Sino-American Baking School (SABS) in Guangzhou to mill the HRW sample on a Buhler laboratory mill. They analysed the characteristics of single HRW flour and blends with flour from U.S. hard red spring (HRS) and soft white (SW) wheat. Nine end products were produced and tested, including pan and sweet breads, sweet rolls, hamburger buns, baguettes, croissants, pizza dough, noodles and steamed breads.

“After some very intensive work in the test bakery, the hard red winter single flour and blends cooperated so well our team decided to run some tests twice to confirm the stellar results they observed,” said USW Regional Vice President for China and Taiwan Jeff Coey.

Sharing Results

On Aug. 14, 2020, USW conducted an online presentation to share the test results with an estimated 200 contacts from China’s mills and wheat trading organizations. The presentation focused on measured HRW wheat and flour quality, along with results of the baking tests. USW also shared typical HRW quality data from the 2019/20 crop and initial information on conditions of the 2020/21 crop.

In opening remarks to the participants, Coey said “in terms of end use quality, I want to advise you to consider U.S. hard red winter a very reliable medium- to high-gluten strength wheat that should perform well for you in a variety of your most demanding applications.”

Sharing photos and data from end products produced with single and blended flours, USW Beijing colleagues informed Chinese customers about the excellent performance of U.S. HRW in an Aug. 14 webinar.

The USW Beijing team greatly appreciates the cooperation of: COFCO for the chance to sample an actual HRW shipment; the Wheat Marketing Center, Portland, Ore., for data from their previous work on pizza dough and noodle results; the SABS staff who helped USW conduct its tests before its regular course schedule started; and several Chinese flour mills who allowed USW to use their instrumentation to help complete the testing.

Additional specific results or the tests are available from the USW Beijing office and the regional USW office in Hong Kong.

 

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Think Farm Export Programs Don’t Matter? Think Again.

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