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Tight Exportable Supplies, Elevation Capacity Prop Up SRW Export Prices

By Claire Hutchins, USW Market Analyst

The inverted spread in export prices for U.S. soft red winter (SRW) and hard red winter (HRW) that has appeared occasionally recently settled into the market in early July. What is happening to fuel this situation?

First, there are limited exportable supplies of SRW along the Mississippi River due to lower planted area in key states. That lower supply of SRW is also competing for export elevation capacity in the Center Gulf with increased export demand for soybeans and corn. U.S. Wheat Associates (USW) believes these two factors could continue to support Gulf SRW export prices in the coming weeks.

Source: USW weekly Price Report

Between June 26 and July 17, Gulf SRW free on board (FOB) prices increased 16 percent to $239/MT.

With planted area down 13 percent and 12 percent in two key SRW-producing states, Illinois and Missouri, respectively, the recent harvest did little to improve exportable supplies of SRW. The SRW harvest in states tributary to the Mississippi River feeding into Center Gulf export terminals, was “a flash in the pan” said one grain exporter.

“We don’t have abundant supplies up and down the Mississippi River and rail rates are just too high for it to make sense to pull SRW supplies inland from the Midwestern states,” said another trader.

A swift uptick in export demand for U.S. soybeans and corn is limiting export elevation capacity out of the Center Gulf, which adds support to nearby Gulf SRW export prices. According to U.S. grain traders, customers may have difficulty finding export capacity for “grocery boats” (vessels containing multiple commodities or multiple classes of wheat) out of the Center Gulf for nearby deliveries which supports SRW export prices.

Soybeans. “A lot of customers are surprised by the fact that export capacity is filling up so quickly with soybeans,” said one industry contact. 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 1.49 million metric tons (MMT) of U.S. soybeans between May 28 and July 9 for delivery in 2019/20. That is nearly 35 percent more than the 959,000 metric tons (MT) China purchased over the same period in 2019. U.S. soybean sales to all destinations, between May 28 and July 9, reached 4.15 MMT, nearly double the volume over the same period in 2019.

Source: USDA FAS Export Sales data as of July 9, 2020

Corn. Between May 28 and July 9, total U.S. corn export sales, to all destinations, reached 3.65 MMT, more than double the volume sold over the same period in 2019. Export sales to Mexico, the largest market for U.S. corn, reached 815,000 MT during the previously noted 2020 period, nearly quadruple the total volume sold in 2019. Between July 2 and July 9, USDA reported China bought 768,000 MT of U.S. corn, its largest weekly purchase since October 2011.

Source: USDA FAS Export Sales data as of July 9, 2020

It is interesting to note that Gulf SRW FOB prices for August delivery are currently more than all HRW prices from the Texas Gulf. As of July 17, USW reported that HRW ordinary FOB for August delivery was $216/MT and HRW 11 percent protein (on a 12 percent moisture basis) was $220/MT compared to $239/MT for SRW.

Photo above: A grain barge headed downstream on the Mississippi River.

 

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Dependable People: A Spotlight on the Montana Wheat and Barley 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: Montana Wheat and Barley Committee
Member of USW since 1980

Location: Great Falls, Mont.
Classes of wheat grown: Hard Red Winter (HRW), Hard Red Spring (HRS), Durum
USW Leadership:  James E. Jenks, 1984/85 Chairman; Richard Sampsen, 1995/96 Chairman; Leonard Schock, 2006/07 Chairman; Janice Mattson, 2009/10 Chairperson; Chris Kolstad, 2018/19 Chairman.

The mission of the Montana Wheat and Barley Committee (MWBC) is to protect and foster the health and prosperity of the Montana wheat and barley industry by encouraging scientific research to improve production and quality; maintaining current markets; promoting new market development; and serving as an educational and informational resource.

2018/19 Chairman Chris Kolstad from Montana (R) passes the gavel to 2019/20 Chairman Doug Goyings from Ohio.

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

Montana exports most of its wheat to partners around the world. Wheat production in the state is logistically advantaged to efficiently fill shuttle trains with hard red spring (HRS) and hard red winter (HRW) bound for the Pacific Northwest (PNW) ports. Montana’s wheat is often considered as improver classes because it offers strong functional characteristics. The extreme summer heat and extreme winter cold together are conducive to growing excellent small grains with high protein. Montana wheat is desired by quality-conscious customers, making the Pacific Rim our largest market. Market development efforts are very important to Montana farmers and USW plays a key role in identifying potential markets and maintaining existing markets. Our farmers have invested in these efforts since 1967 when our committee was formed, and our very low checkoff refund rate shows Montana farmers understand the value of these efforts.

Montana wheat farmer and USW Director Denise Conover traveled with USW to Tanzania and Kenya in November 2019 to learn more about food aid programs and wheat monetization. Read more.

How have Montana wheat farmers recently connected with overseas customers?

MWBC hosts upwards of 100 overseas trade team visitors each year. Our farmers love hosting trade delegations and are quick to open their homes to our guests. Showcasing a way of life that often spans many generations is a great point of pride for Montana farmers, and discussions on best practices and planting decisions often lead to 3-hour dinners and forming long-term connections. Montana farmers view our overseas customers as an extended family.

Current circumstances are transforming the way we reach customers, including taking part in weekly updates and virtual meetings hosted by USW. MWBC is being proactive in our efforts as the uncertainty associated with the pandemic has brought challenges. However, our farmers are not slowing down. They are working their hardest to continue to supply the market with the highest quality wheat in the world.

A USW 2019 trade delegation from Japan visiting a farm in Montana.

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

  • We are developing a video series that creates a virtual trade delegation experience and focuses on what a visitor would learn and experience if they were visiting Montana in person. The series will tour the Federal Grain Inspection Service (FGIS) certified State Grain Lab with a look at the grading process and factors that set Montana wheat apart, and feature a farm tour to present crop rotation, precision agriculture and other sustainable practices.
  • Montana State University (MSU) has done an excellent job keeping research projects moving forward during the pandemic and is hiring a new endowed chair and HRS wheat breeder. Montana farmers invest over $2 million every year in wheat and barley research.
  • MSU wheat breeding programs continue to focus on quality, traits like low PPO and increased stability and developing durum varieties.

Montana farmers would like to thank USW for their continued efforts in developing and maintaining overseas markets. Without these efforts a lot of us would not be able to do what we love out in “Big Sky Country.” Many Montana farmers have hosted overseas visitors traveling with USW and have made lifelong friendships and memories because of it. Those experiences have outlasted cultural, political and historical differences over the last 50+ years for MWBC.

Learn more about the Montana Wheat and Barley Committee on its website here and on Facebook, Twitter, YouTube, and Instagram.

 

A trade delegation of Japanese executive millers visited 2018/19 USW Chairman and Montana wheat farmer Chris Kolstad on his farm in 2019.

Janice Mattson, a wheat farmer from Montana, was USW’s first female chair in 2009/10. She was also featured in a 4-part series about the U.S. wheat supply chain system in 2014. View that series here.

 

Al Klempel (L), a wheat farmer from Montana, traveled with USW to Spain, Portugal and Morocco on a board team trip in 2019. The team is pictured here with equipment sponsored by U.S. Wheat Associates at the IFIM milling school in Casablanca. Read more.

Leonard Schock, 2006/07 USW Chairman and a Montana wheat farmer presented at the 2016 North Asia Marketing Conference in Guam.

 

2018/19 USW Chairman Chris Kolstad, a wheat farmer from Montana, and NAWG President, Ben Scholz, a wheat farmer from Texas, represented the U.S. wheat industry at the 2017 National Association of Farm Broadcasting Trade Talk event.

 

 

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State Organizations to Host Virtual HRS/DNS Pre-Harvest Update July 28

As harvest time approaches for the 2020 U.S. hard red spring (HRS/DNS) wheat crop, domestic and international customers are anxious to get the latest crop information.  With many in-person meetings and events put on hold this year, including the Wheat Quality Council’s Annual Spring Wheat Tour, many of our friends and customers will miss the opportunity to see the crop’s potential first-hand.

But as everyone has done in this new COVID-19 world, the North Dakota Wheat Commission (NDWC) and the North Dakota Grain Growers Association (NDGGA) are bringing the crop to stakeholders by hosting a virtual HRS/DNS update on Tuesday, July 28, at 9:00 a.m. Central Daylight Time. The meeting will be hosted on the Zoom application. To register, visit https://ndwheat.com/events/2020VirtualHardRedSpringWheatPreHarvestUpdate/.

With Wheat Quality Council Tours like this one from North Dakota in 2016 cancelled, North Dakota wheat grower groups are hosting a virtual HRS/DNS pre-harvest update July 28.

Representatives from NDWC, NDGGA, farmers and wheat commissioners from Minnesota, Montana and and South Dakota will report on crop conditions, production and quality potential and other important issues that have affected this HRS/DNS crop. Extension experts will provide agronomic and disease updates, and producers will provide video and personal observations of crop conditions and maturity levels throughout the spring wheat region.

Here is the updated agenda:

Welcome

  • NDWC and NDGGA

Wheat Quality Council Update

  • Dave Green, Wheat Quality Council

Spring Wheat Overview

  • NDWC

North Dakota Update

  • Joel Ransom, North Dakota State University (NDSU) Extension
  • Andrew Green, NDSU Spring Wheat Breeder
  • Field Reports from ND Producers

Montana Update

  • Cassidy Marn, Montana Wheat & Barley Committee
  • Field Reports from Montana producers

South Dakota Update

  • Reid Christopherson, South Dakota Wheat Commission
  • Field Reports from South Dakota producers

Minnesota Update

  • Charlie Vogel, Minnesota Wheat Research and Promotion Council
  • Jim Anderson, University of Minnesota
  • Jochum Wiersma, University of Minnesota
  • Field Reports from Minnesota producers

2020 Disease Outlook

  • Andrew Friskop, NDSU Extension

Wrap up and Questions

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Wheat Industry News

Recent news and highlights from around the wheat industry. 

Speaking of Wheat: “A completed USMCA finally gets us past the uncertainty and that is welcome news to U.S. wheat growers. Especially as we now see an opportunity for U.S. negotiators to take this as a gold standard agreement and launch negotiations with other countries, where U.S. wheat growers face tariff and non-tariff barriers.” – Doug Goyings, U.S. Wheat Associates (USW) Chairman and a wheat farmer from Paulding, Ohio.

Hybrid Wheat Grant to University of Nebraska-Lincoln Researcher. P. Stephen Baenziger, professor and Wheat Growers Presidential Chair in the Department of Agronomy and Horticulture, received a three-year grant from USDA’s National Institute of Food and Agriculture program to develop distinct germplasm pools to support the development of hybrid wheat. Read more.

USMCA Enters into Force. On July 1, the United States-Mexico-Canada Agreement officially replaced NAFTA. USW welcomes the agreement as crucial to maintaining the free flow of wheat from the United States to our Mexican customers and help farmers who may wish to trade across the Canadian border. Read more. 

Wheat Foods Council Publishes Educational Video Content. The Wheat Foods Council focuses on developing educational and promotional nutrition resources on wheat food products that reach health and nutrition professionals, opinion leaders, media and consumers. Recently the Council has added several new videos to its available resources. View these videos on its YouTube here and additional content on its website here.

2020 National Wheat Yield Contest. On February 18, 2020, the National Wheat Foundation officially opened the 2020 National Wheat Yield Contest! The Contest is divided into two primary competition categories: winter wheat and spring wheat, and two subcategories: dryland and irrigated. The Foundation is currently accepting entries for the Spring Wheat category. The deadline to submit it August 1.

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 Supply Chain System: Exporters, Inspectors and USW Overseas Offices

By Michael Anderson, USW Assistant Director, USW West Coast Office

At the core of the U.S. Wheat Associates (USW) mission is a strong commitment to enhance the value of U.S. wheat for farmers and their customers. A large part U.S. wheat’s value-added differential advantage is the U.S. wheat supply chain system. It is system that ultimately works for wheat food consumers around the world. But it is also complex and therefore most effective when farmers, end users and everyone in between have a better understanding of how it works for them.

Once the wheat has arrived at the port by truck, rail or barge, grain exporters work around the clock to meet customer contract requirements. Through the futures market and a network of facilities up country, exporters are able to bring the right wheat to the export facility for blending, inspection and loading while managing their own price risks. This diverse network allows exporters to meet diverse and varied cargo requirements. USW helps exporters meet diverse and varied cargo requirements by connecting them and facilitating communications with customers worldwide.

 

As the wheat is loaded from the export facility to vessels, the law requires inspection by the Federal Grain Inspection Service (FGIS) to certify that the wheat loaded for export meets the quality standards specified in the customer’s contract. Created in 1976 by the U.S. Congress, FGIS is responsible for establishing and upholding standards for quality assessments and managing the grain inspection and grading procedures. FGIS also maintains equipment standards and manages the network of federal, state and private laboratories that provide impartial inspection and weighing services. The United States is the only wheat exporter with an independent, neutral grain inspection system, which is valued by its overseas customers and has helped wheat and other U.S. commodities grow export markets.

The Federal Grain Inspection Service (FGIS), as an objective third party, certifies that all exported wheat meets import specifications.

For end users of imported wheat, understanding what you need is key to producing what you want, which is why USW’s network of 15 offices across the world, including two in the continental United States, is the final step in the U.S. supply chain. Each office works closely with customers, including buyers, millers, bakers, food processors and government officials, to promote the advantages of U.S. wheat quality, help troubleshoot issues and simplify the process of importing and utilizing U.S. wheat.

Peter Lloyd, Regional Technical Director, based in the USW Casablanca Office, notes that the cheapest improver for wheat flour is buying the right wheat in the first place. He knows that making a high quality, desired end product is what the customer wants and getting there starts with the right wheat and understanding how best to use it. USW technical experts work closely with customers to share technical information on U.S. wheat characteristics, address issues related to wheat functionality and help customers make better end products with U.S. wheat.

USW Regional Technical Director Peter Lloyd visits Mennel Milling, Fostoria, Ohio, Feb. 2016. Read more about Peter’s work here.

 

USW Milling & Baking Technologist Tarik Gahi touring the Bakhresa Mill in Zanzibar, Tanzania in 2019 and answering one of the chief miller’s questions about flour extraction and bran. Read more about Tarik’s work here.

 

USW Food/Bakery Technologist David Oh in the laboratory at the Korean Baking School testing formulations of testing blends of HRW and SW flour for Korean-style baguettes and HRS and HRW flour for sweet buns in 2017. Read more about David’s work here.

USW representatives also raise the profile of wheat and note that only the United States offers six distinctly different wheat classes. Joe Sowers, Regional Vice President for the Philippines and Korea, notes that USW’s “philosophy for relating to industry participants is to put ourselves in their position and try to understand what they need to succeed. Then we maximize the number of positive contacts such as providing information, training or other resources to a customer. If everybody on the team is striving to make the most positive contacts possible, good sales follow. Good sales leads to better prices for our farmer stakeholders.”

USW has taken a global approach to increasing the profile of U.S. wheat. Alongside each stakeholder in the U.S. wheat supply chain, we too, take seriously our commitment to providing education, access, reliability and guidance in accessing the world’s most reliable wheat supply. It is through the commitment of dependable people, that we breed, grow, transport, inspect, export and promote the wheat the world needs.

Read other blog posts in this series:
Research and Breeding
Farmers and State Wheat Commissions
Grain Handlers

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Stories from the Wheat Farm – Loving the Work in Ohio

U.S. wheat farm families grow six distinct classes of wheat across the diverse landscape of the United States. Those farmers take great care in producing the highest quality wheat in the most sustainable ways possible to honor their family legacies and to ensure greater value for their customers at home and abroad. Behind the world’s most reliable supply of wheat are the world’s most dependable people.

Goyings Farms: The Goyings family has been “working hard and going strong” on their wheat farm in northwestern Ohio since 1884. Today, Doug Goyings, his wife Diane and their son Jeremy strive to be leaders in innovative farming practices that incorporate precision and conservation. They were one of the first farms in the area to successfully implement no-till practices and GPS-based systems that protect their soil, reduce fuel use and increase crop production efficiency.

With remarkable self-sufficiently, Doug and Jeremy designed and built their high-volume grain storage system (only to re-build it after it was severely damaged by a tornado) and built their own equipment to offer custom field drainage services to other farmers. They know that such challenging work and long days are made slightly easier when it is work that you love, surrounded by the people that you love, including the next generation on Goyings Farms – the twin boys Axel and Garrett of Jeremy and his wife Jessica.

Location: Paulding, Ohio
Classes of Wheat Grown:  Soft Red Winter (SRW)
Leadership: Doug Goyings: 2019/20 Chairman, U.S. Wheat Associates (USW); USW Director, representing Ohio Small Grains Marketing Program (OSGMP), since 2009; Past-Chairman, USW Long-Range Planning Committee; Past Director, OSGMP; Member and Past-President, Paulding County, Ohio Farm Bureau Federation; Director, Ohio Veal Growers Inc.; Director, Creston Veal, Inc.; Director, Paulding Landmark, Inc.

View other videos and stories in this “Stories from the Wheat Farm” series:

The Next Generation in Kansas
Committed to Stewardship in Washington
Living with Purpose in North Dakota
A Passion for the Land in Oklahoma
Committed to Wheat Quality in Oregon
Embracing the Agricultural Lifestyle in Montana

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A Legacy of Commitment – The U.S. Wheat Export Public-Private Partnership Today

By Steve Mercer, USW Vice President of Communications

Wheat farmers in post-World War II United States were producing more wheat than ever before. So, to improve marketing opportunities, they organized and reached out to the U.S. Department of Agriculture (USDA) for help. These visionary state wheat leaders ultimately formed two regional organizations to coordinate export market development: Western Wheat Associates and Great Plains Wheat Market Development Association.

In the fourth of a series on the “Legacy of Commitment,” Wheat Letter describes the highly successful public-private partnership supporting U.S. wheat export market development that has endured since the 1950s.

“The proper role of government…is that of partner with the farmer – never his master. By every possible means we must develop and promote that partnership – to the end that agriculture may continue to be a sound, enduring foundation for our economy and that farm living may be a profitable and satisfying experience.” – President Dwight D. Eisenhower, from a message to Congress on agriculture, Jan. 9, 1956.

On March 27, Wheat Letter offered historical perspective on how changes in federal programs, global market factors and relationships drew Western Wheat Associates and Great Plains Wheat ever closer together and led to the establishment of U.S. Wheat Associates (USW) as a single export market development organization to serve all U.S. wheat farmers.

A formal agreement between the Nebraska Wheat Commission and USDA’s Foreign Agricultural Service (FAS) to co-fund and implement export market development activities in 1958 marked the beginning of an enduring partnership between farmers, state wheat commissions, FAS and USW after the merger in 1980.

“I consider this to be one of the most successful partnerships between a U.S. government agency and private industry,” said USW President Vince Peterson. “Each partner brings unique core capabilities that support the export development mission. Our activities are jointly planned, funded and evaluated. We all share the risks, responsibilities and results.”

It Starts with the Farmer

State wheat commissions exist under state law generally to conduct promotion and market development through research, education and information. Commissions are funded by assessments paid by the farmer either by bushel or by a portion of the price at the time of sale. This is called a “checkoff” and though it is voluntary, a strong majority of farmers contribute their assessment. Farmer commissioners, either elected by their peers or appointed by their state’s governor, direct how the checkoff funds are to be used, such as for domestic promotion, public crop production research and variety development and export market development.

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. 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.

By agreeing to contribute a portion of checkoff funds to USW for export market development, state wheat commissions choose to become members of USW. The annual USW membership assessment is about one-third of one cent per bushel, multiplied by the average production in the state over the past five years. Currently 17 state wheat commissions are USW members. In 2020, Wheat Letter is profiling each state commission member.

The contributions from state wheat commissions, including special project funds as well as the personal time and talent invested by farmers and U.S. wheat supply chain participants, supports the USW mission to develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers. In addition, state commission contributions qualify USW to apply for federal export market development funds administered by FAS.

Linking U.S. Agriculture to the World

USDA’s Foreign Agricultural Service has primary responsibility for overseas programs including market development, international trade agreements and negotiations, and the collection of statistics and market information. It also administers the USDA’s export credit guarantee and food aid programs and helps increase income and food availability in developing nations by mobilizing expertise for agriculturally led economic growth. The FAS mission is to link U.S. agriculture to the world to enhance export opportunities and global food security.

Jim Higgiston (left), USDA/FAS Minister Counselor for Agricultural Affairs, met with Regional Director Chad Weigand (right) and farmer members of a USW Board Team in September 2018 in the capital city of Pretoria, South Africa. The FAS team in Pretoria included Kyle Bonsu, Agricultural Attache, Laura Geller, Senior Agricultural Attache, and Dirk Esterhuizen, Senior Agricultural Specialist.

FAS export market development programs available to USW as a cooperating organization include the Market Access Program (MAP), the Foreign Market Development (FMD) program, the Agricultural Trade Promotion program and the Quality Samples Program. USW is required to conduct an extensive, annual strategic planning process that carefully examines every market, identifying opportunities for export growth and recognizing trends or policies that could threaten existing or prospective markets. FAS reviews this annual plan, the Unified Export Strategy (UES), results from previous years and private commitments to determine how USW will invest program funds. In 2019/20, federal funding provided $2.60 for every $1.00 contributed by farmers through their state wheat commissions.

“It is important that [overseas] buyers and government officials develop direct personal relationships not only with us at USDA but also directly with American farmers and ranchers,” said USDA Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney in testimony before the U.S. Senate Committee on Agriculture, Nutrition and Forestry in June 2019.

Jeffery Albanese (pictured back row with hat), Agricultural Attache, USDA Foreign Agricultural Service, U.S. Embassy Manila, joined the 2017 USW Board Team, with farmers from South Dakota, North Dakota and Montana, and USW staff,  for a tour of San Miguel Mill, Inc. in the Philippines.

USDA in general and FAS specifically foster such relationships by acting as strategic partners with USW through the extensive FAS network of foreign service officers serving in 98 offices around the world and its civil service support in the United States. The foreign service officers provide vital liaison with government officials and are active in market development work. The civil service likewise plays a critical role in everything from supporting the foreign service, managing the relationships with organizations like USW, providing market information, analyzing trade policy barriers, and much more.

FAS programs make it possible for wheat farmers to have representatives from USW who work directly with overseas wheat buyers, flour millers and wheat food processors and translate customer needs directly back to the state wheat organizations, who are in turn helping direct research for wheat crop development in their states. This leads to improved varieties and helps farmers manage their crops with the end user in mind, who would otherwise be thousands of miles and multiple steps apart in the supply chain.

A team of U.S. wheat farmers from Kansas, Oklahoma and Arizona bound for trade visits to customers in Nigeria and South Africa met in September 2016 with Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney (center) and other FAS staff in Washington, D.C. 

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
NAWG, USW Lead the Way Through Issues Affecting Wheat Farmers

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Dependable People: A Spotlight on the Idaho 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: Idaho Wheat Commission
Member of USW since 1980

Location: Boise, Idaho
Classes of wheat grown: Hard Red Winter (HRW), Hard Red Spring (HRS), Hard White (HW), Soft White (SW), Durum
USW Leadership: Boyd Schwieder, 2005/06 Chairman; Jim McDonald, 2002/03 Chairman; Jerry Kress, 1998/99 Chairman; Dallin Reese, 1987/88 Chairman

Wheat is grown in 42 of Idaho’s 44 counties and ranks as the state’s second largest crop, behind potatoes. About half of Idaho’s crop goes to domestic mills and the other half is exported, primarily through Pacific Northwest (PNW) ports to Asian and Latin American customers. Idaho typically ranks in the top seven U.S. states for wheat production. An average of 1.2 million acres of wheat is planted each year and yields per acre are among the highest in the nation.

IWC Commissioner and wheat farmer Clark Hamilton was a member of the 2016 USW Board team that traveled to Japan and Korea.

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

Idaho exports about half of its wheat, but strong global demand contributes to the profitability of all Idaho growers by increasing farmgate wheat prices. Through its partnership with USW, the Idaho Wheat Commission (IWC) leverages the market intelligence and valuable customer relationships established around the world, in order to find new markets and sustain demand in established markets. USW programs bring the customers and growers together, facilitating a personal connection that is key to the continued success of the Idaho and U.S. wheat industries. We are grateful to USW for the work their team does to develop and maintain relationships for our growers with buyers in other countries and we wish for many more prosperous years to come.

IWC Commissioner and wheat farmer Joe Anderson (second from left) participated on the 2019 USW South Asia Board Team trip to the Philippines, Singapore and Indonesia.

How have Idaho wheat farmers recently connected with overseas customers?

Idaho hosts multiple international trade delegations each year from many different countries. Participants follow the entire supply chain to see how wheat gets from the ground to its destination in the mill. These customers visit quality control labs and wheat breeding programs, visit farms and see how growers take care to produce high-quality wheat and then go on to visit the local grain handlers who move the wheat by rail, barge and container. Idaho is unique in that it has an inland “ocean port.” At the Lewis-Clark Terminal in Lewiston, Idaho, wheat is loaded onto barges that travel down the Columbia-Snake River System to the export facilities near Portland, Ore.

Additionally, IWC commissioners and staff regularly participate in events overseas. Recently, for example, Commissioner Clark Hamilton joined Idaho Governor Brad Little in a goodwill mission to Taiwan, a country with which IWC has a long and fruitful relationship. Commissioner Bill Flory also visited Japan with USW to meet with longtime friends of IWC and major buyers of SW, HRS and HRW wheat.

With the current travel restrictions, IWC is working to connect virtually with customers through USW online programs.

IWC Commissioner Bill Flory hosted the 2019 Philippine Trade Team on his farm.

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

  • Wheat growers in Idaho are diligently tending to their crops and working like any other year, despite the global pandemic. Favorable weather throughout the growing season has the crop in excellent condition just a few weeks from the start of harvest. The transportation system is running smoothly, and customers can expect mostly normal operations. The Columbia-Snake River System is critical for reliably and affordably shipping grains from the PNW to overseas markets.
  • Our new executive director, Casey Chumrau, has extensive international wheat marketing experience gained as a marketing manager for USW’s South American region, based in Santiago, Chile, and as a USW market analyst.*
  • IWC invests one-third of its annual budget into research that will help Idaho growers produce high-quality wheat that customers demand. Research ranges from production practices to end-use quality.

Learn more about the Idaho Wheat Commission on its website here and on Facebook, Twitter, Instagram, Pinterest and YouTube.

*USW wants to thank Blaine Jacobson, who recently retired after many years as IWC’s executive director, for his dedicated service to wheat farmers and support for export market development.

Longtime IWC Executive Director Blaine Jacobson (L) retired in June 2020 after 18 years of service. He’s show here being congratulated by IWC Chairman Ned Moon.

IWC Commissioner and wheat farmer Jerry Brown represented Idaho at the 2017 USW Crop Quality Seminars in Asia.

IWC Commissioner Clark Hamilton (directly behind photo in white), a farmer from Idaho, participated on the 2018 USW Board Team that traveled to China and Taiwan.

IWC Commissioner and Idaho wheat farmer Bill Flory traveled to Japan with USW to participate in the 2019 Japan Buyers Conference.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “Our export markets are critical to U.S. wheat farmers’ bottom lines as they see 50 percent of U.S. wheat exported each year. The grain inspection system is one of our key advantages over our competitors that has helped wheat and other U.S. commodities grow export markets. Our overseas customers value the independent system in place through the Grain Standards Act.” – Doug Goyings, USW Chairman and Paulding, Ohio wheat farmer, in response to the U.S. Senate Committee on Agriculture’s business meeting to markup the United States Grain Standards Reauthorization Act (GSA) of 2020

Congratulations Colleagues. We are fortunate to have devoted, loyal colleagues at U.S. Wheat Associates, including two that recently celebrated milestones. Ann Murchison, Office Manager, USW West Coast Office, recently celebrated 25 years with USW, while Joe Sowers, Regional Vice President for Philippines and Korea, USW Manila Office, recently celebrated 15 years. Thank you, Ann and Joe, for your service to our organization, U.S. wheat farmers and our customers.

Phase One Deal with China Still Needed. USW joined the National Association of Wheat Growers (NAWG) and a coalition of almost 200 other agricultural organizations in a letter reiterating to the Trump Administration the importance of the U.S.-China Trade Agreement for U.S. agriculture and exports. “Today, the world grain and oilseed market is experiencing the greatest oversupply of production since the 1980s, and the United States is facing increasing competition from foreign sources,” the letter stated. Read the letter online here.

2020 National Wheat Yield Contest. On February 18, 2020, the National Wheat Foundation officially opened the 2020 National Wheat Yield Contest! The Contest is divided into two primary competition categories: winter wheat and spring wheat, and two subcategories: dryland and irrigated. The Foundation is currently accepting entries for the Spring Wheat category. The deadline to submit it August 1.

New Virtual Offerings for Women in Agribusiness Event Series. In a pivotal move to ensure event excellence during the changing business climate, the Women in Agribusiness (WIA) Summit series has announced virtual attendance options for its 2020 U.S. and international conferences in July and September.

Open Position in OWGL. Oregon Wheat Growers (OWGL) is looking to fill their Administrative Assistant/Membership Coordinator position. For more details on the job opening and how to apply, visit www.owgl.org/careers!

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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Limited Elevation Capacity Supports Gulf Wheat Export Basis

By Claire Hutchins, USW Market Analyst

A swift uptick in export demand for U.S. soybeans, corn and sorghum is limiting export elevation capacity out of the Center Gulf, which supports nearby Gulf export basis for all classes of wheat. Between June 12 and June 19, Gulf 14.0 percent protein hard red spring (HRS) export basis increased 6 percent to $1.75/bu. Over the same period, Gulf 12.0 percent protein hard red winter (HRW) export basis increased 6 percent to $1.65/bu and Gulf soft red winter (SRW) export basis increased 7 percent to $0.75/bu.

Source: U.S. Wheat Associates (USW) weekly Price Report.

Soybeans. “A lot of customers are surprised by the fact that export capacity is filling up so quickly with soybeans,” said one industry contact. A significant increase in U.S. soybean exports to China this year compared to previous years is supporting overall soybean sales. According to USDA, the United States sold 1.79 million metric tons (MMT) of soybeans to China between May 14 and June 11 for delivery in 2019/20. That is nearly 4 times greater than the 360,000 metric tons (MT) sold to China over the same period in 2019. Soybean sales to all destinations, between April 2 and June 11, reached 7.34 MMT, nearly double the amount sold over the same period in 2019.

 Source: USDA FAS Weekly Export Sales as of June 11, 2020

Corn. Between April 2 and June 11, total U.S. corn export sales, to all destinations, reached 9.58 MMT, more than 80 percent greater than the volume sold over the same period in 2019. Export sales to Mexico, the largest market for U.S. corn, increased 79 percent year-over-year to 2.04 MMT during the previously noted 2020 period.

Source: USDA FAS Weekly Export Sales as of June 11, 2020

Sorghum. Total U.S. sorghum export sales, as of June 11, 2020, are nearly 4 times greater than this time last year at 4.01 MMT. Like soybeans, weekly sorghum exports to China were significantly greater between mid-May and Mid-June 2020, at 455,000 MT, compared to the same period in 2019.

 Source: USDA FAS Weekly Export Sales as of June 11, 2020

According to U.S. grain traders, customers might have difficulty finding export capacity for “grocery boats” (vessels containing multiple commodities or multiple classes of wheat) out of the Center Gulf for nearby deliveries. While the effect of limited elevation capacity is focused in the Center Gulf, it could also support wheat export basis levels out of all export regions.

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

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