August 12, 2017
We hope you enjoy this week’s edition of KAWG E-News.
Wheat Streak Mosaic is timely issue at WheatU event
Nearly 250 Kansas wheat farmers met in Wichita, Kansas, on August 8, 2017 for the WheatU event, sponsored by High Plains Journal and Indigo Ag.
Dr. Erick De Wolf, professor of plant pathology at Kansas State University, was the keynote speaker and his topic was a timely one – “Wheat Streak Mosaic, an old enemy with devastating impact.” The viral disease caused a conservative $76.8 million in direct losses to wheat farmers this year alone, a loss of 19.2 million bushels of wheat.
De Wolf said that from a historical perspective, Wheat Streak Mosaic annually causes yield losses of 1.5% up to this year’s 5.7% yield loss.
But why was Wheat Streak Mosaic so bad this year?
De Wolf said it was a combination of management practices and the environment.
Fall weather conditions were ideal for the spread of wheat curl mites, which carry the disease and the Wheat Streak Mosaic Virus. Mild fall temperatures favored the continued spread. In addition there was no hard freeze until late November in many areas.
De Wolf says the best way to get rid of Wheat Streak Mosaic is to control volunteer wheat, as volunteer wheat is the most common host of the virus and the curl mite. Volunteer wheat can be removed with herbicides or tillage, but it’s absolutely essential to “allow time for herbicides to work,” he said.
News from National Association of Wheat Growers
NAWG Leadership and Staff Continue Outreach to Member States
NAWG leadership has been continuing their outreach to member states. This past week, President David Schemm and NAWG staffer Josh Tonsager joined Vice President Jimmie Musick at the Oklahoma Association of Wheat Growers board meeting in El Reno. This week, Musick and NAWG staffer Craig Berning joined President Schemm at the Kansas Association of Wheat Growers meeting in Wichita on Monday. On Tuesday, they participated in the 2017 Wheat U in Wichita, Kansas. Wheat U is a farmer-focused event that provides resources to farmers to be able to make informed production decisions on their operations. Schemm and U.S. Wheat Associates Chair Mike Miller kicked off the event with welcoming remarks. David also spoke on NAWG’s recent activity including him testifying on July 25, 2017 to the Senate Committee on Agriculture on the importance of Crop Insurance, Title 1, and Credit programs in the Farm Bill. For more information visit www.wheatu.com or follow #WheatU2017 on Twitter.
NAFTA Renegotiations Begin Next Week
First round of North American Free Trade Agreement (NAFTA) renegotiations with Mexico and Canada are scheduled to begin start next week, August 16-20, in Washington, D.C. NAWG will continue to take an active role in these negotiations.
EPA’s Pruitt Gathers Input for WOTUS Redo
On August 08, 2017, Environmental Protection Agency Administrator Scott Pruitt held a roundtable with farmers, elected officials, and ag industry to hear feedback on re-writing the Waters of the U.S. Rule (WOTUS) under the Clean Water Act (CWA). The roundtable was held at the Iowa Farm Bureau in Des Moines. Pruitt told participants at the West Des Moines discussion that the Trump administration hopes to propose a new rule by March of 2018. The public is invited to submit comments at http://www.regulations.gov. AgriPulse covered the story here.
NAWG is currently working on comments to submit for the record.
Texas A&M Intern, Carolann (CJ) Wackerlin Concludes Summer at NAWG
On Wednesday, August 09, 2017, Texas A&M intern Carolann (CJ) Wackerlin concluded her summer internship with NAWG. Wackerlin graduated in May from the Agricultural and Natural Resources Policy Program (ANRP) and will begin law school this fall at Northern Illinois University. Read the release on her experience at NAWG here.
NAWG Opens Registration for Fall Conference!
NAWG has opened its registration and hotel links for its 2017 Wheat Industry Fall Conference. This year’s conference is scheduled for October 16-20, 2017 at the Embassy Suites North Charleston in North Charleston, SC. For more information and scheduled visit: http://www.wheatworld.org/newsroom/meetings-events/fall-wheat-conference/.
CHART SUPPORT ON WHEAT CHARTS FAILED TO HOLD
This week was a stabilizing week for the price action found on the wheat charts, until. It felt like a bottom was being formed following almost a month of selling pressure. A basing/sideways price pattern held until Thursday. Thursday was the release day for USDA’s August Grain Reports. As the numbers became known, sellers became aggressive. The wheat price dropped below the 6 day support pattern, sell stops triggers, and sellers increased their activity. A new low for the move established on Friday.
What was bearish about this month’s grain reports? Topping the list of negative information was the increase in the bottom line on the World Report. World ending stocks increased 4 million metric tons to a new record of 264.7 million metric tons. The increase in wheat production in the FSU Countries was a surprise to bullish wheat traders. The USDA raised Russia’s wheat production 5.5 million metric tons and the Ukraine’s by 2.5 million metric tons.
On the United States balance sheet for wheat, ending stocks came in at 901 million bushels. This was a 5 million bushel decrease from the July number but the trade expected a 37 million bushel decrease. The difference came in the spring wheat production of 402 million bushels when the trade thought is should be closer to 390 million bushels. The USDA failed to reduce their spring wheat harvested acreage number. Many believe that between 1 and 1 ½ million acres of spring wheat will be abandoned. It will take until the release of the Small Grain Report in September before we have an answer to the acreage question.
Those that used call options or bull spreads to get long the wheat prior to Thursday’s grain got hurt but should still be in the game. I still believe a rally in the wheat price can occur by the end of the year. It will be demand that reverses the direction of the current down trend. The wheat price has dropped and our dollar has worked lower. This is a good combination for an uptick in wheat demand.
Source: Kansas Association of Wheat Growers