October 13, 2017
We hope you enjoy this week’s edition of KAWG E-News.
Jenkins Highlights The Need for Ag Trade in Asia
WOTUS listening session for agriculture
The EPA and Army Corps are holding teleconferences to hear from stakeholders on how to revise the definition of “Waters of the United States” under the Clean Water Act (CWA).
A call for the agriculture sector will be Tues., Oct. 17 from 1-3 p.m. Eastern. Register for the call here.
News from National Association of Wheat Growers
115 Ag Companies and Associations Send Letter to Senate in Support of Gregg Doud
Initiated by the North American Export Grain Association, 115 Ag companies and associations, including NAWG, joined a letter sent to the Senate Finance Committee today urging the confirmation of Gregg Doud as Chief Agricultural Negotiator. Read the letter here.
NAFTA Day on Capitol Hill
“On Capitol Hill on Wednesday, there were signs of the increased stakes in the NAFTA talks: Business and agricultural groups mounted a lobbying push targeting more than 250 House members, and the Ways and Means chairman seemed to say businesses have reason to worry,” reported Politico. “At the White House, in the most visible and symbolic moment of the day, Canadian Prime Minister Justin Trudeau met with President Donald Trump, who relishes being unpredictable…The current set of discussions is expected to be the most contentious yet, and business and agricultural groups prepared accordingly. Their lobbying effort, led by the U.S. Chamber of Commerce, was estimated to bring together more than 100 representatives of various groups – an “army,” as Chamber President and CEO Thomas Donohue phrased it – assembled to end the ‘roller-coaster ride’ of uncertainty and to ensure that a reworked pact meets the needs of commerce in the 21st century market. Among those sending foot soldiers to the effort included the Business Roundtable, the National Association of Manufacturers, the National Foreign Trade Council, the Coalition of Services Industries, the American Farm Bureau Federation and the National Pork Producers Council.” NAWG’s Molly O’Connor also participated in lobbying efforts around NAFTA that took place on Wednesday on Capitol Hill. Read the Politico article here.
USDA’s Advisory Committee on Ag Statistics to Meet in November
The annual meeting of USDA’s Advisory Committee on Agriculture Statistics will take place in Louisville, KY on Nov. 2-3, 2017. The agenda includes a discussion of the 2017 Census of Agriculture and census programs; the National Agricultural Statistics Service (NASS) Strategic Plan; big data; and the Agricultural Resource Management Survey and Chemical Use program. There will also be an update on NASS by Administrator Hubert Hamer. The meeting is open to the public and will take place at The Brown Hotel, 335 W Broadway, Louisville, KY. There will be an opportunity for public questions and comments at 8:15 a.m. on November 3rd. Registration is required. To attend, please contact NASS by email: HQOA@nass.usda.gov (ACAS RSVP in subject line); Phone: 202-720-2707; or eFax: 855-493-0445.
Jerry Minore Memorial Scholarship Opportunity for Students in Agriculture
Jerry Minore was a longtime friend of the wheat industry and advocate for wheat farmers. To honor his work and life, his company, BASF, has partnered with the National Wheat Foundation to establish a scholarship for students with connections to the wheat industry who are planning careers in agriculture. The Minore Memorial Scholarship will fund four college scholarships for the 2018-2019 academic year: two $1,500 scholarships and two $1,000 scholarships. Deadline for applications is December 31, 2017. For more information on how to apply, visit the National Wheat Foundation site.
NAWG/USW Fall Conference Takes Place Next Week!
NAWG and USW’s Fall Conference is taking place next week from October 17-20, 2017 at the Embassy Suites North Charleston in North Charleston, SC. For more information and schedule visit: http://www.wheatworld.org/newsroom/meetings-events/fall-wheat-conference/.
LARRY GLENN COMMENTARY: GRAIN REPORTS MOVE THE WHEAT PRICE
It was report week for the grain markets as the USDA released their update for October. The USDA made numerous adjustments to the balance sheet for wheat. The adjustments were minor ones and almost all anticipated by wheat traders. Numbers from the Small Grain Report and the Quarterly Stocks Report were inserted into their categories for the supply and demand balance sheet.
On the United States wheat balance sheet, planted acreage increased by 300,000 and harvested acreage decreased 500,000 because abandonment increased 800,000. The USDA did increase their wheat yield number by .7 bushel per acres. Spring wheat information in the Small Grain Report accounted for most of these adjustments.
Continuing the balance sheet summary; the carryover number from last year dropped 3 million bushels while the production number for this year increased 2 million bushels. Feed usage decreased 30 million bushels with the Quarterly Stocks Report providing the numbers for this adjustment. Feed usage for wheat is at a 35 year low. All the adjustments added to an ending stocks number 27 million bushels above the last report. We have plenty of wheat in stock but not abundance of bushels.
In the world report, wheat ending stocks came in at 268.13 million metric tons. This is an all-time high. The USDA did lower Australia’s wheat production by one million metric tons but raised the European Union by 2, India by 2.4 and Russia by one million metric tons.
Despite these bearish numbers, the wheat price recorded a positive reaction to end the week. Friday’s double digit gain should impress bullish traders. A few of the bearish wheat traders threw in the towel Friday as the price exceed the highs on the last three sessions. Follow through buying next Monday, could continue to scare a few more of the bears. It will be short covering that will provide the next rally in the wheat price.
Source: Kansas Association of Wheat Growers