July 26, 2018
Montana Wheat Farmer Testifies on the Impact of Tariffs on Agriculture and Rural Communities
Originally published July 19, 2018
Overall, U.S. wheat farmers are certain they produce some of the highest quality milling wheat in the world and want to compete on that basis freely and fairly. That desire is being challenged in unique ways right now by trade policies and global reactions that have never been a part of the world wheat market. To express the challenges of these policies on farmers and the rural community, the National Association of Wheat Growers (NAWG) this week arranged for one of their members to testify before the U.S. House of Representatives Ways and Means Committee’s Trade Subcommittee. We want to share that testimony here: Read the full article here.
Under Priced, Lesser Quality Flour a Source of Problems for Haiti’s Milling Industry
Originally published July 20, 2018
By Elizabeth Westendorf, USW Assistant Director of Policy
U.S. Wheat Associates (USW) for many years has raised concerns about the Turkish government’s complex inward processing regime (IPR) that creates incentives to its milling industry to export flour at prices that are less than domestic flour prices. In June, I traveled to Haiti to see firsthand the effect that Turkish flour dumped on the local market has on its domestic mills. Turkish flour is undermining domestic mills in countries around the world, including the Philippines, Angola, Indonesia, and Malaysia. This harms both U.S. wheat exports through market displacement and stifles the growth of local flour milling industries, potentially leading to closed mills and lost jobs. Read the full article here.
Lower U.S. Wheat Futures: An Anomaly and Excellent Opportunity
Originally Published July 23, 2018
By Stephanie Bryant-Erdmann, USW Market Analyst
Seasonal harvest pressure always impacts U.S. wheat prices; however, this year the unique trade environment is also pressuring export demand and driving U.S. wheat prices lower. As of July 19, U.S. export sales totaled 6.43 MMT, down 32 percent year over year. Exporters note that customers are choosing to purchase smaller than normal amounts, just what they need for the short-term or are waiting to make purchases, noting uncertainty about U.S. trade policies and their own countries’ retaliatory measures. Read the full article here.
Annual Spring Wheat Tour Sees Improvement from 2017 Drought Impact
Originally published July 26, 2018
By Amanda J. Spoo, USW Assistant Director of Communications
This week, the Wheat Quality Council hosted its annual hard red spring (HRS) and durum crop tour. Participants spent three days mainly in North Dakota surveying this year’s crop and estimating yield. The tour, which surveyed a total of 342 fields, estimated weighted average HRS yield at 41.1 bushels per acre (bu/a), slightly higher than last year’s HRS average of 38.1 bu/a, which was impacted by ongoing drought conditions in western areas. The durum weighted average yield was 39.3 bu/a, in line with last year’s average of 39.7 bu/a. Read the full article here.
Recent News Releases from USW
U.S. Wheat Industry Commitment to Philippines Milling Industry Returns Export Sales Increase
“Going back to the days of President Carter’s grain embargo, we learned that trade, more especially agricultural trade, should not be used as a weapon. Rather it is a tool – a tool for peace, for national security through open markets, and for economic growth.” — Sen. Pat Roberts, addressing the Washington International Trade Association on July 19, 2018.
Congratulations. We are fortunate to have devoted, loyal colleagues at USW. This month Senior Advisor Jim Frahm is celebrating 40 years and Office Director and Marketing Specialist Valentina Shustova, based in the USW Moscow Office, is celebrating 25 years. Thank you Jim and Valentina for your service to our organization, to U.S. wheat farmers and to our customers around the world.
FGIS Advisory Committee. USDA Secretary Sonny Perdue has appointed 12 members to serve on the Federal Grain Inspection Service’s (FGIS) Grain Inspection Advisory Committee beginning July 1, 2018. Their recommendations ensure that FGIS services meet the needs of all stakeholders, he said. Read more.
Korea, Japan to Accept Canadian Wheat Again. Following the discovery of a small number of wheat plants with a regulated glyphosate resistance trait in Alberta, Korea and Japan have established testing programs and re-opened their markets to Canadian wheat imports, confirming that no wheat with transgenic events are in commercial supplies. Korea and Japan have also tested U.S. wheat for similar traits for several years with no detection.
USDA’S $12 Billion Farm Assistance Programs. The Trump administration on July 24 said it would provide up to $12 billion in aid for U.S. farmers from early September to shield them from the repercussions of trade disputes between the United States and China, the European Union and others. See a U.S. wheat organization statement on the program here. More details here.
SW Losses in Oregon Fire. A recent wildfire in north central Oregon destroyed as much as 1 million bushels (more than 27,200 metric tons) of soft white (SW) in the field — a devastating loss to many individual farmers, but unlikely to influence SW export supply or prices. USDA expects increased SW production this year. Read more here.
“Quick” Harvest in Oklahoma. Dry conditions in Oklahoma limited yield potential buy helped keep HRW quality higher this year. National Association of Wheat Growers President Jimmy Musick talks about his harvest in a video here.
Grain Procurement Management for Importers. The Northern Crops Institute will host this eight-day course, Sep. 10 to 19, 2018, at its facilities in Fargo, N.D. The course will focus on the mechanics of grain merchandising and providing training for individuals responsible for purchasing grain. The registration deadline is Aug. 15, 2018. Learn more about the course here.
IAOM-KSU Basic and Advanced Milling Principles. The IGP Institute will host two short courses focused on milling principles in October at its conference center in Manhattan, Kan. The Basic Milling Principles short course, scheduled Oct. 8 to 12, 2018, will help participants develop a conceptual understanding of the milling process with a focus on mill balance, understanding critical control points in the milling system, and milling different wheat classes. The Advanced Milling Principles short course, scheduled Oct. 15 to 19, 2018 will educate participants on quantitative tools and practices to influence and impact, optimal machine adjustment, milling efficiency and flour quality in the mill. Learn more about the courses here.
Source: U.S. Wheat Associates