Wheat — Tightening Supplies Ripple Through Global Commodity Markets
AgFax – 8/14/2018
Combined wheat production in the European Union, Russia, and Ukraine is forecast down 12 percent from last year to the lowest level in 5 years. The EU wheat crop is down 9 percent from last year on hot, dry weather in the northern Member States, while production in Russia and Ukraine is down from recent bumper crops on a return to normal yields. With global wheat production down substantially from last year, prices are rising. The recent climb in global wheat prices has led corn prices higher as well, even as the spread between the two has widened. Thus, wheat has become less preferred in feed rations relative to corn.
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Spring Wheat Could Rebound from Last Year’s Dip
Ag Pro – 8/14/2018
Because much of the nation’s spring wheat is grown in northern states, most of the crop has avoided debilitating drought. Compared to this past year’s crop, spring wheat should show significant improvement. This past year, spring wheat yields were down 13% over the prior year. However, Mercaris, a market data service and online trading platform for organic, non-GMO and certified ag commodities, says this year’s improvement in crop conditions means yields are likely to significantly recover.
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Wheat Production: Drought Takes Toll on EU and Australian Crops
Ag Fax – 8/14/2018
In its August Grain: World Markets and Trade report on Friday, USDA’s Foreign Agricultural Service (FAS) stated that, “Combined wheat production in the European Union, Russia, and Ukraine is forecast down 12 percent from last year to the lowest level in 5 years. The EU wheat crop is down 9 percent from last year on hot, dry weather in the northern Member States, while production in Russia and Ukraine is down from recent bumper crops on a return to normal yields.”
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Columbia — One U.S. Export Market That Shows Promise
Ag Update – 8/14/2018
With new tariffs and rising trade tensions around the globe, one relatively new market – Colombia – may be growing at just the right time, thanks to U.S. market development efforts and a Free Trade Agreement (FTA). Last year, the U.S. exported $2.5 billion in ag products to the Latin American country, which exported about $2.6 billion in ag products back to the U.S. “It’s a very balanced trade relationship,” based on a “very successful trade agreement, implemented in 2012,” said Ken Isley, administrator of USDA’s Foreign Agricultural Service (FAS).
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Ergot Showing Up in Some North Dakota Wheat
Nebraska Farmer – 8/14/2018
Elevated levels of the grain fungus ergot are showing up in spring wheat being harvested in south-central North Dakota, prompting grain elevators to impose discounts and even turn some truckloads away, grain merchants said on Tuesday. Reuters reports ergot is a common grain fungus but some major buyers, including top global wheat importer Egypt, have rejected cargoes with even trace amounts in the past.
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Source: U.S. Wheat Associates