China Cuts 2019 Minimum Purchase Price for Second Year
Hellenic Shipping News – 11/20/2018
China’s National Development and Reform Commission (NDRC) said it had set the minimum purchasing price for wheat in 2019 at 112 yuan ($16.14) per 50 kg, or 2,240 yuan a tonne. The price is down from this year’s 2,300 yuan per tonne and the second year in a row that the government has reduced its price support for wheat growers. Beijing made the price adjustment to help whittle down the nation’s huge grain stocks, and to push farmers to grow more high quality crops, the NDRC, the country’s state economic planner, said in a separate statement published on its website on Friday.
Russian Wheat Exports Up 29% at 19.2 Mil MT in Marketing Year to Nov 15
S&P Global – 11/19/2018
Russian wheat exports between July 1 and November 15 reached 19.2 million mt, up 29% on the year, agriculture ministry data showed Monday. The higher year-on-year pace reflects an earlier-than-usual harvest as a result of hot and dry weather, which prompted farmers to begin threshing much earlier than expected to minimize heat and drought damage to crops.
Traders Speard Wheat Markets
Successful Farming – 11/19/2018
Wheat markets were mixed last week, with Chicago extending its gains against Kansas City, particularly in the front months. According to the Commitment-of-Traders report, large traders decreased their short position in Chicago wheat, but went from net long to net short in Kansas City. They slightly decreased their net short in Minneapolis. In general, wheat has struggled to just hold the harvest lows, with Kansas City now trading below them. Part of the bearish sentiment stems from Russia, who reported an increase in wheat production and expected exports, even though their exports normally slow down significantly during winter.
USDA Crop Progress: Winter Wheat Quality Continues to Improve
Farm Futures – 11/19/2018
The 2018 U.S. corn and soybean harvests are nearly complete, as is planting for the 2018/19 winter wheat crop, according to the latest crop progress data from USDA. The weekly updates typically hold few surprises this time of year, but this week’s report proved to be the exception to the rule after the agency bucked analyst expectations by raising its quality ratings for winter wheat by two points to reach 56% in good-to-excellent condition.
Winter Wheat Planting Nearly Finished
High Plains Journal – 11/19/2018
For the week ending Nov. 18, there were 4.3 days suitable for fieldwork, according to USDA’s National Agricultural Statistics Service, Northern Plains Regional Field Office, Kansas. Topsoil moisture supplies rated 0 percent very short, 3 short, 78 adequate, and 19 surplus. Subsoil moisture supplies rated 0 percent very short, 6 short, 83 adequate, and 11 surplus.
Source: U.S. Wheat Associates