With a Wheat Glut Looming, the Party May Be Ending for 2018’s Top Crop
Bloomberg – 12/10/2018
While most crop markets had a lackluster 2018, wheat enjoyed a rally. But those gains look like they may be fleeting. Wheat could become a victim of its own success. As its price proves to be more attractive than competing crops, there are signs that farmers across the globe are sowing more acres for the first time in four years. The increased plantings are expected to swell global supplies at a time when demand remains tepid.
Western Canadian Wheat Bids Rise With U.S. Futures
Western Producer – 12/10/2018
Wheat bids in Western Canada were up for the week ended Dec. 7, as strength in the Unites States futures provided support. Average Canadian Western Red Spring (13.5 percent CWRS) wheat prices were up C$5 to C$7, according to price quotes from a cross-section of delivery points compiled by PDQ (Price and Data Quotes). Average prices ranged from about C$255 per tonne in southeastern Saskatchewan, to as high as C$277 in southern Alberta.
Wheat Markets, El Nino Top Texas Wheat Symposium
High Plains Journal – 12/10/2018
The Texas Wheat Symposium, Nov. 28, in Amarillo, Texas, brought farmers out to the Amarillo Farm Show to hear updates on markets, policy and weather. Mark Welch, Texas A&M University AgriLife Extension economist, gave a market outlook for 2019. Welch said world consumption continues to be very strong in the grain complex, despite the drought of 2012 and the economic slump of 2013 and 2014. There is a strong correlation between the per capita grain consumption pattern and the emerging economies of Brazil, Russia, India, China, Mexico and Southeast Asia.
Ag Groups Want a Speedy Negotiation for Japan Trade Pact
Agri-Pulse – 12/10/2018
When it comes to a new free trade agreement with Japan, speed is of the essence. That was the primary message from a dozen representatives of some of the largest farm and food groups and a couple food companies to a panel of Trump administration officials today as the U.S. Trade Representative prepares for talks with the Asian country next year. U.S. producers of meat, grains and other commodities stressed at the hearing they stand to lose significant market share to European, Australian and South American countries already closing trade pacts with Japan, and the U.S. needs equal treatment.
Northwest Farmers Watch For Signs Export Markets Will Reopen
KPVI – 12/10/2018
With more than $1 billion in Washington agricultural exports on the line, farmers and commodity groups are watching closely to see if negotiations between the United States and China will lead to a major shift in the tariff war. Beginning in April, a series of tariffs announced by the Trump administration, followed by retaliatory measures by China and other countries, has caused disruptions in exports, including cherries, apples, wheat, dairy products and seafood. But most commodities are in the middle of their marketing cycle, so hard data on any losses are hard to come by and some sales affected early in the year could recover if conditions change.
Source: U.S. Wheat Associates