U.S. Wheat Exports Cut by 25 Million Bushels
High Plains Journal – 12/18/2018
The U.S. Department of Agriculture’s Economic Research Service released its Situation and Outlook Report for Wheat Dec. 13. This month, the ERS projects all U.S. wheat exports for the 2018-2019 marketing year will be cut by 25 million bushels to 1 billion total. “Export sales through the first six months of the marketing year are projected to constitute just 41 percent of the current marketing year total,” according to the report. This is behind the 10-year average of 52 percent.
Russian Wheat Prices Jump With Global Benchmarks, Lower Supply
Hellenic Shipping News – 12/18/2018
Russian wheat export prices rose sharply last week after global benchmark Chicago wheat futures hit their highest in nearly two months and domestic supply declined due to seasonal factors, analysts said on Monday. Russia, the world’s largest wheat exporter, has been reducing the pace of its exports in recent weeks. Its grain exports are up 4 percent so far this marketing year, which started on July 1, compared with 40 percent in early September.
Farm, Automaker Groups Press U.S. Officials to Push for More EU Access
Reuters – 12/14/2018
U.S. farm, automaker and food and beverage groups pressed the Trump administration on Friday to ensure that any new trade talks with the European Union lead to an increase in their access to EU markets with less red tape. U.S. President Donald Trump has demanded better terms of trade for the United States from China, the EU and Japan. Washington has already reworked the North American trade treaty with neighbors Mexico and Canada. Trump said poor trade deals have cost the United States millions of jobs. At a hearing on U.S. negotiating objectives for trade talks with the European Union, groups representing farmers, food and automobile companies said they wanted to be included in the talks and that reducing tariffs and regulatory restrictions should be a key objective.
China, EU Lambast United States for Miring in WTO Crisis
Retuers – 12/17/2018
The United States came under fire from China and the European Union on Monday, accused by both major trading partners of taking protectionist measures and bringing the World Trade Organization (WTO) to its knees. Japan, Switzerland and Canada also criticised Washington, but U.S. trade ambassador Dennis Shea charged that China’s “unfair competitive practices” were harming foreign companies and workers in violation of WTO rules, and he vowed to lead reform efforts at the watchdog. President Donald Trump’s administration says the WTO is dysfunctional because it has failed to hold China to account for not opening up its economy as envisaged when Beijing joined in 2001.
Trade Issues to Track
Top Producer – 12/17/2018
According to former trade ambassador Darci Vetter, there’s no hotter topic in ag right now than trade. Trade tensions will affect not only our current sales but also our future competitiveness, says Vetter, who now works as general manager, public affairs and vice chair, agriculture food and trade for Edelman.
USDA Announces Second MFP Checks
DTN The Progressive Farmer – 12/17/2018
USDA announced Monday afternoon that “at the direction of President Donald J. Trump,” the second “and final round” of trade aid payments under the Market Facilitation Program will be issued. Farmers who grow commodity crops will collect a second payment based on their 2018 production. But USDA did not make any changes to the payment rate that had led to complaints by some commodity organizations, including the National Corn Growers Association, because corn farmers received 1 cent per bushel of trade mitigation payments.
Source: U.S. Wheat Associates