Proposed Chinese Grain Buy Could Boost Prices, Railroad Volumes
Freight Waves – 01/23/2019
The Chinese government is considering buying up to 7 million tons of U.S. wheat, Bloomberg reported Tuesday afternoon. The proposal has been floated as a means to help reduce the China – U.S. trade deficit and make progress toward a resolution in the countries’ ongoing trade dispute. China has not purchased American wheat to replenish state reserves in many years, and a deal of this size would have significant implications for commodity prices and transportation activity in the United States.
Russia’s Agriculture Ministry Requests Weekly Grain Export Data from Ports
Reuters – 01/24/2019
Russia’s Agriculture Ministry has asked the country’s ports to start supplying it with grain export data and export plans on a weekly basis, it said in a letter to managers of port terminals, a copy of which was obtained by Reuters. The letter, first reported by RIA news agency on Thursday, has been interpreted by some market players as a move by the world’s largest wheat exporter to step up controls over grain supplies due to a smaller crop.
Ukraine Grain Exports Rise to 26.5 MLN Tonnes so Far in 2018/19
Reuters – 01/24/2019
Ukraine’s grain exports have risen to 26.5 million tonnes so far in the 2018/19 season as of Jan. 23, from 22.9 million tonnes at the same point in the previous season, the agriculture ministry said. Ukraine has said it harvested a record 70.1 million tonnes of grain last year from 61.3 million in 2017. The ministry said exports could rise to 47.2 million tonnes in the July 2018 to June 2019 season from 39.4 million the season before.
Congressional Earmarks Reconsidered
The Progressive Farmer – 01/24/2019
Lifting of Section 232 steel and aluminum tariffs on Canada and Mexico is being urged by a coalition of agriculture, manufacturing and business groups who maintain the actions have created difficulties for the ag sector. “In full recognition of the importance of U.S.-Mexico-Canada Agreement (USMCA) ratification to the economic interests of all three countries, wish to underscore the importance of lifting tariffs on steel and aluminum imports and the removal of all retaliatory tariffs on trade among the parties,” a coalition of farm and agriculture groups said in a letter to Trump administration officials.
Researchers Seek Go-Ahead for GM Wheat Field Trials
World-Grain – 01/24/2019
LONDON- Field trials may begin shortly in an effort to introduce a wheat variety in which more iron is directed into the endosperm. Researchers at the John Innes Center in Norwich in eastern England have applied with United Kingdom regulatory authorities in an effort to begin the trials in April. The group seeks two small-scale field trials of genetically modified wheat and gene-edited Brassica.
Fortenbery Delivers Economic Forecast at Spokane Ag Expo
Capital Press- 01/24/2019
Randy Fortenbery says he gets grain market trends right more often than he gets them wrong. “I actually historically have done pretty well at picking the direction, up or down,” the Washington State University small grains economist says. “When you start talking about specific prices, then you’re usually going to have some errors, because of all kinds of things outside your current level of experience and things you don’t even anticipate are likely to happen.”
Source: U.S. Wheat Associates