Focus on Romania
Romania qualifies as one of the Black Sea origins for grain, with Russia and Ukraine, but it also has the advantage of being a member of the European Union (E.U.), with its farmers supported under the E.U.’s Common Agricultural Policy. Romania is becoming an increasingly important producer and exporter of grains. It serves as a conduit to the outside world for much of southeastern Europe, with grain coming by barge along the Danube. It is an important supplier to destinations in the eastern Mediterranean and Middle East as well as to other E.U. countries.
Russian Wheat Loses Allure as Rivals Dominate Egpyt Tender
Bloomberg – 01/29/2019
Russia is losing its grip on the Egyptian wheat tenders it has long dominated. In a tender Tuesday, Egypt bought 360,000 tons of Romanian and French wheat, shunning Russian grain for only the second time in the last seven months. Russian wheat failed to make the shortlist of the five cheapest offers for the first time since at least 2016, according to data compiled by Bloomberg.
Australia’s West Set for Hot, Dry Spell in Risk to Wheat Outlook
Australia’s west coast is facing hot, dry weather over the next three months, the country’s bureau of meteorology said on Thursday, denting the outlook for wheat production in the world’s fourth-largest exporter. There is only a 20 percent chance that the state of Western Australia will receive average rainfall between Feb. 1 and April 30, Australia’s Bureau of Meteorology said in its latest three-month outlook.
U.S. Sends 70 Questions to WTO About China’s Subsidies
Reuters – 01/30/2019
United States has accused China of hiding some trade-distorting subsidy programs from international scrutiny while disclosing others it does not need to, according to a document circulated on Wednesday at the World Trade Organization. The U.S. document lists 70 questions about Beijing’s subsidy programs that highlight Washington’s misgivings about the role the state plays in China’s huge and growing market.
Time is Ticking for U.S. and China to Make a Trade Deal
Successful Farming – 01/31/2019
This week on January 30 and 31, the lead Chinese negotiator Liu and a team of a dozen negotiators will come to Washington to continue the trade negotiations with the Trump team led by U.S. Trade Representative Lighthizer and Treasury Secretary Mnuchin. Recall this whole process of a 90-day trade truce was started December 1 with the G20 meeting between President Trump and President Xi of China, who agreed to delay a U.S. scheduled increase in Chinese tariffs in exchange for Chinese purchases of U.S. grain, lower auto tariffs, and meetings to try to come to a permanent agreement.
Source: U.S. Wheat Associates