How Russia and Ukraine Took Over the Wheat Market
Southwest FarmPress – 02/01/2019
Rarely do we read or hear a wheat market report today without being informed about what is happing in the Black Sea area (Russia, Ukraine, and to a lesser degree, Kazakhstan). The reason is that in the 2018/19 wheat marketing year, Black Sea exporters are projected to control 49 percent of the hard wheat (hard red winter, hard red spring, and hard white) export market (Figure 1) and 38 percent of all wheat exports.
Grain Exports Decline, Disrupting its Maritime and Rail Supply Chain
Freight Waves – 02/04/2019
The Grain Transport Report, a weekly publication by the Agricultural Marketing Service (a division of the U.S. Department of Agriculture) released information showing that total export inspections for grain (corn, wheat and soybeans) declined 22 percent from the previous week. The report said that year to date (January 1-24) inspections for grain exports decreased by 9 percent, from 9.073 million metric tons (mt) in the same period in 2018 to 8.268 million mt in 2019. The impact of declining exports can be seen across the U.S. grain supply chain.
Weekly Grain Movement- Moving Right Along
Weekly export inspections for the week ending January 31 provided another mixed bag of data, as soybean and wheat inspections ticked slightly higher from the prior week…One lingering question in the wake of today’s data is whether USDA will adjust its forecasts in Friday’s supply and demand report, according to Farm Futures senior grain market analyst Bryce Knorr. “Wheat business remains lackluster, but USDA assumes sales will pick up as Russian supplies run thin,” Knorr says. “But Egypt’s latest tender was filled by two rivals, Romania and France, who enjoy lower shipping costs. That could keep lucrative markets in North Africa and the Middle East mostly out of reach to U.S. farmers.
China and U.S. are a Long Way from Ending Trade War
Successful Farming – 02/04/2019
The tenor of Sino-U.S. negotiations is heartening but “we’re still a long way” from resolving the trade war between the world’s two largest economies, said Agriculture Secretary Sonny Perdue at a cattle industry conference…President Trump has set a March 1 deadline to increase tariffs on Chinese products if there is no agreement. In a letter last week, Chinese President Xi Jinping told Trump that he hoped negotiations would continue “in a spirit of mutual respect and win-win cooperation.”
Source: U.S. Wheat Associates