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Articles of Interest- Friday, March 22, 2019

Articles of Interest- Friday, March 22, 2019

U.S. Wheat Sees ‘Good Growth Potential’ in Key Markets

Capital Press – 03/21/2019

This year U.S. Wheat Associates will receive $10.6 million from USDA’s Market Access Program and Foreign Market Development Program under the new Farm Bill. That’s a 6% increase over last year The organization, which is the overseas marketing arm for the industry, also received $8.3 million, to be distributed over three years, under the Agricultural Trade Promotion program Steve Mercer, vice president of communications for U.S. Wheat, said the organization cannot share specific activities and strategies in a competitive situation, but provided genera examples of activities in markets with good growth potential for U.S. wheat imports.

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Grain Markets Walled Off from Flood Impacts by Mountains of Supplies

Reuters – 03/21/2019

A massive supply of grains has shielded the futures markets from the impact of flooding in the U.S. Midwest so far, with traders largely shrugging off this week’s reports of destroyed storage bins, swamped elevators and questions about if waters will recede in time for planting…Concerns about the flooding did prompt some investment funds, who are holding big short positions on grains, to begin unwinding some of those bearish bets on Thursday. But the gains remained muted, particularly in comparison to the market’s response to previous natural disasters.

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Tariffs on China ‘For a Substantial Period of Time,’ says Trump

Successful Farming – 03/21/2019

An agreement between China and the U.S. to resolve the trade war “is coming along nicely,” said President Trump on Wednesday, although U.S. tariffs could remain in force for some time to assure that China lives up to the terms of the deal. The trade war has stunted U.S. food and ag exports and knocked China out of its usual spot as the leading importer of those products. China has offered to buy large amounts of U.S. products, including agricultural goods, as part of an overall agreement to reduce its trade surplus with the U.S. Two senior U.S. officials, Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, are expected to join talks in China next week.

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Canada Reaping Rewards of U.S. Exit from TPP

Politico – 03/21/2019

Anxiety among U.S. producers of beef, wheat and other commodities has reached new levels now that Canada and other countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — the new iteration of the TPP that President Donald Trump abandoned early in his presidency — finally have preferential access to one of their most prized markets: Japan. “We’re just now getting the first results, and the preliminary indications are that year-over-year growth has been impressive,” Jim Carr, Canada’s minister for trade diversification, told POLITICO. “The moment is particularly promising for Canada.”…“Japanese buyers have told the Montana Wheat and Barley Committee that they expect their customers to start looking to source more and more Canadian and Australian wheat, especially as we get further into the summer, if there’s not an agreement with the U.S.,” said Michelle Jones, who operates a wheat farm near Broadview, Mont.

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Spring Wheat Market More Resilient in mid-March

The Prairie Star – 03/21/2019

The spring wheat market appears to be a little more resilient in mid-March ahead of the USDA Planting Intentions Report, which is due out at the end of the month. “We’re seeing a little bit of resilience in the spring wheat market, although we obviously need to see a more sustained rally,” said Jim Peterson, marketing director for the North Dakota Wheat Commission. He added that average wheat prices are in the $4.80-$5.25 range across the spring wheat region with an average of $5. Looking at where prices were in early February, the National HRS Wheat Index was about $5.38, and as we’ve hit the middle part of March it’s slipped to about $5.20. Local prices are averaging around $5, which is probably up 5-10 cents from recent lows, but still below the early winter levels. Compared to a year ago, prices are 80-85 cents lower for cash prices for 14 protein spring wheat, Peterson explained.

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Source: U.S. Wheat Associates