Weekly Export Sales: Big Soybean Totals Weren’t a Large Surprise
Feedstuffs – 4/4/2019
Wheat export shipments reached 15.7 million bushels last week, pushing the weekly total needed to keep pace with USDA forecasts down to 5.6 million bushels. For the 2018/19 marketing year, three countries are vying for the No. 1 destination, including the Philippines (12% of the total), Mexico (12%) and Japan (11%). Other top destinations include South Korea (6%) and Nigeria (6%).
Kim Anderson Says Market Prices Low and Planted Acre Projections Shifting
Oklahoma Farm Report – 4/4/2019
Wheat prices this week are near a five year low with the May contract at $4.40 – just a $0.06 spread from the July contract at $4.46. According to Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson, while the futures market is down, the basis is relatively high. However, it is a wash when you consider how low the cash price for wheat is.
Wheat Consumption on the Rise in Chile
World-Grain – 4/4/2019
With wheat producers expecting high prices, Chile’s wheat production for the 2018-19 marketing year is forecast to reach 1.51 million tonnes, according to a March 25 Global Agricultural Information Network (GAIN) report from the Foreign Agricultural Service of the U.S. Department of Agriculture (USDA). In the 2017-18 marketing year, wheat production totaled 1.47 million tonnes, about an 8.8% increase over 2016-17. The USDA attributed the gain to an expansion in wheat planting.
Russian Wheat Prices Follow Global Benchmarks Lower
Hellenic Shipping News – 4/3/2019
Russian wheat export prices dropped last week after global benchmarks in Chicago hit their lowest in two weeks on massive supplies of U.S. corn and soybeans, analysts said. Black Sea prices for Russian wheat with 12.5 percent protein content and for delivery in April were $225 per tonne on a free on board (FOB) basis at the end of last week, down $2 from a week earlier, agricultural consultancy IKAR said. SovEcon, another Moscow-based consultancy, quoted FOB wheat prices stable at $226 a tonne. Last week, SovEcon downgraded its forecast for Russia’s 2018/19 grain exports due to a stronger rouble and relatively high domestic prices.
Wet Fields and Dampened Prices Heading into Planting
Ohio’s Country Journal – 4/5/2019
U.S. wheat acres were estimated to be 45.8 million acres, an all time low. Ohio producers report many wheat acres don’t look great as they came out of hibernation. My drives as well as cycling trips through central Ohio have yielded a simple conclusion. Either wheat acres look really good or really poor. The latter seems to be common throughout much of Ohio. Don’t be surprised if numerous wheat fields will be sacrificed in hopes of producing much better yields with spring planted corn or soybeans in the weeks ahead. With the huge price drop wheat has seen since last August into the end of March of $1.50, there may even be some great looking wheat which is torn up in favor of corn and soybeans. Numerous acres were topdressed during freezing temperatures the first half of March. Others did not apply nitrogen as they wanted to combine the application with herbicides. Conditions were not even close to ideal for those herbicides to be a significant weed killing factor had that combined application with nitrogen taken place.
Montana Farmers Plan to Plant Fewer Acres of Wheat, Lentils, Chickpeas
Billings Gazette – 4/5/2019
American farmers are poised to plant fewer wheat acres than they have in a century. Even in Montana, acres are down. Farmers tell the United States Department of Agriculture they’ll plant 2 million fewer wheat acres nationally. A strong U.S. dollar and the lower global market prices are making challenging conditions for U.S. wheat. Intentions were announced in the U.S. prospective plantings report at the end of March. Montana is the nation’s third largest wheat producer, with more than 5 million acres planted. Wheat is the backbone of the state agriculture economy. That said, farmers intend to plant 310,000 fewer acres this year.
Radio Series Highlights Farmer Stress
Morning Ag Clips – 4/4/2019
Prompted by the many sources of stress currently impacting farmers and ranchers, the Minnesota Department of Agriculture (MDA) and the Red River Farm Network (RRFN) have joined forces to create a new radio series called TransFARMation. The series uses farm radio, podcasts, and social media to increase awareness and reduce inhibitions about acknowledging farmer stress while highlighting sources of support.
Source: U.S. Wheat Associates