April 4, 2019
An In-Depth Look at the WTO Panel Report on China’s Grain Subsidies
Originally published March 26, 2019
By Ben Conner, USW Vice President of Policy
On February 19, 2019, the World Trade Organization (WTO) released the final report of the panel in the U.S. case alleging that China has not complied with its domestic support commitments on wheat and rice. While the panel disagreed with a few arguments, it agreed with the accusation that China was far out of compliance due to the operation of the market price support (MPS) program for certain commodities. Read the full article here.
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The U.S. Wheat Supply: Unmatched Reliability and Transparency
Originally published March 29, 2019
The world’s wheat buyers have heard the claim that U.S. wheat farmers produce “the world’s most reliable choice.” U.S. Wheat Associates (USW) and the U.S. wheat farmers we represent believe that claim is legitimate because so many customers rely on several classes of U.S. wheat to meet their specific end-use and quality needs and because buying it carries less risk. Read the full article here.
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If Only This Were an April Fools’ Day Hoax
Originally published April 1, 2019
On this April Fools’ Day, however, it is no hoax that today the effective tariff applied to U.S. wheat imported by Japan is nearly $20 per metric ton (or 50 cents per bushel) more than the tariff applied Canadian and Australian wheat. That is because the United States is not a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP. In fact, the effective internal tariff on wheat from those CPTPP member countries will drop again on April 1 in 2020 and drop again every April 1 until 2026. Read the full article here.
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Mr. Bolsonaro Goes to Washington
Originally published April 4, 2019
By Ben Conner, USW Vice President of Policy
Two weeks ago, Brazilian President Jair Bolsonaro visited President Trump in Washington, D.C., to help forge closer ties between the two largest countries in the Western Hemisphere. The joint statement published at the end of the visit highlighted several areas for cooperation and expanded commerce. One of those was a commitment to allow “the annual importation of 750 thousand tons of American wheat at zero rate.” Read the full article here.
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Revenue Potential, Weather Conditions to Cut U.S. Spring Wheat Area
Originally published April 4, 2019
By Claire Hutchins, USW Market Analyst
According to the March 29 USDA Prospective Plantings report, U.S. total spring-planted wheat area will fall to an estimated 14.2 million acres (5.75 million hectares), 7% below 2018/19, if realized. The estimate includes 12.4 million acres of hard red spring (HRS), down 2% from last year, if realized. USDA expects U.S. durum planted area to total 1.42 million acres (575,000 hectares), 25% below 2018/19 and 30% below the 5-year average. Farmers in the top four spring wheat producing states of North Dakota, Montana, South Dakota, and Minnesota are expected to decrease total spring wheat planted area year over year on price and weather concerns. Read the full article here.
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“We have a plan, but it is only as good as the weather it is written on.” — Hurdsfield, North Dakota, farmer Jeff Mertz, discussing how he and his neighbors are preparing for what is likely to be a delayed planting season.
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U.S. Wheat Exports Up this Week. USDA reported commercial net sales of 704,700 metric tons (MT) were reported for delivery in 2018/2019, up 48% from last week’s 475,000 MT and 70% from the estimated previous 4-week average of 457,000 MT. Sales were well above trade expectations of 300,000 to 600,000 MT. Increases were reported for Iraq (200,000 HRW), Egypt (-491 HRS, 120,000 SRW), Indonesia (80,000 HRS, 35,000 white), the Philippines (41,000 HRS, 29,000 white), and Mexico (37,355 HRW, 10,000 HRS, 15,121 SRW).
Pasta Production and Technology Course. The Northern Crops Institute is hosting a Pasta Production and Technology Course April 30 to May 2, 2019, at its facilities in Fargo, N.D. This course introduces participants to the fundamental and applied aspects of pasta production and quality. Click here to learn more and register by Monday, Apr. 8.
Baking with Hard Red Spring Wheat Flour Course. The Northern Crops Institute is hosting a course focused on hard red spring (HRS) wheat and flour May 14 to 17, 2019, at its facilities in Fargo, N.D. Participants will spend time in the baking laboratory, making pan breads, hamburger buns, hard rolls, bagels, pizza crusts, wheat-flour tortillas and more. Click here to learn more and register by Monday, Apr. 22.
Baking with Whole Wheat and Whole Grains Course. The Northern Crops Institute is hosting a course focused on the utilization of whole wheat flour made from hard red spring (HRS) wheat and how to incorporate other whole grain ingredients into wheat-based products. The July 30 to Aug. 2, 2019 course will be at its facilities in Fargo, N.D. Click here to learn more and register by Monday, July 8.
Buhler-KSU Executive Milling Short Courses. IGP Institute offers this executive milling course several times in 2019 at its campus in Manhattan, Kan. The course, focused on the underlying principles of the milling process and operational management, will be offered in English May 20 to 24, 2019, and Nov. 4 to 8, 2019, as well as in Spanish Aug. 26 to 30, 2019. Click here to register to these courses.
Source: U.S. Wheat Associates