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Articles of Interest- Tuesday, June 25, 2019

Articles of Interest- Tuesday, June 25, 2019

Texas Wheat to Host Brazilian Trade Team

Texas Wheat Producers Board – 06/24/2019

The Texas Wheat Producers Board (TWPB) will host a trade team consisting of flour milling executives from Brazil on June 25-27 in College Station. During their visit to Texas, the team will be accompanied by U.S. Wheat Associates (USW) staff from Santiago, Chile. The visit coincides with the recent announcement that Brazil would implement a duty-free tariff rate quota (TRQ) for wheat under their World Trade Organization commitments. The agreement gives the U.S. the opportunity to compete for 750,000 metric tons annually under the TRQ. “Hosting the Brazilian Trade Team is part of the ongoing market development efforts of the board,” said Rodney Mosier, executive vice president of Texas Wheat. “The event is designed to maintain and increase wheat exports, which will reduce carryover stocks and strengthen wheat prices.” The trade team will have the opportunity tour the wheat research facilities at Texas A&M University. The objective is to demonstrate the quality of U.S. wheat, while discussing advancements in breeding techniques, genetic research and improved milling and baking characteristics led by scientists in Texas. The TWPB continues to work with USW to establish closer relationships with international customers, including Brazil, and keep them informed of the high quality selection provided by growers in the U.S. and Texas.

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Focus on Tunisia

World-Grain – 06/21/2019

Tunisia, on the north coast of Africa, depends on imports for a large part of its supply of grain. The government aims to increase the level of self-sufficiency and the market is managed by the authorities, with subsidies and other technical help for farmers designed to achieve that aim. The International Grains Council (IGC) forecasts Tunisia’s 2019-20 grains crop at 1.4 million tonnes, up from 1.1 million in the previous year. According to the IGC’s forecast, Tunisia will import an unchanged 1.1 million tonnes of maize in 2019-20. The country’s barley imports are forecast at 500,000 tonnes, also unchanged. In a report dated March 28, the USDA attaché forecast the country’s 2019-20 wheat crop at 1.3 million tonnes, with barley at 600,000 tonnes. “Very favorable weather conditions from October to December encouraged farmers to seed earlier and larger areas,” the report said. “Beneficial rainfall was recorded in late March.” The attaché forecast Tunisia’s wheat consumption in 2019-20 at 3.02 million tonnes, on the basis of trend average growth of around 1%. The figure is based, with a population of around 11.65 million people, on an average per person of 259 kilograms. Policy is based around a government goal to achieve self-sufficiency with an average annual production of 2.7 million tonnes of grains of which 1.5 million are durum. Government programs include guaranteeing a price of 750 dinars a tonne (which the report converts to U.S.$250) for durum, 540 dinars a tonne ($180) for common wheat and 480 dinars ($160) for barley.

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Farmers Fight Mud to Advance Harvest

Enid News – 06/24/2019

It’s officially summer market watchers and harvest has finally got fully underway in most all of Oklahoma! Reports are calling the 2019 wheat crop 25% complete in our great state compared to the USDA’s 16 percent while Texas is 42% and Kansas 1% harvested. Yields and protein levels continue to track better than expected in most areas while test weights are becoming increasingly variable and farmers are fighting mud everywhere. Four-wheel drive tractors have been pacing the roads with chain in tow and no implements behind them as have dozers to pull combines and grain carts out of what seem to be more sink holes than mud holes. Although expected, fighting the mud is always more than one bargains for especially when it starts tearing things up. All in all, it is just the story of this year’s wheat crop that will linger into double-crop planting as fields and terrace channels will need to get leveled back up before planting. It’s the joy and peril of farming while contending with Mother Nature.

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US Winter Wheat Harvest Remainds Slow, Spring Wheat Crop Ratings Decline

S&P Global – 06/25/2019

The pace of US winter wheat harvest for the 2019-20 crop (June-May) continued to be slower in the week ended June 23, reaching only 15%, down about a quarter year on year, amid wet weather conditions seen across the key producing states, data from the US Department of Agriculture showed. In the latest week, states like Illinois, Kansas, Missouri and Oklahoma have seen the pace of harvest dropping up to 46 percentage points from past year, according to the USDA data. Kansas, the largest winter wheat-producing state, saw heavy rains and flooding in May and early June, a period crucial for wheat harvesting conditions, according to weather analysts. Oklahoma, another major wheat producer, also faced major rainfall in May and wet weather conditions is still continuing for the state, analysts said. “Unfortunately, this pattern [of active precipitation], given our latest research and modeling for the remainder of June, looks to remain persist in those areas with much above normal rainfall targeted there ahead,” Kirk Hinz, a meteorologist at Indiana-based BAMWX LLC, told S&P Global Platts.

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Commissioner Petersen, Delegation Return from Trade Talks in South America

AgUpdate– 06/22/2019

Commissioner of Agriculture Thom Petersen and a 14-member delegation have returned from a trade mission to Columbia and Peru. During a time when Minnesota farmers need every trade partner they have, the trip was meant to build trust and increase trade with both countries. “This is a tremendous opportunity for our grains, especially corn, and keep in mind both countries now have had free trade agreements for about 10 years,” said Petersen after he returned from South America. “They’re continuing to increase their imports in corn, soybeans and wheat.” The delegation was comprised of Minnesota farm leaders and University of Minnesota representatives, including Dean Bev Durgan. Representatives from both Minnesota’s grain and meat production also attended…“I was kind of interested to see their Canadian imports of wheat have gone up and United States imports of wheat have gone down,” he said. “They would like to import more United States wheat.” Reasons for the decreased shipments of wheat to the South American countries have to do with shipping and logistical issues that are continuing to be worked on and improved. “They would like to see higher protein content in our wheat,” he said. “But they have a growing population and a growing middle class.”

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Source: U.S. Wheat Associates