Japan Trade: Hungry for a Deal
FarmProgress – 07/16/2019
A few short days into the Trump administration, the U.S. pulled out of the 12-nation Trans-Pacific Partnership, promising better bilateral trade deals with individual countries. Many of those nations are still waiting for those deals — perhaps chief among them Japan, the No. 4 trading partner of the U.S., behind China, Canada and Mexico. For now, negotiations are ongoing. But the pressure to get a deal inked is significant, especially after Japan finalized two other major trade deals last year — the TPP-11 and a free-trade agreement with the European Union…Opportunity still knocks, with Japanese companies looking to invest and do business in the U.S., as the country is the No. 1 pork and No. 3 beef importer worldwide, according to U.S. Meat Export Federation economist Erin Borror. “But they can’t just leave money on the table without reassurances that we have a trade agreement,” she says, still hopeful that recent engagement between the U.S. and Japan will provide fruitful results. Japan also is a “consistent and important” market for U.S. wheat, which supplies about half of Japan’s total import purchases, says Steve Mercer, vice president of communications for U.S. Wheat Associates. With Japan now paying premiums to purchase U.S. wheat, which could grow to about $70 per metric ton over the next decade, lost market share could eventually exceed 58 million bushels annually, Mercer warns. That could translate to a per bushel loss of about 37 cents. For a farmer growing 1,000 acres of wheat, that could translate into a lost opportunity of around $20,000.
Ongoing Dry to Hit Wheat Export Potential
North Queensland Register – 07/17/2019
A LEADING Australian grains industry analyst has warned that the succession of below average production years for the Australian wheat industry will lead to an erosion of market position in key regions such as south-east Asia. Malcolm Bartholomaeus, Bartholomaeus Consulting, said long-term Asian buyers of Australian wheat, forced to look for other suppliers of wheat in light of a lack of Australian product over recent years, were becoming increasingly comfortable with Russian and Black Sea wheat. “Russia is filling the holes where we used to be and that is pushing us back to the position of a bit-part player on the global wheat stage,” Mr Bartholomaeus said. “Whereas once we were in the top three for wheat exporters we are now in the bottom half of the top ten, well behind the major players.” And it is unlikely Australia is likely to serious step up wheat exports this year either.
Area Wheat Farmers See High Yields in Delayed Harvest
The Garden City Telegram – 07/12/2019
A wet winter and spring have so far brought plentiful wheat yields in southwest Kansas, as regional farmers reach the end of a continually delayed harvest. Such delays vary for each farm. Kyle Deaver, of Finney County, stalled a handful of days, while Vance Ehmke, of Lane County, Garrett Love, of Gray County, and Amy France, of Scott, and Wichita counties fell behind one to several weeks, all mostly due to weather. For the most part, however, the soggy seasons have been worth it. “Moisture is our delay, but it was also what has helped us considerably,” France said. Heavy rain and particularly snow make way for a good wheat crop, Deaver said. He said dry land will outproduce irrigated land after a snowy winter. And southwest Kansas got plenty of precipitation this year, Ehmke said. Generally his farm sees 18 to 19 inches of rain and snow melt over a growing season. This year, he’s seen 30.
2019 Colorado Wheat Harvest Updates
Colorado Wheat – 07/16/2019
According to the July 14th USDA NASS Colorado Crop Progress Report, Colorado is 22% harvested. Crop condition remains good overall, with 82% rated good to excellent, 14% fair and 4% poor to very poor. Many farmers and elevators have stated this is the latest they have ever seen harvest start, with it being 53% behind last year, and 36% behind the five year average. Harvest is slowly starting to wrap up in the southeastern part of the state, where Baca County is estimated to be about 80% complete. Numbers are staying the same, with test weights ranging 58.5-60.3 pounds and protein ranging 10.5-12.5%. Harvest started to pick up over the July 13th weekend further north in Kit Carson County. Elevators in the area have reported test weights ranging 63-65 pounds with protein ranging 10-13%. The area is about 25% complete, however rain has caused delays. Washington County is seeing slow progress due to rain, as well as hail. Elevators reported an average test weight of 61 pounds and average protein around 10%. Parts of Northeastern Colorado are starting to see activity. Farmers in Morgan County started cutting on July 15th. Farmers in the area reported yields ranging 40-60 bushels/acre, with test weights ranging 61-62 pounds. Elevators in Phillips County started seeing trucks come in on July 12 and activity continued to pick up over the weekend. Farmers and Elevators reported test weights ranging 59-61 pounds, with protein ranging 9.8-11.1%.
Podcast: Kansas Wheat CEO Justin Gilpin
WIBW News – 07/16/2019
Justin Gilpin, CEO of Kansas Wheat, joined us on Tuesday’s Ag Issues program. Gilpin updated the latest on the Kansas Wheat harvest and depending on the part of the state you’re in, how the yields are faring along with the quality of the crop. Gilpin also commented on how HRW exports have gotten to a fast start during the trade year. Gilpin also looked at wheat being used for alternate sources such as being included in feed rations for cattle in some parts of the state and how ethanol plants are looking at wheat for their operations as well.