Russia Extends Zero Wheat Export Duty
World-Grain – 07/02/2019
The Russian government on July 1 announced that it is extending the term of the zero rate on wheat exports until July 1, 2021. The zero wheat export duty, introduced in Russia three years ago, was valid until July 1, 2018, with a subsequent extension until July 1, 2019. According to a decree posted on the official government website: “The decision will facilitate the export of produce of the agro-industrial sector.” Russia’s Agriculture Minister Dmitry Patrushev said in June there were no reasons to abolish the zero-duty rate on wheat exports while the situation on the market was stable. 0In 2016, Russia became the world leader in wheat exports. The country’s share of the global wheat market has quadrupled since the early 2000s. Overall, Russian agricultural production surged by 20% over the past five years. Russia’s wheat exports have been revised downward in the 2019-20 season due to partial droughts, according to Reuters.
US Wheat Inspected for Exports Up 41% on Week: USDA
S&P Global – 07/02/2019
US wheat inspected for exports for the week ended June 27 jumped 40.6% week on week to 609,037 mt, data from the US Department of Agriculture Monday showed. The volume of US wheat inspected for the reporting week was 87.7% higher than the same period a year ago. US wheat inspected for exports is the wheat that has been sold and inspected during loading at export locations for shipment overseas. Wheat market year in the US begins June 1. The total volume of US wheat inspected for exports so far in the 2019-20 market year rose 27.9% year on year to 1.90 million mt. The volume of US wheat inspected for departure from the US Pacific Coast totaled 241,543 mt, including 70,691 mt of Hard Red Spring, 37,371 mt of Hard Red Winter, 132,452 mt of Soft White, and 1,029 mt of Durum. The top destinations for departure of the inspected wheat from the US Pacific coast were Philippines with 85,396 mt, South Korea with 52,582 mt, Japan with 36,882 mt, Thailand with 36,279 mt, and Indonesia with 30,404 mt.
US and China Are Talking Again, But For How Long?
Agri-Pulse – 07/03/2019
U.S. and Chinese officials are already talking again, albeit long distance, to negotiate an end to a prolonged trade war, but farmers are losing patience as exports continue to suffer. “They’re speaking very much on the phone, but they’re also meeting,” President Donald Trump told reporters this week when he was asked about the promised resumption of talks. “Yeah, it’s essentially already begun. It actually began before our meeting.” It’s a good sign, farm group representatives tell Agri-Pulse, but many are skeptical after the on-again, off-again negotiations over the past year that have gotten producers’ hopes up before only to dash them later. The latest breakdown in talks between the two countries was a little less than a month ago. Trump, after a meeting wiith Chinese President Xi Jinping Saturday in Japan, announced he was postponing any new tariffs on China and that China agreed to immediately begin buying U.S. farm products. Trump is putting a lot of emphasis on his personal negotiating skills and highlighting his strong personal relationship with Xi, while stressing that he expects the U.S. to get a better deal than China in the talks.
Day 4, Kansas Wheat Harvest
Kansas Wheat Commission – 07/02/2019
This is day 4 of the Kansas Wheat Harvest Reports, brought to you by the Kansas Wheat Commission, Kansas Association of Wheat Growers and the Kansas Grain and Feed Association.
According to the USDA/NASS crop progress and condition report for the week ending June 30, only 28% of Kansas winter wheat has been harvested, well behind 68% last year and 61% for the five-year average. Winter wheat condition rated 4 percent very poor, 12 poor, 29 fair, 41 good and 14 excellent. Winter wheat coloring was 98 percent. Mature was 76 percent, behind 95 last year. Mike Schloctermeier, of Meade Coop Elevator & Supply Co., reports that since starting harvest on June 20, they have seen exceptional results. “Having dry weather this last week, harvest has really picked up the last 5 or 6 days,” says Schloctermeier. He reported that this is some of the best wheat his guys have seen out in the field, with yields ranging from 65-80. Proteins have been all over the place, ranging from 9 to low 11, but still they are pleased with the results. While they have been running about 10 days behind normal harvest, they are still happy to be harvesting quality wheat this year.
Crop Progress Report July 2, 2019
North Dakota Wheat Commission – 07/02/2019
Development of the U.S. spring wheat crop remains behind average. As of June 30, about 25 percent of the U.S. crop had headed out, compared to over half on average. In Montana and North Dakota less than 20 percent has headed out, while about a third has headed out in the other states. Areas of the spring wheat region continue to be stressed by dry conditions. The most recent drought monitor indicates that the northern tier of North Dakota and portions of northeast Montana and northwest Minnesota are rated as moderately dry with some areas now in a severe drought. Rain did fall over the last week, but more is needed in the dry areas. Crop condition ratings remained stable with last week with about 75 percent rated in good to excellent condition. USDA release their updated acreage report last week which showed a 400,000 decline in spring wheat acres from the March report. U.S. spring wheat acres are now estimated at 12.4 million, down from 13.2 last year. Acres in North Dakota are now projected at 6.5 million, down 200,000 from March. Estimated acres also fell in South Dakota by 200,000 to 800,000. Acreage estimates in Minnesota and Montana remained stable from the March estimate at 1.5 and 2.6 million acres respectively. Producers will be resurveyed on acreage since many were still planting when the report survey was done.
Source: U.S. Wheat Associates