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Articles of Interest- Friday, August 30, 2019

Articles of Interest- Friday, August 30, 2019

Global Wheat Production Recovers But Frost is a Danger

Western Producer – 08/29/2019

Weak canola prices caused by the trade problems with China dominate market headlines, but wheat values in percentage terms have fallen further compared to this time last year. Cash prices in Canada for canola are down eight to nine percent compared to the same point a year ago but hard red spring wheat is down about 16 percent. On a daily continuation chart, Minneapolis spring wheat futures are down about 13 percent from last year at the same time. Kansas hard winter and Chicago soft winter wheat contracts are also lower than last year and an interesting anomaly has developed with the Kansas price significantly below the Chicago price, reflecting an expected reduction in soft wheat production and an increase in hard red winter supply. Normally, the Kansas and Chicago prices track closely with Kansas a little stronger, but Chicago now has a premium of more than 30 cents a bushel.

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Ukraine Benefits From Slow Start to Russia’s Wheat Export Season 

Successful Farming – 08/29/2019

Russian wheat exports have been slow so far this season, to the benefit of Ukraine which has seen a surge in its shipments of the grain, traders said. Russia and Ukraine, along with Romania and Kazakhstan, compete with each other in wheat markets in North Africa and the Middle East, which they supply via the Black Sea. Russia, as the largest producer in the region and the world’s largest wheat exporter, usually dominates these markets in August-November when it actively ships its new crop to customers.

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Canadian Wheat, Canola Crops May Rebound on Favorable Weather

Bloomberg – 08/29/2019

The Canadian government reported surprising crop forecasts with bigger-than-expected drops for canola and durum wheat. Some analysts are wary of the numbers, saying output will end up being better following favorable weather. Farmers were surveyed from July 4 to Aug. 5, and beneficial conditions subsequently have probably pushed yields up, analysts said. Crop development was delayed this year after farmers were forced to plant in dry conditions with rain arriving in late June and early July. Durum production will slump 23% to 4.42 million, trailing the 5.08 million estimate. Total wheat output will drop 2.9% to 31.3 million tons after analysts expected an increase to 32.4 million.

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OSU’s Kim Anderson Discusses the Stagnation of Crop Markets and How the Future of the Markets Look

Oklahoma Farm Report – 08/29/2019

On this week’s episode of SUNUP, host Kurtis Hair and Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discuss the stagnation of crop prices right now. “The one interesting thing I read last week is that Russia’s price, they had a sale to Egypt, and it was about $.10/bu cheaper than it was a couple weeks ago,” he said. “And it said it was because of relatively low U.S. prices. It is interesting that U.S. prices are leading the market right now. You look at Russian production, it’s at 2.68 billion bushels, and it may be lowered a little bit. And their exports are projected to be down 74 million bushels this year from last year.” 

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National Festival of Breads featured at Kansas State Fair

Kansas Wheat – 08/29/2019

The Kansas Wheat booth will celebrate the success of the June 2019 event, which included a Kansas farm tour for the eight contest finalists from all around the nation, baking workshops and demonstrations, bread sculpture displays and much more. More than 3,500 people from at least 29 states and five countries attended the event that showcases Kansas wheat and the farmers that produce it. “The National Festival of Breads builds upon a rich tradition of grassroots support and is the nation’s only amateur yeast bread baking competition,” says Cindy Falk, NFOB co-chairperson and nutrition educator for Kansas Wheat. “This contest is a way for bakers to be recognized for their baking skills and creativity while connecting them to the farmers that grow the wheat for the high quality flour that they love to use.”

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Source: U.S. Wheat Associates