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Articles of Interest- Monday, August 19, 2019

Articles of Interest- Monday, August 19, 2019

Canada Wheat Output Forecast to Rise

World-Grain – 08/16/2019

Wheat production in Canada in 2019-20 is forecast to increase with yields returning to historical averages, according to an Aug. 15 Global Agricultural Information Network report from the U.S. Department of Agriculture (USDA). The USDA projects wheat output at 32.6 million tonnes, a 6% increase over the 2018-19 total of 31.7 million tonnes despite a slight decrease in harvested area. Yield is projected to increase to 3.31 tonnes per hectare from 3.22 tonnes. Exports for the 2018-19 season have been adjusted higher to 24.5 million tonnes with strong demand from China, the USDA said. “Canada’s share of total Chinese imports of wheat has skyrocketed above 60% in 2018-19, up from 32% in 2017-18, as U.S. wheat exports to China have plunged and Australian exportable supplies have fallen sharply,” the USDA said. Canadian wheat exports for 2019-20 are forecast to be at or near last year’s total. Canadian 2018-19 durum exports were up 8% through June, with large volumes moving in the latter half of the marketing year, the USDA said. “Durum exports to Italy through June increased more than 65% year over year to nearly 590,000 tonnes, after Canadian durum exports to Italy fell sharply in 2017-18 on glyphosate-related concerns,” the USDA said.

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Paris Wheat Steady with Euro Help, Mills Snap Up German Crop

Hellenic Shipping News – 08/19/2019

Growing expectations of a large European Union wheat crop, with limited damage from heatwaves this summer, have also weighed on Euronext prices. But an easing euro, which hit a two-week low on Friday against a broadly stronger dollar, has lent support for Euronext wheat. “The euro-dollar rate is helping us to go up,” one futures broker said. “But as soon as you go to around 173.50 euros on December futures, the sellers are back.” Consultancy Strategie Grains on Thursday raised sharply its forecasts for EU exports of soft wheat this season, citing increasingly competitive EU prices, as it also increased its harvest estimate. In France, soft wheat harvesting was rounded off in the week to Aug. 12, farm office FranceAgriMer said in a weekly report. In Germany, decent new-crop quality and large harvest supplies at attractive prices helped generate strong purchasing by flour mills in the past couple of days, traders said. “There has been high volume purchasing by German mills with the total reaching well over 100,000 tonnes of wheat bought in the German domestic market this week, with possibly as much as 250,000 tonnes from the German new crop purchased,” a German trader said.

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Oregon Farmers Hope for Stabillity

The Columbian – 08/18/2019

In all, 40 percent of Oregon agricultural production is exported internationally, according to the Oregon Farm Bureau. Oregon’s top markets are Japan, South Korea, Canada and China. “Every year is a challenging year, and some are tougher than others,” said Harper Monroe, who is president of the Lane County Farm Bureau. “It’s a really tough time for us.” Oregon farmers largely were able to plant their crops this year despite some moments of extreme weather, something farmers farther east can’t say after a devastating season that saw more acres of cropland prevented from farming than any previous year on record, according to data from the U.S. Department of Agriculture…Blake Rowe, CEO of the Oregon Wheat Commission, pointed to trade disruption as the main problem for Oregon’s wheat farmers. China hasn’t been buying U.S. wheat for about 18 months because of the trade war.

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State Wheat Breeder Brett Carver Shares Vision for the Future of OSU’s Wheat Improvement Program

Oklahoma Farm Report – 08/16/2019

Oklahoma State Wheat Breeder and Chair of the Oklahoma Wheat Improvement Team at Oklahoma State University Dr. Brett Carver led a discussion at Wednesday’s joint-meeting of the Oklahoma Wheat Commission and Oklahoma Wheat Growers Association in El Reno, reviewing the results of the program’s 2019 wheat variety trials and the direction in which the program is headed. During the event, he sat down with Radio Oklahoma Ag Network Associate Farm Director Carson Horn to expound on his vision for the program moving forward. “Every year I think, well… I don’t know if it can get any better than this. But, then the data comes in from the field and it verifies what I saw in the field and this year is just really exciting to see the different directions I think we could move the program,” Carver said. “I like varieties that can respond to multiple needs – not just the same need of yield and test weight. That’s ok, that will keep us busy. But, there’s certain parts of that I think we can tease apart and make that yield and quality even better.”

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Wheat Farmers in Washington Selling Their Crop for Prices Below the Cost of Production

NBC – 08/17/2019

Wheat farmers are harvesting their crop in Washington, but are selling it for prices at or below what it costs to produce. Farmers took a hit this week by a federal forecast that drove down the already low prices. The USDA came out with its August crop production report which showed a 3-percent increase in wheat production compared to last month. That caused wheat prices to drop. Last week out of Portland, red winter wheat was trading at $5.20 when farmers need to get on average $5.50 a bushel to cover cost. About 90 percent of Washington wheat is exported, with the two biggest buyers being Japan and the Philippines. You would think good volume would yield a price per bushel increase, but that’s not the case right now. Wheat farmers are saying trade wars have really slowed things down. “Our volumes are up. I think all of U.S. agriculture is really hurt with these trade wars,” said Damon Filan, Manager Tri-Cities Wheat. “It effects not only the farmers, but it effects the whole industry, the railroads, the barge lines and anybody that is involved in the chain for agriculture.”

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Source: U.S. Wheat Associates