August 8, 2019
Federal Grain Inspection Service Gives U.S. Wheat a Differential Advantage in the Marketplace
Originally published July 30, 2019
By Casey Chumrau, USW Marketing Manager, Santiago Office
The Federal Grain Inspection Service (FGIS) may be somewhat unfamiliar to most farmers but serves as a major competitive advantage for U.S. grains on the international market. Based on two congressional acts establishing a standardized inspection process, all wheat exported from the United States is inspected and given a grade as it is loaded onto the export vessel, whether it be a train or ship. This independent process sets the United States apart by providing a form of certainty and protection for buyers. Read the full article here.
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Trade Promotion Assistance Will Support USW Activities in New and Established Markets
Originally published July 31, 2019
Under the Agricultural Trade Promotion (ATP) program administered by USDA’s Foreign Agricultural Service (FAS), U.S. wheat farmers recently welcomed additional support for the effort to build overseas demand for the high-quality wheat they produce.
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U.S. Wheat Farmer Testifies on Importance of Grain Inspection System for U.S. Export Markets
Original release by the National Association of Wheat Growers
The Senate Committee on Agriculture held a hearing July 31, 2019, looking at perspectives around reauthorizing the Grain Standards Act. Brian Linin, a wheat farmer from Goodland, Kan., testified on behalf of the National Association of Wheat Growers (NAWG) on the importance of reauthorizing the Grain Standards Act. Linin also serves as a board member of the U.S. Wheat Associates and works for Frontier Ag, Inc.
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Demonstrating Value in U.S. Wheat to Change Baking Preferences in Colombia
Originally published August 8, 2019
Colombia’s flour milling industry depends on imported wheat and is separated into regional clusters by the location of Colombian ports. Wheat arriving in Buenaventura on the Pacific coast is trucked to flour mills in Cali and Bogotá to serve the country’s largest regional baking industry. Much of the wheat unloaded at Buenaventura, however, is Canadian Western Red Spring (CWRS). That is because the price and discounting tactics of the now defunct Canadian Wheat Board helped built a traditional preference for CWRS. Bakers in Cali and Bogotá, in turn, learned to mellow this strong flour with additives; logistics kept them from seeing an alternative in U.S. hard red winter (HRW).
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Reduced Wheat Production Estimates Boost Russian Export Prices
Originally published August 8, 2019
By Claire Hutchins, USW Market Analyst
Extremely high temperatures and below-average precipitation levels prompted USDA to reduce its Russian wheat production forecast from 78.0 million metric tons (MMT) in its June World Agricultural Supply and Demand Estimates (WASDE) report to 74.2 MMT in its July WASDE report. That is a 5% reduction month over month. Russia’s leading agriculture consultancies also reduced their Russian wheat production forecasts. Between June 11 and July 24, SovEcon reduced its 2019/20 Russian wheat production forecast by 10% from 82.2 MMT to 73.7 MMT. Between early June 12 and August 5, IKAR reduced its Russian wheat production estimate by 6% from 80.2 MMT to 75.5 MMT.
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“Trade policy throughout the past several decades has opened up new markets for agricultural exports, increased access in existing markets, and lowered or eliminated various tariffs and technical barriers to trade. Opportunities for improvement still abound; however, the benefits far outweigh the drawback for the agricultural community.” — Michelle Erickson-Jones, Wheat Farmers and Past-President of the Montana Grain Growers Association.
Click here to read more.
Weekly Commercial Sales are Up. USDA reported net U.S. wheat export sales of 487,700 metric tons for the week to August 1. That is 27% higher than the preceding week and 17% above the prior four-week average. U.S. Wheat Associates (USW) publishes a Commercial Sales report every Thursday with more details.
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USDA Should Consider Export Customer Concerns. This week, the National Association of Wheat Growers (NAWG) submitted comments to the U.S Department of Agriculture on proposed rule changes to regulations on plant biotechnology. In a statement about its comments, NAWG said: “… its highest priority concern is that any rule change contemplated by the USDA APHIS needs to consider its impact on importing countries of U.S. produced grain. NAWG encourages USDA APHIS to develop and execute an international engagement strategy that defines USDA’s rationale on pre-market regulatory approaches. All foreign customers expect the continued oversight by USDA to ensure consistent food safety, which is fundamental to their confidence in purchases of U.S. wheat.”
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No Vote on USMCA “Disappointing.” In a news release, the Washington Grain Commission (WGC) and the Washington Association of Wheat Growers (WAWG) said the failure of the U.S. Congress to approve the the U.S.-Mexico-Canada Agreement on Trade (USMCA) prior to its August recess “jeopardizes trade with two of America’s most reliable customers as it threatens wheat shipments to our most important market.” They urged Congress to schedule an expedited vote on the important trade agreement. Although the Pacific Northwest exports little grain to Mexico, wheat is traded on the world market and undermining exports to Mexico “will depress prices further for all wheat farmers” the organizations stated.
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IAOM-KSU Basic and Advanced Milling Principles. Through hands-on training in the Kansas State University milling facilities and classroom discussions at the IGP Institute, these two courses will further develop participants basic and advanced milling skills and understanding of the milling process. The IAOM-KSU Basic Milling Course will be held Oct. 7 to 11, 2019.
Click here for more information about these courses and the IGP Institute.
Source: U.S. Wheat Associates