OSU’s Kim Anderson Talks the Rally in Wheat Prices This Week and the Potential for More
Oklahoma Farm Report – 09/19/2019
In his weekly visit with SUNUP host Dave Deken this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson talks about the rally in wheat prices this week. “I think we bottomed out, those down trends started in late July, early August, in corn, wheat and soybeans,” Anderson said. “If you look at corn, it has rallied about $.40/bu since the first of September, beans is up there about the same. And wheat is up $.30/bu.” He says he thinks the market has broke the short run down trend. And he thinks the market has hit the bottom on most of the other crops. “If you look at the latest World Agriculture Supply and Demand Estimates (WASDE), I think the market is getting a little more comfortable with what the corn production is going to be,” he said. “So I think that is already in the market now that corn harvest is going on. The wheat harvest moved up into the northern U.S. and Canada. So we are about 85% done around the world.”
US Net Export Sales of Wheat in Latest Week Fall to 10-week Low
S&P Global – 09/20/2019
US net export sales of wheat in the week to September 12 slumped to the lowest in 10 weeks, falling 53.1% to 286,589 mt from a week ago, led largely by a reduction in sales to unknown destinations and the Philippines, latest data from the US Department of Agriculture showed Thursday. Wheat export sales for the week to September 12 were below market expectations, according to analysts, who had expected sales to be in the range of 300,000-600,000 mt for the week. In the week ended September 5, US wheat export sales recorded strong weekly growth, driven by large bookings from the Philippines. The Philippines is the second-largest buyer of US wheat after Mexico. Physical wheat exports — those which have been shipped from the US — totaled 509,337 mt in the week to September 12, up 26% from the prior week, according to the USDA report.
Former Agriculture Secretaries Announce Support for USMCA
American Ag Radio Network – 09/19/2019
Today, all former U.S. Secretaries of Agriculture since President Reagan’s Administration announced support for the United States-Mexico-Canada Agreement (USMCA). In a letter to Congressional leaders, former Secretaries John Block (Reagan), Mike Espy (Clinton), Dan Glickman (Clinton), Ann Veneman (W. Bush), Mike Johanns (W. Bush), Ed Shafer (W. Bush), and Tom Vilsack (Obama) underscored the importance of passing USMCA saying, “We need a strong and reliable trade deal with our top two customers for U.S. agriculture products. USMCA will provide certainty in the North American market for the U.S. farm sector and rural economy. We strongly support ratification of USMCA.”
U.S. Spring Wheat Harvest Continues at Snails Pace
World-Grain – 09/19/2019
The tortuously slow spring wheat harvest continued to plod along this week while the fall crop harvest was beginning to expand into the key Central states and central Plains. Inclement weather that dropped up to six times the normal September rainfall continued to keep the spring wheat harvest in the northern Plains proceeding in fits and starts despite a few dry days suitable for fieldwork last week. The U.S. Department of Agriculture in its weekly Crop Progress report indicated the spring wheat harvest in six principal production states was 76% completed by Sept. 15 compared with 71% a week earlier, 96% a year ago and 93% as the recent five-year average for the date. The spring wheat harvest was furthest along in South Dakota at 96% completed, trailing the state’s average pace by only two points. The North Dakota harvest at 73% completed lagged its average pace of 91% for the date.
New Facility Could Boost Local, State Wheat Production
News Tribune – 09/20/2019
A new state-of-the-art flour milling facility in Mendota is not only a boost for jobs and the local and regional economy, it could provide another cropping option for farmers. “Whenever you add domestic processing, it’s good for the farmer,” said Kevin Like, president of ADM Milling. Like spoke at the grand opening and ribbon cutting for the new 30,000 hundredweight flour mill in Mendota on Wednesday. One Illinois wheat grower who welcomed the new plant was Illinois director of agriculture John Sullivan, who also farms in Schuyler County, raising corn, soybeans, wheat and cattle. “It is just a thrill, as a farmer, to know there is an opportunity here at this facility for added value to our growing of grain here locally. It’s really a tremendous opportunity to have the ability to add value to our commodities,” said Sullivan. The Mendota mill snags the record for being the largest flour mill ever built from the ground up at one time. It is expected to employ 30 to 40 employees. To produce the white and whole wheat flour that it supplies to the restaurant and baking industries in the Chicagoland area, as well as northwest Indiana and eastern Iowa, the plant uses three types of wheat: hard wheat, spring wheat and soft wheat.
Source: U.S. Wheat Associates