Articles of Interest- Tuesday, September 24, 2019
September 24, 2019
Interview: Taiwan Trade Team Agrees to Purchase U.S. Wheat
WNAX Radio – 09/20/2019
The Taiwan Flour Millers Association this week signed a letter of intent to purchase U.S. wheat over the next two years. U.S. Wheat Associate’s Steve Mercer says they’re purchasing 66 million bushels of U.S. wheat with an estimated value of around $576 million. He says this trade mission is conducted every two years. He says the Taiwanese like the quality of U.S. wheat, particularly that used in breads. Mercer says the trade team signed the agreement while in Washington D.C. and since then have been traveling across the country. The Taiwan Wheat team will be in Pierre this Sunday and will visit the State Capital and then take a farm and elevator tour before heading off to Idaho on Tuesday.
Brazil’s Tariff-Free Wheat Import Quota Seen Implemented in November
Reuters – 09/23/2019
Brazil plans to introduce a 750,000-tonne tariff-free quota for wheat imports from countries outside of the South American Mercosur trade bloc in November, a government official said on Monday.
Flavio Bettarello, the agriculture ministry’s assistant secretary for trade and foreign relations, told an industry conference that enforcing the new tariff-free quota could help Brazil add new suppliers, including the United States and Russia. The government is still pondering how to implement the quota in November, he told Reuters on the sidelines of the conference, explaining that it could be introduced via an order from the Special Secretariat for Foreign Trade and International Affairs (Secint) or from the Executive Secretariat of Foreign Trade (Camex). The Brazilian millers’ association Abitrigo welcomed the new quota, which was announced as part of a series of measures to open up Brazil’s economy and increase the country’s share of global agricultural trade.
Spring Wheat Market Sees Modest Increase in Prices
The Courier – 09/24/2019
After weeks of lingering without much movement at all, spring wheat prices started to see some improvement in mid-September. “We have been seeing upward price movement the last couple weeks,” said Erica Olson, marketing specialist for the North Dakota Wheat Commission. “December futures have gone up about 20 cents, so today (Sept. 17), the Minneapolis futures are trading around $5.10. That gets most of the cash bids above $4 with most in the range of $4-$4.50, however some are hovering in the high $3 range still. Obviously, we’d like to see them higher than that, but at least we’re making a little positive progress.” The big issue right now, according to Olson, is the spring wheat harvest progress and corresponding quality. Producers made fairly minimal progress the second week of September due to rain. According to USDA’s crop progress report on Sept. 17, the U.S. crop was about 76 percent harvested. North Dakota’s harvest was at 73 percent complete, but in Montana harvest was even lower.
Negotiators Push Ahead on New U.S.-Japan Trade Deal
Capital Press – 09/20/2019
Negotiators are hurrying to finalize this month a new trade deal between U.S. president Donald Trump and Japanese Prime Minister Shinzo Abe, an official with the Japanese Cabinet Secretariat told the Capital Press. However, “the date when the deal will come into effect has not been decided,” said the official, who asked not to be identified. As far as agricultural products are concerned in the deal, the official said concessions Japan made in previous trade agreements represented the maximum it would make for U.S. agricultural, fisheries and forestry products.
Asked whether tariff reductions will be the same as those under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the official only said the details will be announced once the U.S.-Japan trade negotiations are finalized.
A Market for Wheat: New Milling Facility Could Add Options for Farmers
Agrinews – 09/23/2019
With corn and soybean prices depressed, farmers in Illinois might soon be taking a look at another crop — wheat. With the official opening of a new flour milling facility by Archer Daniels Midland Co. in Mendota, soft wheat might offer some opportunities for farmers in the region. “When it comes to soft wheat, that will be the local draw. A lot of ground in this area has corn and soybeans, but there is also some wheat and our hopes are to increase the amount of soft wheat grown in this area,” said Kevin Like, president of ADM Milling, at the Sept. 18 ribbon cutting and open house for the plant, located on Illinois Route 34 and I-39 on the eastern edge of Mendota.“Whenever you add domestic processing, it’s good for the farmer,” Like said. One Illinois wheat grower who welcomed the new plant was Illinois Agriculture Director 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,” Sullivan said.
Source: U.S. Wheat Associates