EU Wheat Drifts Towards Weekly Fall After Rally Fades
Reuters – 10/25/2019
Euronext wheat edged lower on Friday, staying on course for a first weekly loss since early September as a recent export-fuelled rally faded. Losses were modest, however, as the market remained underpinned by firm prices in top exporter Russia, steady international demand and drought-hit harvest prospects in Australia and Argentina. Benchmark December milling wheat on the Paris-based Euronext exchange was down 0.25 euros or 0.1% at 179.75 euros ($199.31) a tonne by 1501 GMT. It earlier slipped to its lowest since Oct. 16 at 178.75 euros as it retreated further from a three-month high of 182.25 euros struck earlier this week. Over the week it was 0.8% lower and set to break a run of six consecutive weekly gains. Dealers said the passing of the 180 euro threshold triggered some selling but the pullback lacked momentum in thin volumes.
Vietnam to Vet Russian Wheat Exporters to Address Quality Concerns
Reuters – 10/29/2019
Russia has agreed to provide Vietnam with a list of its wheat exporters for approval, the Russian regulator said on Tuesday, as the two countries try to resolve Vietnamese quality concerns about the Russian crop. Vietnam has complained that it has found thistle seed in wheat imported from Russia and some other big suppliers and has urged local importers to seek supplies from other countries. Vietnam slashed its wheat purchases from Russia a year ago after finding imports contained thistle seed, as it fears thistle seed could spread across Vietnam and damage crops.
Earlier this month Vietnam asked Russia’s agriculture safety watchdog to temporarily suspend issuing new wheat export certificates for shipments to Vietnam until the issue with thistle seed is resolved. Last week, officials from the two countries held talks and “the Vietnamese side proposed to introduce certification of Russian exporters in order to regulate the situation with the supply of Russian wheat,” the Russian watchdog, Rosselkhoznadzor, said in a statement on Tuesday.
U.S.-China Tensions Spur Progress on Giant Asia Trade Pact
Reuters – 10/29/2019
Tensions between the United States and China have given new impetus to a China-backed trade pact and there is a chance of major progress, if not final agreement, when Southeast Asian leaders meet in Bangkok this week, analysts say. The Regional Comprehensive Economic Partnership (RCEP) could become the world’s largest free trade zone, comprising 16 countries that account for a third of global gross domestic product and nearly half the world’s population. Progress since talks began in 2012 has been slowed by disagreements between members, such as major Indian concerns over a possible deluge of imports from China. The pact also includes the Association of Southeast Asian Nations (ASEAN), Australia, Japan, New Zealand and South Korea. Analysts said the pace of discussion on remaining issues had quickened this year, as the U.S.-China trade war sharpened concerns over both economic growth and regional security.
Wheat Benefits Highlighted in New Program for Ohio
Ohio’s Country Journal – 10/29/2019
Heritage Cooperative, Land O’Lakes SUSTAIN and Campbell Soup Company are teaming up to help Ohio wheat farmers benchmark their stewardship work and strive to continue safeguarding the air, land and water. Together, the companies will seek to enroll 60,000 Ohio wheat acres in the program, which was previously piloted in Maryland and Pennsylvania. “As a trusted advisor to Ohio farm families and a leader in delivering innovation to the farm gate, Heritage Cooperative is excited to work alongside Land O’Lakes SUSTAIN and Campbell Soup Company to support Ohio farmers’ stewardship efforts,” said Greg Spears, COO, Heritage Cooperative. “Working together, we can have a real impact, helping to safeguard the environment while also helping farmers focus on profit potential and the economic health of their farm.”
The Canal of Death is Now an Economic Gateway for Eastern Europe
Bloomberg – 10/27/2019
Today, the 64-kilometer (40-mile) channel through rich farmland to the Black Sea is a gateway to world markets. Thirty years after the end of communism, it’s helped turn one of the European Union’s poorest members into its biggest exporter of wheat alongside France. The symbol of oppression and totalitarian vanity is now an example of the transformation of a country that endured some of the harshest conditions during the Cold War. The two Balkan countries received more than 30 billion euros ($33 billion) of aid that has modernized the agricultural industry. Romania exported 2.3 million tons of wheat since the season started in July, more than anywhere else in the EU so far, though France usually overtakes eventually. Bulgaria was third with 885,000 tons.
Source: U.S. Wheat Associates