U.S. Wheat Policy Rep: USDA’s Open Communication ‘Key’ in Dispelling GMO Rumors, Myths
Capital Press – 11/15/2019
USDA’s open communication has been critical for the wheat industry’s ability to maintain customer confidence in the wake of GMO wheat detections, says a representative of U.S. Wheat Associates.
Dalton Henry, U.S. Wheat vice president of policy, spoke to the Capital Press Nov. 13 during the Tri-State Grain Growers Convention in Spokane. The organization is the overseas marketing arm for the industry. Q. How is USDA’s fact-gathering into GMO wheat detections from an industry perspective? Henry: I think that from an industry perspective it has been good. We especially appreciate APHIS’ work, and really all of USDA’s work, in keeping an open line of communication during those fact-finding efforts. From U.S. Wheat’s perspective, that’s been especially key in dispelling rumors or myths as news about this travels to overseas markets. To have APHIS and Foreign Agricultural Service able to especially engage in government-to-government contact with regulators in countries that may be particularly sensitive, that’s been a key part of making sure they know this hasn’t been and isn’t in commercial supplies.
Wheat Rally Fizzles
Successful Farming – 11/17/2019
Wheat saw some encouraging price action early this week, only to give it all back and more by Friday’s close. Kansas City was down 7 with an outside week lower; Chicago was down 4 and Minneapolis down 15. There was little fundamental reason for the strong rally on Tuesday and the lack of follow-through on Wednesday brought out the sellers. It has the look of a large fund doing some aggressive short covering before year-end, likely before the slow holiday trade begins.
World prices were weaker last week and thought to be declining again this week. However, Egypt purchased 465 TMT this week, their largest of the marketing year, at prices steady with last week.
Ukraine sold 120 TMT of the total with Russia selling the remaining 345 TMT at an average price of $232/MT CIF. Shipping costs declined this week, but the Black Sea sellers managed to prop up cash price and keep final delivery price equal to last week. Thus, technically, world prices were slightly higher this week.
U.S. to Begin Second Round of Trade Aid Payments for Farmers Next Week
The U.S. Department of Agriculture said on Friday it will begin making a second round of 2019 trade aid payments to U.S. farmers next week. The payments are the second part of a three-tranche $16 billion aid package announced in May to compensate farmers for the U.S.-China trade war. China imposed tariffs on key U.S. agriculture exports including soybeans and pork last year after U.S. President Donald Trump’s administration levied duties on Chinese goods. Farmers will now be eligible to receive 25% of the total payment expected, in addition to the 50% they already received in the first round of the 2019 package, the USDA said in a statement. The payments “will give farmers, who have had a tough year due to unfair trade retaliation and natural disasters, much needed funds in time for Thanksgiving,” Agriculture Secretary Sonny Perdue said in the statement.
It’s Not Just Farmers- U.S. Exports May Never Recover From Trade War
Bloomberg – 11/16/2019
The Trump administration’s trade war is ravaging exports to China across the U.S. and well beyond the farm belt, new data from the U.S. Commerce Department show. More than 30 states stretching from Florida to Alaska suffered double-digit drops in merchandise exports to China through September of this year. Sales to the Asian nation fell 39% in Texas, where oil and gas products comprise the largest export to that country…”Chinese demand for imports overall has been weak,” said Brad Setser, senior fellow for international economics at the Council on Foreign Relations. The recovery time for various U.S. products will depend on the nature of the trade deal, he said.
“In some cases, U.S. exports will never recover,” he added.
APHIS Urges Farmers to ‘Redouble’ Monitoring for Herbicide- Resistant Weeds
Capital Press – 11/15/2019
USDA’s Animal and Plant Health Inspection Service is urging Northwest farmers to “redouble” monitoring in their fields to further assure customers overseas that GMO wheat concerns have been resolved. The agency and Washington State University are releasing a one-page grower’s guide to managing herbicide-resistant weeds in the Pacific Northwest. The best management practices listed in the guide would help eliminate herbicide-resistant weed populations or herbicide-resistant wheat, said Doug Grant, chief of the Western Compliance Assurance Branch for APHIS’ Biotechnology Regulatory Services (BRS) in Fort Collins, Colo. Grant and Bernadette Juarez, deputy administrator of BRS, spoke to Northwest wheat leaders during the Washington Grain Commission board meeting and a tri-state meeting with the Idaho Wheat Commission and Oregon Wheat Commission Nov. 13 in Spokane.
Source: U.S. Wheat Associates