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Articles of Interest- Tuesday, November 26, 2019

Articles of Interest- Tuesday, November 26, 2019

Russian Wheat Prices Rise After Major Egyptian Purchase

Hellenic Shipping News – 11/26/2019

Russian wheat prices rose last week as Egypt, the largest buyer of grain from the country, made a major purchase, industry analysts said on Monday, adding that Siberian local prices saw an unusual spike due to demand from Kazakhstan. Egypt’s state grain buyer bought 465,000 tonnes of wheat in an international purchase tender last week. The purchase comprised of 345,000 tonnes of Russian wheat and 120,000 tonnes of Ukrainian wheat. Black Sea prices for Russian wheat with 12.5% protein content were up $1 to $207 per tonne on a free on board (FOB) basis at the end of last week, agricultural consultancy IKAR said in a note. SovEcon, another agricultural consultancy in Moscow, said wheat prices were up $1 to $208.5 per tonne. Barley was steady at $187 per tonne.

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House Democrats are ‘Within Range’ of Reaching a USMCA Trade Deal, Pelosi Says

CNBC – 11/25/2019

House Democrats have come “within range” of reaching a North American trade agreement they can support, House Speaker Nancy Pelosi said Monday. “Now, we need to see our progress in writing from the [Office of the U.S.] Trade Representative for final review,” the California Democrat said in a statement. mDemocrats have negotiated for months with the Trump administration on changes to the United States-Mexico-Canada Agreement, the White House’s replacement for NAFTA. Seeking a win as Trump’s trade conflicts shake the global economy, the president and congressional Republicans have pushed for Pelosi to bring up a vote to ratify the deal by the end of the year.

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Club Wheat Premium Means Tight Seed Supply

Capital Press – 11/25/2019

Washington farmers are expected to plant  more acres of spring club wheat next year to take advantage of a nearly $2 a bushel premium for the subclass. The added acreage is also expected to create a tight supply of the seed. Club wheat prices average $1.75 higher per bushel than for soft white wheat. Soft white ranges from $5.80 to $5.95 per bushel on the Portland market, while club wheat goes for $7.70 to $7.82 per bushel. “We had less acreage and production for this crop year,” said Glen Squires, CEO of the Washington Grain Commission. Some of that reduction was due to less planting of the variety Bruehl, which is susceptible to the falling number starch problem and other factors, Squires said.

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U of Illinois Economist Forecasts 2020 Crop Acreages

Univeristy of Illinois – 11/26/2019

The 2019 crop year will live long in the memory. A record amount of prevent plant acres, delayed harvest, and considerable dismay over USDA reports compounded the uncertainty associated with the trade war. Speculation about the acreage levels in 2020 is already underway…Early surveys indicate winter wheat acreage is set to fall again this year. After planting 31.16 million acres for the 2019-20 crop year, expectations place this year’s winter wheat acreage near 31.12 million acres. Delayed harvesting of spring crops and relatively low cash prices may see this come to pass. Wheat prices picked up recently and a continuation of stronger prices may incentivize wheat planting in the spring. Still, the USDA forecast of an average seasonal price near $4.70 for the 2019-20 marketing year may not provide enough incentive to see total wheat acres above last year’s 45.2 million acres if it comes to fruition.

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Source: U.S. Wheat Associates