U.S. House Passes USMCA
World-Grain – 12/20/2019
The U.S. House of Representatives passed the U.S.-Mexico-Canada Agreement (USMCA) trade agreement on Dec. 19 with a bipartisan vote of 385-41. Under the USMCA, all food and agriculture products that have had zero tariffs under the North American Free Trade Agreement (NAFTA) will continue to enjoy zero tariff access to the partner nations’ markets.
De-escalating Trade Tensions: China to Purchase Up to US$50bn of US Agricultural Goods Over the Next Two Years
Food Ingredients First – 12/19/2019
The US and China have set out terms for a “historic and enforceable” agreement on a “Phase One” interim trade deal that ostensibly would roll back tariffs and re-open the lucrative Chinese market for US agriculture. Given the reinvigorated trade climate, Chinese purchases of US agricultural goods are expected to hit US$40 to 50 billion over the next two years, according to Robert Lighthizer, United State Trade Representative (USTR). These figures are notably higher than the US$8.6 billion the country bought last year and double what it bought in 2017 prior to the trade dispute.
Spring Wheat Market Remains in Narrow Trading Range
Farm & Ranch Guide – 12/19/2019
This time of year, with Thanksgiving behind us and Christmas and New Year fast approaching, along with the fact the Great Lakes ports are closed, is typically a slow time for the wheat market. This year is no different. “The spring wheat market remains in a narrow trading range into the early part of December. There’s not a whole lot of new news in the market,” said Jim Peterson, marketing director for the North Dakota Wheat Commission.
Canadian Producers Hang On to Wheat Market Share
The Western Producer – 12/19/2019
Facing increasing competition from abroad and major system reorganization at home, Canada has done a good job of hanging on to its share of the global wheat market. That is a significant accomplishment, for as we leave behind the teens and head into the twenties of this still young century, Russia has come to dominate the market, pushing some once mighty players away from centre stage. I dug into wheat export statistics to see what has happened over the past 10 years. To smooth out the data so that a year of drought or political upheaval would not throw off the comparisons, I took the averages of the most recent three years, 2017-18, 2018-19 and 2019-20 and compared them to the average of 2007-08, 2008-09 and 2009-10. I used United States Department of Agriculture all-wheat trade statistics that combine wheat and durum.
Trade Tensions Push EU Wheat Exports To China Towards 1 MLN Tonnes
Reuters – 12/20/2019
European Union wheat exports to China this season are expected to reach about 1 million tonnes, led by a run of French sales, after international trade disputes allowed Europe to shift some of its big 2019 crop, grain market sources said. China is the world’s largest wheat grower but also imports several million tonnes a year to cover its needs.
U.S.-Japan Accord Bodes Well for Wheat Farmers
Spokane Journal – 12/19/2019
The Washington wheat industry’s 2020 forecast received a boost when the Japanese government ratified the U.S.-Japan Trade Agreement at the beginning of this month. Less than 13% of all wheat grown in the U.S. is white, and the majority of that is grown in the Pacific Northwest. It’s popular in Asian nations because it can be used to produce spongy noodles. Historically, 85% to 90% of Washington’s wheat has been exported.
USDA/APHIS’ 2019 Accomplishments Support American Producers and Protect U.S. Agriculture
USDA-APHIS – 12/19/2019
The United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) is celebrating the agency’s many successful efforts over the past year. In response to a detection of unauthorized regulated genetically engineered (GE) wheat in Washington State, APHIS worked intensively with the USDA Agricultural Marketing Service and State partners, protecting plant health by responding efficiently and effectively, determining it to be an isolated incident affecting a single farm and conducting a controlled burn to ensure the GE wheat did not persist in the environment. APHIS proactively worked to improve incident response capabilities for detections of unauthorized GE wheat, exchanging best practices with the Canadian Food Inspection Agency and collaborating with industry representatives to develop communication and incident response strategies. Throughout this incident, APHIS and its partners were critical in supporting American agriculture and agricultural trade by ensuring GE wheat did not enter into U.S. commerce and offering test kits to reassure trading partners. This critical work protected U.S. wheat export markets valued at $9 Billion.
Source: U.S. Wheat Associates