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Articles of Interest- Friday, December 6, 2019

Articles of Interest- Friday, December 6, 2019

U.S. Wheat Growers Welcome Japan’s Passing of Trade Agreement

Capital Press – 12/05/2019

Japan’s parliament Dec. 4 approved the new agricultural trade agreement with the U.S., a move that was welcomed by American wheat farmers, who say the deal will put them on a level playing field with competitors in Canada and Australia. “It keeps our exports on par with Australia and Canada, which is what we asked for,” said Darren Padget, vice chairman of U.S. Wheat Associates and an Oregon Wheat Commission board member. Padget farms in Grass Valley, Ore. Japan represents roughly 10% of U.S. wheat exports, Padget said. The agreement is slated to go into effect Jan. 1, following its publication in the Federal Register, said Steve Mercer, U.S. Wheat vice president of communications.

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OSU’s Kim Anderson Talks about the World 2019 Wheat Marketing Year and 2020 Wheat Prices

Oklahoma Farm Report – 12/06/2019

In his weekly visit with SUNUP host Lyndall Stout this weekend, Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson talks about the world 2019 wheat marketing year, and what to expect to next year. “The overall projections were relatively accurate this year,” Anderson said. “If you look at the world, a record 28.1 billion bushel crop. If you look at the foreign crop it is a near record at 26.2 billion bushels.” Anderson says Oklahoma had a below average crop this year, with 110 million bushels of hard red winter wheat being harvested. However, Russia harvested a near record 2.7 billion bushel crop and Ukraine harvested a record 1.1 billion bushel crop, he added.

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French Wheat Exports Rise in October as China, Morocco Support

Reuters– 12/06/2019

France exported 1.55 million tonnes of soft wheat in October, the highest monthly volume since the start of the 2019/20 season in July, customs data compiled by Refinitiv showed on Friday. The October volume, which was up from 1.34 million tonnes in September, took total soft wheat exports over July-October to 5.57 million tonnes, up 10% from the year-earlier level, according to the data. The October exports included 892,000 tonnes shipped outside the European Union and 662,000 tonnes sent to other EU countries. Algeria remained the largest destination for French soft wheat in October, with nearly 209,000 tonnes shipped, but the volume was down sharply from previous months, corresponding with a pause in Algeria import purchases during that month.

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China Offers Official Reassurance on Trade Talks With U.S.

The Wall Street Journal – 12/05/2019

China’s trade negotiations with the U.S. remain on track, Beijing said, offering official reassurance after tensions flared between the world’s two biggest economies over human-rights issues in China.
The negotiating teams from both sides have maintained close communications, China’s Commerce Ministry said Thursday, though it didn’t provide details on progress. The recent strain had spooked investors and stoked concerns about the global economic outlook. “If China and the U.S. strike a phase-one deal, relevant tariffs should be reduced,” said Commerce Ministry spokesman Gao Feng, referring to a proposed interim agreement the two sides are trying to reach. During the past few days, though, officials in the U.S. have become less optimistic about a deal. The two nations remain at odds over the value of U.S. farm goods Beijing would buy, with President Trump looking for $40 billion to $50 billion a year within two years.

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US Wheat Net Export Sales Fall 63% on Week, Physical Exports at Marketing Year Low

S&P Global – 12/05/2019

US net export sales of wheat fell 63% on the week to 228,086 mt for the week ended November 28 after rising in the last two weeks, the US Department of Agriculture data showed on Thursday. On a year-on-year basis, net export sales were 68% lower for the reporting week. In the reporting week, physical wheat exports from US were at a marketing year (June-May) low of 231,700 mt. The physical exports were 48% lower on the week and 51.8% lower from a year earlier. Physical exports are shipments of reportable commodities exported against sales. Major destinations for the weekly net export sales were Mexico on 45,100 mt, the Philippines on 27,000 mt, Italy on 19,800 mt, Jamaica on 17,100 mt, and Canada on 11,200 mt. About 102,000 mt were sold to unknown destinations.

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Source: U.S. Wheat Associates