Export Activity Picking Up on Major Crops
AgWeek – 12/15/2019
The U.S. Department of Agriculture monthly World Agricultural Supply and Demand Estimates report was viewed as neutral to friendly to the wheat complex. USDA estimates 2019-20 U.S. ending stocks at 974 million bushels, which was lower than pre-report estimates of 1.01 billion bushels and compared to 1.014 billion bushels in November. Exports were revised 25 million bushels higher and imports were lowered 15 million bushels. World ending stocks did, however, increase to 289.5 million metric tons, up from 288.28 million metric tons in November. This surpasses the previous world ending stocks record of 282.7 million metric tons in 2017-18 and was 3.3 million metric tons higher than pre-report estimates. Production was trimmed roughly 1 million metric tons for Argentina, Australia and Canada, while European Union and Russian wheat estimates increased 500,000 metric tons.
British Mills Buy More German Wheat After Sowing Delays
Reuters – 12/18/2019
British mills have been buying more German wheat than usual this winter after heavy rain caused serious delays to sowing of wheat in the United Kingdom, German traders said on Wednesday. Heavy rain in October and November has delayed grain sowings in parts of the European Union with the situation particularly severe in Britain where they could trigger a significant shift to spring planted crops. Spring crops have less time to develop than grains planted in the winter, raising the danger of a smaller crop. “There has been more British wheat buying than normal at this time of the year,” one German trader said. “It looks like some mills are taking extra supply cover in case the delayed British crop reduces the quality of the British harvest.”
House Committee Approves USMCA Trade Deal, Setting Up Vote on Thursday
CNBC – 12/17/2019
A House committee cleared a new North American trade deal on Tuesday, setting up approval in the full chamber this week. The House Ways and Means Committee favorably reported the United States-Mexico-Canada Agreement, a replacement for NAFTA negotiated by the Trump administration and tweaked by House Democrats. The panel sent the three-nation pact to the full House in a bipartisan voice vote. Earlier Tuesday, House Majority Leader Steny Hoyer said the House plans to consider the trade deal on Thursday. The chamber is expected to approve it with bipartisan support.
Durum Prices Remain Stable as Holidays Approach
AgUpdate – 12/17/2019
Durum prices haven’t changed much in the past several weeks, and with the holidays approaching and the Great Lakes ports about to close for the winter, it doesn’t appear that they will anytime soon. Durum cash prices remain in the $5.75 to $6.50 range for top milling quality, which is basically unchanged for the last few weeks, according to Erica Olson, marketing specialist with the North Dakota Wheat Commission. “We don’t really expect prices to pick up much in the near-term, however, we may see some as we get a few months down the road,” Olson said. “On the demand side, the export pace for U.S. durum is good, but a lot of this demand is not for the top grade durum, but rather some of the lower grades that buyers can get at discount prices, so we don’t expect that top milling price to increase a whole lot near-term,” she added.
No. 1 in America: Buhl Farmer Sets Wheat Production Record
MagicValley.com – 12/17/2019
No one in America grew irrigated wheat more efficiently than Rick Pearson this year. The Buhl farmer won the National Association of Wheat Growers annual irrigated yield award with a 211.59 bush-per-acre average. For comparison, a typical soft white winter farmer might manage 150-160 bushels per acre. Pearson didn’t take credit for the record-setting wheat crop. He praised his farmland. “This is really good ground,” he said. “The oldtimers tell me that when they came through this valley, this farm had the highest sagebrush.”..Robin English is Pearson’s seedsman. He said that weather conditions were a big reason Pearson was able to produce a whopping 211.59 bushels of wheat per acre. “We had a lot of rain,” English said. “Rain makes grain. … Mother Nature was kind to us.”
Source: U.S. Wheat Associates