US Wheat Price Report (Claire Hutchins, US Wheat Associates)
- Technical buying and concerns about dryness in the United States, Argentina and the Black Sea supported all wheat futures prices week-over-week. CBOT soft red winter (SRW) futures jumped 31 cents to end at $6.25/bu. KCBT hard red winter (HRW) futures added 23 cents to close at $5.59/bu. MGE hard red spring (HRS) futures gained 16 cents to end at $5.60/bu. CBOT corn futures added 7 cents to close at $4.02/bu. CBOT January soybean futures fell 15 cents to end at $10.50/
Commercial Sales
- This week’s commercial sales of 528,000 metric tons (MT) for delivery in 2020/21, as of Oct. 8, were in line with last week’s volume and on the high end of trade expectations of 200,000 MT to 600,000 MT. Year-to-date commercial sales now total 15.0 million metric tons (MMT), 9% ahead of last year’s pace. USDA expects the United States will export 26.5 MMT in 2020/21, up 1% from last year, if.
National Association of Wheat Growers (NAWG) Update (Caitlin Eannello)
- NAWG Urges Quick Congressional Action on Grain Standards Reauthorization
NAWG continues to urge Congress to pass S. 4054, the Grain Standards Reauthorization Act, which will reauthorize grain inspection and weighing services for five years and was reported out of the Senate Agriculture Committee by voice vote last June. The FY 2021 continuing resolution included a provision extending authorization for these services through December 11, 2020. Passage of S. 4054 before expiration of the extension is a priority for NAWG this fall, and we urge the Senate to approve this bill as soon as possible and for the House of Representatives to quickly process the legislation. Last month, NAWG joined with several other national agriculture organizations in sending this letter to the Senate about the importance of this legislation. - NAWG Holds Domestic and Trade Policy Committee Meeting
On October 14, 2020, NAWG’s Domestic and Trade Policy Committee held an informal business meeting to discuss rail rate regulation. During the meeting, the Committee heard a panel discussion about U.S. wheat competitiveness, the STB’s Final Offer Rate Review (FORR) proceeding, and other related issues and perspectives on rail rate regulation. - October WASDE Report Release
The USDA has released its World Agricultural Supply and Demand Estimates for the month of October. The 2020-2021 supply and demand outlook for U.S. wheat this month is for reduced supplies, higher domestic use, unchanged exports, and lower ending stocks. Domestic use is raised to 10 million bushels, and exports remain at 975 million bushels. The season-average farm price is raised $0.20 per bushel to $4.70. Globally, the outlook is for larger supplies, increased consumption, greater exports, and higher stocks. For the full report, click here.
Industry News (MN Farm Bureau Federation Weekly Impact Update)
- Minnesota Adopts Full Conformity for Section 179
During the fifth special session, the Minnesota legislature passed the bonding and tax bill, HF 1, which included full conformity for Section 179 beginning in tax year 2020. The bill also provides for Section 179 expensing retroactively for tax years in which the like-kind exchange changes under the Tax Cuts and Jobs Act were effective for federal purposes.
The bill passed on a strong bi-partisan vote of 100 to 34 in the House and 64 to 3 in the Senate. Twenty-five House Republicans joined the House DFL to get this much needed fix for Section 179 and like/kind exchanges providing $208 million in tax relief for farmers and small businesses when they invest in their Minnesota operations. There were also many local bonding projects that may also be important for local communities. The bill now will be sent to the Governor and we expect he will sign the bill.
Minnesota Farm Bureau greatly appreciates the bipartisan support of the legislature.
Thank you to Minnesota Farm Bureau members who reached out to their legislators on this issue. Your voice made a difference in getting this priority issue across the finish line and into law.
Read more here. - Reviewing State-Level Farm Economic Conditions
USDA’s recent September Farm Income Forecast provided the first estimate of state-level farm financial indicators. As anticipated, gross farm income, net farm income and net cash income are the highest in areas with high-value fruit and vegetable production, highly productive cropland and areas with a high concentration of livestock operations. While net farm profitability was estimated higher in 2019, due in large part to increased ad hoc support, net farm income in many states continues to be well below the previous decade’s average.
Market Intel update