MN Wheat Weekly Update
US Wheat Price Report (Claire Hutchins, US Wheat Associates)
- Technical selling following USDA’s unexpected reduction of U.S. corn and soybeans ending stocks (see below) pressured all wheat futures prices week-over-week. CBOT March soft red winter (SRW) futures fell 7 cents on the week to end at $6.02/bu. KCBT March hard red winter (HRW) futures lost 2 cents to close at $5.60/bu. MGE hard red spring (HRS) futures fell 2 cents to end at $5.70/bu. CBOT March corn futures gained 6 cents to close at $4.19/bu. CBOT March soybean futures added 49 cents to end at $11.48
- This week’s commercial sales of 300,000 metric tons (MT) for delivery in 2020/21, as of Nov. 5, were down 50% from last week’s 597,000 MT and on the low end of trade expectations of 200,000 MT to 700,000 MT. Year-to-date commercial sales now total 16.8 MMT, 12% ahead of last year’s pace. USDA expects the United States will export 26.5 MMT of wheat in 2020/21, up 1% from last year, if realized
- National Association of Wheat Growers (NAWG) Update (Caitlin Eannello)
2020 NAWG Fall Conference Recap
Last week, via zoom, NAWG held its annual Fall Conference where its policy committees and full board met. NAWG’s annual conference kicked off with its Domestic and Trade Policy Committee (DTPC) meeting, where the Committee continued a discussion on rail rate policy, domestic farm programs with an eye towards Farm Bill reauthorization, Grain Standards Reauthorization Act, and reviewed its strategic plan and policy priorities. The Environment and Research Committee (ERC) received an appropriations and regulatory update, discussed research activities related to the USWBSI and National Predictive Modeling Tool Initiative, received an ESMC update, discussed USDA Ag Innovation Comment review, received a pesticide/glyphosate lawsuit update, and reviewed its strategic plan and policy priorities. Also, the committee approved two resolutions in support of the Wheat Genetics Research Center. Further, the Operations and Planning Committee discussed a strategic plan action item process for handling state requests as well as options for the 2021 Winter Meeting and Annual Meeting. The Budget Committee reviewed and approved the Q1 FY21 financials and draft 2019-20 audit results, reviewed the September 2020 Small Grain Report, and discussed the FY2021-2022 budget. Finally, at its full Board of Directors meeting last Friday, President Dave Milligan, NWF Chairman David Cleavinger, and CEO Chandler Goule provided reports to the full board. The full board also heard reports from the policy committee chairs as well as an election update from NAWG staffer Jake Westlin.
New Field to Market Report Analyzes Concerning Trends in Farm Financial Well-Being
- Field to Market, of which NAWG is a member, recently release a report highlighting trends in farm financial well-being. The report titled Economic Sustainability: Trends in Financial Well-Being. The report found that a prolonged period of low commodity prices has created significant financial pressures for U.S. agriculture, jeopardizing many farming operations and challenging the ability of supply chains to meet ambitious sustainability goals absent more direct support for growers.
Apply Now for USDA’s Coronavirus Food Assistance Program 2
- On November 12, 2020, the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) issued a reminder to farmers and ranchers that the deadline to apply for the Coronavirus Food Assistance Program 2 (CFAP 2) is Dec. 11, 2020. This program provides direct relief to producers who continue to face market disruptions and associated costs because of COVID-19. For more information and to apply, visit farmers.gov/cfap.
November WASDE Report
- The U.S. Department of Agriculture (USDA) recently released their November World Agricultural Supply and Demand Estimates (WASDE) Report. The outlook for 2020/21 U.S. wheat this month is for stable supplies, higher domestic use, unchanged exports, and reduced ending stocks. The global wheat outlook is for larger supplies, increased consumption, higher exports, and reduced stocks. The season-average farm price is unchanged at $4.70 per bushel. Click here to view the full report
Industry News (MN Farm Bureau Federation Weekly Impact Update)
- Last week, the Legislature reconvened for a brief meeting and the sixth special session of 2020. As has been the focus of the previous five session’s, lawmakers debated the use of the Governor’s peacetime emergency powers. To rescind the Governor’s emergency powers, both the House and the Senate must vote in support, a difficult feat given Minnesota’s divided government.
- Lawmakers may return in another 30 days, on December 7, for a seventh special session before the 2021 Legislative Session convenes on January 12, 2021.
Line 3 Update
- Last week, the Minnesota Pollution Control Agency (MPCA) issued the 401 water quality certification permit related to the completion of the Enbridge Line 3 pipeline replacement. This is a step closer to beginning construction on the replacement project.
- The next step in the process is for Enbridge to secure a permit from the Army Corp of Engineers.
Poll Shows Americans’ Unwavering Trust in Farmers and Approval of Sustainability Practices
- A majority of U.S. adults have a positive view of farmers’ sustainability practices, and an overwhelming majority trust farmers, according to a new national public opinion poll from the American Farm Bureau Federation.
- The survey of 2,200 U.S. adults found that more than half (58%) rate the sustainability practices of U.S. farmers positively, with broad agreement from a majority of adults across demographic groups.
- The survey also revealed there is still work to be done to increase awareness of agriculture’s comparatively small contribution to greenhouse gas emissions in the U.S. More than four in five adults (84%) were not able to correctly identify agriculture’s impact. On a brighter note, nearly half of adults (45%) correctly ranked agriculture as the smallest contributor to greenhouse gas emissions by economic sector. According to the latest EPA data, agriculture accounts for 10% of total U.S. emissions, far less than the transportation, electricity production, commercial and residential, and industry sectors.
- Read more at FB Newsroom.
EU to Impose Tariffs on $4 Billion in U.S. Goods
- The European Union recently announced tariffs of $3.99 billion on U.S. aircraft, as well as a range of agricultural and industrial goods. This is the latest move in a long line of moves related to a dispute between the U.S. and the EU over the subsidizing of aircraft production. As is frequently the case, U.S. food and agriculture are being dragged into a dispute that they had nothing to do with. As the “tip of the spear” in trade disputes, U.S. agricultural producers’ goods are often first on the list in retaliatory tariffs, regardless of the type of goods and services directly related to the dispute.
- Market Intel update