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MN Wheat Weekly Wheatsource

MN Wheat Weekly Wheatsource

  • January 25 1:00 – 3:45 p.m. AND January 26 9:00 – 11:45 a.m.
  • Program is different each day.
  • Program Details
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US Wheat Associates Price Report (Claire Hutchins)

Read the full report as a PDF

  • Technical selling following the news that Russia plans to implement a wheat export tax pressured all wheat futures week-over-week. CBOT soft red winter (SRW) futures lost 6 cents to close at $6.08/bu. KCBT hard red winter (HRW) futures fell 12 cents to end at $5.69/bu. MGE hard red spring (HRS) futures lost 1 cent to close at $5.68/bu. CBOT corn futures gained 14 cents to end at $4.37/bu. CBOT March soybean futures jumped 58 cents to close at $12.24/bu.
  • Global Wheat Reports:
  • According to AgriCensus, the Russian government has officially imposed a €25.0/MT ($30.6/MT) tax on all wheat exports from Feb. 15 to June 30, 2021 in an effort to stabilize domestic food prices. USDA still expects Russia will export 40.0 MMT of wheat in 2020/21, 16% more than last year and 21% more than the 5-year average, if realized.
  • The Rosario Board of Trade (BCR) forecasts total Argentinian wheat production will fall 15% on the year to 16.5 MMT, the second-lowest output in a decade on extreme drought. The Buenos Aires Grain Exchange (BAGE) predicts production will total 16.9 MMT and USDA pegs the 2020/21 harvest at 18.0 MMT
  • As of Dec. 16, total Ukrainian grain exports are down 14% from this time last year at 23.8 MMT, 12.2 MMT of which is wheat. In October, Ukraine implemented a 17.5 MMT wheat export quota for the 2020/21 marketing year and current sales account for 70% of the quota.
  • Stratégie Grains, a French agriculture consultancy, forecasts European Union (EU) soft (non-durum) wheat production will reach 130 MMT in 2021, 9% more than last year on improved planting conditions through fall 2020. The United Kingdom (UK), not included in the EU forecast, is expected to produce 15.0 MMT of soft wheat next year.

National Association of Wheat Growers (NAWG) Update (Caitlin Eannello)

  • U.S. Fish and Wildlife Service Finds Endangered Species Act Listing for Monarch Butterfly Warranted but Precluded
    After a thorough assessment of the monarch butterfly’s status, the U.S. Fish and Wildlife Service (Service) has found that adding the monarch butterfly to the list of threatened and endangered species is warranted but precluded by work on higher-priority listing actions. With this decision, the monarch becomes a candidate for listing under the Endangered Species Act (ESA), and its status will be reviewed each year until it is no longer a candidate. Read more here.
  • Agri-Pulse: Meyer Tapped as New USDA Chief Economist

As reported in Agri-Pulse, “Seth Meyer will be returning to the Department of Agriculture to assume the position of chief economist. Meyer takes the place of Rob Johansson, who has held the position since 2015 and plans to depart USDA at the end of January and accept a position as the associate director of economics and policy analysis at the American Sugar Alliance.” Read the complete article here.

  • USDA to Open Signup for the Conservation Reserve Program and CRP Grasslands in Early 2021

On November 12, 2020, the U.S. Department of Agriculture (USDA) announced the signup periods for the Conservation Reserve Program (CRP) and the CRP Grasslands in 2021. Signup for general CRP will be open from Jan. 4, 2021, to Feb. 12, 2021, and signup for CRP Grasslands runs from March 15, 2021 to April 23, 2021. Both programs are competitive and provide annual rental payments for land devoted to conservation purposes.

  • NAWG Environment and Research Committee (Chandler Goule)
    • On Friday, NAWG’s ERC held a virtual Zoom meeting to discuss climate issues. NAWG invited several guest speakers from the US Farmers and Ranchers in Action (a copy of the presentation can be found here), Rural Investment to Protect our Environment, and Food and Agriculture Climate Alliance.
    • The committee voted to endorse the US Farmers and Ranchers in Action vision that was presented to the committee
    • The following resolutions were also adopted:
      • 1. Actively engage in federal and private carbon and climate policy and program development in a constructive manner to represent wheat growers’ interests, ensuring proactive practical input to ensure policies are viable for grower adoption and the ongoing economic viability of agriculture.
      • 2. Oppose prescriptive, mandatory carbon/climate legislation or regulation that has a negative impact on production agriculture’s economic viability, is not science based, and/or does not recognize regional or preferential differences in farming practices.
      • 3. Support recognizing certain agricultural practices as a benefit to the environment and society and compensating producers for providing those benefits.
      • 4. Support private and federal carbon-related programs and policies which are voluntary, market-based, and provide economic opportunities for participating farmers. Programs should recognize the achievements of agriculture in protecting and restoring the environment by rewarding early adopters and those adding new practices. Programs should be science based, flexible and inclusive to include allowances for regional, geographic or preferential differences in farming practices.
      • 5. Any legislative or federal policies addressing agricultural practices and carbon sequestration, or emissions should be led by the Congressional Agriculture Committees and administered by USDA.
    • The committee discussed that the above policies would replace existing resolutions:
      • ERR.D.15 NAWG is opposed to greenhouse gas legislation or regulation that has a negative impact on production agriculture. NAWG will strive for a net economic benefit to farmers, agriculture and food production. We believe neither greenhouse gas regulation nor legislation should take effect until the major carbon emitting countries of the world have agreed to regulate their own greenhouse gases in a like manner to ours. NAWG urges USDA to do a detailed economic analysis of any legislation or regulation before it becomes law. Furthermore, NAWG will oppose EPA regulation of greenhouse gases. (Renewed February 2018 )
      • ERR.D.21 NAWG supports recognizing certain agricultural practices as a benefit to the environment. Further, any policy or regulation regarding conservation practices and technological advancements that aid in carbon sequestration and the reduction of carbon emissions should be legislatively addressed via the Farm Bill and subsequently administered through USDA or the private sector. The wheat industry should be fully involved in discussions and development of any policy or legislation relating to climate change and carbon sequestration. (Washington, February 2020)