October 19, 2021
MN Wheat Weekly Update
MN Wheat Job Opportunity
PROJECT LEAD – The position of Project Lead is a dynamic role with a variety from day-to-day. This position works in three primary areas: 1) Agronomy/Research 2) Communications/Coordination and 3) Office Support. For more information click here or email cvogel@mnwheat.com.
Grain Storage Facility Safety Cost-Share
Last June The legislature appropriated $100,000 each year for the next two years for the program and MDA is now taking applications for the current fiscal year. This program reimburses 75% of eligible safety equipment expenses up to $400 per bin or silo with a limit of $2,400 per farm. The following link gives information on what type of safety equipment can be reimbursed and who can apply.
https://www.mda.state.mn.us/grainstoragesafetycostshare
US Wheat Associates, Weekly Price Report – Michael Anderson
- Wheat futures were mixed this week. CBOT soft red winter (SRW) futures were unchanged at $7.34/bu. KCBT hard red winter (HRW) futures were up 6 cents to end at $7.43/bu. MGE hard red spring (HRS) futures gained 22 cents to close at $9.68/bu. CBOT corn futures were down 5 cents to $5.25/bu. CBOT soybean futures were down 26 cents to close at $12.17/bu.
Commercial Sales: View the most recent USW Commercial Sales report here.
- Net U.S. wheat commercial sales of 567,600 metric tons (MT) for the week of October 7 for delivery in 2021/22 were up 70% from last week’s 333,200 (MT) and exceeded trade expectations of 250,000 MT to 500,000 MT. Year-to-date commercial sales for delivery in 2021/22 total 11.9 million metric tons (MMT), 20% lower than last year at the same time. USDA expects total 2021/22 U.S. wheat exports will reach 23.8 MMT, 12% lower than last year, if realized
- This week, temperatures in the western portion of the U.S. were below normal while temperatures were well above normal in the Northern Plains and Upper Midwest. A low-pressure system brought much-needed rain to the Dakotas and Minnesota. Further south, warmer than average temperatures caused conditions in Kansas, Nebraska, Colorado, and Wyoming to deteriorate rapidly. Oklahoma received rain while further south, Texas remained dry. More rain is needed in the PNW but limited rainfall this week helped improve conditions there somewhat.
Figure 1.2 : Oct 14th
National Policy Update – by: Mariah Wollweber
NAWG CEO article Baking Business
- Last week, NAWG CEO, Chandler Goule, spoke at the North American Millers’ Association (NAMA) about the advantageous position wheat growers have when it comes to sustainable agricultural practices, however, work should be done before growers should be expected to invest in steps to further invest in these practices. He highlighted the questions to be answered before grower participation should be expected in carbon markets and how important it is for the credit generated by the sequestered carbon, come back to the farmer. He also voiced concerns about the debate on the reality of climate change, a “one-size-fits-all” approach, and the lack of wheat research. To read the full article, click here.
EPA Army Announce Regional Roundtable on WOTUS
- The U.S. Environmental Protection Agency (EPA) and the U.S. Department of the Army have asked for roundtable propositions to provide input on the regional implications of “waters of the United States” (WOTUS). They have announced a process for nomination letter submission with a lineup of participants to potentially be selected as a roundtable. The roundtables will allow for discussion to compare geographic regions, discuss water resources unique to each region, and discuss site-specific feedback about implementation. To find out more information, click here.
White House Announces Additional Efforts to Address Supply Chain Bottlenecks
- The White House’s Supply Chain Disruption Task Force, which convened in June, announced an agreement between ports, dockworkers, railroads, trucking companies, unions, and retailers they would expand their standard hours of operations to help ease supply chain bottlenecks. These actions are expected to move over 3,500 additional containers per week through the end of the year. For more information and to read the White House’s fact sheet, click here.
USDA Launches First Phase of Soil Carbon Monitoring Efforts through Conservation Reserve Program Initiative
- USDA is investing $10 million into a new initiative to sample, measure, and monitor soil carbon on Conservation Reserve Program (CRP) acres to better gauge the climate outcomes of the program. Data gathered will be used to strengthen many tools which allow evaluation of potential carbon sequestration and greenhouse gas emission reductions. Soil carbon sampling will occur on three categories of CRP practice types: perennial grass, trees, and wetlands. To read the full press release and get more information, click here.
Industry Updates:
MN Farm Bureau Federation Weekly Update Exerts
MFBF Testifies on Drought Implications
- Minnesota Farm Bureau President Kevin Paap testified before the Minnesota House Agriculture Finance and Policy Committee on challenges stemming from this year’s drought. MFBF also offered our support for a drought package to provided needed resources to Minnesota farmers.
- There is still no update on a possible special session of the state legislature to pass drought resources.
- Existing resources can be found on the MDA website or Farmers.Gov.
USDA Forced to Rebalance October WASDE
- Released on Sept. 30, USDA’s Quarterly Grain Stocks Report showed that as of Sept. 1 old-crop corn and soybean inventory levels had dropped, compelling USDA to update supply and demand expectations in the October World Agricultural Supply and Demand Estimates, released on Oct. 12. Much higher-than-expected soybean stocks and the subsequent adjustments made for old and new crop supply and demand pushed soybean prices for the 2020/21 marketing year average and the 2021/22 marketing year down sharply.
- In the September Grain Stocks Report, soybean ending stocks for the 2020/21 marketing year were increased by 81 million bushels, up 46% from the 175 million bushels USDA originally had pegged to 256 million bushels. This revision still puts soybean ending stocks about 51% behind 2019 soybean stocks.
- Corn ending stocks were revised up from 1.187 billion bushels to 1.24 billion bushels, an increase of 6% and up from analysts’ expectations of 1.15 billion bushels. This estimate is still about 36% lower than 2020 and close to 2013 levels when the corn price for the average marketing year was around $4.46 per bushel. Wheat stock carry-over is at its lowest point since 2014, but production is expected to be slightly lower given dryer than normal weather conditions.