U.S. Wheat Prices Competitive in Global Marketplace
Capital Press – 11/30/2018
U.S. wheat prices are lower than those of competing countries, but experts say it’s still a tough export market. Market analyst Stephanie Bryant-Erdmann cites International Grains Council data, saying U.S. wheat is now a better value than that of all major competitors, with U.S. soft red winter wheat at $216 per metric ton, $10 per metric ton below Russian fourth-grade wheat. U.S. hard red spring wheat with 14 percent protein averages $258 per metric ton, $4 per metric ton below Canadian Western Red Spring wheat, she said in the U.S. Wheat Associates newsletter.
Australia Cuts Wheat Harvest Forecast to 10-Year Low on Drought
Reuters – 12/3/2018
Australia on Tuesday lowered its wheat production forecast by 11 percent to the smallest in a decade amid a crippling drought across the country’s east coast that may cut exports from the world’s fourth biggest supplier. Wheat production during the 2018/19 season will total 16.95 million tonnes, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). That was below ABARES’ September estimate of 19.1 million tonnes, which was on course to be the lowest since 2008 when output hit just 13.6 million tonnes. Lower wheat production will reduce Australia’s wheat export capacity, supporting global benchmark prices that rose to their highest in more than two months on Monday.
U.S. Expects Immediate Action From China on Trade Commitments
Reuters – 12/2/2018
The United States expects China to take immediate action to cut tariffs on U.S. car imports and end intellectual property theft and forced technology transfers as the two countries move toward a broader trade deal, a White House official said on Monday. President Donald Trump and Chinese President Xi Jinping on Saturday agreed to a ceasefire in a trade war that has seen the flow of hundreds of billions of dollars worth of goods between the world’s two largest economies disrupted by tariffs.
China Trade War on Hold
Politico – 12/3/2018
Almost exactly as we predicted here last week, President Trump and Chinese President Xi Jinping essentially called a trade war cease fire after their dinner at the G-20 on Saturday night in Buenos Aires. Trump will keep the current tariff rate at 10 percent on Jan. 1 rather than goose it to 25 percent. And for now he will not push ahead with tariffs on the next $267 billion in Chinese exports to the U.S.. In return, the Chinese agreed to designate fentanyl as a Controlled Substance, a big win in the battle with opioid addiction in the U.S.
Farm Bill, Other Votes Postponed to Next Week
DTN The Progressive Farmer – 12/3/2018
President George H.W. Bush’s death and plans for him to lie in state at the Capitol with a funeral Wednesday at the National Cathedral are changing the schedule for both Congress and the executive branch of government this week, which is likely to affect the congressional schedule for the rest of the calendar year. House Majority Leader Kevin McCarthy, R-Calif., has announced Monday that there will be no votes in the House of Representatives this week due to the mourning and funeral for the late President George H.W. Bush. Given the House schedule, it is not expected that the farm bill conference report will drop until early next week.
Source: U.S. Wheat Associates