Economists Expect Slightly Higher Grain Prices, Input Costs
Capital Press – 02/07/2019
Grain prices are likely to be a little higher this year, but not enough to offset higher input costs, an expert says. “They might even be more attractive if we can sort out some of these trade disruptions and frictions,” said Randy Fortenbery, small grains economist at Washington State University. “But at least we haven’t completely collapsed on the grain price side.” Fortenbery gave his economic forecast Feb. 6 at the Spokane Ag Expo and Pacific Northwest Farm Forum. He called for wheat prices to be 10 to 20 cents higher over the next 11 months, but warned that won’t pay for storage.
Wheat Prices: February 2018 Versus February 2019
Farm Progress – 02/07/2019
Note that the February 2019 price and basis are higher than the February 2018 price and basis. One reason is that, in February 2018, an excess of poor milling quality wheat and a severe shortage of flour milling quality (protein) wheat was in storage. In February 2019, good flour milling quality wheat is readily available.
World Food Prices Rise in January: U.N. FAO
Reuters – 02/07/2019
orld food prices rose in January, buoyed by a rebound in dairy prices and stronger showings for vegetable oils and sugar, the United Nations food agency said on Thursday. The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 164.8 points last month against 161.8 in December. Despite the rise, the index was still 2.2 percent below its January 2018 level.
Agriculture Trade Promotion Funding Important for North Dakota Wheat Producers
North Dakota Wheat Commission – 02/07/2019
North Dakota wheat producers are highly dependent on a robust export market for their wheat, with roughly one-half of hard red spring wheat (HRS) and about one-third of the durum exported to very quality conscious millers and processors worldwide. U.S. wheat as a whole is marketed to more than 80 countries annually. These essential exports are assisted by US Wheat Associates (USW) and USDA’s Foreign Market Development (FMD) and Market Assistance (MAP) Programs, leveraging producer checkoff funds in the global market development arena. Maintaining and expanding these long-established, producer-customer trade relationships is crucial to the marketability of our premium wheats and our producers’ profitability. Read More
Outlook for Trade Policy and the World Trade Organization in 2019
JDSupra – 02/07/2019
The year 2018 may be remembered as a turning point for US trade policy and the international trading system. The Trump administration took several unilateral trade actions, including the imposition of global “national security” tariffs and quotas on steel and aluminum and of punitive tariffs on nearly half of all Chinese imports as retaliation for that country’s commercial and trade policies. Responsive actions followed in many countries, leading to an unprecedented level of national trade barriers and disputes in the modern “WTO” era. The measures and countermeasures have not only disrupted global supply chains and heightened uncertainty for business, but also have raised doubts about the United States’ commitment to the multilateral system and the WTO’s continued ability to serve as a negotiating forum and arbiter of disputes.
Source: U.S. Wheat Associates