Articles of Interest- Tuesday, March 12, 2019
March 12, 2019
Wheat Reps: Trade Deal in the Works
Capital Press – 03/11/2019
U.S. and Washington wheat industry representatives hope trade deals with Japan, Mexico and Canada can be worked out before they get caught up in politics between President Donald Trump and Democrats. Ben Conner, vice president of policy for U.S. Wheat Associates, provided an update by conference call to the Washington Grain Commission board during their meeting March 7 in Spokane. U.S. Wheat is the overseas marketing arm for the industry. Conner told the commission board that the U.S. trade deal with Canada and Mexico is still pending. For Pacific Northwest wheat farmers, the deal would ease the way for a deal with Japan, Conner said.
Wheat Competitive Pricing Suggests Rebound in EU Exports
AgFax – 03/08/2019
EU wheat exports are beginning to improve after sputtering for much of the first half of 2018/19. During July-December 2018, EU exports struggled to contend with the record pace of Russian exports. EU wheat prices normally trade at a premium to Russian prices, especially during the last 2 years as Russia’s supplies have been extraordinarily large. However, in recent months, Russia’s supplies have tightened and its prices have become less competitive. EU wheat, on the other hand, has become cheaper and is now showing its largest price discount to Russian wheat since May 2016. The price relationship between EU and Russian wheat has a major influence on the pace of EU exports.
Trump Budget Reopens Farm Bill to Slash Spending
Agri-Pulse – 03/11/2019
Less than three months after signing the 2018 farm bill, President Donald Trump proposed a fiscal 2020 budget that would reopen the law to slash crop insurance and tighten commodity program eligibility limits while making deep cuts in the Supplemental Nutrition Assistance Program…For the second year in a row, Trump’s budget proposes to slash USDA’s Economic Research Service, but this time includes $15 million to pay for moving most of the agency’s staff out of the national capital region, a goal Agriculture Secretary Sonny Perdue announced after the FY19 budget was released. The ERS budget would be cut $87 million this year to $61 million, including the relocation allowance.
2019 Wheat Harvest Prices Should Improve
FarmPress – 03/11/2019
Oklahoma and Texas producers may forward contract wheat for $4.32 (-10 cent basis) at Burlington, Okla., and $4.17 atn Perryton, Texas (-30 cent basis). If producers harvest good milling quality (60 pound test weight and 12.5 percent protein) wheat, June 2019 wheat prices may be closer to $5.00…These prices are difficult to explain when world hard wheat ending stocks are projected to be 435 million bushels less (-24 percent) than 2017/18 ending stocks. And, U.S. hard red winter (HRW) wheat stocks are projected to be 90 million bushels less (-15.5 percent) than last year’s ending stocks…The USDA projects 2018/19 marketing year HRW wheat exports to be 320 million bushels. Normally, 96 percent of marketing year sales have been sold by early March. To date, only 276 million bushels (86 percent) have been sold. The USDA 320 million bushel export projection may be too high.
NAWG Voices Concern about President’s 2020 Budget Proposal
NAWG – 03/11/2019
Today, the White House Office of Management and Budget Acting Director Russ Vought released the President’s Fiscal Year 2020 Budget of the United States Government: “A Budget for a Better America: Promises Kept. Taxpayers First.” In response, NAWG President and Lavon, TX wheat farmer Ben Scholz issued the following: “While NAWG continues to review the budget proposal in more detail, we do see that it proposes drastic cuts to some key programs for farmers. Congress just passed a farm bill by historical margins from both sides of the aisle which rejected many of these misguided cuts to agriculture that are proposed in the President’s budget request.
Source: U.S. Wheat Associates