With exports in doubt because of hurricane damage to grain elevators near New Orleans, prices for corn, soybeans and wheat, the most widely planted U.S. crops, fell to their lowest levels in several weeks in futures trading on Tuesday. The fall harvest will begin soon and could glut the U.S. market if foreign sales are disrupted.
The wheat harvest in the northern Plains and Pacific Northwest will be 40 percent smaller than last year due to severe drought, said the USDA on Monday. The declines in durum and spring wheat were so great they would reduce overall U.S. wheat production, dominated by winter wheat, by 8 percent …
World wheat production is headed for a record high this year, with a bumper crop in Australia providing the latest bump upward. Australia's crop forecasters, in an estimate adopted by the USDA on Tuesday, say the wheat harvest "is estimated to have increased by 120 percent in 2020-21 to 33.3 million tonnes."
With production surging by 4.4 percent, corn will drive world cereal grain production to record levels in 2020/21, said the UN Food and Agriculture Organization in its first forecast of the new crops. It was the second forecast in a week of record global output as the planting season ends in the northern hemisphere.
U.S. farmers will harvest their smallest corn and soybean crops since 2013, but the trade war will constrain exports of America’s two major crops for the second year in a row, forecast the USDA on Monday. Soybeans would sell at the lowest average price at the farm gate in 13 years.
Unlike earlier incidents, Asian customers for wheat grown in the U.S. Northwest did not bat an eye at the USDA announcement that GMO wheat was found growing in the wild in Washignton state. "At this point there is no trade disruption and we do not expect any," said U.S. Wheat Associates, the export promotion arm of the wheat industry, on Monday.
The trade war with China and low commodity prices will combine to slash U.S. farm exports by 4.5 percent this fiscal year, said the USDA on Thursday in a quarterly forecast. Exports of $137 billion would be the smallest since 2016, when exports bottomed out following the collapse of the commodity boom.
Canadian farmers plan to slash canola plantings by 7 percent this year because of a trade clash with China and to greatly expand their sowings of spring wheat, said Statistics Canada on Wednesday.
Wheat growers declared victory—”a big win”—with Brazil’s agreement on Tuesday to allow duty-free import of wheat grown outside of a South American trading bloc. The so-called tariff-rate quota could result in exports worth more than $100 million a year if U.S. wheat dominates the new market …
For decades, the United States was the super power of the grain world, holding one-third of the international trade in wheat and shipping roughly seven of every 10 bushels sold on the world market. The world market is growing in size, but USDA analysts say the United States is falling off the pace.