News from the Minnesota Association of Wheat
Growers for Wednesday, May 31,  2000

MOORE WELCOMES U.S. HOUSE VOTE ON CHINA
Director-General Mike Moore, on 25 May 2000, welcomed the approval by the US House of Representatives of permanent normal trade relations with China as a "vital step in bringing China into the family of governments that make up the WTO" and a "vote of confidence to a rules-based trading system".

"I am delighted that the U.S. House of Representatives has approved Permanent Normal Trade Relations with China. This is a vital step in bringing China into the family of governments that make up the World Trade Organization. I am hopeful that the U.S. Senate will also approve PNTR when it votes on the matter in the coming weeks."

THE WTO AND THE NEW ECONOMY
Speech by Mike Moore
Director-General of the World Trade Organization
"We have worked through an important package to help the world's poorest countries reap greater benefits from the world trading system. This package includes better access to rich-country markets (on that note, I must congratulate the Clinton administration and Congress for pushing through the bill to boost trade with Africa and Caribbean), increased technical assistance, and closer co-operation between the WTO and other global institutions that promote development, notably the World Bank." 
Finish the speech at www.uswheat.org.  Click on Wheat Links, then click on World Trade Organization.

CBOT SOYBEANS END LOWER AS FORECASTS SHOW RAIN
CHICAGO, May 30 (Reuters) - According to Reuters, Chicago Board of Trade soybean futures closed sharply lower Tuesday after a session of fund-dominated selling that was triggered by widespread beneficial rain in the U.S. Midwest this past weekend and forecasts for more this week, traders said.

Commodity funds sold about 5,000 contracts on the day. Traders said the selling was only a portion of the funds' long positions and more liquidation was ahead, unless weather forecasts turn hot and dry.

"It is going to be hard to rally this market until it (rain) stops," said one floor source.  Rain fell over a large area of the Midwest during the three-day Memorial Day weekend and more was due this week.  "I think the whole state of Iowa got an inch of rain," said one trader of the weekend rain.

Iowa is the nation's top corn and soybean state.

Traders said the rain this week should provide sufficient moisture for early growth but more will be needed as the summer progresses.

USDA RATES 66% OF SOYBEANS IN 'GOOD' TO 'EXCELLENT' SHAPE
 USDA released their first crop condition report for soybeans, rating 66% of the crop in "good" to "excellent" condition. Twenty-nine percent is rated in "fair" condition, with 5% in "poor" to "very poor" shape.  Finish the article at www.profarmer.com

CROP INSURANCE BILL GOES TO WHITE HOUSE
May30, 2000
The Senate late Thursday passed the conference report of the crop insurance reform act by a vote of 91-4.

Four Republican Senators, , voted against it. The House had passed the report earlier Thursday, so the bill now goes to President Clinton for his signature. Finish the article at www.agdayta.com

2000 OUTLOOK OF THE U.S. AND WORLD WHEAT INDUSTRIES, 1999-2001
Authors: 
Won W. Koo  wkoo@ndsuext.nodak.edu
Richard D. Taylor

Abstract:

This report evaluates the U.S. and world wheat markets for the 1999-2009 period by using the Global Wheat Policy Simulation Model.  This analysis is based on a series of assumptions about general economic conditions, agricultural policies, weather conditions, and technological change.

Both the U.S. and world wheat economies are predicted to be improving for the next ten years.  World demands for both common and durum wheat are expected to grow faster than world production of the two wheat classes, resulting in gradual increases in prices of the wheats, which are predicted to increase 36% for durum wheat and 23% for common wheat for the 1999- 2009 period.  However, the prices are expected to recover slowly for the next 2-3 years.  World trade volumes of both classes of wheat are expected to expand, but trade volume of durum wheat may grow faster than common wheat.

Web Site: http://agecon.lib.umn.edu/ndsu/aer438.pdf

Carol Jensen
Department of Agricultural Economics
North Dakota State University
(Ph. 701-231-7441 -- Fax 701-231-7400)
cjensen@ndsuext.nodak.edu