RAIN POUNDS FARGO-MOORHEAD AREA
A severe thunderstorm spawning torrential rains and possibly a tornado swept through the Red River Valley early Monday evening.
The storm flooded city streets, knocked over trees and stranded motorists throughout Fargo-Moorhead.
In Fargo, the thunderstorm snapped power lines, backed up storm sewers and sent cascades of water flowing down city streets. Fargo Police rushed to assist stranded motorists, although at least one police car got landlocked in the process.
"We're very busy," said Sgt. Kevin Volrath. "Some people aren't heeding the seriousness of the situation and don't understand the mechanical limits of their vehicles and are getting stranded."
In clogged underpasses, manhole covers blew off from the pressure of overflowing sewers. Fargo dispatchers received a report of a man bleeding from the head after being struck by one of the manhole covers.
A National Weather Service observer in Moorhead recorded 4.6 inches of rain by 11 p.m. Unofficial reports are up to 7 inches in the area.

Farmers: Rain will 'definitely' hurt crops
"It's going to put us under, definitely," Sheldon farmer Leon Pfingsten said. "I just took a drive up north by Davenport. It's worse up there." He had received 2 inches by 10 p.m. He said it was enough to cause crop damage.

Davenport farmer Brad Kellerman said standing water was covering most fields. "Sure there's crop damage," he said.
He said standing water from weekend storms had just soaked in when Monday's deluge began.

KANSAS WHEAT HARVEST HALF COMPLETE WITH REMARABLY HIGH QUALITY
The Kansas wheat harvest is almost half complete statewide, with some slowdown because of rain in southern counties.

Harvest trends continue to bear out the expected result of drought, insect infestation and disease -- lower yields than Kansas has seen in the past two years of excellent harvests.

But elevator operators said wheat quality has been remarkably good, surpassing expectations for test weights and protein, which have been consistently high even in areas hit hard by weather and disease pressure. Read the article at http://www.wichitaeagle.com/business/agriculture/docs/harvest0620_t xt.htm

GENEVA, June 20 (Reuters) - According to Reuters, North Korea on Tuesday appealed to donors for $250 million to boost farm production and provide enough food for its malnourished people, still reeling from the effects of years of drought, the United Nations said.

The closed-door meeting comes less than two weeks after reclusive North Korea, which is dependent on international food aid for survival, reported that drought had struck again, devastating spring crops of rice and maize.

It also follows a historic summit between the leaders of North and South Korea and the easing on Monday of U.S. economic sanctions against Pyongyang after almost 50 years, allowing trade in most goods.

"Funds are expected to help increase agricultural production and rehabilitate rural regions severely affected by heavy floods in 1995 and 1996, drought in 1997 and, in late July and early August 1999, typhoons Neil and Olga," the U.N. Development Programme (UNDP) said in a statement on Tuesday.

"The present challenge is to restore production and food security over the next few years, thereby reducing the need for food aid and to combat deforestation, which took place due to acute energy shortages," it said.

The international community, including the United Nations, OPEC and the European Commission, has already pledged about $130 million toward the $250 million recovery programme, the UNDP said.

OPEC PREPARES TO RAISE OIL EXPORTS AGAIN
VIENNA, June 20 (Reuters) - According to Reuters, OPEC oil ministers were gathering on Tuesday under pressure to raise exports for the second time this year to ease lofty crude prices.

Some in the Organization of the Petroleum Exporting Countries, that meets on Wednesday, favor an output rise of about 900,000 barrels a day from July 1, OPEC delegates said.

Top exporter Saudi Arabia believes an increase of that size is needed to bring prices, recently over $30 a barrel, down to the $25 level that would satisfy both producers and major importers like the United States.

An increment of about 900,000 bpd would be enough to lift supply for 10 OPEC members nearly 3.5 percent from production quotas now standing at a combined 24.7 million barrels daily.

"That should be enough to steady prices," said Peter Gignoux, head of the London energy desk at brokers Salomon Smith Barney.

OPEC believes oil at $30 a barrel is damagingly high. The worry is that consumers will switch to other fuels and dent demand for petroleum. World economic growth could slow as a result of high fuel costs.

CEREAL LEAF BEETLE - FOUND IN MCKENZIE AND WILLIAMS COUNTIES
In May we put out information regarding the Cereal Leaf Beetle (CLB) and its expanding range of infestation. The insect is established in numerous areas of Montana and was moving eastward. The earlier heads up was to alert everyone to the potential for CLB to be found in North Dakota this season.

Well, it happened this past week. Active infestations were detected in both McKenzie and Williams counties. This discovery of infestations will have regulatory implications for moving grain and hay to California. Dave Nelson, ND Department of Agriculture, will be notifying elevators in affected counties this week.

In the mean time, producers in western counties should be closely monitoring fields for the presence of CLB to determine if treatable levels are present in fields.

Boot stage is a critical point in plant development and impact of cereal leaf beetle feeding damage can be felt on both yield and grain quality. Before boot stage, the threshold is: 3 eggs and larvae or more per plant (including all the tillers present before the emergence of the flag leaf). Larvae feeding in early growth stages can have a general impact on plant vigor. When the flag leaf emerges, feeding is generally restricted to the flag leaf which can significantly impact grain yield and quality. The threshold is decreased at the boot stage to: 1 larvae or more per flag leaf.

Treatments are:
For wheat, barley and oats:
Lannate 0.75 to 1.5 pints per acre
Malathion 5EC 1 to 2 pints per acre
Malathion ULV 4 to 8 fl oz per acre

Wheat ONLY:
Sevin 1 lb ai per acre (product rate varies by
formulation)
Warrior 2.6 to 3.8 fl oz per acre
For more information on CLB, follow the links from the NDSU Entomology

Updates under wheat at: http://www.ag.ndsu.nodak.edu/aginfo/entomology/entupdates/index.ht m
From this site, you can link to the Montana write up on CLB.

Phillip A. Glogoza
Dept of Entomology
NDSU
Fargo, ND 58105
phone: 701.231.7581
fax: 701.231.8557
e-mail: pglogoza@ndsuext.nodak.edu

mailto:pglogoza@ndsuext.nodak.edu

CONTROL MOSS IN STOCK TANKS AND STANDING WATER
Algae in stock and nurse tanks can be a nuisance for both animals and for chemical application especially with hard water. Adding copper sulfate to the water will take care of the problem until the tank is refilled with fresh water. The process must then be repeated. Dissolve 1 ounce of copper sulfate in 1 pint of water in a glass jar. Add 0.25 pt/1000 gallons of water. Copper sulfate will NOT antagonize herbicide/pesticide efficacy. An alternative for nurse tanks is to paint the entire tank black. This eliminates the sunlight required for algae growth.

Richard Zollinger,
NDSU Extension Weed Specialist

DATA CONFIRMS LARGE SHARE OF WHEAT FROM CANADA OF LESSER QUALITY
A review of Customs Service data from the U.S. Census Bureau confirms a long held belief by the North Dakota Wheat Commission that quality factors are not the driving force behind imports of bread wheat and durum.

Records for calendar year 1999 indicate only 43 percent of spring wheat imports were of a No. 1 grade. Further data shows that only slightly more than a third of spring wheat imports had a protein content greater than 14.2 percent, while another third had a protein content less than 13.5 percent.

Wheat grades take into account test weight, limits on damaged kernels, foreign material, shrunken and broken kernels, and any wheat of contrasting class. High protein wheat, because of its corresponding greater gluten content, generally has more economic value for bread baking and blending purposes than low protein wheat.

In the case of durum, U.S. processing companies want top quality grain to make pasta, but statistics show they didn't get much of it from Canada in 1999. Top milling bid requirements for durum within the U.S. market are generally No. 1 grade, minimum 88 percent hard, amber vitreous kernel content, and minimum 13 percent protein. Yet, the Customs Service numbers show only half of durum imports were of the highest standards for the combination of grade and vitreousness. Producers and grain handlers commonly refer to the latter parameter as "color" or "hard count."

"Discounts are generally more severe for a lack of hard count in durum than for many grade factors," notes NDWC Chairman and veteran durum producer Alan Lee. At SunPrairie Grain in Minot, N.D., the difference between the price offered to farmers for top milling durum and "balance" milling (less than 85 percent hard count) is currently 50 cents.

Color, or vitreous kernel content, is correlated with the amount of semolina that can be extracted from a durum kernel. Vitreousness also contributes to pasta's natural yellow hue.

Lee says, "This new data confirms the conviction of the North Dakota Wheat

Commission that the Canadian Wheat Board offers other attractions to U.S. processors aside from quality." He believes price and the Canadian Wheat Board's ability to enter into long-term forward contracts without commercial risk are key factors behind sales into the United States, which is a net exporter of identical classes of wheat.

The CWB has sole government-granted control over the purchase of grain in Canada for export, and is the sole exporter of this grain. As such, the CWB can price grain months or even a year in advance with no risk if market values escalate before it can purchase the grain needed to fulfill a contract. "Importers have told us that the greatest single reason they purchase Canadian durum instead of U.S. durum is that they can limit their price risk through the CWB's long-term forward contracts," Lee says.

"Offering a reliable supply at a reasonable price is a service that any grain company should strive to offer," Lee says, "but the CWB isn't like any private grain company. Its exclusive government-mandated rights are trade distorting and have the same net effect as the European Union's more blatant export subsidies. It's too bad that U.S. anti-trust laws don't apply to a foreign government monopoly doing business in the U.S. market."

The North Dakota Wheat Commission is committed to challenging unfair Canadian trading practices under one of the other legal remedies available. Commission staff, in cooperation with attorney Charles Hunnicutt and an economic consulting firm, are progressing in their verification of data and research of issues surrounding the pending trade case. Regarding timing of the case, Hunnicutt says, "It will be sooner rather than later."

For information contact:
Neal Fisher, Admininstrator
Jim Peterson, Marketing Director
Phone 701-328-5111
----------------

Ellen Huber
N.D. Wheat Commission
Public Information Specialist
Phone 701-328-5111
E-mail: ehuber@ndwheat.com
Web site: www.ndwheat.com

NAWG PARTICIPATES IN CONFERENCE ON BIOBASED PRODUCTS

NAWG CEO Jack Eberspacher spent June 12-14, 2000 in St. Louis, Missouri, attending the Biobased Products and Bioenergy Initiative Workshop. This event was a joint effort of the U.S. Department of Agriculture and the U.S. Department of Energy. The focus of the workshop was on accelerating the development of biobased industries that use trees, crops, and plants to make commercial products.

Participants discussed how rural America could benefit from new economic opportunity with the recent scientific advances in this type of product. In addition, these biobased options will enhance U.S. energy security by diversifying energy options and helping to manage pollutant emissions that can harm the environment. "The wheat industry needs to be looking for new uses. The Biobased Products and Biobased Initiative provides a great opportunity for wheat to be involved," Eberspacher commented.

NEW RULE FOR TRUCKERS COULD IMPACT WHEAT PRODUCERS
This week, the Senate passed its version of the FY2001 Transportation Appropriation bill (the House passed its version of the bill last month). While not normally a top NAWG priority, this year's bill contains one policy provision that is important to wheat producers: a prohibition against the new rules concerning drive and rest times for truckers. The Federal Motor Carrier Safety Administration (FMCSA) proposed this rule.

The rule requires anyone driving a truck to drive less and rest more than current regulations allow. Even though the FMCSA has extended the comment period until the end of October, Senate leaders were able to kill the rule all together by passing the Transportation Appropriation bill. The House bill does not contain similar language.

U.S. – VIETNAM TRADE RELATIONS
The Trade Subcommittee of the House Ways and Means Committee held a hearing Thursday morning to review U.S. – Vietnam trade relations. It was time again to discuss a waiver of the Jackson-Vanick Amendment that would allow for trade with Vietnam. The current waiver ended on June 3, 2000, and was extended for another year.

Unless discussion triggers Congress to disapprove this extension, it will remain in place. By allowing the waiver to stand, Congress would allow Vietnam to enjoy Normal Trade Relations status with the U.S.

Witnesses testifying before the subcommittee included Douglas "Pete" Peterson, U.S. Ambassador to Vietnam, and Representative Dana Rohrabacher (R-California). Peterson acted in favor of waiving Jackson-Vanick while Congressman Rohrabacher spoke out against it.

Keeping the waiver in place would mean increased exports by the U.S. This would be in the best interest of wheat farmers, who exported a total of 11,000 metric tons of wheat to Vietnam during the 1999-2000 marketing year.

DEATH TAX PASSES HOUSE
In a follow-up to last week's "Report from Washington" on the "Death Tax Elimination Act," the House of Representatives voted 279-136 in favor of the bill. Prior to this passage, a high-cost tax liability was imposed on those surviving family members who inherited a farming operation upon the death of the owner. However, the bill could still potentially save families $28.3 billion in tax relief over the next five years.

The bill is now destined for the Senate, which has been slow to move any tax legislation this year. NAWG will continue to monitor the development of tax legislation in the Senate.

China
The Senate has yet to set a specific date for a vote on China permanent normal trade relations (PNTR). Speculation as to when that might happen continues to swirl. While some have said that it could be done before the July 4^th recess, most agree that is unlikely. President Clinton spoke to a group of business leaders urging them to press Senate Majority Leader Trent Lott (R-Mississippi) for a early vote on PNTR. Clinton did this shortly after Secretary of Commerce William Daley resigned to take the top position in the Gore presidential campaign

Lott continues to insist on the Senate passing more of the necessary spending measures before turning their attention to the China PNTR vote. As many as 63 Senators have already voiced their support for PNTR, which would be enough to override a potential filibuster. Several Senators have expressed concern that the vote could slip into July or later.

Sanctions
The Agriculture Appropriations bill has not returned to the House floor, as House leaders fear losing on the rule that would exclude the sanctions reform measures. Congressman George Nethercutt (R-Washington) continues to stand firm in opposing any rule that would not protect the sanctions reform language and counts 280 to 300 lawmakers as supporters of this position.

In other sanctions news the United States donated 50,000 tons of wheat to the World Food Program to meet emergency famine needs in North Korea. A spokesman for the National Security Council has said that the Administration would soon lift the economic sanctions imposed on North Korea since the Korean War.

WTO
The Administration is set to table a proposal at the WTO agricultural negotiations meeting near the end of June. The proposal has not been made public, but it was reported that it would call for the elimination of export subsidies by a certain date and tackle the issue of high levels and disparities among trading partners in domestic subsidy levels. These disparities have been a point of contention since the Uruguay Round implemented a system of reduction based on different aggregate levels of support, with a common percentage reduction.

The CAIRNS Group is also expected to table a paper on export subsidies at the meeting in Geneva. Their proposal will likely highlight European export subsidies and U.S. credit and food aid programs.

BIOTECH SURVEY REVEALS POSITIVE OUTLOOK
A recent survey of U.S. consumers found that attitudes regarding food biotechnology are increasingly positive. The International Food Information Council (IFIC), a nonprofit organization that communicates sound science-based information on food safety and nutrition topics, conducted the survey.

The survey found that 2 out of every 3 consumers support the U.S. Food and Drug Administration's (FDA) policy on labeling food products. Currently, the FDA does not require manufacturers to label products in which biotechnology was used. Another area of the survey of special note is that 3 out of 5 consumers believe that they can still benefit from biotechnology within the next five years.

For more information on the survey, please visit IFIC's web site at http://ific.org.

NEW OVERVIEW OF U.S. WHEAT RESEARCH AVAILABLE
A new report highlighting wheat research in the U. S., prepared for the China National Wheat Breeding Conference held in mid May in Ginan, Shandong Province, China, is now available on the NAWG web site, http://www.wheatworld.org

The Honorable Dr. I. Miley Gonzalez, Under Secretary for Research, Education, Economics at USDA, is senior author of the report. The wheat research overview was presented in China by Michigan State University wheat breeder Rick Ward, who also serves as co-chair of the U.S. Wheat and Barley Scab Initiative, a national wheat research effort to solve a fungal disease, fusarium head blight or scab, in small grains.

Background information on U.S. wheat production and private sector wheat research is covered in the overview, along with details on the different facets of public wheat research. The report also explores U.S. wheat research challenges and areas of international research collaboration.

WHEAT OUTLOOK
In the June/July 2000 "Agriculture Outlook," the USDA Economic Research Service (ERS) released its first projections for the coming crop year. The lead story is entitled, "Large Field Crop Supplies Expected Again in 2000/01."

According to ERS estimates, season average farm prices will continue to be forced downward for the fourth consecutive year by the large supplies expected from the 2000/01 major field crops. However, wheat deviates from this general output projection. Production of wheat is expected to decline 3 percent, causing the season average farm price to rise approximately 6 percent (midpoint of forecast).

The report continues, "Due to the increase in average price of wheat this year, the amount put to food use and exports is projected to rise slightly. This is to offset the decline in feed use – reflecting competition from weak corn prices. In addition, the U.S. is expected to import from the global market this year as a result of production decreases in North Africa, Iran, and China. In the end, we can expect to see lower ending stocks and the U.S. average wheat price for 2000/01 rise $0.15 per bushel to $2.65 (midpoint of forecast)."

The report also contains a chart showing that the ending stocks for wheat in 1999/2000 were 938 million bushels and are projected to be 837 million bushels in 2000/01. However, ending stocks are projected to go up for all other field crops (corn, sorghum, barley, soybeans, rice and cotton) with the exception of oats.

FAS WHEAT DONATIONS
USDA has announced that it will donate 50,000 metric tons of wheat to the World Food Program in North Korea. The value of this shipment is approximately $12.8 million and is provided under the Section 416(b) program. Earlier in the year, USDA provided 10,000 metric tons of wheat to North Korea.

USDA will also donate 11,000 metric tons of wheat to the Catholic Relief Service, Inc., for distribution in Bosnia and Herzegovina. The donation is provided under the 4169(b) program.

NAWG FUTURE EVENTS
October 15-17, 2000
NAWG Board of Directors fall meeting
Breckenridge, Colorado

January 29 - February 3, 2001
Wheat Industry Conference and Exposition
New Orleans, LA - Fairmont HotWeb site: http://www.wheatworld.org