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USW TO LIBYA NEXT WEEK
Following up on very successful meetings last September with Libyan wheat buyers, USW is scheduled to go to Tripoli on Tuesday. The visit is part of the USW ongoing effort,
begun in earnest over a year ago, to reacquaint Libya with the qualities of U.S. wheat. Scheduled to travel are George Galasso, USW regional vice president for North Africa, and Peter Lloyd, the USW milling
consultant based in Africa. Libya purchased 20,000 metric tons of U.S. wheat late last year, after President Clinton eased the sanctions that were instituted in January 1986 by Ronald Reagan. SANCTIONS VOTE NEXT WEEK?
Declaring that "food and medicine should not be used as weapons in U.S. foreign policy," U.S.
Representative George Nethercutt (R-WA) told USW that, as of press time of this newsletter, he had been able to block efforts to eliminate his sanctions amendment from the agricultural appropriations bill.
Briefly, the Nethercutt amendment excludes agricultural commodities and medicine from unilateral U.S. sanctions unless the President receives Congressional consent. U.S. exporters would be able to sell to either private
sector buyers or government entities on a commercial basis. One of the sticking points with the opposition is on credit guarantees and loans, but an aide to Rep. Nethercutt explains that the Congressman "would not
accept any credit deal that could effectively block trade with Cuba, as well as any of the other four countries." SENATE (IN)ACTION ON PNTR DOES NOT HELP MARKET DEVELOPMENT
"The gravest problem for wheat producers' interests in China," emails Matt Weimar, USW vice president for China, "is the lack of a Senate vote on PNTR. This is
having an impact on short-term opportunity for China sales as potential buyers lack confidence and do not have the ability to shoulder risks."
Although just about everybody in Washington DC agrees that the Senate will approve permanent Normal Trade Relations status for China, the vote is evidently being delayed for
political reasons that have nothing to do with China or trade. But that doesn't help sales. "MARKETING NANNIES"
At the
International Grains Council meeting in Canada, USDA Under Secretary August Schumacher called for consistency from the Canadian and AustralianWheat Boards.
"More must be done to level the global trading
field. There is a glaring inconsistency among those who passionately advocate the virtues of the marketplace -- yet refuse to let their farmers market. The era of the government grain board as a marketing nanny for
farmers is as outmoded as export subsidies. Their time has passed." CROP REPORTS FROM THE STATES
Every wheat market analyst on the planet is watching, reporting,
and/or speculating on the progress of the wheat crops. Markets are jittery about the weather (past, present and future). We thought it might help sort things out if you heard directly from the folks who are growing the
U.S. wheat crop. Here's the first installment of reports directly from the state wheat organizations in the lands of amber waving grain... First, from the eastern United States
The Maryland Grain Producers Utilization Board
reports that the wheat "looks good but we need some dry weather for harvest, for a change. MD is getting wet weather." By the way, they add, "hope it holds out for the rest of the crops." The North Carolina Small Grain Growers report that "this years crop was better than expected. Although some producers in the southeast part of the state suffered from lower yields due to Hessian
fly damage, the remainder of the state had average to above average yields. Test weights and protein levels have all appeared to be better than expected. This year has probably been one of the better years for North
Carolina wheat." From the nation's midsection
The Minnesota Wheat Research and Promotion Council
says that "Minnesota's wheat crop was off to a good start. A week ago we were starting to get dry, but then the rains came. We have had excess rain that has flooded some fields, and most fields have standing water in them. If the weather dries up we could still have a decent crop. If the weather continues to be wet, we will lose yields, and we will probably have problems with disease because we are entering the critical heading and flowering period when infection of scab occurs."
The Nebraska Wheat Board
reports that "the wheat crop in Nebraska has been hit hard in the past couple of weeks with extremely high temperatures in conjunction with abnormally strong winds. This has caused what was a drought impacted wheat crop to reflect significant losses in potential crop production. Total production may match the lowest levels in a decade by dropping to 60 million bushels, as acreage expected to be harvested is down from last year at 1.7 million acres."
North Dakota Wheat Commission's
marketing director called in to tell us that right now North Dakota is looking at average to above average yield potential. For the majority of the state, early planting conditions were near ideal, and a very good stand was established. In the western region, recent rains have been beneficial for the crop. Unfortunately, for the eastern third of the state, intense storms and standing water will impact production. North Dakota is at a crossroads in crop development, and so they will be monitoring carefully over the next 7 to 10 days to see if disease develops in that third of the state.
The Oklahoma Wheat Commission
explains that "the two week early harvest in the southwestern portion of Oklahoma was struggling with the overflow of the Texas drought. Extreme temperatures (103-112 degrees) early on the milk-dough stage reduced the southern yield potential from May 1 expectations. Less than two weeks into harvest a band of showers moved through the entire state delaying the southern and central harvest. Since harvest was just getting underway in the large northern production areas, they did not experience the same test weight drop. In no area of Oklahoma was sprouting nor low falling numbers detected. Oklahoma experienced nearly two weeks of dry mild weather the first of June. The majority of the crop was harvested under ideal conditions before the rains resumed. Harvest is now underway in the Oklahoma high-plains/Panhandle, while the rest of the state is finishing up the wet low spots. Yes, we have mud puddles in Oklahoma. The elevators are reporting a good harvest but not equal to the last two years. The USDA June 1 production figure (151.7) will be high. We will not get to last years crop of 150,500,000 bushels even with less abandoned (grazed-out/baled) acres."
And in the western United States...
The Idaho Wheat Commission
reports that "winter wheat and spring wheat are progressing rapidly, ahead of last year and the five-year average. 54% of the winter wheat is headed, 15% of the spring wheat is headed. The condition of the Winter wheat is: 1% poor, 9% fair, 73% good and 17% excellent. The condition of the Spring wheat is: 1% poor, 11% fair, 77% good and 11% excellent."
From the Montana Wheat and Barley Committee: "Montana's wheat crop conditions remain quite variable across the state with severe drought predominately in the northwestern wheat growing area
(east of the Rocky Mountains) and continuing along the eastern slope of the Rocky Mountains south toward Wyoming. Traditional HRW wheat areas are most affected with slightly more than half of this class rated only poor
to fair. Central and eastern Montana have been treated much more kindly by Mother Nature and in this, the more traditional HRS and durum area, the prospects remain quite good. With winter wheat harvest still 6 to 7
weeks away and spring wheat still 2 weeks after that, it is still too early to make any definitive predictions."
VIETNAM-U.S. TRADE TO SOAR IF PACT SEALED-TRADERS
HO CHI MINH CITY, June 26 (Reuters) - According to Reuters, a long-awaited trade
pact between the two former foes in the Vietnam War, if concluded, would significantly boost commodity exports from communist Vietnam to the United States, traders say. The United States and Vietnam reached
agreement in principle on the landmark trade pact last year but Hanoi subsequently backed away from it arguing some conditions were unreasonable. Analysts believe the agreement fell victim to fears among
the communist leadership that too much exposure to world markets could erode their influence. U.S. DECLARES AGRICULTURAL DISASTER IN FOUR STATES
WASHINGTON, June 23 (Reuters) - According to Reuters, U.S. Agriculture Secretary Dan Glickman on Friday declared parts of Alabama, Florida, Nebraska and New Mexico
agricultural disaster areas due to a devastating drought.
Glickman said in a statement those areas would be eligible for emergency low-interest loans. "This has been a devastating year for America's farmers
and ranchers following last year's drought and historically low prices," Glickman said. "The USDA (U.S. Department of Agriculture) is responding quickly and in every way we can to help," he added. The disaster declaration covers 64 of Alabama's 67 counties, 41 of Florida's 67 counties, 17 of Nebraska's 93 counties and 27 of New Mexico's 33 counties.
CARGILL SUPPORTS FLOOD RELIEF EFFORTS IN FARGO
FARGO, N.D. -- Cargill has
contributed $10,000 to the American Red Cross to help Fargo residents affected by recent flooding. The company also will match employee contributions to support Red Cross relief efforts in the area.This contribution
is sponsored by the Cargill Cares Natural Disaster Relief Program, a partnership between Cargill and the American Red Cross to provide emergency assistance to victims of natural disasters in communities where Cargill
has a business presence. Since it was established in October 1999, the program has supported Red Cross emergency relief efforts in Mozambique, Venezuela, Turkey, Mexico and Vietnam. "We are very grateful to
Cargill for their generous donation and for their ongoing support through their Cargill Cares program," said Maurice Levite, acting vice president of development at the American Red Cross. "This contribution
demonstrates Cargill's commitment to their employees and the communities they serve." "The flooding caused significant damage to many homes and businesses in the Fargo area," said Jeff Slaby,
administrative manager for Cargill's Financial Service Center in Fargo. "Cargill is pleased to help the Red Cross provide food, shelter and other emergency assistance to those in need." Cargill has several
businesses in the Fargo area including its Financial Service Center, sunflower operations, seed sales and an oilseed crushing facility. Cargill is an international marketer, processor and distributor of agricultural,
food, financial and industrial products and services with some 82,000 employees in 59 countries. Through volunteerism, partnerships and grantmaking, Cargill contributes more than $17 million each year to civic and
charitable organizations to help fulfill the company's vision: to raise living standards around the world by delivering increased value to producers and consumers. CANOLA DAY SCHEDULED
June 23, 2000 Contact:
North Central Research Extension Center, 701-857-7677
Northern Canola Growers Association, 701-223-4124 (Bismarck) The North Central Research Extension Center (NCREC) and Northern Canola Growers Association
(NCGA) will be hosting Canola Day June 28th from 9:00 am until noon at the NCREC, one mile south of Minot on Highway 83. Topics to be covered include dormant seeding, what's new in canola research, large plot
research studies, white mold and fungicide research, canola insect and seed treatment studies, Canada thistle control comparisons with Stinger and Roundup in Roundup Ready canola, herbicide tolerant canola comparisons
to traditional weed control systems, lodging canola compared to swathing canola and canola rotation studies looking at canola in tightened rotations with other broadleaf crops. A luncheon sponsored by the NCGA
will be served following the tour. "The Second Annual Canola Days gives farmers from around the state a chance to see and hear the newest agronomic farming techniques as well as visit with area experts
concerning successes or failures with canola in their individual farming operations," stated Paul Thomas, Marketing Specialist with the NCGA. "Industry estimates of canola acres in North Dakota are 1.4 million
acres, up from 850,000 just a year ago," according to Thomas. Thomas anticipates canola acres will continue to grow in North Dakota for years to come. "When you have a number of farmers planting canola
for the first or second time, they have a lot of questions on proper seeding and harvesting techniques, weed control options and many other topics. Canola Day allows these new and the experienced growers the
opportunity to gather for a morning and share experiences with research scientist as well learn the newest findings from the research center," added Thomas. The Northern Canola Growers Association is a non-profit
association working to advance the canola industry in the Northern Plains. Paul Thomas
Northern Canola Growers Association
4007 State St
Bismarck, ND 58501
Phone (701) 323-5051
Fax (701) 223-4130 SCHAFER REQUESTS FEDERAL DISASTER DECLARATION, CITES $47 MILLION IN DAMAGES
BISMARCK, N.D. - Governor Ed Schafer today assured disaster victims in the Red River Valley that
the state will be a strong partner with the federal government in helping the region recover.Schafer requested federal disaster declaration for portions of North Dakota flooded by recent heavy rains, and appointed
his Agriculture Policy DirectorClare Carlson to be the liaison between government and the agriculture community. Carlson will help coordinate disaster assistance to farmers and agri-businesses. A preliminary damage
assessment completed late Friday by state and federal disaster officials reflects more than $47 million dollars in damage to public infrastructure and private dwellings that may be eligible for federal assistance
through the president's disaster fund. "We know there are far more damages than listed in this initial request to the president, but I think it is important to get the declaration moving. We can add more damages
later," Schafer said. He also signed a proclamation And executive order declaring a state disaster for the effected counties. "These figures tell only part of the story. Based on the results of the
assessments, it's obvious that this disaster will have a huge impact on our people and the local economy," Schafer said. "I have serious concerns about the effects of the disaster on farmers, who are already
suffering from low prices and several previous years of flooding." Initially, Schafer asked the Federal Emergency Management Agency (FEMA) to conduct immediate assessments of 12 counties and one Indian reservation.
Since that time, six additional counties including the city of Fargo have been added to the list. Last week, Carlson met with producers in several effected counties. He said as of June 20, sudden rains that amounted
to nearly 20 inches in some areas had effected 1.5 million acres of cropland. More than 3,000 farms experienced crop losses, some as high as 55 percent. Agri-businesses are also suffering from the disasters. Schafer and
Carlson visited the Johnstown Bean Company near Gilby on Monday, where heavy flooding destroyed 2,000 acres of beans and severely damaged the company's warehouse. Schafer said Carlson would continue gathering
information on agriculture losses and potential remedies through personal visits with producers. They cited several areas that will need to be addressed, including loss of loan deficiency payment income, collateral
requirements for disaster loans and possible leniency on acreage certification. Schafer also said the state is fulfilling requests from farmers for aerial photographs of flooded areas to improve future water management.
The next step in the process for federal assistance is for FEMA to review the request and forward it to the White House for the president's signature. If approved, individuals and governments in effected counties
will be eligible for disaster assistance programs to support recovery. The programs generally require a 25 percent state and local match. Schafer said the state is prepared to join locals in covering the match. He
said the state spent more than $40 million to help regions recover from disasters in 1997 and 1999. CONTACT: Julie Liffrig
June 26, 2000 (701) 328-2200 |
