Eastern Edition
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March 3, 2009
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A Penton Media Property
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Vol. 1, No. 3
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Click
here to see how DuPont™ Harmony® Extra SG herbicide (with
TotalSol® soluble granules) helps you stop broadleaf weeds that can
reduce yield and get your crop docked at the elevator.
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Wheat Enhances Other Crops
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By Larry Stalcup
When a surge in wheat prices shocked the grain world
last year, growers in the eastern Corn Belt were among those eager to
bring home the bread. And it made the term “wheat-beans” even more
important.
Barry Ward, Ohio State University (OSU) agricultural economist, says
that with the high prices, wheat can add income to a corn-soybean
rotation. Jim Beuerlein, OSU Extension agronomist, adds that a
corn-soybean-wheat rotation can help enhance the production of each
crop. Both are encouraging growers to consider getting wheat planted in
plenty of time following soybean harvest.
Those recommendations can apply across most of the Corn Belt. But in the
eastern belt, getting wheat planted in late September after the
“Hessian fly date” can produce the best results.
For more on this story click
here
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By Kim Anderson, Oklahoma State University grain
marketing specialist
I had hoped that the Kansas City Board of Trade (KCBT)
wheat contracts would break through resistance at about $5.81/bu. for
the May contract and about $5.90 for the July contract (May closed
Friday at $5.60 and July at $5.67). If it does not rain over the western
hard red winter wheat area, these resistance levels will probably be
breached.
If 2009 U.S. wheat yields are average, U.S. wheat production is expected
to be 2.1 billion bushels. With 100-million-bushel imports and
650-million beginning stocks, marketing year 2009-2010 wheat ending
stocks are expected to be unchanged at 650 million. This implies that
with average yields, the 2009 wheat harvest price is expected to be
about $5.
If world wheat production is 23 billion bushels, world wheat ending
stocks will also remain unchanged and the 2009-2010 marketing year, U.S.
average price would be about $5.25. Above-average yields and production
could result in prices falling to as low as $4 and below-average yields
could result in prices reaching $6. It would take another crop like the
2007-2008 marketing year crop for wheat prices to reach $7 or higher.
If the 2009 U.S. winter wheat crop conditions continue to improve, KCBT
March wheat contract prices could test the contract low of $5.01. The
July wheat contract price could test $5.20. With the new-crop basis at
about -85¢, the new-crop (June delivery) cash bid could decline to
$4.35. The bid is currently $5.07. Nearby cash wheat prices could fall
50¢.
Elevators are offering between 75¢ and $1.10 less than the KCBT July
2009 wheat contract price for June delivered wheat. With a KCBT July
wheat contract price of $5.68, the market is offering about $4.83 ($5.68
less the -85¢ basis) for harvest-delivered wheat. There is about $1.25
in upside June price potential and about a 50¢ downside
risk.
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Chicago Wheat Sees Pressure
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 Chicago
Board of Trade (CBOT) March wheat closed at $5.10/bu. Friday and was at
$5.04 this morning. May closed at $5.21 Friday and was $5.16 this
morning. July finished the week at $5.33 and was trading at $5.18 at the
opening this morning. CME Group, CBOT’s parent company, reports that
traders feel the higher U.S. dollar value is also adding to the pressure
in wheat prices.
USDA released preliminary U.S. acreage numbers last week from its Annual
Outlook Conference. The all-wheat area for 2009-2010 was put at 58
million acres, which implies a drop of about 1 million acres in spring
wheat vs. last year. Winter wheat area is already estimated to be
sharply lower than last year.
Last week's export sales were about in-line to a bit stronger than trade
expectations. Net sales for wheat came in at 465,400 metric tons (mt)
for the current marketing year and 112,500 for next year for a total of
577,900. As of Feb. 19, cumulative wheat sales remained above the
average pace at 88.1% of the USDA forecast for 2008-2009 vs. a five-year
average of 85.7%. Sales need to average just 224,000 mt each week to
reach the USDA forecast.
For more on this story click
here
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Is President Obama's Honeymoon With Ag
Over?
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By Larry Stalcup
The honeymoon may not be over for President Obama and
major farm commodity groups – but they are having words.
During last’s week’s address to Congress and the nation, the
president proposed sweeping cuts to the farm safety net included in the
2008 Farm Bill. His $3.6 trillion proposed budget called for, among
other things:
phasing out over a three-year period direct payments
to producers with sales revenue of more than $500,000 annually;
establishing a $250,000 commodity program payment limit; reducing crop
insurance funds by $5.2 billion over 10 years; and cutting Market Access
Program funds, which are used by the wheat industry and others to
promote sales of U.S. products, by 20%.
At the Commodity Classic last week, David Cleavinger, president of the
National Association of Wheat Growers (NAWG) and a wheat producer from
Wildorado, TX, joined leaders from the National Corn Growers
Association, National Sorghum Producers and the American Soybean
Association in asserting dismay with the proposal in a statement to the
Obama administration.
To continue with this story click
here
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76% Of Wheat Growers Approve Biotech
Petition
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More than three-quarters of wheat growers responding to
a recent National Association of Wheat Growers (NAWG) survey approved a
petition supporting the commercialization of biotechnology in wheat. The
survey was commissioned by NAWG as a project of the NAWG Foundation to
measure and document the level of support of biotech trait
commercialization among wheat growers.
Anecdotal evidence has long suggested many wheat producers would like
biotech traits in their arsenal, and national wheat organizations
support biotech commercialization. However, private technology providers
need to be assured of ground-level support for their efforts before
undertaking the decade-long, multimillion-dollar path toward
commercialization of a trait.
“Until now, there has only been speculation about the breadth of
grower support for biotechnology in wheat,” says NAWG CEO Daren
Coppock. “This petition was designed to gather those answers from
across our wheat producing areas, and now we have an objective and clear
answer.”
To date, the survey has enjoyed a 32% response rate, with approval rates
similar across states and farm sizes. The survey was mailed in January
and February to about 21,000 producers with more than 500 acres of wheat
and 1,000 acres in total production.
For more on this story click
here.
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Auburn University and University of Georgia entomology
departments have a guide to controlling Hessian fly problems. They point
out that scouting susceptible varieties for Hessian fly infestation in
late winter is worthwhile. It helps growers determine if a field is
infested with enough Hessian flies to justify trying a rescue treatment
with a foliar insecticide and decide whether or not to apply additional
inputs on a badly infested field.
Hessian fly maggots (larvae) suck sap and stunt tillers presumably by
injecting a toxin into the plant. Feeding by a single larva for several
days is sufficient to completely stunt and kill a vegetative tiller.
Infested jointed stems are shortened and weakened at the joint where
feeding occurs. Grain filling of infested stems is reduced and damaged
stems often lodge before harvest.
When scouting for Hessian fly, look at several spots within the
field, the entomologists say. If you see any plants with stunted or
dead tillers, carefully dig them up and peel back the leaves to see if
any Hessian fly larvae or pupae are visible. Check the surrounding
apparently healthy plants. If you find 5-40% of all wheat tillers
infested with Hessian fly, you may be able to rescue the crop using a
properly timed foliar insecticide. Treating fields with less than 5%
infestation would not be economical.
If 40-50% or more of the tillers are infested, it may be prudent to
abandon the field, and stop adding inputs such as nitrogen. For more on
Hessian Fly scouting, click
here .
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Merriman Nominated As Deputy Secretary Of
Agriculture
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Kathleen A. Merrigan is President Obama’s nominee for
deputy secretary of the Department of Agriculture. Obama, speaking of
Merrigan and other administration nominees, says, “I am grateful that
these distinguished men and women have chosen to put their unique
talents and expertise to work serving our country. Together, I am
confident that we will be able to tackle the challenges of our time as
we work to right our economy and enact policies that give America’s
working families the relief they need.”
The National Sustainable Agriculture Coalition praised the selection of
Merrigan. “The farmers and rural constituents of our grassroots member
organizations are excited to have a lifelong supporter of family farmers
and sustainable and organic agriculture working with the (Obama)
administration to reform U.S. food and agriculture policy,” says the
coalition.
For more on this story from Delta Farm Press click
here.
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Argentina Drought Hits Grain Cargoes
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Argentina's wheat crop, harvested in November through
January, has been almost obliterated by a months-long drought, with 2008
output sharply cut, causing a decline in demand for shipping services.
The harvest is expected to be at a 20-year low, according to commodities
analyst FO Lichts. USDA also says it expects overall wheat production to
be 8.4 million tons (mt) in 2008-2009 because of the dry conditions.
Yields in the southeast of Buenos Aires province were particularly low,
according to FO Lichts. With domestic demand at 6 mt, the National
Agriculture and Livestock Commercial Control Office blocked wheat
exports in late January.
The total area harvested fell by 50% last year, down from 5.7 million
hectares the previous year. "The situation in South America is made even
more complicated as farmers in Argentina are threatening to strike again
as the government's murky offers of tax – which are not including soy
– are viewed as too little too late," FO Lichts says.
The drought is being instigated by the effects of La Niña, in which
cooler surface water temperatures in the Pacific Ocean lead to dry
weather in the southern areas of South America. Recent rainfall has
somewhat ameliorated the situation, but not sufficiently to return the
harvest to previously forecast levels. Furthermore, the amount of rain
that has fallen or is forecast would not clear up the insect
infestations that have also helped cut soybean yields.
Argentinean farmers have been lobbying President Cristina Kirchner to
ease taxes and export restrictions in light of current soybean and corn
prices. Prices reached records last year.
Source: Midwest Shippers Association/Lloyd's List
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Take Part In Corn & Soybean Digest
Poll
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Remember to cast your ballot in the latest Corn &
Soybean Digest (CSD) quick poll. The most recently posted question
is: What's your biggest concern as you enter the 2009 planting
season?
Cast your vote on CSD's home page at: cornandsoybeandigest.com/.
(The poll question is just to the right of the “What’s New” top
section of the Web site.)
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Wheat Booth Sweetens The Air At Commodity
Classic
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For the second year in a row, the several thousand
visitors to the Commodity Classic (CC) trade show in Grapevine, TX, last
week got a sweet aroma from cinnamon rolls baking at the Wheat Industry
booth.
The Oklahoma Wheat Commission set up its portable oven in the wheat
booth, sponsored by National Association of Wheat Growers and U.S. Wheat
Associates. The oven generated a sweet smell that attracted flocks of CC
attendees, many of whom couldn’t stop at just one sample-sized
roll.
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Oregon Grower Elected NAWG President
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Karl Scronce, a wheat producer from Klamath Falls, OR,
was elected president of the National Association of Wheat Growers
(NAWG). Scronce is a third-generation farmer who has served on NAWG’s
environmental and budget committees and in a variety of capacities with
the Oregon Wheat Growers League, including as president in 2004.
Other members of the 2009 NAWG officer corps elected were: Jerry
McReynolds, Woodston, KS, first vice president; Wayne Hurst, Burley, ID,
second vice president; Erik Younggren, Hallock, MN, secretary-treasurer;
and David Cleavinger, Wildorado, TX, immediate past president.
NAWG officers typically “run the chairs” for five years after being
selected as secretary-treasurer, though they all must be interviewed and
recommended by the NAWG nominating committee and approved by the NAWG
board of directors on an annual basis.
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Food Editors Get "The Goods On Grains"
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 As part
of its Year 5 Program, the Grain Foods Foundation has developed an
editorial feature that has been released to newspapers and magazines
nationwide. Titled The Goods on Grains, the one-page feature includes
editorial copy describing the health benefits of grains, a sidebar
offering a variety of ways to serve 10 grains/grain products and three
recipes with accompanying photos.
Monica Huggins, a public relations account supervisor in the program,
predicts the editorial feature would be printed 200 times and reach a
circulation of 10 million.
"Editors will receive a targeted pitch and have the opportunity to
feature the story in their food or lifestyle sections, perhaps even the
front page, at a time most fitting with their overall editorial
storylines," she says. "It could be next month or even six months from
now."
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Agribusiness Job Web Site
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Go to www.agribizjobs.com/home/
and view some great opportunities for job seekers and ag companies
looking for good employees. The site, part of Penton Media’s Ag Group,
of which Corn & Soybean Digest and Farm Press are members, has a
targeted online career center. Agribizjobs.com offers industry
employers a growing, qualified audience of ag professionals and industry
job seekers with agribusiness-specific categorized job listings. It’s
a joint effort by Corn & Soybean Digest, Farm Press and sister
publications, BEEF, Farm Industry News, Hay & Forage Grower and
National Hog Farmer.
At www.agribizjobs.com/home/
employers can view complete but anonymous resumes for free, and pay only
to connect with a job seeker. Job seekers can post resumes in
ag-specific employment categories and sign up to receive e-mail alerts
when new positions are posted that match their search
criteria.
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What Topics Would You Like To See Covered In
eWheat?
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Thanks again for reading eWheat. Your time is
valuable and we want to make sure this new newsletter provides the
information you want as a wheat producer. We will continue to look at
domestic and world marketing trends, farm policy, research into disease,
insect and weed prevention, grain quality and yields and other issues
facing growers nationwide.
Please feel free to drop your eWheat editor Larry Stalcup a note
at beef2lar@suddenlink.net.
Let us know what topics you’d like to see in the coming weeks and
months or what we can do to better serve you.
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