Lakes Edition
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here to see how DuPont can help you weather the storm.
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February 17, 2009
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A Penton Media Property
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Vol. 1, No. 2
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Click
here to see how Affinity® BroadSpec herbicide (with
TotalSol® soluble granules) controls broadleaf weeds in wheat,
barley, and fallow.
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What Topics Would You Like To See Covered In
eWheat?
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We’re certainly pleased you're taking a few minutes
to read 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. eWheat aims to become a strong reference for your
questions on anything and everything that involves wheat.
Enjoy this issue of eWheat and let us know how we can make it
better.
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Wheat Prices Running Sideways
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By Kim Anderson, Oklahoma State University grain
marketing economist
Wheat prices continue to wallow around in a
short-run sideways pattern and a long-run downtrend. The Kansas City
Board of Trade (KCBT) March wheat contract price has support at
$5.70/bu. The March contract closed Friday at $5.74. The KCBT July wheat
contract has support at $5.90 and closed at $5.92. Another negative sign
is that that the week's lower prices were set with increasing volume.
USDA released the February supply and demand estimates. Except for
raising the low end of the price range, there were no changes in either
wheat or corn. The problem was that the average of the trade pre-release
estimate implied that USDA would lower ending stocks. There are some
analysts who believe that USDA has underestimated both wheat and corn
stocks. Regardless of the beliefs, there are excess wheat stocks (U.S.
655 million bushels and world 5.5 billion bushels). One analyst believes
corn ending stocks are closer to 2 billion bu. than the estimated 1.8
billion.
To read more on this story, click
here
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Supply And Demand Report Sees Wheat Unchanged
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Last week’s USDA World Agricultural Supply and Demand
Estimates (WASDE) report reduced domestic soybean carryover and left
corn and wheat supply/demand projections unchanged, notes Melvin Brees,
University of Missouri agricultural economist.
“No changes were made to U.S. wheat supply/demand estimates, and
2008-2009 ending stocks remain at 655 million bushels,” he says.
“Minor adjustments to world supply/use projections resulted in
estimated world carryover increasing from 148.36 million metric tons
(mmt) to 149.96 mmt. USDA’s forecast 2008-2009 wheat prices were
increased 20¢ on the low end of the range and are now forecast to be
from $6.70 to $6.90/bu.
With no changes to corn supply/use estimates, projected 2008-2009 corn
ending stocks remain unchanged at 1.790 billion bushels. This was at the
low end of pre-report trade estimates, as most had expected export
projections to be reduced and carryover to be increased to about 1.825
billion bushels. USDA’s forecast 2008-2009 corn price range was
narrowed by 10¢ on each end. Prices are now expected to range from
$3.65 to $4.15 across the board.
To read more on this story, click
here
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2008 Flour Production Third Largest Ever
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Decelerating after a promising start that included new
records as late as the third quarter, U.S. flour production in 2008
ended with a small decrease from 2007. It still managed to be the third
largest output on record.
Extraction for the year, at 76.5%, was the highest of at least several
decades. According to preliminary estimates issued Feb. 13 by the Bureau
of the Census, 2008 wheat flour output was 416,284,000 cwts., down
2,552,000, or 0.6%, from 418,836,000 in 2007, the second largest. The
all-time high was 421,270,000 cwts. in 2000.
Rate of grind in 2008 averaged 87.9% of six-day capacity, down from
89.1% in the prior year. Industry 24-hour capacity at year end was a
near-record 1,539,000 cwts., up 7,000 from 1,532,000 a year earlier.
Extraction rate in 2008 averaged 76.5%, up from 75.6% in 2007.
Fourth-quarter flour output totaled 104,501,000 cwts., down 2.4% from
107,063,000 cwts. in the fourth quarter of 2007. Semolina production in
2008 aggregated 30,921,000 cwts., down 5.7% from 32,804,000 in 2007. It
was 31,948,000 in 2006.
Among states and state-groupings in 2008, Kansas again topped the list
but only by a small margin. Kansas output ranked third in the fourth
quarter, falling behind both Illinois, Indiana and Wisconsin combined as
well as California.
Source: BakingBusiness.com
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Americans Confident Of Food Safety
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Despite the recall of peanut products recently, a
survey of American consumers’ confidence in the safety of the food
they purchase in grocery stores is high. Released by the Rasmussen
Report, the report found 83% of Americans are confident in the food
they purchase from the grocery store.
The survey was completed during the peanut-butter recall. According to
the survey, 42% of respondents claim they’ve avoided eating peanut
butter since the nationwide salmonella outbreak made the headlines in
mid-January.
Source: BEEF: Cow-Calf Weekly. For more, click
here
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Click here
to see how DuPont can help you weather the storm.
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Number Of U.S. Farms Increases For First Time Since
WWII
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The number of U.S. farms and ranches, which has been
declining since World War II, increased by 4% to 2.2 million since 2002.
"We are no longer just losing farms steadily, but we actually may have
hit bottom and are increasing slightly," says Greg Preston, director of
USDA’s National Ag Statistics Service office in Indiana.
Thirty-nine states had an increase in farm numbers and 11 states saw
declines, says USDA. Among some major wheat-producing states, every
Great Plains state except Nebraska and South Dakota saw an increase in
farm numbers. Oregon, Ohio, Tennessee, Kentucky, Georgia and Mississippi
were among states that saw no increase in farm numbers. Texas, Colorado,
Wyoming, Washington and Montana were among states that saw a 5% or
greater increase in farm numbers.
The census indicted that the U.S. has 922.1 million acres of land in
farms, down from the 2002 number of 938.3 million acres. It showed a
decrease in mid-sized farms, an increase in organic production, an
increase in small farms and an increase in the average age of the farmer
from 55.3 to 57.1.
"The category of farms that have 2,000 acres or more actually increased
by 30% from the previous census, whereas farms that are less than 50
acres or more – specifically farms that have 1-9 acres – have
actually gone up 79%," says Preston.
He says that to boost income, the owner of a middle-sized farm of
50-1,999 acres has to decide whether to increase farm size, find
off-farm supplemental employment or decrease the size of the farm and
try a different kind of farming, such as specialty crops and direct
marketing.
Note that Census figures can be confusing. While overall farm numbers
are up, those farms with from 500 to 2,000 acres (a common size for many
producers) were actually down – 135,000 in 2007 compared to 144,000 in
2002. Nearly 32% of the total farms were those with under 50 acres.
For more information on the 2007 Census of Agriculture, click
here.
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Wheat Fits Into A Corn, Soybean Rotation
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Corn and soybean producers making plans for their 2009
crops should consider the advantages of including wheat acres in their
rotations, say South Dakota State University (SDSU) wheat crop
specialists. Small-Grains Pathologist Jeff Stein says statistics show
farmers in southeastern South Dakota have been growing more wheat in
recent years, probably in response to higher prices.
Growers should keep in mind that the benefits not only include the price
for the crop, but potential savings in pesticide or herbicide costs that
result from more diverse crop rotations.
“The addition of
another crop into a rotation can be beneficial in terms of disease and
pest management because you’re including a host that the pests and
pathogens can’t use,” says Stein. “It allows you to disrupt their
life cycles a little bit. In particular, this can cause the populations
of soil-borne plant pathogens to drop. The more crops in a rotation, the
less chance you’ll have of pests of a certain type building up to
where they’ll cause a lot of damage.”
SDSU winter wheat breeder Bill Berzonsky adds that including winter
wheat in rotations has another benefit in that it helps spread the
workload for farmers, since the crop is seeded in the fall. That also
allows the crop to take advantage of fall moisture. In addition, good
growth in spring can shade out grassy weeds so that it might not be as
necessary to use some herbicides.
Source: SDSU
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Tips On Nitrogen Topdressing
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 Timing is
everything and the time for topdressing the winter wheat crop is now,
says Kansas State University Agronomist Dave Mengel, adding that the key
consideration is to make sure the plants have enough nitrogen (N) at the
right time.
“The N in topdress applications should be moved into the root
zone with precipitation well before jointing begins,” he says.
“Ideally, the N should be available to the wheat when head
differentiation occurs and head size is being determined, which can be
about two weeks before jointing,”
The four main factors involved in good N management when topdressing
wheat are timing, source, application method and rate, he says. It is
best to apply topdress N early, preferably before the end of February,
in order to have the best chance of receiving enough moisture to move
the N into the root zone.
“While some producers wait until
spring just prior to jointing, this can be too late in some years,”
says Mengel.
To read more on this story, click
here.
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More Market Transparency Needed
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The National Grain and Feed Association (NGFA) has
notified the House Agriculture Committee that it strongly supports
provisions in a draft bill that would enhance market transparency and
expand reporting requirements for non-traditional participants in
agricultural futures markets.
But in doing so, NGFA also voiced concerns over the draft bill’s
attempt to precisely define what constitutes a “bona-fide” hedge,
which would be used to determine which entities are eligible for
exemptions from speculative position limits in futures trading. Further,
NGFA expressed misgivings about the draft bill’s provisions that would
create an agricultural advisory group that would meet annually to
develop recommendations for the CFTC on setting speculative position
limits.
NGFA’s statement reiterated its long-standing concern that the influx
of investment capital, particularly in the CME Group’s Chicago Board
of Trade wheat futures contract, has contributed to a “disconnect”
between cash and futures prices, making it difficult and costly for
traditional grain hedgers to utilize the soft wheat futures contract and
contributing to historically wide wheat basis levels.
For more, click
here.
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Remember That Crop Disaster Program Sign-Up Ends Feb.
27
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Don’t forget that the sign-up period for the
2005-2007 Crop Disaster Program (CDP) will end Feb. 27. The ending date
applies to the receipt of a signed and completed FSA-840 application
along with all supporting documentation and required forms at the
applicable county FSA office. Sign-up information and required forms are
available at each county FSA office. Late-filed applications will not be
approved after the Feb. 27 deadline.
All application determinations will be made by March 27. For further
questions about CDP and the sign-up deadline, producers may contact
their county FSA office or visit FSA's Web site at www.fsa.usda.gov.
Source: USDA
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Take Part In Corn & Soybean Digest
Poll
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Please cast your ballot in the latest Corn & Soybean
Digest (CSD) quick poll. The most recently posted question is:
What is your biggest concern as you enter the 2009 planting season?
*Nitrogen prices *Spring and summer weather *Land/rent prices
*Credit.
Cast your vote on the CSD home page here.
(The poll question is just to the right of the “What’s New” top
section of the Web site.)
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Sen. Max Baucus Given Wheat's Highest Public Service
Award
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Sen. Max Baucus (D-MT) has been presented the wheat
industry’s top public service award, the Wheat Leader of the Year
Award. Baucus, who serves on the Senate Committee on Agriculture,
Nutrition and Forestry and as the Chairman of the Senate Finance
Committee, was given the award by a contingent of Montana wheat growers.
“Sen. Baucus defended wheat priorities in the 2008 Farm Bill, played a
critical role in identifying funding for that legislation and was the
author of the SURE disaster program. He’s also a strong advocate for
free and fair trade,” says David Cleavinger, National Association of
Wheat Growers (NAWG) president. “We are very pleased to be able to
give this award to him in recognition of all of these activities.”
The award is given annually by NAWG to one member of Congress based on
his or her demonstrated commitment to the well-being and goals of the
wheat industry. “Agriculture is more than the backbone of Montana’s
economy – it’s a vital part of the heritage of Big Sky Country and
the nation. I’m humbled to be accepting this award for the second
time,” says Baucus.
“I’m proud to have been able to include disaster assistance and
other provisions in the 2008 Farm Bill to help wheat farmers thrive, and
I’m committed to doing what’s right for America’s wheat farmers in
the future.”
For more click
here.
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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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