thumbnail

World durum supplies were tight early in marketing year 2023/24 as drought in the Middle East and Canada and quality issues in the European Union (EU) decreased durum availability and put upward pressure on global durum prices. However, as the marketing year continued, non-traditional durum exports from Russia and Türkiye began flooding markets with low-priced durum, weighing on global durum values.

The following will evaluate the current world durum situation and provide an initial outlook for marketing year 2024/25.

Tight Situation in Major Exporters and Importers

International Grains Council (IGC) data indicated that global durum production decreased by 10% to 31.4 million metric tons (MMT) in 2023/24, and consumption exceeded production by 2.6 MMT, leading to a tight durum balance sheet. In Canada, the world’s largest exporter, durum production fell 30% to 4.0 MMT due to drought in the primary growing areas, as reported in the Canadian Outlook for Principal Field Crops. In the EU, a drought in Spain reduced output, resulting in total EU production of 7.0 MMT, 7% below the previous year, according to IGC. Simultaneously, harvest rains in Italy compromised durum crop quality. As a result, EU durum imports rose by 26% to 3.4 MMT.

The combined impact of decreased durum availability and the increased import requirements supported world durum prices throughout the final quarter of calendar 2023 and into the early months of 2024. In October 2023, French durum prices hovered at $428/MT, U.S. durum (photo above) at $467/MT, and Canadian durum at $450/MT, as reported by IGC, U.S. Wheat Associates, and AgriCensus.

This bar and line chart indicates the relationships and changes in world durum ending stocks, production and consumption from 2015 through projected data for 2025 from the International Grains Council.

Global durum production decreased by 10% to 31.4 MMT in 2023/24, and consumption exceeded production by 2.6 MMT. Meanwhile, ending stocks sit at their lowest level of the last decade at 4.9 MMT. Source: International Grains Council.

Rise of Non-Traditional Exporters

As major exporters’ balance sheets remained tight, Türkiye shifted from a net durum importer to a major exporter. Turkish durum production rose by 15% to a record 4.3 MMT in 2023/24, on a higher planted area and sufficient growing season moisture.

The combination of favorable prices, above-average production, and export focused domestic support programs prompted the Turkish Grain Board (TMO) to authorize the sale of 150,000 MT of durum on February 1, 2024, at prices quoted below market values. On March 7, TMO offered an additional 150,000 MT of durum but canceled the offer as the quoted prices were too low relative to domestic price levels. Nevertheless, Turkish durum exports were estimated at 1.7 MMT for the year as prices remain ultra-competitive relative to other origins. Meanwhile, Stratégie Grains forecasted Russian durum production at 1.3 MMT, with exports projected at 800,000 MT, a 60% increase on the year.

The influx of low-priced Turkish and Russian durum has eroded world durum prices. As of April 16, French durum prices sit at $375/MT, U.S. near $351/MT, and Canadian at $360/MT, down $53, $116, and $90 from October’s prices, respectively.

This bar chart including data from Strategie Grains compares changes in durum exports in 2024 compared to 2023 for 7 countries.

As major exporters’ balance sheets remained tight, Türkiye shifted from a net durum importer to a major exporter. Turkish durum production rose 15% to a record 4.3 MMT in 2023/24. As a result, Turkish durum exports were projected to reach 1.7 MMT. Source: Stratégie Grains.

Will The Patterns Hold?

IGC forecasts a recovery in world durum production in 2024/25 to 34.6 MMT on favorable weather in Canada, EU, and Türkiye. Current estimates suggest Turkish durum production will remain strong in 2024/25 at 4.5 MMT, while exports may exceed 1.0 MMT. It is unknown if Türkiye will rise as a long-term durum exporter, but balance sheets are comfortable in the immediate future.

This line chart compares the elevator bids for US durum compared to hard red spring wheat from 1/1/22 to 4/1/24 indicating higher prices for durum.

Favorable prices for durum relative to spring wheat may incentivize producers to substitute durum acres for HRS, particularly in non-traditional durum growing areas. As of April 16, the average country elevator bid for durum sits at $7.51/bu, a significant spread compared to $6.07/bu for HRS. Source: DTN ProphetX Grain Elevator Bids.

Nevertheless, in the current lower-priced market, U.S. durum remains competitive. U.S. durum exports are up 36% on the year at 504,000 MT on increased imports from Algeria. Moreover, the 2024/25 durum area is forecast to increase by 300,000 acres (121,400 hectares) to surpass 2.0 million acres (809,400 hectares) for the first time since 2018/19. Favorable prices for durum relative to hard red spring (HRS) wheat may incentivize producers to substitute durum acres for HRS, particularly in non-traditional durum growing areas. As of April 16, the average country elevator bid for durum sits at $7.51/bu, a significant spread compared to $6.07/bu for HRS.

The U.S. has and always will be a stable producer and exporter of durum. As world markets shift and adjust, the U.S. has remained a constant supplier, providing reliable, high-quality supplies of durum and other wheat classes on which customers worldwide can rely.

By USW Market Analyst Tyllor Ledford

thumbnail
World Pasta Day is the result of the inaugural World Pasta Congress held in 1995. It is held each Oct. 25 to promote pasta consumption.

World Pasta Day is the result of the inaugural World Pasta Congress held in 1995. It is held each Oct. 25 to promote pasta consumption.

Past U.S. Wheat Associates (USW) Chairman Michael Edgar shared a quick story during the organization’s Summer Board Meeting in July that seems worth resharing in October.

After all, Oct. 25 is World Pasta Day.

“In 1981, U.S. Wheat Associates brought an international trade team to the desert southwest to learn about the durum crop,” Edgar, who represents the Arizona Grain Research and Promotion Council, told his fellow USW board members. “And we are still selling durum wheat to that customer today, 42 years later. It shows you the value of bringing trade teams and meeting buyers from foreign markets to learn what they are looking for in wheat.”

For pasta makers, they are mostly looking for durum and Desert Durum®. The desert subclass of durum is a registered certification mark owned by the Arizona Grain Research and Promotion Council and the California Wheat Commission.  U.S. Northern durum is grown in North DakotaMinnesota, and Montana.  On World Pasta Day, it is fitting to remember Edgar’s story, a confirmation of the importance of engaging customers and potential customers of U.S. wheat.

About 70% of U.S. durum exports go to the European Union, with Italy taking a large portion of that for pasta production.

World Pasta Day is an opportunity for U.S. durum producers to take pride in the role they play in putting high quality pasta on the plates of consumers around the world.

World Pasta Day is an opportunity for U.S. durum producers to take pride in the role they play in putting high quality pasta on the plates of consumers around the world.

Durum Remains King

For U.S. durum producers, World Pasta Day is an opportunity to take pride in the role they play in putting high quality pasta on the plates of consumers around the world.

There are several reasons for the preference:

  • In all durum food products, one quality factor is the most critical to the consumer – color. In its purest form, pasta is water and durum semolina.
  • The gluten in durum semolina is strong but not particularly elastic. Pasta made from this type of flour will keep its shape and texture after cooking.
  • Durum semolina is high in protein, fiber, iron, B vitamins such as folic acid, as well as lutein (for eyes).
  • U.S. durum has a large kernel size, allowing millers to benefit from higher extraction rates.
  • Desert Durum® is harvested and shipped at a very low moisture content. This advantage to millers contributes to efficient transportation costs and high extraction rates.
  • Couscous, which is also made with durum, is large semolina boiled and eaten as an alternative to rice.

Celebrating Pasta on a Global Scale

World Pasta Day was the result of 40 pasta makers from around the world gathering in Rome, Italy in 1995 for the inaugural World Pasta Congress. The goal of the special day is to promote pasta consumption, as well as celebrating its culinary and cultural importance.

The International Pasta Organization (IPO) was formed on Oct. 25, 2005, and was formally constituted in Italy a year later. IPO coordinates international communications aimed at safeguarding the product, develops common strategies to promote the worldwide consumption of pasta, and creates and manages information and food education.

While celebrations vary in each country, World Pasta Day focuses on consumers – the people around the world who enjoy eating some of the 600 or so shapes and sizes of pasta.

Every Day is Pasta Day

For USW, the effort to promote all six classes of U.S. wheat around the world has some traction with pasta consumption.

Each November during the USW Crop Quality Seminars held around the world, one stop brings special attention to durum wheat and the states that grow it: Europe, specifically one European country known for its love of pasta. Buyers from Italy are especially curious each year to hear about the U.S. durum crop and there are always a lot of questions.

This year’s crop should make pasta makers happy.

Ron Rubin, who grows Desert Durum® in  Brawley, Cal., reported that while production is down slightly with a lower planted area, the crop remains consistent and a very reliable source of high-quality durum to end-use customers.

“The 2023 crop produced above average yields with ideal growing conditions throughout the season,” Rubin said. “We estimate that 99 percent of the Imperial Valley crop graded Number One HAD.”

As for Northern durum, the Durum wheat Quality & Pasta Processing Laboratory at North Dakota State University is completing testing on the composites for the full northern durum regional crop quality report and USW’s 2023 Crop Quality Report.

thumbnail

U.S. Wheat Associates (USW) brought a dozen pasta production specialists from around the world to North Dakota for a Northern Crops Institute (NCI) course designed to provide a better understanding of U.S. wheat and how wheat quality affects pasta quality. The course also helped attendees understand that, while pasta production is focused mostly on semolina from durum, pasta can be produced with other classes of U.S. wheat, such as hard red winter (HRW) and hard red spring (HRS).

The course took place a full two months before the upcoming World Pasta Day, which is Oct. 25. But the folks at NCI could argue they experienced a World Pasta Week – participants in the Aug. 21-25 course came from Morocco, Egypt, Nigeria, South Africa, Mozambique, Chile, Mexico City, Honduras, Venezuela and the Dominican Republic.

This short video produced by NCI features participants talking about the opportunity. It also features USW Regional Technical Director Peter Lloyd, who offered the course valuable insight into optimal milling processes for pasta.

thumbnail

The 2023 U.S. wheat harvest has ended and U.S. Wheat Associates (USW) published its final weekly Harvest Report Oct. 6. This year’s first Harvest Report appeared May 19 and was published every Friday afternoon (Eastern Time) throughout the season with updates and comments on harvest progress, crop conditions for hard red winter (HRW), soft red winter (SRW), hard red spring (HRS), soft white (SW) and northern durum wheat.

#1 HAD

U.S. hard amber durum kernels.The final northern durum weekly report showed that compared to the prior week, wheat moisture increased to 11.4%, falling number increased to 416 sec and HVAC decreased from 81% to 80%. Compared to 2022, protein content, 1000-kernel weight, and percent damaged kernels were higher while falling number, test weight and shrunken and broken kernels were lower. The overall grade remained U.S. No. 1 Hard Amber Durum (HAD).

The Durum wheat Quality & Pasta Processing Laboratory at North Dakota State University is completing testing on the composites for the full northern durum regional crop quality report and USW’s 2023 Crop Quality Report.

Important Resource

Harvest Report is a key component of USW’s international technical and marketing programs as a resource that helps customers understand how the crop situation may affect basis values and export prices. USW’s overseas offices share the report with their market contacts and use it as a key resource in meetings and for answering inquiries. Several USW offices publish the report in the local language.

Anyone may subscribe to receive the Harvest Report directly to their email inbox by filling out a quick form found at this link.

The accumulated quality data gathered during the season and reported in Harvest Report builds to the annual USW Crop Quality Report coming soon. USW thanks the many partner organizations who support this work and Vice President of Programs Erica Oakley for managing these important reports.

thumbnail

Flour milling companies from nine European countries made up a delegation that visited Washington, D.C. Sept. 24-28 to learn about the 2023 U.S. wheat crop and developments involving global markets, trade policy and emerging technologies.

U.S. Wheat Associates (USW) hosted the team, providing a series of presentations by USW staff and representatives of partner organizations.

Ian Flagg, USW Regional Vice President for European, Middle Eastern and North African Regions, right, greets a member of the delegation of European flour millers during meetings in Washington, D.C.

USW’s Ian Flagg, right, greets members of the European flour millers delegation and USW partner organizations during meetings in Washington, D.C.

Sharing Information

“Our efforts to increase U.S. wheat market share in Europe includes sharing information to major and larger mid-size mills and traders, many who are interested in hard red spring (HRS) and durum wheat,” said Ian Flagg, USW Regional Vice President for European, Middle Eastern and North African Regions. “Strategically, it’s important to work with agencies, milling associations and traders and discuss issues that are limiting European market access. At the same time, it’s a chance to talk about U.S. wheat and remind them about the advantages it offers milling companies and end-users.”

Italy, France, Germany, Poland, Slovenia, Lithuania, the United Kingdom, Ireland, and Belgium were represented on the delegation. The visit is an initiative of the European Flour Millers Association that involves exploring different markets each year.

U.S. Durum, HRS Customers

Flagg welcomed its members to Washington and gave a broad overview of the U.S. wheat industry. About 70% of U.S. durum exports go to the EU, with Italy taking a large portion of that for pasta production, Flagg noted, adding that European countries import HRS from the U.S. mostly to blend with other wheat.

USW’s data shows that U.S. market share in the EU tends to vary from year to year, and in the past few years has swung from 17% to 33% for high protein milling wheat (mostly HRS) and from 18% to 28% for durum.

Crop Quality, Trade Policy Updates

Jim Peterson, Policy and Marketing Director for the North Dakota Wheat Commission, gave the delegation a U.S. wheat crop quality update. Other presenters included Ryan Caffery of CHS, who offered insights into both the opportunities and constraints involving the European market.

USW Vice President of Trade Policy Dalton Henry spoke about technology and government actions that affect wheat trade.

“It was great to talk with this group because, from a policy standpoint, there are many areas where we work together – namely on food safety and production technologies,” said Henry. “Having dialogue on those topics is critical, especially as new technologies come to market or regulations are being drafted as it gives us the best chance to prevent trade disruptions in the future.”

The team of flour millers representing nine European countries poses for a group photo during its visit to Washington, D.C.

Representatives of flour millers from nine European countries pose for a group photo during its visit to Washington, D.C.

Team Effort

USDA, the North American Export Grain Association (NAEGA), the National Grain and Feed Association (NGFA) and the North American Millers’ Association (NAMA) each participated by in sharing related information about opportunities and issues they face.  

USW Vice President of Trade Policy Dalton Henry spoke about technology and government actions that affect wheat trade.

USW Vice President of Trade Policy Dalton Henry spoke about technology and government actions that affect wheat trade.

Along with Canada, competitors for U.S. HRS are high-protein Russian and Kazakh spring wheat, though export volumes are relatively small. Ukraine is another large supplier of wheat to the EU but is not considered a competitor for HRS due to its low and medium quality. Competitors for U.S. durum wheat are Canada, Russian, Kazakh, Australian and Mexico.

Tour of Facilities

Aside from meetings and presentations, USW offered the EU team a look at some U.S. milling facilities and a wholesale bakery. It toured Miller Milling in Westchester, Virginia, which produces a variety of durum and hard wheat products. It also services an adjacent pasta manufacturing facility. The visit to Uptown Bakers featured a look at its 40,000 square foot facility just outside of D.C. Uptown has more than 500 restaurants, hotels, and caterers as clients.

The team was also able to explore Chesapeake Farms, which is owned by Corteva Agriscience. The 3,300 acres of Chesapeake Farms are devoted to the development, evaluation, and demonstration of advanced agricultural practices.

 

 

thumbnail

Ron Rubin grows Desert Durum® under irrigation near Brawley, Cal.,  in the Imperial Valley. He reports that while production is down slightly with a lower planted area, the crop remains consistent and a very reliable source of high-quality durum to end-use customers.

“The 2023 crop produced above average yields with ideal growing conditions throughout the season,” Rubin said. “We estimate that 99 percent of the Imperial Valley crop graded Number One HAD. Harvesting in May and June, the Desert Durum® can help fill a quality or quantity gap in the market when adverse conditions develop in other production regions.”

Desert Durum® is a registered certification mark of the Arizona Grain Research and Promotion Council and the California Wheat Commission, which authorize its use only to designate durum grown under irrigation in the desert valleys and lowlands of Arizona and California.

Desert Durum® exhibits consistently large kernels and low moisture, traits that contribute to efficient transportation costs and high extraction rates. Like previous crops, the 2023 crop will deliver the valuable milling, semolina, and pasta quality traits that customers have learned to expect and appreciate. U.S. Wheat Associates (USW) will soon share a complete report on 2023 crop quality.

2023 Crop Highlights

  • Desert Durum® production acreage in 2023 was lower than 2022. According to USDA, yields were 3.10 metric tons per acre, and quality was uniformly good.
  • The overall grade sample average for the 2023 Desert Durum® harvest survey is U.S. No. 1 Hard Amber Durum (HAD).
  • Test weight indicates sound wheat and a uniform crop with an average of 63.0 lb/bu (82.0 kg/hl).
  • The average vitreous kernel (HVAC) content is 98%, a high average typical of Desert Durum®.
  • Average damaged kernels are 0.1% and total defects are 0.5%.
  • Kernel moisture content is characteristically low at 7.3%.
  • Wheat protein content average is 13.9% (12% mb).
  • The semolina color B* value is 32.9, slightly higher compared to 2022.
  • The wet gluten average is 33.4% and gluten index average is 62%.
  • Spaghetti cooked firmness average is 7.4 g cm, higher than last year’s 6.8.

Desert Durum® can be produced and delivered “identity preserved” to domestic and export markets, which allows customers to purchase grain with quality traits specific to their processing needs. Annual requirements can be pre-contracted with grain merchandisers ahead of the fall-winter planting season for harvest in late May through early July. Varietal identity is maintained by experienced growers planting certified seed and merchandisers who store and ship according to customers’ preferred delivery schedules.

More U.S. HAD Coming

In the Northern Durum production region as of Sept. 22, about 60% of samples have been collected and tested. Protein content is holding steady at 13.7% (12% mb). The low moisture content (10.8%) and high falling Number (424 sec) reflect dry conditions across the growing region and the overall grade remains U.S. No. 1 Hard Amber Durum (HAD). USW will share more information after harvest ends.

thumbnail

News and Information from Around the Wheat Industry

Speaking of Wheat

Amidst the backdrop of diverse perspectives and conflicts of our times, farmers continue planting seeds of sustenance and resilience, stewarding the land for generations, and producing a safe and reliable food supply. The values of integrity, honesty, and care we see in agriculture offer a model for achieving sustainable progress in society and industries, ensuring that resources are managed in ways that benefit present and future generations. Farmers are at the heart of this truth.” – Jim Britt, Director of Communications, Maine Department of Agriculture, Conservation and Forestry. Read more here.

World Wheat Production Ends Record Run

USDA reported this week that following 3 years of record production 2023/24 global wheat production is now forecast down as year-over-year reductions are forecast in the EU, Russia, Canada, Australia, Kazakhstan, and Brazil. Total wheat use has now exceeded production for 4 years running and tightening supplies in these major exporters puts exportable supplies at their lowest level in 11 years. Analysts suspect this bullish note will not spark a rally in part because USDA also reduced global wheat use estimates. Read more here.

WASDE Turns 50

USDA on Sept. 12 celebrated the 50th anniversary of its “World Agricultural Supply & Demand Estimates” or WASDE report. The report was established in September 1973 to “give the public the timeliest analytical information available officially from the Department.” Commenting on the report, USDA Secretary Tom Vilsack said: “This work behind the scenes gets attention in this moment, but then gets analyzed and utilized for weeks on end and helps to establish the market prices …” It is important for trade and global competition, he added. The U.S. Wheat Associates (USW) Supply and Demand report is based and expands on the monthly WASDE report. Listen to Vilsack’s comments here.

Wheat Disease Impact Much Lower in 2022

According to an analysis by the Crop Protection Network, disease in 2022 reduced wheat production by 3.6% in surveyed U.S. states and by 1.9% in Ontario. Overall reduction in 2022 was less than half that of any other year of data collection (2018-2021), and percentage losses were also much lower than previous years. Total estimated yield loss in 2022 from wheat disease in the U.S. and Ontario was 55.7 million bushels, valued at nearly $500 million. This does not include the economic costs of disease management practices such as fungicide seed treatment or foliar application, crop scouting, and development of disease-resistant varieties. Read more here.

This grid pattern represents the percentage of wheat production in 2022 by U.S. state and the Canadian province of Ontario among the states and Ontario surveyed by the Crop Protection Network for an analysis of wheat disease yield impact.

This grid pattern represents the percentage of wheat production in 2022 by U.S. state and the Canadian province of Ontario among the states and Ontario surveyed by the Crop Protection Network for an analysis of  disease yield impact.

Brabender Introduces New Farinograph

According to a company statement, Brabender has introduced a new “FarinoGraph” that offers new features, the latest technology, optimized user friendliness and more. Farinograph is used to determine water absorption capacity of flour and the rheological properties of dough. “Measurements with the new “FarinoGraph” are now even more automated and timesaving,” said Viktor Schäfer, Brabender business development manager software solutions. “For instance, we have implemented an artificial intelligence based on previous measurements to predict the measurement curve and added a function to save measurement time.” Read more here.

Pellman Makes Rounds with USW Policy Team

The National Association of Wheat Growers (NAWG) brought more than 20 wheat farmers to Washington, D.C. Sept. 12-13 for its annual fall “Fly-In.” The effort included two days of meeting members of Congress. Led by the U.S. Wheat Associates (USW) Trade Policy team, USW Secretary/Treasurer Jim Pellman joined his fellow wheat farmers at the Capitol to voice support USDA’s Market Access Program (MAP) and Foreign Market Development (FMD) program, as well as the American Farmers Feed the World Act of 2023.

Pictured with Jim Pellman (far right) are Oklahoma farmer and NAWG Vice President Keeff Felty (left) and North Dakota Congressman Kevin Cramer (center) .

Pictured with Jim Pellman (far right) are Oklahoma farmer and NAWG Vice President Keeff Felty (left) and North Dakota Congressman Kevin Cramer (center) .

 

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

thumbnail

Exploring opportunities for hard red winter (HRW), soft red winter (SRW) and durum wheat in both established and emerging markets, U.S. Wheat Associates (USW) led a team of wheat producers and industry representatives to meet with customers and learn about milling and baking processes in Mexico, Ecuador, and Colombia.

USW’s Latin America Board Team included Chet Creel of Texas, Michael Edgar of Arizona, and Keith Kennedy of Wyoming.

“We had a really good group with diverse interests that visited some very important markets to see how millers and bakers use the quality wheat produced back home – and why the quality is important to them,” said USW Director of Trade Policy Peter Laudeman, who led the team on the 10-day mission. “The goal of these Board Teams is to provide a broad canvas of a region, on-the-ground, face-to-face experiences in the mills, in the bakeries, and at the transportation facilities that support movement of U.S. wheat into the countries.”

USW's Latin America Board Team poses for a photo in front of a Grupo Trimex Facility in Mexico following a tour and discussions about U.S. wheat

USW’s Latin America Board Team poses for a photo with USW staff and milling staff in front of a Grupo Trimex facility in Mexico following a tour and discussions about U.S. wheat.

Mexico: U.S. Wheat’s Top Customer

Stops in Mexico included Guadalajara and Mexico City. Outside of Guadalajara, the team visited the Grupo Kasto mill, shuttle train and elevator facility that receives direct rail shipments of U.S. wheat. shuttle train and elevator facility that receives direct rail shipments of U.S. wheat. From there, the team traveled to the Guadalupe Flour Mill to meet with owners of the mill. The Guadalajara portion of the trip also included a tour of the OhLaLa! baking facilities.

In Mexico City, team members visited the USW office, where they learned more about Mexico’s milling industry and efforts to promote wheat foods in the country. Visits to Grupo Trimex and Harinera Anahuac flour mills followed, helping the team explore opportunities for U.S. wheat.

“It was clear U.S. Wheat’s staff has a great relationship in Mexico and there is a lot of trust,” said Creel, Vice Chairman of the Texas Wheat Producers Board and a HRW wheat producer. “We were able to see how activities like technical servicing and educational courses have helped the Mexican milling businesses. We also saw the value of the relationships the representatives in Mexico been built and maintained over the years.”

Ecuador and Colombia: Markets With Great Potential

After Mexico, the team moved on to Ecuador, where it met up with USW representatives serving South America from an office in Santiago, Chile. In Quito, Ecuador, the team visited flour mills and a cookie factory before moving on to Cali, Colombia, for a mill visit. The next day, in Bogota, the team toured a bakery and a pasta plant that uses U.S. durum wheat.

The USW Board Team during a tour of Grupo Superior in Ecuador.

The USW Board Team during a tour of Grupo Superior in Ecuador.

“We had some very good interactions at each stop and had some chances to discuss opportunities for U.S. wheat as a whole,” said Edgar, a USW Board Member and member of the Arizona Grain Research and Promotion Council. “For me, a durum grower, it was valuable to specifically see where my class of wheat stands and the places where it could carve out a bigger share.”

While Mexico is the top customer of U.S. wheat, both Ecuador and Colombia have great potential to increase imports.

“We were able to meet with some companies that really prefer the quality that they’ve seen in U.S. wheat and want to continue to buy,” said Kennedy, Executive Director of the Wyoming Wheat Marketing Commission. “They have definitely seen some pricing pressures, and the competition is there, but customers in both Ecuador and Colombia were very clear that the quality of the U.S. crop is second to none.”

Developing Customers

Laudeman noted that Colombia and Ecuador have a huge amount of room for per capita wheat consumption growth.

“We are looking toward the mid- to long-term opportunities to be able to sell more wheat and boost wheat foods as part of the diets in each country,” said Laudeman, who added that the team noticed interest in soft red winter (SRW) wheat in Ecuador. “As we see bigger crops and healthier crops in the future, it is going to be an easy decision for them to continue to buy U.S. wheat. Meanwhile, we will continue to work on any policy challenges that might be barriers to our market access in these countries. We will certainly keep monitoring and make sure that we can keep the policy landscape healthy. We will also continue to explore opportunities for U.S. wheat.”

 

 

thumbnail

News and Information from Around the Wheat Industry

Speaking of Wheat

“When we went to ethanol production, we had to have significantly more acres of corn and soybeans to a certain degree with biodiesel. You go back to 2006 and 2007, I remember traveling around the states telling Oklahoma wheat producers, ‘You have got a $1.25 to $1.50 free increase in your price simply because of the corn industry and bean industry.’ The corn industry has to increase their acreage dramatically, and soybeans have got to come in there and protect their acres.” – Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson discussing a decline in wheat acreage in an interview with Oklahoma Farm Report’s Ron Hays.

Grain Deal Talks Expected to Resume in Sochi

As reported by several news outlets this week, the much-anticipated meeting between Turkish and Russian presidents over the fate of the grain initiative will be held on Sept. 4 in the Russian resort city of Sochi. The top issue will be the resumption of the grain deal that allowed the export of more than 33 million tons of wheat, corn and other food products from Ukraine to the world markets through Turkish straits. Russia canceled it on July 17 as it could not transport its own products due to the sanctions. Red more here.

USDA: Weather Slows U.S. Spring Wheat Harvest

World-Grain.com cited a USDA report that noted the winter wheat crop was “largely in the bin” but the spring crop was just more than half harvested and progressing slowly due to weather delays. The 2023 US winter wheat harvest was 96% complete by Aug. 20, USDA said in the final aggregate winter wheat harvest update in its weekly Crop Progress report. That compared with 94% a year earlier and matched the five-year average for the date. States with winter wheat remaining in fields at that time included California (97% complete), Colorado (99%), Idaho (70%), Michigan (95%), Montana (78%), Nebraska (99%), South Dakota (97%) and Washington (87%). Read more here.

High Pasta Prices Could Set in As Canada’s Durum Crop Suffers

An Aug. 30 report by Reuters suggests pasta lovers must brace to pay even higher prices for their favorite dish, as drought in Canada and bad weather in Europe damages crops of durum wheat and reduces supplies available to flour millers and food companies. Some estimates released prior to the report release pointed to production falling below 4 MMT. Two upcoming estimates will lead to potential revisions to this data, with Statistics Canada to report official estimates for 2022-23 ending stocks on Sept. 8, followed by an updated production estimate on Sept. 14. Read more here.

Quality Survey Shows Reduced French Wheat Protein Levels

Updated quality results from the 2023 French soft wheat harvest showed the percentage of the crop meeting protein requirements for milling had dropped to 91% from an 93%, but remained above a five-year average of 87%, farm office FranceAgriMer said. The survey by was based on data representing 92% of the harvest, compared with 80% the previous week. It also showed that 69% of the crop had test weights above 76 kg per hectolitre (kg/hl), down from 74% the previous week and a five-year average of 79%. Read more here.

Breeding Wheat Plants with Better Starch

A team of UK researchers has figured out how low-quality starch grows in wheat. The discovery, published in The Plant Cell, could help breed plants with more control over their starch. As well as being an important nutritional source of carbohydrates, starch is a valuable ingredient in brewing, glue, paper, textiles, and construction materials. “We discovered that the ubiquitous enzyme, (PHS1) is crucial for the formation of B-type granules in wheat,” says lead author Dr Nitin Uttam Kamble, a postdoctoral scientist at the John Innes Centre, UK. “This is a scientific breakthrough … it shows that the A- and B-type granules of wheat form via different biochemical mechanisms. We can now use this knowledge to create variations in starch for different food and industrial applications.” Read more here.

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.

thumbnail

News and Information from Around the Wheat Industry

Speaking of Wheat

The team had a chance to visit all aspects of the supply chain, from farm to export elevator, and learn about the FGIS inspection process, giving them a sense of how US wheat quality is ensured throughout the way. These visits provide reassurance to overseas buyers that they are getting the quality they want, and face-to-face visits go a long way in providing trust and confidence in our buyers and establishing long-term relationships.Chad Weigand, USW Regional Director, Sub-Saharan Africa, discussing a trade team from Nigeria and Kenya visiting the U.S. wheat industry in August 2023.

Map of Canada showing significant drought in western Canadian provinces. Map Source Canadian Drought Monitor.

Canadian Durum and Wheat Crop Watch

An Aug. 10 Western Producer article said Canadian market analyst Bruce Burnett on July 19 forecasted a national average durum yield of 26 bu. per acre, down from afive-year average of 37.3 bu. per acre. Burnett forecasted total Canadian production of 4.09 million metric tons (MMT), down 25% from last year. The article included a Saskatchewan Wheat Development Commission officer saying the crop has further deteriorated since Burnett’s presentation. He thinks the production number “will start with a three, although it will likely be higher than the 3.2 MMT produced in 2021.” Read more here.

Durum Foods Online Course

North Dakota State University and the Northern Crops Institute recently launched an online course titled “Developing Innovations with Durum: More than Just Pasta.” The course costs $250 and will the knowledge on how durum can be beneficial in other facets than just pasta. It will touch on the many unique traits of durum, nutrition components, an overview on procession, as well as sourcing the material. Participants can work at their own pace and will enjoy lectures from milling experts, understand how to utilize this product, and will know exactly where they can buy durum flour for cooking and baking. The course can be completed at the participant’s on pace. Register online at: http://durumfoods.com/.

Wheat’s Influence on World History

Recently Kansas Public Radio reported on the surprising role of wheat in world history from ancient Greece to modern-day Ukraine and Kansas. The non-profit network conducted an interview with Scott Reynolds Nelson, the author of “Oceans of Grain: How American Wheat Remade the World.” Listen to the interview here.

The Journey of Wheat

Oregon Wheat has created an “infographic” that depicts the journey Oregon wheat takes to from the farm to its end destination for a domestic or overseas customer. Here is a link to “Follow the Wheat.” To view the U.S. Wheat Associates program “Wholesome: The Journey of U.S. Wheat,” visit our Vimeo page here.

South Dakota Wheat to Move Its Office

The South Dakota Wheat Commission has made the decision to relocate its office from Pierre to Brookings, South Dakota. The new location, on the campus of the South Dakota State University Research Park, will allow for increased dialog and collaboration with the SDSU research team.  The move is expected to be complete by Oct.1. The Commission’s new mailing address is:

South Dakota Wheat Commission

2301 Research Park Way, Suite 253

Brookings SD 57006

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo and YouTube, and more on LinkedIn.