Marketing and Trade Conferences Archives

Iraqi Prime Minister Receives U.S. Wheat Associates Delegation

Following is an April 17, 2024, announcement from the Iraqi Prime Minister Media Office. Photo above courtesy of the Media Office.

Prime Minister Mohammed S. Al-Sudani met with Mr. Vince Peterson, President of the U.S. Wheat Associates (USW), and his accompanying delegation [April 17, 2024], in the Prime Minister’s residence in Washington D.C. They discussed future cooperation on the supply of high-quality wheat to Iraq at reasonable prices for flour production that can be supplied to the local market outside of the ration card system, which the government has worked to secure and strengthen its strategic reserve, primarily relying on Iraqi wheat.

Prime Minister Al-Sudani highlighted the ongoing cooperation with the U.S. Wheat Associates, praising its efforts in facilitating contracts with the Ministry of Trade and providing wheat during a critical phase when Iraq urgently needed large quantities to bolster its food security. He also emphasized the government’s commitment to continue cooperation with American companies to produce flour for the local market and reduce imports, alongside continued efforts to enhance food security through support for farmers and the private agricultural sector in Iraq.

Based on the volume of domestic wheat production, the Iraqi Grain Board imports U.S. hard red winter wheat (above) when needed to bolster food security.

The Prime Minister assured that the government would overcome any obstacles to advance cooperation with American companies in supporting this project, meet the local market’s flour needs, and plan for future exports by leveraging the production capacities of private wheat flour producing machines and facilities, many of which have a significant portion of their production lines idle.

Mr. Peterson expressed enthusiasm for further cooperation and future endeavors, noting that the U.S. Wheat Associates has worked with Iraq for decades under the framework of a memorandum of understanding. He expressed pride in the partnership with Iraq.

April 17, 2024/by Steve Mercer

Trade Team Season is Here, Providing Customers of U.S. Wheat a Professional and Personal Experience

In a scene from an August 2023 trade team visit to North Dakota, wheat buyers from Nigeria and Kenya join North Dakota Wheat Commissioner and farmer Scott Huso in one of his fields to get a look at the wheat crop.

Above photo: Idaho wheat farmer and USW Vice Chairman Clark Hamilton talks with members of a South American wheat trade team about his wheat fields during a past trade team visit.

Wheat buyers from Egypt, Japan the Philippines and three other countries are scheduled to visit the U.S. in coming months to seek information about the high-quality wheat crop and meet the people responsible for it.

Indeed, U.S. Wheat Associates (USW) is ready to launch another trade team season.

“Inviting, hosting and leading trade teams is a key piece of the puzzle for our market development activities,” said USW Director of Programs Catherine Miller. “Each trade team season, we look for ways to help U.S. wheat customers learn more about wheat-producing states, the U.S. supply chain system and each of the six wheat classes. It all begins by collaborating with staff in our overseas offices and the state wheat commissions to identify opportunities and put together informative itineraries for the teams.”

Oregon, Minnesota Hosts Egyptian Team

A group of private Egyptian wheat buyers kicks the season off in late April by visiting Oregon and Minnesota. In Oregon, the team will meet staff from USW’s West Coast Office in Portland. It will also tour important export facilities and exporters in the Pacific Northwest. Meetings with the Oregon Wheat Commission and stops at the Federal Grain Inspection Service (FGIS) and the Wheat Marketing Center are also planned. In Minnesota, the team will be presented with a spring wheat update by the North Dakota Wheat Commission. Team members will then meet with exporters and with Minnesota Wheat Research and Promotion Council.

Japan Flour Millers Association to Visit D.C.

Almost simultaneously, nine senior executive members of the Japan Flour Millers Association will visit Washington, D.C., and Oregon. That trade team visit will include meetings at USW headquarters in Arlington, Va., and at USDA. The team will then travel to Oregon, where it will meet with USW, exporters, the Oregon Wheat Commission and the WMC.

The Egyptian and Japanese teams will not be visiting farms. However, the teams that follow throughout the summer are expected to explore the spring wheat crop. A Philippines Team, for example, is scheduled to visit North Dakota, Idaho, Oregon, and Washington in mid-August.

A trade team made up of members of the Japan Flour Millers Association visited Montana farmer Ed Bandel and his son, Jess, in October 2023. USW Japan Country Director Rick Nakano (shown here sharing information with the team) led that trade team to meet farmers and see wheat research facilities.

Farmers Find Visits Rewarding

Idaho wheat farmer and USW Vice Chairman Clark Hamilton described farm visits as an important event for customers. It is valuable for farmers who host them, too.

“In Idaho, half the wheat we grow is exported, so having customers come here to see our production and our farms is very important,” Hamilton, who hosted a technical trade team from South America in August 2022, said. “I found that it’s a pleasure to have them on the farm and to be able to share with them what we do and how we grow wheat. Many relationships have been built during the trade team season. It’s business, but it’s also personal.”

Goal: Promoting U.S. Wheat

USW invests funding from the USDA Foreign Agricultural Service (FAS) to bring trade teams to the U.S. Participating wheat-producing states connect customers with farmers and industry partners. The goal is straight-forward: to promote the reliability, quality, and value of all six U.S. wheat classes. The teams are shown production and farming practices, how wheat is transported and are able to see various research programs involving wheat.

The visits allow an in-person study of the U.S. wheat industry – from wheat field to export elevator.

“We are able to show our customers that our wheat and the people who supply it – from the farmers to the exporters – are dependable, and that they are focused on producing wheat sustainably,” said Steve Wirsching, Vice President and Director of USW’s West Coast Office.

April 17, 2024/by Ralph Loos

Market and Crop Analysis, Marketing and Trade Conferences, Rail Transportation, Wheat Export Supply System

U.S. Wheat Export Basis Levels Support On-Going Competitiveness

During the summer of 2023, U.S. wheat export basis levels hovered near record lows as slow demand met seasonal weakness. Across almost all the U.S. wheat classes and export points, export basis levels hovered below average, signaling a unique pricing opportunity for U.S. wheat. Historical trends indicate that basis levels generally hit their lowest point during wheat harvest and increase in October, November, and December as export capacity tightens in response to an influx of corn and soybeans.

Following the seasonal pattern, U.S. export basis levels have since risen for all U.S. wheat classes. Despite the increase, the average HRS basis for the Gulf and Pacific Northwest sits 15% below the five-year average, while HRW and SRW sit 31% and 27% below the five-year average, respectively. The following examines the underlying factors driving this trend and its impact as we dive into the second half of marketing year 2023/24.

Line chart showing export basis levels from December 2022 to December 2023.

U.S. export basis levels generally follow a seasonal pattern, hitting lows during the wheat harvest and highs during October, November, and December as elevation capacity tightens in response to the corn and soybean harvest. In July 2023, basis levels hovered near record lows as seasonal weakness was coupled with an overall lack of demand. Source: U.S. Wheat Associates Price Report.

Excess Capacity Meets Slow Demand

The most significant factor influencing the below-average basis values is the overall decrease in export volume for grains and oilseeds, particularly for soybeans. According to USDA, for the week ending December 28, 2023, inspections for all grains (wheat, corn, and soybeans) were down 19% from the same period last year and 39% below the three-year average.

U.S. soybean exports are down due primarily to South American competition in the Chinese market. Reflected in the December 2023 World Agricultural Supply and Demand Estimates, forecast for U.S. soybean exports to all destinations came in at 47.6 MMT, down from 54.2 MMT in 2022/23 and 58.6 MMT in 2021/22. Meanwhile, total Brazilian exports are forecast at a record 99.5 MMT, up from 95.5 MMT the year prior and 18% above the five-year average as record quantities of soybeans are exported to China.

U.S. wheat exports face similar competitive headwinds. USDA export data shows that the export pace sits 14% behind last year and 26% below the five-year average.

Line chart shows price changes since 2019 for secondary grain railcar auction market bids to illustrate effect on wheat export basis.

Secondary Railcar Auction Market Bids (a real-time reflection of the supply and demand for rail freight) for October, November, and December sit at $65.12/car on average, down from $836.11/car last year and the five-year average of $262.96/car. The combined impact of excess capacity within the grain handling and logistics system has removed pressure on wheat basis levels and allowed them to drift lower. Source: USDA Rail Transportation Dashboard.

The decrease in overall grain volume has created surplus capacity in the U.S. logistics systems, particularly for the railroads. As a result, Secondary Railcar Auction Market Bids (a real-time reflection of the supply and demand for rail freight) for October, November, and December sit at $65.12/car on average, down from $836.11/car last year, and the five-year average of $262.96/car. The combined impact of excess capacity within the grain handling and logistics system has removed pressure on wheat basis levels and allowed them to drift lower.

Basis Levels Support Competitiveness

As overall grain export volume remains below average, we can expect the depressing impact on the basis to continue. South American competition for soybean exports will continue to influence grain markets, forcing participants to readjust to the changing dynamic.

The combined impact of below-average basis levels and the downward trend in wheat futures prices, driven by competition from the Black Sea, Canada, and other origins, has helped improve U.S. wheat competitiveness throughout 2023/24. Therefore, basis movements will continue to play a key role in maximizing value and capitalizing on opportunities as they arise in the market.

By USW Market Analyst Tyllor Ledford.

January 8, 2024/by Steve Mercer

Marketing and Trade Conferences, USW Board Team

A Busy Year for USW Export Market Development Programs

U.S. Wheat Associates (USW) staff across the world have had quite a busy year in 2023. Blessed in 2019 with additional funding from the Agricultural Trade Promotion (ATP) program but handicapped by pandemic restrictions, our teams have been playing “catch-up” with positive results.

The extra push helped USW conduct a record number of activities from trade teams and short courses to buyers’ conferences and board teams in 2023.

USW led a trade team of Nigerian and Kenyan wheat buyers on visits to farms and facilities in Kansas, North Dakota and Minnesota. The team was interested in learning about U.S. hard red winter (HRW), hard red spring (HRS) and hard white (HW) wheat.

Fundamental Support

Along with technical support, market development activities are a fundamental part of USW’s work promoting U.S. wheat in overseas markets with funding from USDA’s Foreign Agricultural Service (FAS) and its state wheat commission members. Some of the most popular activities conducted annually in the United States include trade teams and short courses. The year 2023 saw a continued uptick in these activities and an increase in the number of customers participating. USW’s reach remains global with over 42 countries represented in trade teams and short courses this year alone

In 2023, USW sponsored 16 trade teams to the United States – a record number of teams in the last 13 years. Prior to this year, USW hosted an average of 11 trade team visits per year. Not only did we break records in 2023, we also welcomed the first team of high-level Chinese buyers to the United States since 2014, and the first EU team since 2015.

USW's North Asia Board Team was made up of U.S. wheat farmers who traveled to the Philippines, Japan and South Korea to meet customers.

USW’s North Asia Board Team was made up of U.S. wheat farmers who traveled to the Philippines, Japan and South Korea in March to meet customers and learn how U.S. wheat is used by flour millers and bakeries in different markets.

Partner Short Courses

Trade and technical short courses hosted by USW partner organizations including Wheat Marketing Center, Northern Crops Institute, and IGP International are also popular activities with overseas customers. While the number of courses USW offered remained steady, 2023 saw the most customer course participants in the last 5 years. From sponsoring 75 participants in 2018 to 100 participants in 2023, USW offices continue to make in-person customer training a priority.

Miguel Galdos, USW Regional Director, South America, noted “this was most activities we have conducted in 40 years!”

Three buyers’ conferences also landed spots on the USW market activities calendar in 2023. The South and Southeast Asia Wheat Marketing Conference, Latin American Buyers Conference and North Asia Marketing Conference brought together customers from 7 different regions.

October and November 2023 kept the overseas offices busy with Crop Quality seminars. USW sent staff and U.S. industry experts across the world including Africa, Central America, Asia, Europe, South America, and the Middle East to share crucial information about the quality of 2023 U.S. wheat crops. Consultants, state administrators, farmers, and USW technical staff presented almost 30 seminars in 26 countries. All these seminars took place in-person with full teams of speakers. That has not happened since before 2018.

Looking Ahead

As the long-term funding from ATP ends, USW continues to promote U.S. wheat with funding from the Market Access Program, Foreign Market Development, and other FAS export market development programs with essential support from U.S. farmers. Looking ahead, USW is now applying for additional export promotion funding under a new FAS Regional Agricultural Promotion Program (RAPP) that, if awarded, will allow USW to maintain a higher level of trade and technical service for customers that add exceptional value to U.S. wheat imports.

By USW Director of Programs Catherine Miller

December 13, 2023/by Ralph Loos

Hard Red Spring, Hard Red Winter, Marketing and Trade Conferences, SaborUSA, Soft Red Winter, Soft White, South America, USDA

Images from USW Santiago Team’s Participation in USDA Trade Mission to Chile

During the week of Sept. 25-29, U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor is leading an agribusiness trade mission to Chile. U.S. agribusinesses, including U.S. Wheat Associates (USW), are participating in business-to-business meetings with importers from both Chile and Peru.

The trade mission coincides with the USDA-endorsed Espacio Food and Service trade show, a major food show held in Santiago, Chile. USW joined several other U.S agricultural export promotional organizations in a USDA-SaborUSA Chile exhibit at the show. Under Secretary Taylor visited and offered remarks at the USW exhibit on Sept. 26. USW staff from the Santiago office shared these photos.

In the photo at the top of this page, USW Santiago Assistant Regional Director Osvaldo Seco and Program Coordinator Maria Fernanda Martinez show their pride in the USW exhibit with USW Baking Consultant Miguel Seguel.

Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor (right) is welcomed to the USW section of the SaborUSA Chile exhibit by USW Santiago Regional Director Miguel Galdos.

Greetings from USDA

Under Secretary Taylor making remarks at the SaborUSA Chile exhibit on Sept. 26. Of her visit and the trade delegation she is leading, Taylor said, “As we celebrate the 200^th anniversary of U.S.-Chile relations, I am honored to lead such an incredible group as we work with Chilean importers on expanding our bilateral trade even further.”

Quality Wheat, Exquisite Bread

Artisan bread baked by USW consultant Miguel Seguel to demonstrate the quality and versatility of flour milled from U.S. wheat classes had a prominent place in the SaborUSA Chile exhibit at the Espacio Food and Service trade show.

Chile is a well-developed wheat food market with a variety of products available. In 2022, U.S. wheat imports were valued at more than $100 million. Chile is currently ranked among the top 10 U.S. wheat importing countries in marketing year 2023/24 (June to May). Chilean flour millers import U.S. hard red winter (HRW) and hard red spring (HRS) wheat classes to produce flour for bread consumption. The bread is produced mainly by small artisan bakeries, as well as commercial and supermarket bakeries. To serve a growing cookie and cracker demand, U.S. soft red winter (SRW) and soft white (SW) wheat is imported.

Read more about the Chilean market for U.S. agricultural products here.

September 27, 2023/by Steve Mercer

Indonesia, Japan, Marketing and Trade Conferences, Seoul, Taiwan, USW Announcements, Vince Peterson

Video: USW Brings Together Wheat Buyers For ‘Unique’ North Asia Marketing Conference

Three different countries, three different languages, three different cultures and three different sets of consumers. Yet flour millers from Japan, South Korea and Taiwan actually have something in common: They have a strong interest in U.S. wheat.

U.S. Wheat Associates (USW) invited wheat buyers from each country to Bali, Indonesia, August 28 and 29, 2023, for the 2023 USW North Asia Marketing Conference. The conference provides an opportunity for U.S. producers to meet their customers and share information about this year’s wheat crop. It also gives customers the chance to hear about each aspect of the U.S. wheat supply chain and learn about the global wheat market.

Vince Peterson

“It is a very unique gathering because of the differences in the markets, but our staff in each of the participating offices is able to organize it in a way that brings wheat buyers together with everyone to share information and learn about all the advantages of buying U.S. wheat,” said USW President Vince Peterson. “In fact, you immediately notice a camaraderie as flour millers meet with farmers and others in the U.S. industry.”

The short video below captures some scenes as the conference opened on Aug. 28 in Bali.

August 28, 2023/by Ralph Loos

Marketing and Trade Conferences, Mexico, South America

U.S. Wheat Customers in Latin America Voice Appreciation for 2023 Wheat Buyers’ Conference

The first U.S. Wheat Associates (USW) Latin American and Caribbean Wheat Buyers’ Conference since 2018 was a major success, with more than 150 buyers, traders and logistics professionals coming together in Puerto Vallarta, Mexico to meet representatives of the U.S. wheat industry – including a handful of producers. In the short video below, customers from across the region express their appreciation for the opportunity to learn about the 2023 U.S. wheat crop and discuss the U.S. wheat supply chain. . .

August 14, 2023/by Ralph Loos

Marketing and Trade Conferences

Video: 2023 USW Latin American and Caribbean Wheat Buyers’ Conference

Customers of U.S. wheat and the U.S. wheat industry gathered in Puerto Vallarta, Mexico for the 2023 U.S. Wheat Associates (USW) Latin American and Caribbean Wheat Buyers’ Conference. Organized and presented by four USW offices, it is the first buyers’ conference held in the region since 2018. Some scenes from the first day of the conference (August 3) can be seen in this short video . . .

August 3, 2023/by Ralph Loos

Foreign Agricultural Service, Korea, Marketing and Trade Conferences, Seoul, USW Announcements

Celebrating a Golden Anniversary of Wheat Promotion in South Korea

The U.S. Wheat Associates (USW) Seoul, South Korea, office commemorated its 50^th year of service May 15, 2023, with honored guests from the flour milling, baking, and logistics industries, U.S. government officials, U.S. wheat farmer leaders and colleagues.

Speakers during the event focused on the remarkable growth of the South Korean wheat foods supply system as well as the “ironclad” industrial and national partnership with the United States and USW.

Celebrating the Partnership

USW Country Director Dong-Chan (Channy) Bae kicked off the anniversary program by noting USW’s long-term commitment to helping the South Korean milling and baking industry advance and grow. He affirmed the success of the partnership, saying “If you want to go fast, go alone. If you want to go far, go together – and together we have accomplished much.”

In his remarks, USW President Vince Peterson first looked back at the U.S.-South Korea wheat industry relationship. Referencing a 1984 article, Peterson said the author called out South Korea’s growth in U.S. wheat imports as an example of the very successful economic and security linkage between our two countries.

He said South Korea’s first commercial purchase of U.S. wheat in 1972 (following many years of donations under the PL-480 Food for Peace program) created the opportunity to open a U.S. wheat promotion office and more.

Since then, the South Korean milling and baking industry has seen “astounding growth until today when you import an average of 1.4 million metric tons of U.S. wheat and now export ramen products valued at more than $750 million,” Peterson said. “We thank you all and want you to know we remain dedicated to the partnership that helped fuel that growth.”

Chairman Won-Ki Ryu represented the Korea Flour Mills Industrial Association (KOFMIA) and said members of the organization greatly valued the relationship with U.S. farmers and USW.

“Together we have made major accomplishments that have significantly contributed to the advancement of flour milling in our country,” he said.

Executives from the South Korean flour milling and baking industries, USDA FAS, and USW cut a ceremonial cake celebrating the 50th anniversary of USW's Seoul office.

USW and representatives from Korea’s flour milling and baking industries, and USDA FAS cut a commemorative cake made with U.S. wheat flour by the Korean Baking School to celebrate the 50th anniversary of USW’s office in Seoul, South Korea. Left to Right: Channy Bae, USW Country Director; Darren Padget, USW Past Chairman; In Seok Song, CEO Daehan Flour Mills Co., Ltd.; Won-Ki Ryu, Chairman, KOFMIA; Vince Peterson, USW President; Mark Dries, Ag Minister Counselor, USDA-FAS; Michael Peters, USW Vice Chairman.

A Flagship Commodity

Mark Dries, Agricultural Minister Counselor, with USDA Foreign Agricultural Service, offered heartfelt congratulations to USW on its anniversary. He said milling wheat is now the fifth largest U.S. commodity imported by South Korea.

“We are very pleased to help celebrate this accomplishment. Wheat is one of the flagship export products to South Korea and has helped fuel the amazing innovations we see in bakery products here,” Dries said.

USW was fortunate to have three of its wheat farmer leaders participate in the event in Seoul: Past Chairman Darren Padget of Grass Valley, Oregon; Vice Chairman Michael Peters of Okarche, Oklahoma; and Secretary-Treasurer Clark Hamilton of Ririe, Idaho.

USW Vice President of Overseas Operations Mike Spier also provided an overview of the global and U.S. wheat supply and demand situation. He showed that the now four-year downward trend in ending stocks will likely support world and U.S. wheat prices. He said while U.S. hard red winter wheat supplies will remain tight, the potential for more normal soft white and hard red spring (DNS) wheat crops for 2023 is good. At the same time, Spier said to expect continued volatility given the uncertainty of the Black Sea situation.

Thanks to Colleagues

USW wants to recognize the dedicated work of its Seoul-based colleagues Channy Bae, Country Director, Shin-Hak (David) Oh, Food & Bakery Technologist, and Jin Young Lee, Marketing and Program Coordinator. USW was also pleased that Dr. Won Bang Koh, who served as Country Director for more than 30 years, was able to participate in this special anniversary celebration.

May 15, 2023/by Steve Mercer

Photo of a panel discussion at the USW South and Southeast Asia Marketing Conference.

Foreign Agricultural Service, Marketing and Trade Conferences, USW Announcements

USW Holds First South and Southeast Asian Marketing Conference Since 2012

U.S. Wheat Associates (USW) in cooperation with the USDA Foreign Agricultural Service welcomed close to 200 guests to a South and Southeast Asian Marketing Conference May 9 to 11 in Phuket, Thailand. This was the first such conference in that region since 2012 and comes at a challenging time for the milling and wheat foods business.

Demonstrating Partnership

“It was great to have everyone back together again,” said Joe Sowers, USW Regional Vice President. “Our regional milling and baking customers are dealing with a lot of uncertainty and market volatility and the pandemic limited our direct service work for a long time, so this is another way for us to demonstrate our commitment to them and why U.S. wheat remains important to their businesses.”

The conference theme, “Building Prosperity Through Partnership,” and presentations reminded customers that USW is committed to being a steadfast partner in both challenging and stable times. The program provided perspective on geopolitical and market forces shaping the regional wheat food industry, an early look at the 2023 U.S. wheat crop, and reports from millers in several South and Southeast Asian countries, including Antonina Sio, Assistant Vice President and General Manager of San Miguel Flour Mills in Batangas, Philippines.

Value in Networking

“I am attending the conference to learn more about the industry, the trends and what’s happening all over the world and, at the same time, to collaborate and network with my counterparts around the region,” Sio said.

Those millers expressed hope that flour demand will grow in the future based on population growth and changing economic factors. To give millers and bakers additional tools to help achieve that growth, USW included technical presentations on using solvent retention capacity analysis to select specific flours that perform best for specific end uses.

“The experience that we gain by learning from Mr. Roy Chung and from conferences like this gives us a lot of knowledge so we can improve our baking skills and improve products for our customers,” said Daniel Tay, Founder of Foodnostics in Singapore.

Darren Padget stands in front of a panel with a photo of his hand with his calculation of how much bread can be made from wheat grown on his farm at the South And Southeast Asian Marketing Conference.

Growing Wheat is Dirty Work. Presenting to the South and Southeast Asian Marketing Conference May 10, USW Past Chairman Darren Padget, a wheat farmer from Grass Valley, Ore., shared how he calculated (in his own way), how many loaves of bread can be made from the wheat he produces every year on his farm.

Thanks to Sponsors

Several USW farmer board members travelled to Phuket to participate in the conference, as did representatives from sponsoring organizations including the Idaho Wheat Commission, Nebraska Wheat Board, North Dakota Wheat Commission, Oregon Wheat Commission, and Washington Grain Commission. Additional funding was provided by Agrex, Inc., Bunge, Cargill, CHS, CoBank, Columbia Grain, Pacificor, LLC, United Grain Corp., and Viterra.

May 11, 2023/by Steve Mercer