The US Ships High Volume of Wheat to the Asian Allies
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The United States hard red winter Wheat (HRW) harvest is expected to accelerate as temperatures trend hot. Soft red winter (SRW) harvest continues progressing, with data from 87 samples available last week. Much-needed precipitation fell across the HRS and northern durum growing region. Cooler temperatures are needed in the Pacific Northwest to stabilize the SW crop.
As of June 30, local representatives estimate that the HRW harvest is 74% complete in Texas, 68% in Oklahoma, and 35% in Kansas. The rain-delayed harvest is expected to speed up with recent record-breaking temperatures (+100 F/+38 C). Test cutting started in southeast Nebraska, Oregon, and is expected to begin in southern Colorado.
Producers report variable yields based on environmental factors: dryland fields between 5-50 bu/ac (0.3-3.4 tons/ha) and up to 100 bu/ac (6.7 tons/ha) on irrigated fields. Protein is high, averaging 13% (12% mb), and test weights have been lower in areas that received moisture at harvest but still trending higher than expected. In the Northern Plains, where the crop is in earlier stages, recent cool weather and rainfall have benefited grain fill and overall crop conditions. The crop is expected to yield low in Oregon due to early-season heat and dryness.
A heat dome covers Texas, Oklahoma, and Kansas areas in the US, but cooler temperatures are forecast. In Colorado, producers are hoping for warmer weather to dry down Wheat ahead of harvest. There is a chance of thunderstorms and rain throughout the entire growing region. Currently, 73 samples from Texas, Oklahoma, and Kansas are in the lab undergoing analysis. Preliminary data show a larger kernel size than last year, an average protein of 13% (12% MB), a 1000 kernel weight of 30.9 grams, and a falling number of 360 seconds.
According to AgFlow data, the United States exported 7.6 million tons of Wheat in Jan-May 2023. In May, the Philippines led its export market with 0.4 million tons, followed by Japan (0.3 million tons), Mexico (0.3 million tons), and South Korea (0.15 million tons).
The US – Mexico Wheat Trade
U.S. Wheat Associates (USW) recognizes that direct rail shipments of U.S. Wheat to millers in Mexico provide a significant advantage over competing Wheat-exporting countries. USW has been increasing its efforts to facilitate these sales by educating Mexican buyers about the rail shipping process and efficiencies.
In June 2022, USW’s Mexico City Office used Agricultural Trade Promotion Program (ATP) funds to organize and lead a trade team from a Mexican company that is a significant buyer of U.S. Wheat to meet with U.S. farmers, grain cooperatives, and grain elevators in Ohio and Kansas that have direct rail shipment capabilities. The trade team included the company’s Wheat purchasing manager and production manager.
The expansion of U.S. exports to the market via rail has been made possible by significant investments and dramatic improvements in the Mexican rail infrastructure over the last 15 years. Today, there are 46 shuttle train facilities, including nine new facilities inaugurated in 2020-2022, and 12 milling companies can receive shuttle trains.
Along with demonstrating the capabilities of shipping U.S. Wheat directly to mills in Mexico, the trade team led by USW was educated on the quality and supply of U.S. soft red winter (SRW) Wheat and hard red winter Wheat (HRW).
As a result of discussions with the trade team – both during and after the visits to Ohio and Kansas – the company bought SRW for the first time in more than three years. The total for the 44,160 metric tons (MT) of SRW purchases from the trade team was $15.7 million.
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