News

MINNEAPOLIS, MINNESOTA, US — Cargill, one of Russia’s largest agribusiness investors, said in a March 11 statement that it will scale back its business activities and discontinue investments while continuing to operate its food and feed facilities in response to Russia’s Feb. 24 invasion of Ukraine. Archer Daniels Midland Co., which has a smaller footprint in Russia, said on March 14, it would scale back as well.

Cargill has a large presence in Russia, with about 2,500 employees and investments in ...

NEW DELHI, INDIA — India signed agreements in recent days to export about 500,000 tonnes of wheat as international prices rally, Reuters reported. The nation is the second largest producer of wheat.

Buyers are seeking alternatives to Black Sea exports as Russia’s invasion of Ukraine threatens supplies from the two nations that together supply 30% of the world’s wheat exports.

India has significant wheat inventories after five consecutive record annual crops. A guaranteed high domestic price from the government of about $257 ...

KANSAS CITY, MISSOURI, US — The Russian invasion of Ukraine and ongoing conflict in the key Black Sea export region has sharply ramped up concerns about global supply, sending wheat futures prices soaring to 14-year highs and compelling the hard red winter basis Kansas City to post “no bid” for the first time in recent memory.

Kansas City wheat futures had been trading in a comparatively narrow range before Russia invaded Ukraine on Feb. 24 in the largest conventional attack on ...

BEIJING, CHINA – A Chinese agricultural official said on March 5 that this year’s China winter wheat crop could be the “worst in history,” Reuters reported.

Minister of Agriculture and Rural Affairs Tang Renjian told reporters at the country’s annual parliament meeting that a survey taken of the crop prior to the start of winter showed a 20% reduction in first- and second-grade winter wheat, due mainly to heavy rainfall during planting that reduced acreage by one-third.

The negative forecast comes at ...

KANSAS CITY, MISSOURI, US — Many agricultural futures have soared to contract highs, with some trading to nine-year highs on Feb. 23, amid fears of market disruption as Russia appeared hellbent on invading Ukraine.

Excluding the combined countries of the European Union, Russia is the world’s single largest wheat exporter and Ukraine is two notches lower just behind Australia. The United States comes in fourth after Ukraine. Combined, Russia and Ukraine are expected to account for nearly 30% of global wheat ...

BEIJING, CHINA — China’s customs agency on Feb. 24 approved imports of wheat from all regions of Russia, the Associated Press reported.

This move gives Russian President Vladmir Putin an alternative to Western markets that might be closed under sanctions.

Russia, one of the largest wheat producers, has not exported to China before now due to concern about possible fungus and other contamination, the AP said.

On Thursday, China’s customs agency approved imports of wheat from all regions of Russia, giving Putin an ...

KANSAS CITY, MISSOURI, US – The flour extraction rate in US flour mills has increased steadily over the past 80 years or so, from 71.6%% to 77.5%, according to statistics from the US Department of Commerce. The trend begs the question: What is the reason for this improvement?

Data shown in Table 1 (right) present yield or extraction data based on the wheat ground for flour. Yield is reported for 98% of the milling industry with milling capacity of 400 cwts/day ...

PARIS, FRANCE — A dim outlook for sales to Algeria, one of France’s main export markets, has led FranceAgriMer to cut its forecast for French soft wheat exports outside the European Union for the fourth straight month, Reuters reported Feb. 16.

In its monthly supply and demand outlook for major cereal crops, FranceAgriMer reduced its forecast for soft wheat exports outside the European Union in 2021-22 to 8.9 million tonnes from 9 million in January. Projected exports within the 27-member bloc, ...

GENEVA, SWITZERLAND – US grain producers are enjoying strong demand and high prices for their products, but prices work both ways and all their inputs are expensive. Around the world, their feed industry customers are looking for sustainability, but delegates at the recent Global Grain Conference in Geneva, Switzerland, heard that years of conservation programs have made the US sector confident it can lead on climate and environment.

Seth Meyer, chief economist at the US Department of Agriculture, explained to delegates ...

SYDNEY, AUSTRALIA – Noting above average yields as harvest wraps up and a global market showing strong demand and prices, Australian grain growers are expected to see farm gate receipts for the major winter crops exceed A$20 billion, IKON Commodities said in its Feb. 9 update.

Based on grain receival reports from the major grain storage groups IKON Commodities has revised its Australian crop estimates as follows from its last report:

Wheat production estimated at 39.043 million tonnes, up 1.8%
Barley production ...