USW Reaches Out to Saudi Arabian Wheat Buyers
Here is a press relase from the US Wheat Associates headquarters in D.C. Please enjoy! We like to work with them in the efforts to promote their national organization. Feel free to contact the OWC if you have any questions or concerns. We work with producers for producers in every way possible.
Arlington, Virginia — U.S. Wheat Associates (USW) recently conducted a seminar in Riyadh, Saudi Arabia, to introduce U.S. wheat and the U.S. marketing system to the Saudi Arabian wheat buying organization, Grain Silos and Flour Mills Organization (GSFMO). Conducted in cooperation with local USDA/Foreign Agricultural Service and State Department officials, the seminar was the first ever held exclusively with this new international wheat buyer, and was designed to build confidence in U.S. wheat crop quality, handling, and commercial reliability.
The Kingdom of Saudi Arabia has decided to end domestic wheat production by 2016 and may eventually need to import more than 2.5 million metric tons (91 million bushels) of wheat per year.
“Competition for this market is intense,” said Dick Prior, USW Regional VP, Cairo, Egypt. “The Canadian Wheat Board monopoly is allowing select traders to offer comparable quality Canadian wheat at delivered prices well below what our exporters can offer so establishing the value of U.S. wheat with GSFMO is critical.” Saudi Arabia purchased almost 60,000 metric tons (2.2 million bushels) of U.S. hard red winter wheat in marketing year 2008/09 (June-May).
Prior said the seminar was a full year in planning. With perseverance from the USW Cairo staff and strong personal support from GSFMO Director General Waleed El Khereiji and U.S. Ambassador to Saudi Arabia James Smith, about 20 GSFMO staff and Saudi authorities met at the GSFMO offices in Riyadh in late November.
The USW team leading the seminar included Prior, VP John Oades, Assistant Regional Director Ian Flagg, and Regional Marketing and Special Projects Manager Hesham Hassanein. Royce Schaneman, Executive Director of the Nebraska Wheat Board, also participated.
USW is the industry’s market development organization working in more than 100 countries on behalf of America’s wheat producers. The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.
Words from Dr. Kim Anderson
Okay- so I am in the Christmas mood and can’t focus. I read this whole article, attempted to put my two-cents in and came up with nothing. So, I decided to copy and paste the wisdom of Dr. Anderson right into my blog. Remember- this isn’t a piece generated from any of us at the OWC, so just chug along and digest:)
2010 wheat harvest price expected to be $4.75
At this writing, the Kansas City Board of Trade July wheat contract price is $5.90. Some elevators in central Oklahoma and the Texas Panhandle are offering about 0.90 less than the KCBT July wheat contract for 2010 harvested wheat ($5.00).
The expected June 20, 2010 central Oklahoma wheat price is $4.75. The potential price range is $3.70 and $6.50. Problems with this prediction are that this range may not be wide enough and there are a tremendous number of uncertainties.
The 2009 Argentine and Australian wheat harvests are essentially complete. The next wheat to be harvested is in India, China, Pakistan and the Middle East. India’s wheat harvest is normally between March and mid-May. Harvests in Pakistan and the Middle East begin the first of April and run through June. China’s winter wheat harvest is normally between mid-May and mid-June.
About 24 percent of the world’s 2010-2011 wheat marketing-year production will have been harvested by June 1, 2010. Wheat production in India, Pakistan, the Middle East, and China will impact Oklahoma’s June 2010 wheat price.
To predict the June 2010 wheat price, estimates must be made for the value of the dollar, U.S. wheat exports and ending stocks, planted wheat acres, yields, and how much outside money (new term for funds) invested in wheat contracts will also impact 2010 harvest prices. The price impacts of the dollar value, wheat exports and ending stocks are related.
Since June, the U.S. dollar index has declined from about 81 points to about 74.5 points. This is an 8 percent decline in the dollar’s value relative to other major currencies. Since mid-September, the dollar index has declined from about 76.5 points to 74.5 or about 2.6 percent.
Between June and mid-September 2009, wheat prices fell $1.10, about 20 percent. Since mid-September, wheat prices have increased $0.80 or about 17 percent. The change in the value of the dollar may not have a direct impact on wheat prices. However, the declining value of the dollar may be one reason that outside investors are buying commodities.
A good example of the price impact of a declining dollar and outside investors is the $1.58 price rally (28 percent) between mid-April 2009 and mid-June 2009. There was little if any fundamental (supply and demand) reason for prices to increase.
During the April to June period, estimates of both U.S. and World wheat stocks were increasing. Estimates of 2009 world wheat production were also increasing. There was little change in expected demand.
During the $1.58 wheat price rally, the dollar index declined from 86.5 points to 78.5 or 9.2 percent. There was not a big increase in export demand.
Outside investor buying was the major reason for the $1.58 rally. Investors may have been buying commodities because of the declining dollar value and possibly because of inflationary fears. There is no way to know what outside investors will be investing in next spring and summer.
The 2010 U.S. winter wheat crop has been planted. Early estimates indicate that hard red winter planted acres may be slightly lower than last year. Estimates of soft red winter wheat planted acres indicate significantly less planted acres.
For reduced winter wheat production to have a major impact on wheat prices, 2010 winter wheat production needs to be about 1.3 billion bushels. The five-year average is 1.54 billion bushels. Given the current wheat crop condition, below average production is not very likely.
For 2010 wheat prices to remain at current levels, total U.S. wheat production needs to be below the 1.22 billion bushel average. Average or above production would result in another increase in wheat stocks and lower prices.
If you can’t afford lower wheat prices, consider forward contracting some (up to 20 percent) of the expected 2010 wheat production and selling wheat that is in storage.
Teachers! Look in! Deadline Approaching!
I love the Oklahoma Ag in the Classroom program and their coordinators. As I was thinking of something, anything, to blog about today I found this morsal of information……
Dec. 18, 2009 is the deadline to send in applications for the 2010 AITC Teacher of the Year awards.
I love going to schools and using the AITC PASS aligned assignments. All over the state, those programs are put to good use every day by teachers who hold agriculture near and dear to their hearts. Teachers that aren’t from rural areas find time to teach our youth about agriculture and that means WHEAT!
So, during this holiday season do a good dead and nominate a teacher! Here is the link to the application, more details and addresses. The Oklahoma Wheat Commission supports the AITC program by being a part of their Advisory Council and their multiple projects.
http://www.clover.okstate.edu/fourh/aitc/teacher/toy.html
Please get your nominations in. If you have any questions, please feel free to ask myself this weekend at the OKLAHOMA WHEAT GROWERS ANNUAL CONVENTION ON SATURDAY!
Much to be thankful for….
Tis the season to count your blessings. A few that I know our office is thankful for is the great report just put out by our NASS office! We have plenty of moisture throughout the state and have gotten 95 percent of our crop in the ground, with 85 percent of it emerged. That is slightly behind normal, but an encouraging progression from their last report. The report also shines a light on the fact that 80 percent of our crop is currently rated good to excellent, which is about a 20 percent increase from last year.
Our board member Jeff Krehbiel keeps progressing and updating his care pages site. Since it is the holiday season, we ask that you continue to keep him and his family in your thoughts and prayers. And, I know he enjoys to read all of the comments left on his care page, so cheer him on.
The Oklahoma Wheat Growers announced their annual convention. It is always a great gathering of wheat minds, producers and staff to help expand your horizons. Feel free to register and show up on Dec. 12, 2009. You will be thankful that you attended!
If you are setting here with me, cruising the Internet, than you should be thankful for your ability to make ends meet. I know at times I forget, but watching a segment on the news this a.m. about the Jesus House and the increase in the need for their services really hit home. Please take time to donate canned goods, loaves of bread or your time this season. Go to the store, buy some loaves of whole wheat bread and deliver to a church or shelter in your area. Do it because it is healthy for your heart and soul!
Be thankful that there are people out there trying to find a healthy alternative to Eggo waffles, in case their shortage hits home! HAHA. No, on a serious note, you can start providing a bit more whole grain nutrition to your family by reading this article and trying some alternatives. Your heart and brain will thank you! http://www.mnn.com/food/markets-groceries/blogs/taste-test-frozen-waffles
I could go on and on, but I am a bore! Please let us know what makes you thankful! Keep your loved ones in your thoughts and do good for others!
Have a safe and healthy Thanksgiving week and weekend! CHEERS!
Other ag blogs and OWC News
I don’t know about you, but I am still getting my feet wet on this whole blogging deal. I thought it would be easily concured, but here I am once again struggling for content. Please bear with me as I tackle my blog:)
Ironically, as I was trolling the Internet for some inspiration for wheat “stuff”, or more professionally blogging content, I got a phone call from the folks at www.agblog.com and they want to do more wheat talk. Upon hanging up, I surfed on over to their site and found a ton of helpful and interesting content.
Now, my question is: What are your favorite ag blogs? Where do you go? I visit the Oklahoma Department of Ag’s blog, the Pioneer Woman one, one my creative and talked pal Crystal puts together and various wheat/work related sites. Help me out folks!
Other related business….
We were ever present at the Farm Bureau convention last weekend and we thank everyone for stopping by and chatting. They said our smell was all over the Cox Center…. our GOOD smell! We love providing our amazing product made from our amazing, high quality Oklahoma wheat. Thank a farmer if you ever get a chance to sample our goods. We gave out about 1260 cinnamon rolls and 1344 samples of our bread. What a couple of days!
Don’t forget that November is National Peanut Butter month and nothing can tempt a person or make their day brighter than a great PB&J made with whole wheat bread. If I do say so myself, our little recipe makes some great bread to put your peanut butter and jelly on. Here you go….http://www.wheat.state.ok.us/Web%20Site/Recipes/bread_and_rolls.pdf
WARM BREAD MAKES FOR HAPPY SANDWICHES!
Learn while helping
To some this doesn’t sound very fun.. learning. BLAH! But, the Wheat Foods Council just launched a Web site to help people understand where their food comes from. They are taking and interactive field to fork approach and put an added incentive on the assingment. That incentive is to provide bags of flour to troops and their families in need. With each person that completes the “farming” assingment, a 5-pound bag of flour will be added to the kitty to donate to the men and women that support our country.
Go to www.howwheatworks.com to start the game. It will take you through the planting, growth and harvest proccesses of wheat production. Along the way, you will learn about the classes of wheat, where they grow best, what they are used for and much, much more. There are also links to many useful resources, like recipes, state wheat commissions- which are ALWAYS helpful:), and national organizations.
I signed up for it today. I completed the planting portion of the activity. It didn’t even feel like I was learning. The graphics are rich and entertaining. Tomorrow, I will be able to learn about how the wheat will grow.. which in reality it does take more than 24 hours to get a large wheat plant!!
Not only do I feel like I am playing at work, I have a wonderful sense of paying it forward. I know one bag of flower doesn’t put a dent in the need out there, but it sure is one more bag closer to helping.
Log on and help!
Baking Tips on Video
Many people go to the Internet to find videos for how-to demo’s. In our many surfs around the Internet, we have found some very helpful ones. This list is something that can be book marked and used over and over again. And, PLEASE help us add more to the list!
First one…. this video is from King Arthur Flours and helps you know when your dough is at the perfect elasticity. http://how2heroes.com/videos/techniques/bakers-tip-pulling-a-window-pane. They have many more featured on that how2heroes site, so take a gander at the rest, too.
Second one…. this site has two videos. They both illustrate an “almost no-knead” bread; one white, one whole wheat. http://www.breadtopia.com/cooks-illustrated-almost-no-knead/
The Queen of Cooking, Julia Child, is showcased in nine baking videos on the PBS Web site. Here they are, all ready sorted for you…. http://video.pbs.org/feature/90/tag/Baking
A certain yeast company has three video’s showcased on their site; mixer made breads, hand made bread, and bread machine made bread. They are hosted by a culinary expert and can be found here….http://www.redstaryeast.com/lessons/how_to_bake_videos.php. This site also has a lot of useful resources, so we suggest bookmarking it for further reference!
Dinner rolls are featured in this video ..http://www.wonderhowto.com/how-to/video/how-to-bake-homemade-dinner-rolls-from-scratch-204816/
We sure hope these help you. There is only 11 months until next years Wheatheart Contest! Start perfecting your method now:)
What is your farm size?
We ran across this handy Internet calculator to answer just that question. It is designed to help ya’ll assess your land and energy use and available water resources. A series of questions must first be answered to generate the spiderweb like graph that shows the highs and lows of your family farming practices.
The ultimate goal of these programs is to connect producers with other producers to make a network of farmers helping each other. Seems like a great idea! Look out for your own.
Here it is….. www.fieldtomarket.org. Check it out this weekend!
National School Lunch Week Among US
I don’t know about you, but being _ _ years removed from high school can’t kill the vivid memories of school lunches! The soggy pizza, the brown lettuce, the neon orange cheese sauce….. oh MY! The kids these days have many reasons to cheer, in comparison.
Many schools in Oklahoma are going with more whole grain products, locally grown produce to reduce browning and real cheese, from real cows. I bring this topic up because today is the second day of “National School Lunch Week.” In our education adventures around the state, some of us at the Commission have ventured into many lunch rooms to find more choices presented for the kids. Lucky them!
But we all know that kids don’t make the right choices. I am going to toss a list of ideas to get more heart healthy whole grains in a child’s breakfast, in turn helping them learn better eating habits when in the school cafeteria.
* whole- grain toast with peanut butter, a sliced apple and low-fat milk
*whole-grain toaster waffles, topped with low-fat butter and sugar free preserves, and cup of low-fat yogurt
*melted low-fat cheddar cheese on a whole-grain English muffin, fresh fruit cup in their own juices (no sugar added) and low-fat milk.
These are just a few easy and fast ways to jump start a kid’s brain and keep them fueled until they hit the lunch line.
We at the Commission love a whole grain cookie product created by an Oklahoma wheat farmer and his family in Hunter. The Buss family is trying to bring these more wholesome cookies to school cafeterias across the state and into Kansas. If a child is faced with a desert option, I would like to think that a whole grain one that tastes AMAZING would be a better choice. We have baked these at various trade shows and the results are great- all the cookies get eaten! Please check them out at http://www.upperredfork.com/
The Department of Ag has a great program called the Farm to School program. If you are in a place to help your school offer more local, fresh products, please contact Kris Kirby at chris.kirby@oda.state.ok.us or visit the official Web site… www.okfarmtoschool.com.
Help us help your kids! Celebrate National School Lunch Week by making contact with the resources listed to find a way to get them into your kids school. Grab some of our breakfast options, too!
Happy Whole Grain Eating!
International Update from OWGA’s Tim Bartram
Straight from the horses mouth…
We started the morning meeting with the embassy personal from ag, commerce and commercial sections. From there we met with the Director of the Columbian Millers Association and some of his board members. They talked about the wheat they purchased and how it performed. A lot of the time was about the need to ratify the Free Trade Agreement and how much market share the US would lose. From there we talked to representatives of ADM, they had the same message on the free trade agreement. After that we talked to the head of a buying group made up of several small and medium sized mills again the message was the same on the free trade agreement. We then went and toured a flour mill and pasta plant. It was as nice and modern as any in the US. They strange thing was they were making their lower cost noodles out of hard red winter not durum wheat. When then met the gentleman from the buying group and he took us to his father- in laws ranch were they raise fighting bulls. There were pictures of bulls from the late 1800’s there.
