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Seed Plot Tours
It's experimental plot tour season!
Not excited? Getting a peek at how existing and upcoming varieties are faring, seeing new and novel chemical treatments, and comparing notes with other growers doesn't do it for you?
Don't forget you also get to rub shoulders with industry officials like breeders, extension agents, sales representatives, and so on. It's an excellent opportunity to get educated on one of the most critical parts of a farming operation.
The below is a list of dates and information about the tours:
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Monday, June 10th @ 5:00 p.m.- NWGG Walla Walla Plot - Off of Russell Creek Road, 2 miles west of Foster Road (Google Maps Link Here) - Pizza and beverages will be provided.
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Tuesday, June 11th from 7:30 to 2:00 - OSU Pendleton Stations Field Day @ Columbia Basin Ag Research Station (CBARC) - Visit their website here to RSVP and for location details.
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Wednesday, June 12 @ 9:30 a.m. - NWGG Lancaster Plot - Off of Harry Pierce Road, 2 miles West of Tim Blumenshein's shop (Google Maps Link Here) - Lunch will be served after at the St. John Community Center.
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Wednesday, June 12th from 1:00 to 5:00 - WSU Weed Science Field Tour (Pullman) - At the Palouse Conservation Field Station (1 mile West of Highway 27 on the Pullman-Albion Road) - Register on premises - Website Link Here
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Thursday, June 13th @ 7:30 a.m. - UI Weed Science Tour - UI Parker Farm 1025 Plant Science Road in Moscow - Website Link Here
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Friday, June 14th @ 8:00 a.m. - NWGG Dayton Plot - Off of Highway 12 at the Jolly Green Giant viewpoint. Use the West side of the Blue Mountain Station Artisan Store for parking (Google Map Link Here). - Coffee and pastries will be provided.
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WSU Wheat Academy "Road Show"
The WSU Extension Dryland Cropping Systems Team is bringing you the Wheat Academy Road Show this year on June 18th.
The event is a bus tour with stops at multiple crop research trials in Walla Walla and Columbia Counties. Tour stops will include variety trials of canola, winter and spring wheat and barley, winter field peas, and an AgWeatherNet station. Other presentations on weed control and nitrogen management will be given on the bus. Lunch is included and the event is free.
Please pre-register at https://forms.office.com/r/Ub1EvCzJJx; meeting time and place details are included on the registration page.
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Summer Help
Our part-time harvest help slots are filling up quickly!
If you or someone you know is looking for a summer job that pays and isn't afraid to get a little dirty, we suggest you apply soon!
Follow the below link to our website and click on the "2024 Harvest" link
NWGG Harvest Employment
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Marketing Update
Wheat markets have taken us all for a ride on an emotional rollercoaster over the past few years with a low point being reached in March of this year as cash as futures values sunk into the low-to-mid $5 per bushel range, something that would be disappointing in most years, let alone in this period of high interest and inflation.
Things can change in a hurry, though, and if being in the grain industry has taught any of us anything, it's that every day is a new day, filled with new opportunities (and sometimes difficulties). The below graphic is a continuous futures chart follow Soft Red Winter futures over the last few years:
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Why the recent upswing in values?
Russia has emerged as one of the largest wheat producers in the world, and in the last decade have risen to become the largest wheat exporter, heavily servicing the Asian, Middle Eastern, and African buyers who tend to be more price sensitive than they are of quality.
Southern Russia is their winter wheat growing heartland, accounting for 50-60% of their winter production, and also the area that shares a large border with Ukraine. The Southern Russian farmers had decent planting conditions in the fall and a relatively open winter with no real temperature swings to contend with, but they weren't getting the snow/rain totals they're accustomed to.
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As the spring emergence came about, the rains were still lacking with only small amounts falling infrequently in places that needed it badly. To add to the misery, two frost events came around in mid-May, which might have dinged crops in parts of the fringe Northern areas (think just above and left of the box).
As a result of the drought and frost, both independent analyst groups and the USDA have lowered the Russian wheat production prospects from 90+ million metric tons (MMT) to now somewhere between 80-88MMT.
There is some relief on the horizon for Southern Russia, but if it doesn't come quickly and, in the volumes needed, it could be too late to help.
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What else is going on?
- The US Southern Plains (KS/OK/TX/CO) has seen a resurgence in wheat conditions after suffering through 5-years of drought. The exception being SW KS, which is dragging the rest of the area down, but the majority of the US HRW crop appears to be in decent-or-better shape as harvest creeps Northward through TX.
- US Soft Red Winter (SRW) is predominantly grown in Illinois, Indiana and their neighboring states. Markets had mixed messages about acres sown this fall, and conditions were almost perfect for planting and their winter dormancy period. It's been an incredibly wet spring for those wheat growers, and their crop conditions have suffered as such, but the bushel output looks to be tremendous and of mixed quality.
- A large band stretching from Alberta to Manitoba and South into Montana and North Dakota had a dry, poor fall and winter with parts of Canada even starting their forest fire season several months early because of drought. Rains finally came (in late April and into May), likely saving the MT winter crops and have buoyed the prospects for the spring crops in all of the listed states. An average-or-better wheat and canola crop from Canada and MT/ND can be problematic for PNW wheat exports.
- US corn and soybean planting took place with the usual drama: "Will they be able to plant it all in time? Is it too wet/dry? What will the farmer do?" The same heavy rains that drenched SRW areas also thoroughly wetted Iowa and its surroundings, causing some difficulties at planting time, however, the American row crop farmer has been sowing at average-or-better rates and planting is nearly finished and on-time with crop conditions in excellent shape.
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- French, German, and Spanish farmers have been inundated since last fall, causing many acres to go unplanted or fail outright from drowning. They haven't received much reprieve this spring, and until recently have been regularly downgrading their crop quality ratings to suit. There may be a mild shortage of high-quality milling wheat in the bloc and an excess of feed quality for markets to sort through.
- Ukraine's Agriculture Ministry announced they expect a 20% reduction in output this year due to the ongoing war and the fallout from it. A lack of planting seed, fertilizer, labor, and credit is crimping their industry further, and they've also been subject to much of the drought as their Russian neighbors.
- India let the word out earlier this spring that they believe they'll need to import wheat this year after poor monsoon rains this year followed a relatively weak production year last year. They've cozied up closer to Russia on oil purchases in the last 2-years, and many traders think they'll be buying grain from them soon, too.
- The Chinese government has released new mandates and guidance for the adoption and approval of GMO planting seeds in their country. After decades of demonizing the technology, their populace isn't overly thrilled, but the mid-to-long term prospects of their shift towards less grain imports, along with their greater dependence on Brazilian goods, is a daunting idea for US agriculture to consider.
- Australian farmers are contending with mild dryness (particularly in Western Australia) for their fall planting season; however, some timely rains have come about and have early projections for another average-to-above average crop.
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Marketing Ideas
We think new crop cash wheat sales above $6.50 warrant a close look. For many, the recent rains have improved crop prospects and there are more bushels to market than had been thought earlier this spring. More bushels to market mean less benefit from revenue protection insurance (if you have a policy for that).
It's always prudent to sell multiple times, in small-to-medium allotments in order to "spread your risk out." Keep in mind you likely will never hit the "top of the market" but building an average will insulate you well.
For larger growers, HTAs are a worthy gamble at values near-and-above $7.00 (September or December contracts). If basis levels don't appreciate, or cash markets rally, or some other reason comes about that you don't want to use your HTAs this crop year, try to roll them to next crop year and have a solid start at $7.00+, which is always a keen idea.
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Grain Grading Update (from the CEO, Chris Peha)
The State of Washington recently closed their WSDA grading office in Pasco making us rethink our options for submitting grower samples. NWGG has opted to work with NQI, a U.S. leader in inspection, sampling, and weighing of grain nationwide. NQI has established quality labs and trained inspectors in both their Spokane and Vancouver, WA offices.
Our grower's submitted samples will work the same way as before with professional inspection results and similar turnaround times. NQI was already grading our submitted rail car samples when loading shuttle trains and will now handle all submitted samples for the company.
NQI has a long list of PNW clients including Mid-Columbia Producers, Morrow County Grain Growers, United Grain Company, Tri-Cities Grain, Ritzville Warehouse and Highline Grain Growers.
If you have any questions, please call reach out to one of our grain merchandisers.
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