Crop storage has been a problem in India for some time, and this year its hitting hard, as wheat that could have fed up to 210 million people annually is beginning to rot because of lack of warehouses to put it in.
According to estimates by the Indian government, about 17.8 million metric tons of wheat is at risk, where it is stored outdoors under tarps, while the monsoon season begins to hit.
Unfortunately, the price of food and inflation has risen in the double digits for months, and to export the wheat to generate income which could be used in helpful ways, could result in large protests, and possibly riots.
So the grain continues to mount up rather than be used for some good. The only ones being helped by it at this time is the dogs ... literally.
The other hard place the government finds itself in is it is unable to buy wheat because it would increase the growing deficit in the country, as it would have to do it at subsidized prices.
But Biraj Patnaik, a key adviser to the Supreme Court of India, said, "The government is acting like the biggest hoarder. It's unconscionable and unacceptable."
"You're going to end up losing as much money on food grains that go bad than the subsidies would incur if they distributed it to the poor," he added. "It's completely irrational and illogical not to distribute it right away.
A growing number of people are pushing for the privatization of the market in order to increase investment in the sector and drive down prices, and create a better storage and supply channel.
Saturday, August 7, 2010
Friday, July 23, 2010
Wheat Futures: Which Direction?
Wheat futures have been riding high over the last four weeks, but that seems about to end, even though weather conditions in Canada and Russia continue to cause problems for the grain.
The challenge for wheat, as it has been for years, is the increasing amount of acreage around the world being dedicated to growing the grain.
With that in mind, the inevitable bad weather in various parts of the world, while having a temporary impact on wheat futures' prices, overall level off and bring them back down to where they belong.
Until there is a move toward planting less wheat, which is unlikely any time soon, this will remain the way things are.
Heading into August, wheat futures will drop down to about $5 a bushel, or even lower.
The challenge for wheat, as it has been for years, is the increasing amount of acreage around the world being dedicated to growing the grain.
With that in mind, the inevitable bad weather in various parts of the world, while having a temporary impact on wheat futures' prices, overall level off and bring them back down to where they belong.
Until there is a move toward planting less wheat, which is unlikely any time soon, this will remain the way things are.
Heading into August, wheat futures will drop down to about $5 a bushel, or even lower.
Saturday, July 3, 2010
Toxins Cutting into Wheat Income in Ohio
Higher than normal level of toxins are slashing the income of some farmers in Ohio.
According to representatives of the Ohio State University Extension Service, vomitoxin levels are the worst in seven to ten years in some areas of the state, especially areas where it's cooler and wet.
A wet May in particular produced conditions for the fungus to thrive.
The high levels of toxins limit the use of wheat for people, and also in livestock, especially pigs, which could cause a lot of problems in them.
According to representatives of the Ohio State University Extension Service, vomitoxin levels are the worst in seven to ten years in some areas of the state, especially areas where it's cooler and wet.
A wet May in particular produced conditions for the fungus to thrive.
The high levels of toxins limit the use of wheat for people, and also in livestock, especially pigs, which could cause a lot of problems in them.
Friday, July 2, 2010
Wheat Prices Could Keep Declining, Says Commonwealth Bank of Australia
After the largest gain in over four months, wheat futures in Chicago fell again, and according to the Commonwealth Bank of Australia, wheat prices could continue falling.
“The global economic recovery is looking increasingly unstable,” Commonwealth Bank of Australia said in a note to clients today. “U.S. harvest pressure also remains a risk” and wheat prices could keep declining.
Wheat farmers in the U.S. planted about 13.907 million acres of spring wheat, an increase of 4.8 percent from 2009, according to the U.S. Department of Agriculture.
Including all wheat varieties, total bushels of wheat inventory as of June first stood at 973 million as of June 1. That's up from 657 million last year.
We've been wondering out loud at Wheat Wise for some time why farmers continue to do this. Why continue to plant wheat under these conditions? Why not change to crops with better potential returns and margins? How hard is that to understand?
Wheat farmers must understand that an enormous amount of wheat is being planted in countries that did very little wheat sowing in the past, and add to that the increased amount in the U.S. and there's not going to be a good price any time in the near future.
“The global economic recovery is looking increasingly unstable,” Commonwealth Bank of Australia said in a note to clients today. “U.S. harvest pressure also remains a risk” and wheat prices could keep declining.
Wheat farmers in the U.S. planted about 13.907 million acres of spring wheat, an increase of 4.8 percent from 2009, according to the U.S. Department of Agriculture.
Including all wheat varieties, total bushels of wheat inventory as of June first stood at 973 million as of June 1. That's up from 657 million last year.
We've been wondering out loud at Wheat Wise for some time why farmers continue to do this. Why continue to plant wheat under these conditions? Why not change to crops with better potential returns and margins? How hard is that to understand?
Wheat farmers must understand that an enormous amount of wheat is being planted in countries that did very little wheat sowing in the past, and add to that the increased amount in the U.S. and there's not going to be a good price any time in the near future.
Thursday, July 1, 2010
South Dakota Winter, Spring Wheat Plantings Down
Winter wheat acreage planted in fall 2009 in South Dakota was down 26 percent from the year before, coming to a total of 1.25 million acres, a major decline from the 1.70 million acres in 2008.
Of those acres expected to be for harvest, as of conditions on June 1, 1.18 million should be harvested, a decrease of 350,000 last year. That's 23 percent down from the 1.53 million harvested the year before.
Spring wheat plants came in at 1.4 million acres, dropping 7 percent, or 100,000 acres from 2009. Of those, 1.37 million acres were meant for harvest, also down 7 percent.
Plantings of durum wheat stood at 10,000 acres, and increase of 1,000 over last year, with about 9,000 acres of that to be harvested for grain this year.
Of those acres expected to be for harvest, as of conditions on June 1, 1.18 million should be harvested, a decrease of 350,000 last year. That's 23 percent down from the 1.53 million harvested the year before.
Spring wheat plants came in at 1.4 million acres, dropping 7 percent, or 100,000 acres from 2009. Of those, 1.37 million acres were meant for harvest, also down 7 percent.
Plantings of durum wheat stood at 10,000 acres, and increase of 1,000 over last year, with about 9,000 acres of that to be harvested for grain this year.
Friday, June 11, 2010
Kansas Wheat Harvest Slows on Rain
Rain in Kansas has slowed down the wheat harvest, as just after it got started things had to be temporarily shut down.
Estimates are farmers will have to wait until the weekend before resuming harvest, which was very spotty across the state.
The largest amount of wheat harvest I heard of was in the Kiowa area, which was able to complete 232,000 bushels last weekend before the rains came.
About 12,000 bushels were completed near Arkansas City before several inches of rain shut that down as well.
Estimates are farmers will have to wait until the weekend before resuming harvest, which was very spotty across the state.
The largest amount of wheat harvest I heard of was in the Kiowa area, which was able to complete 232,000 bushels last weekend before the rains came.
About 12,000 bushels were completed near Arkansas City before several inches of rain shut that down as well.
USDA Confirms Too Much Wheat
The wheat ending stocks are projected to be at 991 million bushels, according to the latest USDA figures, down a little from May, but irrelevant because of the enormous supply.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Tuesday, June 8, 2010
Wheat Woes Continue, Plunge to Three-Year Low
Good weather has resulted in a strong wheat crop, and consequently wheat futures plunged to a 3-year low as harvest in the southern U.S. Great Plains States begins.
Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.
Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.
With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.
Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.
Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.
With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.
Saturday, May 8, 2010
Winter Wheat Production Down 3.7 Percent
With farmers planting 13 percent less acreage of wheat this year, the winter wheat production is projected to fall 3.7 percent, according to Informa Economics.
This year will bring in approximately 1.466 billion bushels of wheat, in comparison to the 1.523 billion bushels last year.
Yields should rise to about 46 bushels an acre from the 44.2 bushels an acres produced in 2009.
Harvests are up a little from estimates because of the increased bushels an acre. Spring and winter wheat should drop from 2.216 billion bushels in 2009 to 2.079 billion bushels this year, an increase from the 2.04 billion bushels estimated to come in.
Hard red winter wheat will rise over last year, bringing 964 million bushels, a gain from the 919 million produced last year.
Soft red winter wheat on the other hand will drop significantly from the 404 million bushels last year to 295 million bushels in 2010.
This year will bring in approximately 1.466 billion bushels of wheat, in comparison to the 1.523 billion bushels last year.
Yields should rise to about 46 bushels an acre from the 44.2 bushels an acres produced in 2009.
Harvests are up a little from estimates because of the increased bushels an acre. Spring and winter wheat should drop from 2.216 billion bushels in 2009 to 2.079 billion bushels this year, an increase from the 2.04 billion bushels estimated to come in.
Hard red winter wheat will rise over last year, bringing 964 million bushels, a gain from the 919 million produced last year.
Soft red winter wheat on the other hand will drop significantly from the 404 million bushels last year to 295 million bushels in 2010.
Saturday, April 10, 2010
Spring Wheat Planting Acreage Rises
Spring Wheat Acreage
In somewhat of a surprise, spring wheat acreage will be higher by about 5 percent, although estimates of wheat plantings for the year are that they'll be down by 9 percent, according to the Planting Intentions Report.
Total acreage to be planted includes hard red and white wheat, and will come in at 13.9 million acres.
Although the final numbers aren't in yet, not much is expected to change in any major way.
This is surprising in light of the continuing downward pressure on wheat prices. It seems farmers would wisen up and plant another crop they can actually make money on.
In somewhat of a surprise, spring wheat acreage will be higher by about 5 percent, although estimates of wheat plantings for the year are that they'll be down by 9 percent, according to the Planting Intentions Report.
Total acreage to be planted includes hard red and white wheat, and will come in at 13.9 million acres.
Although the final numbers aren't in yet, not much is expected to change in any major way.
This is surprising in light of the continuing downward pressure on wheat prices. It seems farmers would wisen up and plant another crop they can actually make money on.
Wednesday, March 10, 2010
Wheat Outlook Dismal on Supplies
Wheat Inventory High
Stockpiles of wheat are leaving the industry reeling even more, as the largest inventory in over 20 years is emerging from the heavy wheat harvest.
Projections are there will be close to 1 billion bushels of wheat in the warehouses and bins when the harvest comes in; 20 million bushels beyond the estimates of the USDA.
The already low prices will drop even lower, as farmers continue to plant the grain based on prices from several years ago, rather than prevailing market conditions.
This is expected to finally correct the over-planting of wheat as farmers look to other areas to generate profits, as wheat hasn't been doing it for a few years.
The reasons for wheat being so abundant is lower exports as many countries are planting wheat and getting good results, and American consumers aren't consuming as much, driving domestic demand down. That and just too much wheat being planted is the issue driving the huge wheat inventory.
Wheat Inventory High
Stockpiles of wheat are leaving the industry reeling even more, as the largest inventory in over 20 years is emerging from the heavy wheat harvest.
Projections are there will be close to 1 billion bushels of wheat in the warehouses and bins when the harvest comes in; 20 million bushels beyond the estimates of the USDA.
The already low prices will drop even lower, as farmers continue to plant the grain based on prices from several years ago, rather than prevailing market conditions.
This is expected to finally correct the over-planting of wheat as farmers look to other areas to generate profits, as wheat hasn't been doing it for a few years.
The reasons for wheat being so abundant is lower exports as many countries are planting wheat and getting good results, and American consumers aren't consuming as much, driving domestic demand down. That and just too much wheat being planted is the issue driving the huge wheat inventory.
Wheat Inventory High
Tuesday, March 9, 2010
Contact Page for Wheat Wise
Contact Us
You can contact any of the authors of Wheat Wise at
allenine@comcast.net. Authors can be fowarded your email if you want
to contact one individually.
Ray Esally
Gary Thomas
Tommasino Conito
Allen Nine
Kyle Simon
You can contact any of the authors of Wheat Wise at
allenine@comcast.net. Authors can be fowarded your email if you want
to contact one individually.
Ray Esally
Gary Thomas
Tommasino Conito
Allen Nine
Kyle Simon
Wheat Wise Author Team
Wheat Wise Author Team
Ray Esally
Gary Thomas
Tommasino Conito
Allen Nine
Kyle Simon
Ray Esally
Gary Thomas
Tommasino Conito
Allen Nine
Kyle Simon
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