Wild oats spread treating Canadian crops

Wild oats spread treating Canadian crops

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There are a number of things from the 1970s few people wish to see return and wild oats it’s one of them.

Sixty-nine per cent of wild oats across the Canadian Prairies show herbicide resistance, said University of Saskatchewan plant scientist Eric Johnson.

With 27 per cent resistant to both Groups 1 and 2 herbicides — the products most commonly used to control them.

“From the ’70s up until the mid-’90s, the industry introduced a number of very effective wild oat herbicides,” said Johnson, speaking at the Lethbridge, Alberta-based Farming Smarter conference in December.

Why it matters: Once the oats developed resistance to Groups 1 and 2 herbicides, you are mostly limited to granular, soil-applied, pre-emergent herbicides.

And resistance to those have already been found in all three Prairie provinces.

“The thought was there would be a never-ending pipeline of new herbicides available to growers to control wild oats.

That did nott materialize and we haven’t seen any new modes of action since the mid-’90s or early 2000s.”

Once wild oats develop resistance to Groups 1 and 2 herbicides, growers are mostly limited to granular, soil-applied, pre-emergent herbicides such as Avadex or Fortress (both of which contain the Group 8 active ingredient triallate).

Group 3 herbicides such as Edge are also recommended for suppression of wild oats when applied in fall.

However, resistance in oats is an ever-moving target. Resistance to triallate, for example, has been found in all three Prairie provinces, said Johnson.

In a nod to an earlier era, the Wild Oat Action Committee of the ’70s and ’80s has been rebranded as the Resistant Wild Oat Action Committee (RWOAC).

In partnership with the Canadian Weed Science Society (CWSS.

Its goal is to educate and engage farmers to develop and adopt diverse approaches to managing wild oats.

Source: GrainNews

Bunge launched a partnership program in Brazil

Bunge launched a partnership program in Brazil

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Bunge has developed a Bunge Sustainable Partnership program for soybean sourcing in Brazil that is designed to help the company reach its goal of deforestation-free value chains worldwide by 2025.

The partnership will help grain dealers implement supply chain verification systems, including satellite and farm-scale images. Dealers may adopt independent imaging services or use Bunge’s geospatial monitoring structure at no cost.

“In Brazil, the dealers play a key role because they support more of the small- to medium-sized farmers that wouldn’t be of scale for the larger companies to work with,” said Rob Coviello, chief sustainability officer, and government affairs. “It’s critically important that the industry makes sure (dealers) have the tools in place to monitor deforestation in their supply chains.”

Bunge soybean purchase in Brazil

The partnership will be especially critical in Brazil’s Cerrado region, which is at high risk for deforestation. In the region, 96% of Bunge’s soybean purchases are direct, meaning the company buys directly from farmers. Grain dealers, who buy from farmers and then sell the soybeans to agricultural companies like Bunge, are still vital, Coviello said.

“Some of those smaller farms need services that we can’t provide,” he said. “Some of the dealers provide them with maybe trucking or transportation or some other types of things that we’re not set up to cater to (small farms). Bunge doesn’t think that we should be getting rid of dealers. It takes an industrywide approach to make these changes. For us, we are willing to provide the services to help the dealers implement the type of monitoring programs that they are going to need.”

Bunge already has 100% traceability to the farm for its direct purchases. In the Cerrado region, the company monitors more than 8,000 farms, reaching a total of 11.6 million hectares (28.6 million acres), which is almost the size of Iowa, Coviello said.

Source: World Grain

Ethanol production and corn usage dropped in 2020 US

Ethanol production and corn usage dropped in 2020 US

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Ethanol production in the United States dropped 11.7% in 2020, while corn use for ethanol dropped 10%, as COVID-19 slowed demand for the renewable fuel.

Year-end data from the US Energy Information Administration (EIA) showed US ethanol production fell to 13.93 billion gallons or 11.7%, from 2019. It was the lowest production level since 2013, said the Renewable Fuels Association (RFA).

At the same time, corn usage for this purpose dropped 10% from 2019 to 4.78 billion bushels, the US Department of Agriculture said.

EIA data showed that domestic ethanol consumption was down 13.2% from 2019, and the lowest since 2009. Gasoline consumption in the United States was down 13.5%.

The implied ethanol blend rate rose slightly to a record 10.23%, the RFA said. On a monthly basis, the blend rate slumped to 9.05% in April. However, by November and December, the blend rate rose to record highs of 10.78% and 10.81%, respectively, as petroleum prices rebounded.

“While the COVID pandemic, Saudi-Russia oil price war, and trade disputes presented major marketplace obstacles throughout 2020, the US industry showed its resilience and determination,” said Geoff Cooper, president, and chief executive officer of the RFA. “Despite the drop in annual production and domestic blending, ethanol’s share of the gasoline pool strengthened at the end of the year as RIN prices continued to rebound and the RFS returned to the demand-driving force it was intended to be by Congress. Meanwhile, US exports were relatively buoyant, especially when export barriers and the impact of the pandemic on global fuel consumption are considered.”

The EIA estimated fuel exports at 1.34 billion gallons, a decline of 8.5%. Exports were fairly strong to start the year but then were affected by a combination of trade barriers and pandemic-related declines in fuel consumption in key markets.

Fuente: WorldGrain

Grain traffic improves in the US as temperatures rise up

Grain traffic improves in the US as temperatures rise up

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As thermometers began to elevate late last week across the US Upper Midwest, northern and southern Plains, and most of the Central states, the grain transportation logistics picture improved.

While a mid-February extended cold snap spurred conversations about potential winterkill damage to dormant winter wheat crops, grain market participants focused more on nearby logistical concerns. 

Temperatures hit a record-low -9 degrees in Kansas City on Feb. 16 and thermometers in nearby Lawrence, Kansas, US, fell to -17. Cold weather slowed movements of grain trains, at times to a standstill, due to the effects on locomotive power and rail car air brakes. Snow and ice stymied truck traffic in the Central states and Northeast, but especially in the southern Plains of northern Texas where trucks aren’t typically tuned for ultra-cold weather.

By the weekend of Feb. 19-21, overnight low temperatures had risen steadily into the 20-30 degree range from the Canadian border down to central Texas. At mid-morning Feb. 22, storm activity was limited to snowfall from Washington along the eastern seaboard to western Maine, including most of Pennsylvania and upstate New York.  Moderate to heavy rainfall was lashing the Appalachian states and scattered parts of Florida, Georgia, and the Carolinas.

Grain trains were flowing more regularly again by Feb. 19, brokers and millers said, and supplies were arriving after 24- to 36-hour delays.

“It could have been a lot worse,” a miller said.

As a considerable number of rail cars had earlier been placed at country origins in eastern Colorado and western Kansas, loading for contract applications or spot market offerings were expected to break open early this week.

Meanwhile, Class 1 railroads told market participants to expect extreme congestion and lengthy delay times through Kansas City, Missouri, US; St. Louis, Missouri, US; and Chicago, Illinois, US, gateways.

Source: WorldGraing

The production of flour in the US rose 0.7% in 2020

The production of flour in the US rose 0.7% in 2020

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Wheat flour production by US flour mills in 2020 totaled 425.338 million cwts, up 3.061 million cwts, or 0.7%, from 422.277 million cwts in 2019, according to the National Agricultural Statistics Service (NASS) of the US Department of Agriculture.

Production in 2020, the third-largest yearly total on record, was down 1.533 million cwts, or 0.4%, from the all-time high of 426.871 million in 2018 and 1.061 million, or 0.2%, from 426.399 million in 2017.  Following these top three years all totaling 425 million cwts or more, three other recent years topped 424 million ranging from 424.950 million cwts in 2014 to 424.550 million in 2013. Output in 2015 was 424.9 million.

In the fourth quarter of 2020, flour output totaled 106.987 million cwts, down 1.596 million, or 1.5%, from 108.583 million in the third quarter and down 933,000, or 0.9%, from 107.92 million cwts in October-December 2019.

The 24-hour capacity of US flour mills for the fourth quarter was estimated at 1,580,410 cwts, down 22,100 cwts from 1,602,510 in the third and down 69,340 from 1,649,750 a year ago. The record was 1,674,210 in July-September 2019.

NASS data about US flour mills

Based on the NASS data, mills operated at an average of 86.1% of six-day capacity in 2020, up from 83.2% in the prior year, the lowest for NASS data.  Calculating utilization rates based on fourth-quarter capacity, 2020 grind was 87.4%, up from 83.4% in 2019. In the fourth quarter of 2020, mills operated at 87.9% of capacity, down from 88% in the third quarter but up from 85% a year ago.

Wheat grind in 2020 totaled 918.013 million bushels, up from 912.609 million in 2019. The high was 944.868 million in 2000. Mill feed production in 2020 aggregated 6,539,259 tons, up from 6,485,291 in 2019. The record was 7,374,115 tons in 2000.

NASS statistics have been published for 26 consecutive quarters and six consecutive years (2015-2020). While 2015-2020 data were compiled by NASS, only the third and fourth quarters of 2014 came from NASS. January-June data of that year originated from a North American Millers’ Association (NAMA) panel of the largest US mills and were subsequently interpolated by Milling & Baking News, a sister publication of World Grain, to make the data comparable with earlier statistics compiled by the US Census Bureau.

NASS also estimated 2020 semolina output at a record 33.802 million cwts, up 2.27 million, or 7.2%, from 31.532 million in 2019. It was 31.951 million cwts in 2018 and 31.799 million in 2017. Production was 32.93 million cwts in 2011 as interpolated by Milling & Baking News, but also 32.747 million cwts in 2010 and 32.804 million in 2007 when the Census still issued annual data.

Source: World of Grain

IGC forecasts for grain production in 2020-21

IGC forecasts for grain production in 2020-21

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World total grains (wheat and coarse grains) production is forecast to rise to a record of 2.2 billion tons in the 2020-21 marketing year, according to the latest International Grains Council (IGC) grain market report released on Jan. 14.

The projection includes record harvest totals for wheat (768 million tons) and barley (158 million tons).

However, on a month-on-month basis, the IGC’s most recent projection for 2020-21 is slightly lower than the previous month’s outlook as a large reduction for corn (mainly in the United States, Argentina, and Brazil) is only partially offset by increases for wheat and barley.

Mostly reflecting downgraded expectations for South American crops, the Council’s outlook for global soybean production is cut by 6 million tons, to 359 million tons, still up by 6% year-on-year.

“Although the reduction is partially offset by a higher figure for opening stocks — linked to reluctant sales by Argentine growers — consumption is still trimmed by 4 million tons to 365 million, a 4% year-on-year gain.

IGC forecast for 2020-21

Global rice production in 2020-21 is forecast broadly unchanged from before, at 503 million tons but, due to a lower figure for opening stocks, total supplies are trimmed by 2 million tons’ month-on-month, the IGC said.

It noted that as rice consumption is lifted to a new high, world carryovers are lowered to 175 million tons (up 1 million tons year-on-year), with much of the downward adjustment due to the major exporters, notably India.

The IGC’s outlook for total grains consumption is lowered by 5 million tons, to 2.216 billion tons, with downgrades for feed and industrial uses of corn outweighing small increases for other coarse grains and wheat. Mainly linked to a downward adjustment for corn, the forecast for all-grain stocks at the end of 2020-21 is down by 5 million tons, to 611 million, representing a 6-million-tonne year-on-year contraction.

“Although the COVID pandemic continues to dampen demand in some sectors, particularly for fuel ethanol and brewing, overall consumption is predicted to grow for a fifth successive year,” the IGC said. “This includes gains of 8 million tons for both corn and wheat, and increases of 2 million each for barley, sorghum, and oats.”

With all the components higher, but with the strongest gains for corn and soybeans, the IGC Grains and Oilseeds Index (GOI) rallied by 10% since the November grain market report.

Source: World of Grain.

Railways exceed grain revenue limits for 2019-20

Railways exceed grain revenue limits for 2019-20

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Canada’s big two railways have about two more weeks to hand over about $5.6 million in Prairie grain revenue overages and related penalties for the 2019-20 crop year.

The Canadian Transportation Agency (CTA) on Dec. 22 ruled Canadian National Railway (CN) and Canadian Pacific Railway (CP) each overshot their maximum revenue entitlements (MREs) for the year, by $3,170,615 and $2,170,010 respectively.

The overages, plus respective five percent penalties of $158,531 and $108,501, are payable to the Western Grains Research Foundation (WGRF), the agreed-upon beneficiary, within 30 days of the ruling date, the agency said.

The railways’ allowable MREs for the crop year were $930,331,426 and $997,060,798 respectively.

CN’s qualifying Prairie grain movements in 2019-20 totaled 23,525,161 tons, while CP’s reached 24,498,737. Their average lengths of haul came in at 1,013 and 918 miles respectively, the CTA said.

Combined, their grain handle was up 4.3 percent on the year, while their combined average length of haul, at 965 miles, was down 1.4 percent, the agency said.

About the railways?

The two railways’ annual MREs, commonly described as their revenue caps, are calculated using a formula factoring in their grain handles and the average length of haul along with the volume-related composite price index (VRCPI), an inflation index reflecting the railways’ costs for labor, fuel, materials and capital purchases.

The CTA in May 2019 set the 2019-20 VRCPIs at 1.4371 for CN and 1.5148 for CP, both up from 2018-19. Both railways later sought and got adjustments from the agency, which raised CN’s 2019-20 index to 1.4498 and CP’s to 1.5311.

The 2019-20 crop year marked the second in which CN and CP have separate VRCPIs, following amendments to the Canada Transportation Act in 2018.

The CTA in May 2019 said the increased VRCPIs for 2019-20 were based mainly on “modest increases in the fuel and material components” of the index, and from the “recognition of costs for the acquisition of hopper cars.”

CN and CP in 2018-19 both came in below their MREs, after both booking overages of seven figures above their MREs during each of the previous four crop years.

Source:  Gainews.

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Grain forecast to rise in EU in 2021

Grain forecast to rise in EU in 2021

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In its first forecast for 2021, COCERAL sees the total grain crop in the EU-27+UK at 307.4 million tons, a significant increase over the 295.7 million tons harvested in 2020.

The report released on Dec. 9 projects wheat production (excluding durum) will recover from 127.9 million tons to 143 million tons, driven by higher expected plantings and yields in France, Germany, the UK, and the Balkan countries where adverse weather had affected the last crop.

COCERAL forecasts EU-27+UK 2021 barley production at 61.5 million tons, down from 63.1 million tons last year. While Germany and France are forecast to see much better crops than in 2020, production is seen down in Spain, where weather during the most critical crop development stage has been excellent in 2020, and in the UK, where spring barley planting should decrease substantially as the country has planted more winter grains this year than last year.

The EU-27+UK 2021 corn crop is seen by COCERAL at 63.1 million tons, up from last year’s 62.8-million-tonne crop, with much higher crops in the Balkan countries and small reductions in several other EU member states.

The EU-27+UK rapeseed crop is forecast to recover slightly from 16.9 million tons to 17.8 million tons because of slightly higher crops in several countries, including Germany, France, the UK, Romania, Bulgaria, and Hungary.

Previous grain output forecast for the EU

The grain output was previously forecast to decline by 3% over the previous year due to extremely challenging planting conditions in France and the United Kingdom, according to a May 6 Global Agricultural Information Network report from the US Department of Agriculture (USDA).

The output is expected to reach 304 million tons, down from 315 million in 2019-20, the USDA said.

“If realized, this will be very close to both the five- and 10-year production averages but belies a reduction in the area of around 500,000 hectares and 1 million hectares, respectively, and corresponding increases in average grain yields,” the USDA said.

The projected sharp decline in grain production in the UK and France are due to “a very wet fall and a long, mild and wet winter,” which has disrupted planting and raised disease concerns, the USDA said.

With both France and the UK each projected to see a more than a 5-million-tonne reduction in their 2020-21 wheat crops, EU wheat output is forecast to fall by nearly 11 million tons’ year-on-year to 144 million tons due to a 700,000-hectare decrease in planted area.

The USDA projects EU grain exports to decline 10%, from 43.7 million tons to 39.3 million tons. EU ending stocks also will tumble, according to the USDA, to 25 million tons from 28.8 million tons, a drop of 13% year-on-year.

Source: World of Grain