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Kansas Wheat Harvest Update – 1

Editor’s Note: Each year the Kansas City Board of Trade (now part of the CME Group), the Kansas Grain & Feed Association, the Kansas Wheat Commission and Kansas Association of Wheat Growers provide updates of the Kansas wheat harvest. Today’s update is the first report of the 2019 harvest.


This is day 1 of the Kansas Wheat Harvest Reports, brought to you by the Kansas Wheat Commission, Kansas Association of Wheat Growers and the Kansas Grain and Feed Association.

Harvest got off to a slow, labored start in south central Kansas over the weekend. The normal excitement and anticipation for wheat harvest can hardly be found in the area, as farmers who are normally finished by late June hop into their combines to face the muddy, dreary conditions for the first time this year. Farmers, who are not typically folks who complain about rain, need some hot, dry weather to really get combines rolling.

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Edit FDA Regulation for Genes

By Chris Clayton
DTN Ag Policy Editor

OMAHA (DTN) — Arguing against regulations classifying livestock as drugs, the National Pork Producers Council wants the Food and Drug Administration to yield regulatory oversight to USDA for gene-edited animals raised for food.

Agriculture Secretary Sonny Perdue also told farmers over the weekend he would lobby President Donald Trump to make that happen.

On a call with reporters Tuesday, leaders with the National Pork Producers Council (NPPC) explained that gene-editing technology could create opportunities to make pigs resistant to diseases such as porcine reproductive and respiratory syndrome (PRRS).

Experts reiterated gene editing is a targeted process that doesn’t necessarily lead to inserting a new gene. Often the focus is to eliminate a gene that is tied to disease susceptibility. Such technology in breeding could lead to reduced antibiotic use by the livestock industry.

“As a veterinarian, that’s what excites me most about this technology is it offers a powerful new tool to combat, particularly diseases of livestock that are caused by viruses,” said Dan Kovich, deputy director of science and technology for NPPC.

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Floods Hit Southern Plains Cattle

By Loren Lindler
DTN News Intern

OMAHA (DTN) — When recent flooding hit Catoosa, Oklahoma, a group of cowboy buddies joined together to help the people of their small town, especially farmers, any way that they could.

Since March, heavy rains and flooding have hit a number of states, including: Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Nebraska, North Carolina, Ohio, Oklahoma and Wisconsin.

Northeast Oklahoma was one area hit hard this spring by what meteorologists called 500-year floods. Heavy rains during the end of May caused the Arkansas River to overflow and flood several small towns, including Catoosa, Oklahoma.

When heavy rains rushed in overnight at one point, causing the Arkansas River to flood, the streets of Catoosa turned into rivers. Soon after the flooding began, Catoosa resident Cory Conley realized he fared much better than others in his small town. After checking that his 50-head herd was accounted for and safe on a hill in his pasture, he shared a post on Facebook on May 26 offering help to those around him.

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Many Wet-Condition Crop Concerns Ahead

By Bryce Anderson
DTN Senior Ag Meteorologist

OMAHA (DTN) — Scientists with the National Oceanic and Atmospheric Administration (NOAA) and the USDA Midwest Climate Hub are worried about how summer 2019 conditions will treat crops that are already behind the development time curve because of wet and cool weather.

In the NOAA North Central climate region, the month of May “was one for the record books,” according to Montana State Climatologist Kelsey Jencso, during a conference call. He noted that March through May average temperatures in the region that extends from the Rocky Mountains in the west to the Allegheny Plateau in the east were mainly below- to much-below average. Accompanying that cool spring pattern, precipitation was “mainly much above average,” except for the state of North Dakota, which had a drier month.

Looking ahead to July, Jencso highlighted the June NOAA Climate Prediction Center’s forecast for central U.S. temperatures to have an elevated prospect of being below normal, while precipitation chances are elevated for above-normal amounts.

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Corn Export Sales Bearish

By Todd Hultman
DTN Lead Analyst

OMAHA (DTN) — For the week ended June 13, 2019, USDA reported an increase of 1.5 million bushels (38,400 mt) of corn export sales for 2018-19 and an increase of 14.2 mb (360,800 mt) for 2019-20. Last week’s export shipments of 25.2 mb were below the 38.4 mb needed each week to achieve USDA’s export estimate of 2.200 bb in 2018-19. Corn export commitments now total 1.907 bb in 2018-19 and are down 14% from a year ago. Thursday’s report was bearish for corn in 2018-19.

For the week ended June 13, 2019, USDA reported an increase of 21.0 million bushels (571,500 mt) of soybean export sales for 2018-19 and an increase of 7.3 mb (200,000 mt) for 2019-20. Last week’s export shipments of 27.1 mb were below the 30.5 mb needed each week to achieve USDA’s export estimate of 1.700 bb in 2018-19. Soybean export commitments now total 1.746 bb in 2018-19 and are down 16% from a year ago.

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USDA Moves PP Haying Date

By Chris Clayton
DTN Ag Policy Editor

OMAHA (DTN) — Farmers who plant cover crops on prevented planting acres will be able to hay or graze that ground starting Sept. 1 without facing a penalty on their crop insurance indemnity.

USDA’s Risk Management Agency on Thursday announced it changed the haying and grazing restrictions on prevented planting acres. The change allows farmers who plant cover crops on prevented planting acres to hay, graze or chop those fields on Sept. 1, rather than the traditional restriction date of Nov. 1.

Haying or grazing on or after Sept. 1 will not affect a farmer’s eligibility for the full 2019 prevented planting indemnity, RMA stated.

“We recognize farmers were greatly impacted by some of the unprecedented flooding and excessive rain this spring, and we made this one-year adjustment to help farmers with the tough decisions they are facing this year,” said Bill Northey, USDA’s undersecretary for Farm Production and Conservation.

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Soybean Seed Leftovers

By Emily Unglesbee
DTN Staff Reporter

ROCKVILLE, Md. (DTN) — As bad weather continues to delay soybean planting in some parts of the country, some growers could be left with unused bags or bins of treated soybean seed — and few good options for dealing with them.

“Growers need to know that if they order treated soybean seeds, those seeds are theirs,” explained Kris Ehler, a sales agronomist with Ehler Bros., a family seed and crop consulting company in Illinois. “Even if they don’t put them in the ground, they still own them.”

While most seed companies will readily reclaim unused treated corn seed, they are less likely to allow growers to return treated beans. “Corn can last two to three years in storage and still maintain its germination rate,” Ehler explained. But, thanks to their oil content, soybeans are less stable in storage.

“Soybeans will degrade much more rapidly, and it’s hard to store them for even just a year and have confidence that you will get good germination,” Ehler said.

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Sens Press for Trade Action

By Chris Clayton
DTN Ag Policy Editor

OMAHA (DTN) — U.S. Trade Representative Robert Lighthizer told senators Tuesday it will take more time working with House Speaker Nancy Pelosi before the Trump administration can submit the U.S. Mexico Canada Agreement to Congress for ratification.

Lighthizer testified Tuesday to the Senate Finance Committee. Acknowledging the House needs to take leadership in ratifying the USMCA, Lighthizer said he has worked extensively with Pelosi, D-Calif., to address concerns over environmental and labor standards, as well as enforcement of the new trade deal. Pelosi “has been completely fair and above board,” Lighthizer said.

“I think we’re making progress in that and my hope is over the next couple of weeks we will make substantial progress,” Lighthizer added.

On other topics, Lighthizer said he’s unsure if tariffs will lead to Chinese trade reforms, but dialogue alone did not prove successful. The ambassador also acknowledged U.S. agriculture is losing market share in Japan because of other trade agreements, but trade talks with Japan are making progress.

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Dairy Program Signup Begins

By Jerry Hagstrom
DTN Political Correspondent
and
Chris Clayton
DTN Ag Policy Editor

WASHINGTON, D.C. (DTN) — The National Milk Producers Federation expects a high rate of participation in the new Dairy Margin Coverage program (DMC) as farmer signup begins Monday.

National Milk President and CEO Jim Mulhern is urging the farmers to sign up amidst industry challenges.

“We are very pleased with the dairy title” in the 2018 farm bill, Mulhern said.

“The DMC provides a stronger safety net for America’s dairy producers, one sorely needed as low prices, trade disturbances and chaotic weather patterns combine to create hardships. We have advocated for months that margin calculations must consider the higher feed costs dairy producers pay to properly nourish their livestock. USDA’s decision to include premium and supreme quality alfalfa feed is appropriate and is another win for dairy farmers that will provide additional, crucial aid.”

Agriculture Secretary Sonny Perdue formally announced in a news release Friday that farmers can begin signing up for the DMC at their county Farm Service Agency offices on Monday, June 17.

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Grain Inspections Mixed

OMAHA (DTN) — Corn and soybean inspections were neutral to bearish while wheat inspections were neutral in the latest USDA export inspections report, according to DTN Lead Analyst Todd Hultman.

Corn inspections totaled 25.7 million bushels for the week ended Thursday, June 13, below the 40.7 mb needed each week to reach USDA’s export estimate of 2.200 bb. Inspections for 2018-19 now total 1.608 billion bushels, down 4% from the previous year. The overall pace of corn inspections is neutral to bearish in 2018-19, Hultman said.

Soybean inspections totaled 24.8 mb for the week ended Thursday, June 13, below the 30.5 mb needed weekly to reach USDA’s export estimate of 1.700 bb. Inspections for 2018-19 now total 1.31 bb, down 26% from the previous year. The overall pace of soybean inspections is neutral to bearish in 2018-19, Hultman said.

Wheat inspections totaled 13.8 mb for the week ended Thursday, June 13, below the 17.4 mb needed weekly to reach USDA’s export estimate of 900 mb.

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Cover Crop Seed Crunch

By Matt Wilde
DTN Progressive Farmer Crops Technology Editor

WEST UNION, Iowa (DTN) — Cover crop seed will be in short supply this year. Farmers and landowners need to get orders in early, according to dealers and veteran cover croppers.

Demand for cereal rye, chickpeas, tillage radishes and other cover crop seed was already strong as more farmers adopt the conservation practice. The latest Census of Agriculture indicates nearly 15.4 million acres of cover crops were sown in 2017, an increase of 50% from the last census in 2012.

Persistent wet conditions throughout the Midwest could prevent a record amount of corn and soybean acres from being planted this year, up to 15 million acres by some estimates. Cover crop experts urge landowners and farmers to seed unplanted acres with some type of plants to keep weeds at bay and maintain soil health.

Potential seed shortages were discussed during a cover crop and interseeding field day June 13 at FloLo Farms, owned by Loran and Brenda Steinlage of Grundy Center, Iowa.

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Crop Tech Corner

By Loren Lindler
DTN News Intern

OMAHA (DTN) — This twice-monthly column condenses the latest news in the field of crop technology, research and products.

UNEVEN EFFECTS OF CLIMATE CHANGE ON FOOD PRODUCTION

Researchers from the University of Minnesota, with help from researchers at the Universities of Oxford and Copenhagen, have seen firsthand some of the effects of climate change on global food production. They released a study showing climate change is already affecting production in the world’s top 10 crops and energy sources, although the effects are geographically uneven.

In the study led by University of Minnesota scientist Deepak Ray, researchers determined barley, cassava, maize, oil palm, rapeseed, rice, sorghum, soybean, sugarcane and wheat are in for a wild ride for years to come as the climate continues to change. With the uneven effects of these changes, some regions are coming out on top while others are faring much worse.

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Cash Corn Market Rallies

By Katie Dehlinger
DTN Farm Business Editor

MOUNT JULIET, Tenn. (DTN) — The DTN National Corn Index settled at $4.20 on Thursday, the highest level in five years.

The index, which DTN assembles from more than 3,000 cash corn bids from across the country, has increased 89 cents from the low it hit in mid-May. While the market has seen declines of that size in recent years, it outpaces the rallies from harvest lows seen last year and in 2016-17.

“The main thing about this rally is that there is still serious reason to possibly expect higher prices because the situation is for real,” DTN Lead Analyst Todd Hultman said.

U.S. farmers are likely to claim a record number of prevented planting corn acres as the soggiest spring in decades kept them from the fields. Much of what did get planted was planted late, which will likely also reduce yields.

“Ending stocks at the end of the year could be significantly lower than even USDA estimated on Tuesday (June 11).

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Pests of the Week

By Emily Unglesbee
DTN Staff Reporter

ROCKVILLE, Md. (DTN) — Turns out there are a few creatures out there that are enjoying the wet mess of the 2019 planting season.

Some early season caterpillars and slugs are out and feasting on small, late-planted corn and soybean fields.

These fields are especially vulnerable to damage from insects this year, cautioned University of Illinois Extension entomologist Nick Seiter.

“In general, the later the planting, the younger the plant is when they feed on it,” Seiter explained. “And younger plants are less able to overcome that stress.”

To add to the problem, many growers missed spring herbicide applications, which allowed some fields to get “pretty hairy” and host a lot of insects, Seiter noted. “A lot of weeds in a field allows caterpillar pests to complete their early development and then, once the weeds are burned down, they need to find something to eat.”

Here are this week’s top culprits to watch for:

BLACK CUTWORM

Cutworms are active in much of the Midwest now, and they do their worst damage in young cornfields that haven’t yet reached the V5 or V6 growth stage.

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Illinois Dicamba Rule Change

By Emily Unglesbee
DTN Staff Reporter

ROCKVILLE, Md. (DTN) — The Illinois Department of Agriculture (IDOA) has agreed to move its cutoff date for over-the-top dicamba applications from June 30 to July 15 — but only for June-planted soybean fields.

“Anyone who planted before June 1 will remain subject to the original planting date plus 45 days after dicamba application, while anyone who planted after the June 1 deadline will be required to adhere to the extended July 15 cutoff date,” the agency said in a news release.

The decision is in response to the unusually late planting season that Illinois and much of the Midwest has experienced, said IDOA Director John Sullivan.

“We are in an extraordinary planting situation right now with extreme wet weather conditions,” Sullivan told DTN. “So over the course of the last 30 days, we have heard from a number of individuals — farmers, seed companies, ag retailers and others — that are very concerned that because of late planting, farmers would not have the ability to use effective weed-control products on dicamba-tolerant beans and — from a retailer standpoint — that there is product that they had planned on selling that wasn’t going to be sold.”

All the other restrictions the IDOA originally issued in February via a Section 24(c) Special Local Needs label remain in effect, Sullivan stressed.

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US Propane Stocks Rise

HOUSTON (DTN) — The Energy Information Administration on Wednesday reported U.S. inventories of propane/propylene increased about 2.9 million barrels (bbl) in the week ended June 7 to 71.1 million bbl, with stocks up more than 3 million bbl in Midwest PADD 2 while stocks in Gulf Coast PADD 3 declined.

At 71.1 million bbl on June 7, domestic propane/propylene inventories were up 20.3 million bbl or 39.9% from the same time in 2018 and about 15% above the five-year average for the same time of year, EIA data shows.

Gulf Coast PADD 3 propane/propylene inventories dropped about 700,000 bbl during the week profiled to 47.1 million bbl while Midwest PADD 2 stocks jumped 3.1 million bbl to 18 million bbl, EIA data shows.

Versus the same time in 2018, Gulf Coast PADD 3 propane/propylene supplies are up 18.7 million bbl or 65.8% and Midwest PADD 2 stocks up 1.5 million bbl or 9.1%.

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Petroleum Interests Sue EPA on E15 Rule

By Todd Neeley
DTN Staff Reporter

OMAHA (DTN) — The American Fuels and Petrochemical Association has filed a legal challenge against the new E15 rule finalized on May 31, filing a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit on Monday.

In the weeks leading up to the final rule that allows year-round E15 sales across the country, petroleum interests indicated they would file a legal challenge.

In a news release on Monday, the Renewable Fuels Association said it will file a motion to intervene in the case on the EPA’s behalf.

“It was entirely predictable that Big Oil would challenge President (Donald) Trump’s effort to provide increased competition, consumer choice at the pump, and lower gasoline prices for a higher-octane fuel,” RFA President and CEO Geoff Cooper said in a statement.

“But EPA’s legal analysis is sound and is overwhelmingly supported by the public record and a plain reading of the statute.

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2019 World Food Prize Laureate

By Jerry Hagstrom
DTN Political Correspondent

WASHINGTON (DTN) — World Food Prize Foundation President Kenneth Quinn announced Monday, in a ceremony at the State Department, that Simon Groot, a Dutch vegetable breeder who developed seeds that have benefited farmers and consumers in Southeast Asia, has been chosen as the 2019 World Food Prize laureate.

Groot will accept the $250,000 prize on Oct. 17 at the Capitol in Des Moines, Iowa, where the World Food Prize is headquartered during the weeklong Borlaug Dialogue — named for Norman Borlaug, the developer of the wheat that led to the Green Revolution and the founder of the prize.

Quinn introduced the event’s host, Secretary of State Mike Pompeo, a former Republican Kansas House member, as “the man who has returned the swagger to the State Department.”

In short remarks, Pompeo said it is hard to predict world events and therefore the world must rely on innovation to solve problems.

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USDA Tempers Aid Expectations

By Chris Clayton
DTN Ag Policy Editor

OMAHA (DTN) — Farmers who are not able to plant a crop this spring will not get a trade-aid payment and should not expect higher payment levels than normal under prevented-planting insurance, according to a USDA question-and-answer released late Monday on Market Facilitation Program payments and the new disaster aid.

USDA issued a statement from Agriculture Secretary Sonny Perdue on trade aid and disaster relief, along with some Q&As where the department sought to spell out some clarity.

On MFP payments, Perdue stressed, “USDA does not have the legal authority to make MFP payments to producers for acreage that is not planted. To qualify for a 2019 MFP payment, you must have planted a 2019 MFP-eligible crop. Producers unable to plant their crop should work with their crop insurance agent to file a claim.”

Farmers who file a prevented-planting claim and plant a cover crop, however, could qualify for “minimum” MFP payment, USDA stated.

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Managing Cows with Lost Calves

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) — Anyone who has ever owned a cow-calf herd has faced the tough decision on what to do with cows that have lost calves.

Do you keep the cows and rebreed them? Or do you sell the cows, either immediately or put some weight on the cows and sell as a cull cow later?

Because of the extreme weather in some locations this spring, many cow-calf producers are now in this particular situation. For some, age is the biggest factor, while for others, feed prices and/or cattle prices might factor in the decision.

Depending on their philosophy, different producers consider other options on what to do with cows that lost calves.

SEVERAL OPTIONS

University of Nebraska-Lincoln (UNL) Extension Beef Educator Aaron Berger, located in Kimball, Nebraska, recently co-wrote an article titled “What to do with Cows that have Lost Calves” — you can find the article at: https://beef.unl.edu/….

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