China’s milling sector has become more modern and concentrated in a five-year growth spurt, driven by investment by its biggest players, some of them among the world’s largest processors of wheat. The country is the world’s leading producer and consumer of wheat. It is also the world’s leading wheat miller, with more than 2,000 flour mills, including 300 large-scale modern plants, with a total capacity of 240 million tonnes (wheat equivalent) per year.

The second week of August was a mixed bag for the grains. The week started off with the grains trading mixed with wheat posting solid gains while corn was steady and soybeans lower. Improving weather forecasts and position squaring ahead of Friday’s August Crop Production report were the main drivers. After starting the week higher, wheat faded its gains the rest of the week. Early support came from an escalation in the war between Ukraine and Russia. Corn followed wheat early in the week, but then improving weather conditions and expectations for the negative report on Friday added pressure.

According to the U.S. Department of Agriculture, approximately 31% of U.S. exported wheat is moved by barge to export points in the Gulf of Mexico and the Pacific Northwest (PNW). Barging is an extremely safe, efficient, and competitive mode of transporting grain for export, contributing to our robust grain marketing system. As key gateways for wheat exports, this article will explore recent barge freight trends on the Mississippi River (photo above) and Colombia Snake River System (CSRS), highlighting their effectiveness and providing updates about current issues.

After reaching historic highs in May 2022, U.S. and global wheat prices have since cooled as supply concerns for many key wheat exporters have abated. Wheat export prices for the United States, Russia, and France in July 2023 are all well below the peaks observed in May 2022 as an effect of Russia’s invasion of Ukraine in February 2022. Ample wheat supplies expected in the 2023/24 marketing year (July–June) in the European Union, of which France is a member, and Russia are contributing to low prices for those exporters. Markets recently reacted to the July 17 expiration of the Black Sea Grain Initiative, which had sustained Ukraine’s exports through the Black Sea for nearly a year. Russia’s subsequent attacks on Ukraine’s port infrastructure were further reflected in global wheat prices.

As Russia squeezes Ukraine’s ability to export its huge grain harvests, farmers are counting the cost. Russia last month pulled out of an international agreement that facilitated Ukrainian exports via the Black Sea and has since launched a series of attacks on port facilities in the country. Together, those actions have hindered the exit points for three-quarters of Ukraine’s grain. At the sharp end of these moves are Ukrainian farmers, whose tough lot just got harder. While global grain prices rose sharply when the Black Sea deal collapsed, they fell in Ukraine as the local market was flooded by supplies trapped in the country.

Join NAWG’s advocacy campaign to engage with legislators on increasing Market Access Program (MAP) and Foreign Market Development (FMD) programs authorized in the Farm Bill. MAP’s authorized funding has not changed since 2006 and FMD funding has remained the same since 2002. Inflation and sequestration have significantly eroded our ability to compete with other countries who are steadily investing more in their agricultural export promotion efforts. Please visit NAWG’s website to participate in the grassroots efforts to make your voice heard.

A much-anticipated meeting between Turkish and Russian presidents over the fate of the grain initiative will be held on Sept. 4 in the Russian resort city of Sochi, only days after the two sides’ top diplomats, Hakan Fidan and Sergey Lavrov, had talks on the same issue as well as on other bilateral and regional matters in Moscow The top issue will be the resumption of the grain deal that allowed the export of more than 33 million tons of wheat, corn and other food products from Ukraine to the world markets through Turkish straits. Russia canceled it on July 17 as it could not transport its own products due to the sanctions.