The drought-hit Panama Canal’s transit limits and high fees are driving bulk grain shippers of US crops from the Gulf Coast to Asia into longer routes with higher freight costs to avoid being backed up at one of the world’s main maritime trade routes, Reuters reported, citing traders and industry analysts. The higher costs are coming during peak shipping for US corn and soy suppliers. Ships moving crops have faced wait times of up to three weeks to pass through the canal as container vessels and others that sail on more regular schedules are scooping up the few transit slots available.

With winter approaching, it may be hard to watch the weather destroy your winter wheat crop, Being prepared and having a bakup plan may save your sanity. Brutal droughts across the country and difficult winters have led to the widespread failure of wheat acres. Dwindling wheat and forage supplies lead to rising feed prices, posing additional challenges to the industry. In early 2023, more acres were lost than any in recent history. Fortunately, American farmers are resilient, and there are steps producers can take to prepare for the future and minimize the damage of failed wheat acres.

US farmer sentiment in November improved for the second consecutive month as the Purdue/CME Group Ag Economy Barometer climbed 5 points above the prior month to an index value of 115. The primary driver behind the growing optimism was improved farm financial performance expectations among survey respondents, according to the report. The survey was conducted Nov. 13-17.

Argentina is poised to more than double its shipments of wheat to Brazil, displacing competitors including Russia in the key global agriculture market. Shipments of the grain commonly used in Brazilian favorite “French rolls” are likely to average 450,000 metric tons per month in 2024, according to Brazilian trader Serra Morena SA. That would push total annual trade to exceed 5 million tons and put it near historical highs. The outlook compares with about 188,000 tons a month so far this year and annual shipments of roughly 2 million, trade data through October show.

Russia introduced a temporary ban on durum wheat exports until May 31, 2024, with the publication of a government decree on Dec. 11 in an effort to ensure the country’s food security and stabilize prices, Reuters reported. Russia is the world’s largest wheat exporter, but its durum production and supplies are small. Russia’s agriculture ministry proposed the measure in early November. Russia boosted durum wheat exports between July 1 and Nov. 10 to 657,000 tonnes from 52,000 tonnes in the same period of 2022, according to Russian news agency Interfax. The wheat was shipped to Italy, Turkey and Tunisia

A coalition of agricultural organizations is raising concerns about the potential negative impact to US farmers of removing China’s Permanent Normal Trade Relations (PNTR) status, which the US Select Committee on the Chinese Communist Party is considering recommending to Congress. A letter sent to the select committee was led by Farmers for Free Trade, which counts many of the nation’s leading agricultural organizations as members. The coalition letter pointed out that in 2022, the United States exported $38.1 billion in food and agricultural products to China, a 22-fold increase since China gained PNTR status in 2000.

The purchase by China of 1.12 million metric tons (MMT) of U.S. soft red winter (SRW) wheat for delivery in 2023/24 between Dec. 4 and 8 is a significant and, in terms of its volume, somewhat unexpected factor in the current market. The buyers clearly took advantage of a price opportunity, yet there are other influencing factors behind this buying surge to consider. China is in a wheat-buying phase driven in part by reported damage to its 2023 crop from rain at harvest. USDA expects China to exceed its WTO-agreed 9.6 MMT tariff rate quota again in 2023/24.