November 1, 2016 - In This Issue:

Knowledge at your Fingertips
FGIS staff at the National Grain Center produced a convenient Quick Facts for Producers information card detailing standards for each grade of corn, wheat, sorghum and soybeans, as well as rules for determining factors such as test weight. The card, seen below, also includes web links and a toll-free hotline number for farmers to contact FGIS and learn more about the official grading and inspection sample.

USDA Weekly Crop Progress Report


Illinois | 91% of corn has been harvested compared to 95% last year  
Indiana | 76 %  of corn has been harvested, which is 13 points lower than last year 
Minnesota | 75 % of corn has been harvested compared to 88% last year 
North Dakota | 52 % of corn has been harvested, compared to 78% last year 
South Dakota | 62 % of corn has been harvested, which is 12 points higher than last year 
Ohio | 65 % of corn has been harvested, compared to 85% last year 

Illinois | 89 % of soybeans are harvested, compared to 95% last year 
Indiana |  83% of soybeans are harvested, which is 12 points lower than last year 
Minnesota | 97 % of soybeans are harvested, which is 3 points lower than last year
North Dakota | 97 % of soybeans are harvested, which is 3 points lower than last year
South Dakota |  95% of soybeans are harvested, compared to 97% last year
Ohio |  88% of soybeans are harvested, which is 7 points lower than last year
Winter Wheat:

Illinois | 85 % of winter wheat has been planted, which 3 points lower than last year
Indiana | 83 % of winter wheat has been planted, compared to 91% last year
South Dakota |  100% of winter wheat has been planted, which 1 point higher than last year
Montana | 91 % of winter wheat has been planted, compared to 98% last year
Ohio | 93 % of winter wheat has been planted, which 1 point lower than last year

U.S. Drought Monitor

The Midwest saw some minor improvements on the map concentrated in eastern Ohio where locally heavy rainfall accumulations (two-to-three inches) led to removal of areas of Abnormally Dry (D0). In Michigan, recent rainfall and improving hydrologic conditions led to removal of two areas of Abnormally dry. Average temperatures were slightly below normal in Northern Minnesota while the res of the region was two-to-eight degrees above normal with the greatest anomalies in Ohio. South Dakota saw some agricultural and wildfire-related impacts. Looking ahead, one-to-two inches of precipitation are forecasted for northern portions of the Midwest. 


Neogen Monday Mycotoxin and Crop Report

Don levels for wheat are as shown above with North Dakota continuing to have a level of >10ppm, and Missouri at >2ppm. 

Don levels for barley are as shown above, with a level of >5ppm in North Dakota.

There are now new reports of Don in Corn as shown here in Michigan with >5 ppm, 
Illinois with >3 ppm, and Indiana with >10 ppm. 


The Cuban Market Potential for U.S. Wheat is Strong

Cubans consume upwards of 500,000 tonnes of flour per year. But Cuba cannot grow wheat, which means a lot of imported wheat. In 2015, the EU exported $170 million worth of wheat and Canada did $67 million worth of wheat. The United States once had a wheat market share of 43 percent in Cuba as recently as 2009, but the country hasn't purchased U.S. wheat since 2011. Because of restrictions under the Trade Sanctions Reform and Export Enhancement Act of 2000, U.S. exporters cannot offer credit. Which is the main reason for Cuba going to France for their wheat today. 

"If the blockade is lifted, we will be able to buy a lot of American wheat. The American wheat is very good. We need it." said Juan Jose Leon Vega, the official ambassador for the Cuban Ministry of Agriculture, International Affairs. 

By 2021, the United States Foreign Ag Service expects that the Cuban middle class will include 80 percent of the country's households, or 2.5 million households, bringing in more than $20,000 per year. And every one of them, it's logical to assume, would be consuming more and more wheat. 


Containerized Grain Update - Spotlight on DDGS

In the past decade, distiller's dried grains with solubles (DDGS) have grown substantially in the U.S. export grain market. As the global middle class grows, demand for higher valued meat products also grows, resulting in greater demand for feed grains to sustain changing food demands. U.S. DDGS exports have grown to fill this demand. Total DDGS exports (including bulk, container, and cross border movements) have grown from 1.2 million metric tons (mmt) in 2006 to a peak of 12.7 mmt in 2015. However, the  growing trend slowed in 2016. Currently, DDGS exports sit 11 percent below the same period last year. 

The main importer of U.S. DDGS is China representing 50 percent of the market followed by Mexico, Vietnam, and South Korea.