WHEAT CROP CONDITION

05.06.2020 

In the EU, dry conditions continue to restrain growth across much of central Europe. 

Rainfall over the next month will be required to sustain yields. 

In the UK, winter wheat is under watch conditions due to persistent dryness this spring. 

In Turkey, winter wheat conditions are favorable. 

In Ukraine, winter wheat is under watch conditions as dryness persists especially in the south where the situation is approaching critical. 

In the Russian Federation, conditions are generally favorable for winter wheat with the exception of the southern regions where drought has caused damage. 

Sowing of spring wheat is ongoing under favorable conditions. 

In Kazakhstan, winter wheat conditions are favorable in the south while sowing of spring wheat gets into full swing in the north under favorable conditions.

 In China, winter wheat is under favorable conditions with an increase in sown area compared to last year. 

Spring wheat sowing is ongoing under favorable conditions. 

In India, the harvest is wrapping up under very good conditions with a bumper crop expected.

 In the US, winter wheat is under generally favorable conditions albeit with some dryness in the western reaches of the Great Plains. 

Spring wheat sowing is progressing under favorable conditions. 

In Canada, conditions are favorable across the country for winter wheat germination and spring wheat sowing. 

In Australia, sowing is beginning across the country under generally favorable conditions except for some dryness in Queensland. 

Producers Countries Policy ( under Covid 19 ) 

? In response to the ongoing COVID-19 crisis, on 6 May Egypt approved a USD 100 million financing agreement with the General Authority for Supply Commodities for the purchase of essential commodities, including 240 000 tonnes of wheat. 

? On 13 May, the government of Kazakhstan announced that the export quotas on wheat and wheat flour might disappear in June with all other restrictions on food exports. In April, the Deputy Agriculture Minister of Kazakhstan had announced an increase in export quotas for May by 25 percent for wheat (to 250 000) and by more than 100 percent for wheat flour (to 150 000)

? On 15 May, Canada invested USD 50 million in a 'Surplus Food Purchase Program' designed to redistribute unsold inventories and surplus commodities to local food organisations. Canada also announced an increase in level of interim payments from 50 percent to 75 percent through the existing AgriStability Program, meaning producers can now apply for an interim benefit to receive 75 percent of their estimated final 2020 benefit before completing the program year.

? Amid the pandemic, China’s National Development and Reform Commission reported on 22 May before Parliament that a response plan would be designed and implemented to ensure food security. The plan would involve stabilizing crop acreage and grain output in 2020; incentivizing major producing regions (grains, edible oils, meat, eggs, fruit, vegetables); increasing the minimum purchase price for rice; improving the management of grain reserves; expanding silo capacity; helping pig herds to rebuild after being decimated by African Swine Fever; and diversify imports of major agricultural products, particularly seeds, soybeans, meats as well as agricultural inputs (seeds, fertilizer, pesticides, machinery).

? On 14 May, India announced that it will spend INR 35 billion (USD 463.06 million) to provide free food grain rations to nearly 80 million migrant workers over the next two months. The measure is aimed to support workers affected by the COVID-19 induced lockdown.

? On 15 May, the Finance Ministry in India announced an INR 1 trillion (USD 13.23 billion) package for agriculture and associated sectors aimed at strengthening infrastructure, logistics and capacity building at farm gate. An INR 100 billion (USD 1.32 billion) scheme was outlined to assist 200 000 micro-food enterprises to upgrade food standards, brand building and marketing. 

? On 18 May, Saudi Arabia's Agricultural Development Fund has approved loans worth more than SAR 333 million (USD 88.6 million) to finance 12 new projects. Included are projects focused on the imports of rice, yellow corn and soybeans from abroad. These projects come within a package of urgent financial initiatives and measures being launched by the Kingdom to support the private sector and contribute to reducing the economic impact of the COVID-19 pandemic. 

? On 19 May, the US published details of the Coronavirus Food Assistance Program (CFAP, involving USD 16 billion of direct payments). The non-specialty crops eligible for CFAP payments are malting barley, canola, maize, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat. Based on 50 percent of 2019 total production or the inventory held on 15 January 2020, whichever is the lowest, producers will receive a specific commodity's applicable payment rate per unit. (e.g., USD 0.45 per bushel for soybeans). 

? Drought has led to extremely low water levels in the Argentinian rivers, notably on the Parana river, a key transportation route for grains and oilseeds. At its Rosario port, the water level hit a 50-year low of 0.4 meters in April, whereas it is usually 4 meters at that time of year. The low water level resulted in some under loading of vessels to limit the quantity on board .