• The 2018/19 winter wheat is likely to be one of South Africa’s large harvests, thanks to favourable weather conditions and an expansion in area planted. The rainfall and cold temperatures experienced in the past two weeks in the Western Cape province could boost the yields in most regions. The feedback from farmers in most parts of the province has been quite positive in terms of yield expectations. 

  • Nothing can stand in the way of good news, especially if the good news is “food”. I am currently in Somerset West, Western Cape attending an annual conference of the Agricultural Economics Association of South Africa and had planned to write a brief piece about a few aspects I picked up from the research papers presented here today.

  • The wheat import tariff rate of R298.46 per tonne that triggered on 14 August 2018 was finally published in a government gazette on 28 September 2018, making it an official rate. This is a decline from a previous rate of R640.54 per tonne.

  • It is year-end and therefore an appropriate time to reflect on the African continent’s agricultural performance, particularly grains and oilseeds which are staple foods, and key inputs in the animal feed sector. The 2018/19 production season has been confronted by unfavourable weather conditions in the sub-Saharan region which has negatively affected the planting activity and growing conditions of crops and, by extension, the continent expected harvest. The International Grains Council (IGC) forecasts Africa’s 2018/19 grains production at 154 million tonnes, down by a percentage point from the previous season (Figure 1). In this context, grains include maize, barley, wheat, sorghum and oats, while oilseeds refer to soybeans. The continent’s 2018/19 soybean production is estimated at 2.7 million tonnes, unchanged from the previous season. Although the import status differs across countries, the African continent will remain a net-importer of major grains and oilseeds such as wheat, maize, soybeans and rice in 2018/19.

     Africa’s 2018/19 wheat imports are estimated at 49 million tonnes, down by 6% from the previous season owing to anticipation for a slight uptick in production in countries such as Algeria, Morocco and South Africa, albeit the continent’s overall grain production expected to decline. Although volumes differ from the previous season, Algeria, Egypt, Morocco, Tunisia, Kenya, Nigeria, South Africa and Sudan will remain Africa’s leading wheat importers in the 2018/19 season, collectively accounting for 74% of the continent’s wheat imports, according to data from the IGC. Africa is an important player in the global wheat market as it accounts for nearly a third of imports in 2018/19.

    The African continent’s 2018/19 maize imports are estimated at 22 million tonnes, which is slightly above the previous season’s harvest. The North African countries, namely, Algeria, Egypt, Morocco and Tunisia are the key importers, accounting for 82% of the expected imports. Within the sub-Saharan region, the leading maize importers in 2018/19 are Kenya and Zimbabwe. In terms of soybeans, Africa’s soybean imports could amount to 4.6 million tonnes in the 2018/19 season, up by 12% year-on-year. About 78% could be imported by Egypt and the rest spread across the continent. In addition, Africa’s 2018/19 rice imports could amount to 19 million tonnes, up by 12% from the previous season. Benin, Côte d'Ivoire, Nigeria, Senegal, South Africa, Ghana and Mozambique will remain the key importers.

    Domestic focus – maize trade; rice market; crop conditions and weather prospects
    What role can South Africa play in the continent’s maize market.
    While some countries on the continent will have tight maize supplies, South Africa is one of the few countries which could remain a net exporter in the 2018/19 marketing year which ends in April 2019. South Africa has thus far exported 1.6 million tonnes of maize, which equates to 73% of the seasonal export forecast of 2.2 million tonnes . But there have not been any exports to Africa’s leading maize importers (Algeria, Egypt, Morocco, Tunisia, Kenya and Zimbabwe) in the 2018/19 marketing year. A large share of maize was exported to Japan, Taiwan, South Korea, Vietnam, Italy and BNLS (Botswana, Namibia, Lesotho and Swaziland) countries. If there are any exports in the coming months, it will probably be to Zimbabwe. In markets such as Kenya, South Africa’s presence could be limited partly due to restrictions on the importation of genetically modified maize and competition from Mexico, Uganda and Ukraine. More than 80% of South Africa’s maize production is now genetically modified. Also, we do not foresee maize exports to Algeria, Egypt, Morocco and Tunisia as these countries typically import maize from Ukraine, Argentina, Brazil, Romania and the United States, which all currently have sufficient supplies for exports.

    SA rice market
    South Africa accounts for 6% of the expected 19 million tonnes of rice imports into Africa in the 2018/19 season. This is about 1.1 million tonnes, up by 10% from the previous season driven by an uptick in consumption . In the first three quarters of this year, about 704 718 tonnes had already reached the South African shores. About 92% of this originated from Thailand and India, and the rest from Italy, Pakistan, Vietnam and Brazil, amongst other suppliers.

    Worth noting is that South Africa does not have a conducive climate for rice production and therefore the country imports all of its rice consumption. The imported rice typically includes; paddy, brown, semi-milled, and broken rice. Similar to what is transpiring this year, in 2017, about 77% of rice was imported from Thailand, with 17% from India and the rest form the United States, China, Vietnam, Pakistan and Uruguay, amongst others. On average, about 101 854 tonnes or 10% of the imported rice every year is re-exported to the neighbouring countries, namely Swaziland, Botswana, Zimbabwe, Lesotho, Namibia and Zambia

    From a supply perspective, the global rice market is in good shape. The 2018/19 global rice production could reach a record 491 million tonnes, marginally up from the previous season, according to data from IGC. The key contributing countries to the expected increase are India, Vietnam, Thailand, United States, China, Bangladesh and the Philippines. These are same countries that supply to South Africa. The benefit of an uptick in global rice production is clear on prices which have softened in the recent months compared to the beginning of the year across all the aforementioned countries. This is all beneficial to rice importing countries such as South Africa.

    Current crop conditions
     Although this month started with an optimistic message from the South African Weather Service indicating a possibility of above-normal rainfall in the summer crop growing areas of the country between December 2018 and February 2019, most parts of the country are still dry. The expected rainfall last week did not materialise in most regions, thus planting activity has not progressed in the central and western parts of the country. It is only a few areas of the eastern Free State and Mpumalanga that received very light showers, with the highest being 11 millimetres in the Frankfort area.
    Therefore, planting has thus far largely advanced only in the eastern parts of South Africa which received higher rainfall at the beginning of the season. But these areas are not in good condition as the recent heat wave and drier weather conditions started negatively affecting newly planted crops. In terms of crop distribution, these are areas that predominantly produce yellow maize and soybeans. Meanwhile, the western regions of the country which largely produce white maize and sunflower seed have not seen progress in planting due to persistent drier weather conditions. The only crop that has been planted in these areas so far is cotton as it copes somewhat better with drier conditions compared maize, sunflower seeds and other crops.

    Nonetheless, the precipitation outlook for this month shows rainfall between 20 and 70 millimetres in the summer crop growing areas of South Africa.If this materialises, then the aforementioned production conditions

    Exports/Imports could change, although some areas are already outside the optimal planting window of most crops.

    We will closely monitor the developments on the weather front but must mention that the past few weeks’ predictions proved fruitless.
    Be that as it may, we have not changed our production expectations from what we reported a few weeks back . While the harvest is expected to be lower than the previous season in the case of maize and sunflower seed, South Africa’s supplies will still be at comfortable levels due to large stocks from the 2017/18 production season, and also the fact that the expected crop is higher than annual consumption in the case of maize.

    Between October and February, which is planting to pollination, the weather becomes an important factor in the South African grains and oilseeds market and, to some extent, amongst the major drivers of prices. This has been the case in the past few weeks, but the exchange rate fluctuation and developments in the global agricultural market also influenced the SAFEX market . Overall, while the activity will possibly slow in the market as the festive season approaches, the above-mentioned factors could remain the key drivers of SAFEX prices in the coming weeks. AGBIZ 

  • Our recent interaction with winter wheat farmers in various parts of the country has been quite encouraging. In the major producing province, Western Cape, the crop has matured and generally in good shape with expectations of good yields in most regions – all thanks to rainfall received in the past couple of weeks.

  • South Africa is a net importer of wheat, which means that developments in the global environment tend to influence the local market. Yesterday’s trade session was no different, the SAFEX wheat spot price recorded good gains in line with the Chicago wheat prices, closing at R4 393 per tonne.

  • October 16th is World Food Day and maybe the most fitting thing to do would be to boast about South Africa’s progress in terms of food security, having been ranked by the Economist Intelligence Unit’s 2017 Global Food Security Index the top in Africa.

  • US Kansas yellow corn prices increased by 0.7% week on week. The USDA in its latest world supply and demand estimate report raised its forecast of global corn ending stocks for 2019/20 to 301 million tons, up from 296 million tons last month. This month’s 2019/20 US corn outlook is for lower US production and reduced use.

    The price of Hard Red Winter wheat decreased by 1.0% and the price of Soft Red Winter wheat increased by 0.7% week on week. Current prices for HRW wheat is 10.7% lower compared to prices a year ago. The US wheat prices were capped by plentiful global supplies. According to the November USDA report global supplies are higher with increased production forecasts for the EU, Russia, and the Ukraine.

    Maize: The good rains received over the past week ensure enough moisture in some parts of the country to begin planting. Producers in
    Mpumalanga have progressed very well with their planting and have planted almost 100% of their intended area even though their planting period started later than normal. The eastern summer crop regions and Gauteng have planted about 50-60% .The western Free State and the North West have only planted approximately 15%, however we expect the pace to pick up after the rains received this past two weeks. Some parts of the following districts such as Bultfontein, Hoopstad and Bothaville remain dry. The current planting rate is however looking better than the planting rate seen at the same time last year. At the current pace it seems the intended planting area under maize estimated by the CEC might materialize.
    Wheat: Prices in the domestic wheat market traded negatively this week. The wheat spot price decreased by 0.4% week on week. Most of the
    producers in the Western Cape have finished harvesting. In the Swartland area yields were approximately 25% lower than the previous season. It is expected that the final wheat crop in the Western Cape may be around 640,000 tons. The grades of the local wheat is good despite the dry
    conditions (especially in the Western Cape).
    Oilseeds: Crushing margins remain negative at R613.73/ton. Year on year crushing margins are lower by 190.7%. Crushers remain under
    pressure. The soybean spot price increased by 0.4% and the sunflower seed spot price increased by 1.2% week on week. Mpumalanga
    producers have planted approximately 90% of their soybean hectares. The soybean planting intentions in Mpumalanga will be met in the optimal
    planting period. Rains were received in most parts of the summer crop growing areas. The North West and western Free State producers have
    planted 15% of the intended area. With soil moisture levels better than a few weeks ago, we anticipate planting to gain momentum in the region.
    Fibre: Local cotton prices are expected to decline in the next two months because the Northern Hemisphere will be supplying the market in the
    next months which could add pressure to the cotton prices, especially if the uptake in China and Europe is lower than previous levels. The South
    African Wool market remained unchanged at a value of R169.17/kg (clean) compared to the previous week. There was no auctions held last
    week. Generally good quality fine and medium length merino wools continued to attract good competition on the auction floors throughout
    November. 

    The spot price of white maize decreased by 4.3% and the yellow maize spot price decreased by 1.2% week on week. The good rains received over the past week ensure enough moisture in some parts of the country to begin planting. Producers in Mpumalanga have progressed very well with their planting and have planted almost 100% of their intended area even though their planting period started later than normal. The eastern summer crop regions and Gauteng have planted about 50-60% .The western Free State and the North West have only planted approximately 15%, however we expect the pace to pick up after the rains received this past two weeks. Some parts of the following districts such as Bultfontein, Hoopstad and Bothaville remain dry. The current planting rate is however looking better than the planting rate seen at the same time last year. At the current pace it seems the intended planting area under maize estimated by the CEC might materialize.

    US corn prices were higher on improved trade outlook as Canada, Mexico and the United States approved changes to a preliminary trade deal struck last year to replace their existing pact. Locally, there's been improvement in the rainfall in the past two weeks of December for most of the summer rainfall area. Longer term rain forecast for the summer rainfall area, Namibia and Botswana indicate higher rainfall prospects towards the second part of summer.

    Prices in the domestic wheat market traded negatively this week. The wheat spot price decreased by 0.4% week on week. Most of the producers in the Western Cape have finished harvesting. In the Swartland area yields were approximately 25% lower than the previous season. It is expected that the final wheat crop in the Western Cape may be around 640,000 tons. The grades of the local wheat is good despite the dry conditions (especially in the Western Cape).

    With global supplies rising more than consumption, 2019/20 ending stocks are raised to a record 288.3 million tons. The abundant global supplies will limit any major increases of the wheat price in the next 3 months. Locally, wheat prices are expected to trade sideways from December onwards. South Africa is a net importer of wheat therefore local wheat prices follow international wheat price swings. Due to that, the expected smaller wheat crop will not influence local wheat prices.

    The prices of oilseeds in the US traded negatively this week. The price of soybeans in the US gulf decreased by 0.8%, the price of soya oil declined by 0.4% and the price of soya meal decreased by 0.2% week on week. A bearish factor is the ongoing uncertainty regarding the conclusion of phase one of the trade deal between the US and China. The developments in China, contribute to the higher prices of vegetable oils and the lower prices of soybean meal and soybeans. The 2019/20 soybean season will be the first season in 4 years in which world production will be lower due to extreme weather conditions in the US. The other region to monitor is South America. The South American soybean season started with dryness followed by delayed planting. Weather conditions have improved but there are still some critical pockets of dryness in Paraguay, Argentina and Brazil.

    Crushing margins remain negative at R613.73/ton. Year on year crushing margins are lower by 190.7%. Crushers remain under pressure. The
    soybean spot price increased by 0.4% and the sunflower seed spot price increased by 1.2% week on week. Mpumalanga producers have planted approximately 90% of their soybean hectares. The soybean planting intentions in Mpumalanga will be met in the optimal planting period. Rains were received in most parts of the summer crop growing areas. The North West and western Free State producers have planted 15% of the intended area. With soil moisture levels better than a few weeks ago, we anticipate planting to gain momentum in the region.

    The US soybean outlook according to the latest USDA WASDE report is for lower production, reduced crushing and higher ending stocks. US
    soybean production is forecast lower due to lower yields and an unchanged harvested area. Other oilseed production changes in the major oilseed producing areas include lower sunflowerseed production for Argentina and lower rapeseed production for Australia and the EU. The expected abundant supplies in South America may further add downward pressure on global oilseed prices in the next few weeks. The local oilseed prices are following the international oilseed prices. Prices are expected to decline slightly in December and trade sideways from January 2020.

    The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) lost 38 cents to 1,492 c/kg (clean) from 1,530c/kg (clean) week on week. A strengthening Australian dollar against the major trading currencies used in wool trading added downward pressure on prices. The issue encountered last week was the timing of large volumes of wool coming into the market in an environment where normal delivery capabilities for overseas buyers and local exporters are hindered. The Chinese New Year is falling on 25 January next year; last week was in effect the last pre-Christmas opportunity to ship in time before the Chinese mills close down for their New Year shutdown as mentioned by AWI.

    Local: The South African Wool market remained unchanged at a value of R169.17/kg (clean) compared to the previous week. There was no auctions held last week. Generally good quality fine and medium length merino wools continued to attract good competition on the auction floors throughout November. The next sale is scheduled for 9 January 2020.

    USA: The Cotton A index decreased by 1.3% week on week. In the November WASDE report, the USDA estimates the 2019/20 world cotton production lower and world trade higher. World production is lowered by nearly 3.0 million bales and the main reductions were primarily in the US, Pakistan, India, and China. Economic growth is a major influencer for cotton demand. China's cotton consumption has been lowered for the 2018/19 and 2019/20 forecasts due to slower economic growth in China which is exacerbated by the US/China trade war.

    The Chinese middle class consumer is the largest influencer of wool demand globally, the uncertainty regarding phase one of the trade deal between the US and China, may continue to add bearish pressure on international wool prices. Australian wool quantities on offer are expected to increase in the next 2 weeks leading up to the three-week Christmas sale recess. Locally good quality fine and medium merino wools continue to attract competition and buyer interest. Due to shipping backlogs currently experienced and the upcoming Chinese New Year holidays (that falls on 25 January 2020), which may result in deliveries not being able to reach clients by the 20th January. The brokers and buyers have agreed to postpone auctions till next year to ensure product reaches destination on time. The next sale is scheduled for 9 January 2020,

  • October 16 is World Food Day and perhaps the most fitting thing to do would be to boast about South Africa’s progress in terms of food security, having been ranked by the Economist Intelligence Unit’s 2017 Global Food Security Index the top in Africa. 

  • The U.S. Department of Agriculture on Oct. 12 forecast Australian wheat production and exports in 2018-19 to be the lowest since 2007-08.

  • Climate change is coming like a freight train, or a rising tide.

  • The inherent uncertainty around weather conditions remains a major risk to global wheat production in the foreseeable future. Whether one looks at Europe, North America or Southern Africa, there are increasing reports of drier weather conditions. If dryness persists for a prolonged period, it could threaten wheat yields and, in turn, lead to a downward revision of the optimistic outlook of 2020/21 global wheat production of a record 768 million tonnes that the United States Department of Agriculture (USDA) currently forecasts. Over the past week, Romania, Russia and Ukraine are amongst countries which saw their 2020/21 wheat production forecasts revised down because of expected poor yields in some spring wheat-growing regions. What's more, the UK, France, Belgium, Netherlands and parts of Germany are also amongst the European regions currently experiencing inadequate moisture.

     

     The same is true for the US where analysts now have some doubts that the USDA wheat yields forecasts will materialise if there aren’t sufficient rains in the coming days or weeks. We now look to the USDA’s crop conditions report which will release the results of crop conditions for the week of 24th of May 2020 on Tuesday. In the week of 17th May 2020, about 52% of the US winter wheat was rated good or excellent, which is slightly behind the 66% rating in the corresponding day in the previous year.  To a certain extent, this shows the impact of dryness in some regions of the US wheat industry.

     

    For a broader update of the 2020/21 global wheat production estimates, we look to the USDA’s World Agricultural Supply and Demand Estimates report which will be released on the 11th of June 2020. In the meantime, various crop forecasts from governments and analysts suggest that the USDA might have to revise down the optimistic estimate of a record 768 million tonnes in the next release. The magnitude of such revisions, however, will largely depend on the weather conditions in the coming weeks.

     

    In Southern Africa, there aren’t many major wheat producers, with South Africa being the only major producer in the region. The winter wheat planting activity in the country commenced at the start of April and will continue until the end of this month or first week of June, which is when the optimal planting window closes. By the week of the 24th of May 2020, nearly two-thirds of the estimated 495 000 hectares for the 2020/21 season had been planted. Various regions of the major wheat-producing province, Western Cape, have experienced persistent dryness which somewhat slowed the planting activity. Moreover, the aforementioned intended planting area for the 2020/21 wheat season is down by 8% from the previous season.

     

    South Africa’s Crop Estimates Committee will release its first winter wheat production forecast on the 27th of August 2020. It is only on that day that we will have a sense of how big the 2020/21 wheat crop could be. The preliminary estimates from the International Grains Council (IGC) paint an optimistic picture of 22% y/y increase in South Africa’s 2020/21 wheat production to 1.8 million tonnes. While it is still early to make a concrete judgement, we doubt if this will materialise under the expected area plantings and dryness. Perhaps, the IGC took a leaf from the South African Weather Service in drafting the underlying assumptions for this estimate.

     

     On the 30th of April 2020, the local weather bureau estimated an increased chance of above-normal rainfall in the south-western regions of South Africa, which included the Western Cape between May and August 2020. So far, the forecast rainfall hasn’t materialised. Notwithstanding that the rainfall forecast for this week promises widespread showers over most regions of the Western Cape, which could be a welcome relief and conducive for the planting activity currently underway.

     

    In a nutshell, the weather remains a major risk that requires constant monitoring in the global wheat market. This means, while the fears about lower global wheat supplies have eased following the release of the 768 million tonnes production estimate for 2020/21 season, a lot will depend on weather conditions for the coming weeks. With that said, we still think there is no need for panic at this point or for major wheat-producing countries to re-consider the restrictive trade policy they had intended to implement at the start of the pandemic when they feared for wheat shortages. The current weather forecast only suggests that global production might not be as large as initially expected, but there aren’t signs of potential shortages.

     

    WEEKLY HIGHLIGHTS

     SA maize harvest process slightly delayed

     

    The late start of the 2019/20 maize production season because of dryness when farmers commenced planting, means that the harvest process will be slightly later than usual. This is clear from the maize producer deliveries data for the first three weeks of the 2020/21 marketing year (corresponds with the 2019/20 production season), which are down by 19% compared to the corresponding period last year, with about 277 178 tonnes delivered in the week of 15th of May 2020. This is the case, although the 2019/20 maize harvest is expected to be up by 35% y/y, estimated at 15.2 million tonnes, which is the second largest harvest on record . Essentially, the harvest process has started across all provinces, but still at very preliminary stages.

     

    Nevertheless, with the weather outlook for maize-producing regions of the South Africa showing clears skies for the next two weeks, the harvest activity could gain momentum around mid-June 2020. This means that in the coming months, the increase in harvest activity could add downward pressure on maize prices, which at the end of the past week traded at roughly the same levels as in the previous year (21 May 2019). White and yellow maize prices were at R2 674 per tonne and R2 682 per tonne, respectively, on 21 May 2020. The downward pressure on prices is likely, particularly as the country is expecting a bumper maize harvest. The one factor that could somewhat minimise the potential decline on maize prices and other agricultural commodity prices is the weaker domestic currency, which currently shows a strong correlation (see, The recent sharp price increases in South Africa’s white maize shouldn’t be a worry: a temporary market blip, published on 25 April 2020 for maize price and USD/ZAR correlation).

     DATA RELEASES THIS WEEK

     

     From a global perspective, on Tuesday the United States Department of Agriculture (USDA) will release the weekly crop progress data. This is important data to monitor grains and oilseeds planting activity across the US for the 2020/21 production season, which promises to be a good one, despite the glitches caused by the COVID-19 pandemic and drier weather conditions.

     

    There has already been enormous progress in planting activity across the US. On the 17th of May 2020, about 80% of the intended area for maize in 2020/21 season had already been planted. This compares to 44% in the corresponding week the previous year and a five-year average of 71%. In the same day, about 53% of the intended area for soybeans had already been planted, compared to 16% on the 17th of May 2019 and a five-year average of 38%. Also, worth noting is that the planting activity in the US in 2019 was far behind schedule because of excessive rains at the start of the season.

     

     On Friday, the USDA will release the weekly export sales data. This is important data to monitor as it will give an indication of the US agriculture exports to China, and help us monitor the progress on commitments made in phase one trade deal and impact of the COVID-19 pandemic on trade.

     

     On the domestic front, on Wednesday, the South African Grain Information Service (SAGIS) will release the weekly grain producer deliveries data for the week of 22nd of May 2020. This covers both summer and winter crops. But the focus is on summer crops since the winter crops are still at planting stages. As indicated above, in the third week of the 2020/21 maize marketing year, which was on the 15th of May 2020, about 277 178 tonnes of maize had already been delivered to commercial silos. About 58% was yellow maize, with 42% being white maize. This, however, is a small fraction of the expected harvest of 15.2 million tonnes in the 2019/20 production season (which corresponds with 2020/21 marketing year).

     

    Unlike maize, where the harvest season is still at its very early stages, there has been progress in the soybean harvest. In the week of 15th of May 2020, about 842 428 tonnes had been delivered to commercial silos. This equates to 65% of the expected harvest of 1.3 million tonnes in the 2019/20 season. Also, on the 15th of May 2020, about 211 279 tonnes of sunflower seed, which accounts for 29% of the expected harvest in 2020/21 marketing year had already been delivered to commercial silos.

     

      On Thursday, SAGIS will release the weekly grain trade data. In the third week of the 2020/21 marketing year, about 59 702 tonnes of maize had already been exported, all to the neighbouring countries. This too is a small fraction of the 2.7 million tonnes of South Africa’s 2020/21 maize exports we currently forecast, which is up by 90% y/y. This notable increase is supported by the expected large harvest, which is set to be the second largest in the history of South Africa, at 15.2 million tonnes. In terms of wheat, South Africa is a net importer. In the week of the 15th of May 2020, South Africa’s 2019/20 wheat imports amounted to 1.2 million tonnes, which equates to 66% of the seasonal import forecast.

  • The winter wheat harvest process is slowly gaining momentum in the Western Cape. The most recent data from SAGIS shows that 78 731 tonnes of wheat were delivered to commercial silos in the week of 26 October 2018, well above the initial deliveries of 7 716 tonnes.

  • Grain producers in the Swartland, Overberg and Southern Cape suffered considerable damage due to unnatural weather conditions that brought stormy winds to the areas. While already harvesting winter crops, producers’ expectations for an above average harvest yielded disappointment.

  • Grain producers could have an extra revenue stream if a construction project proceeds in Kansas.

  • Just a couple of years ago this meteorologist had his hands slapped for trying to make an issue out of world wheat production problems. The word was that there was too much wheat in the world and that a focus on that crop was a waste of time.

  •  World wheat flour trade for 2018-19 was revised downward by 100,000 tonnes of wheat equivalent (less than 1%) by the International Grains Council (IGC) but is still in line with last year’s estimated total of 17.1 million tonnes.

  • The national Crop Estimate Committee kept its estimate for South Africa’s wheat crop unchanged from last month at 1.86 million tonnes.

  • Researchers from Aarhus University have contributed to creating new knowledge about resistance to yellow rust, which is a serious fungal disease in wheat. The results can have global importance.

  •  A group of European researchers have found that current breeding programs and cultivar selection practices in Europe do not provide the needed resilience to climate change.