Latest USDA Forecast Accounts for Increased U.S. Wheat Export Demand
By Steve Mercer, USW Vice President of Communications USDA market analysts cited Iraq’s major purchase of hard red winter (HRW) wheat as the specific basis for a significant drop in U.S. ending stocks in the November World Agricultural Supply and Demand Estimates (WASDE) report. The report correspondingly put its total U.S. export forecast for 2017/18 […]
Shifting Destinations of U.S. Wheat Exports
By Stephanie Bryant-Erdmann, USW Market Analyst Over the past twenty years, roughly 10 MMT of U.S. wheat exports have shifted from price sensitive markets to quality-driven markets. Consumption in quality-driven markets in Southeast Asia and Latin America increased an average 2 percent annually over the past ten years, according to USDA. In 1995/96, the top […]
U.S. Wheat Sales on Pace to Match 5-Year Average
By Stephanie Bryant-Erdmann, USW Market Analyst Three months into the 2017/18 marketing year (June to May), total U.S. export sales-to-date of 12.1 million metric tons (MMT) are 2 percent ahead of last year’s pace and in line with the 5-year average pace. Though hard red winter (HRW) and hard red spring (HRS) sales are currently […]
Rail and Port Operation Recovery in Texas Gulf is Encouraging
By Steve Mercer, USW Vice President of Communications Officials have classified it as a 1,000-year flood event, unleashed at the center of U.S. HRW wheat’s export industry. Following the catastrophic flooding from Hurricane Harvey, some ports are still closed, rail embargos remain in effect and virtually no wheat was inspected for export last week at […]
New Port Worker Contract Adds Stability to PNW Export Operations
Members of the International Longshore and Warehouse Union (ILWU) are crucial workers at U.S. export grain elevators. Overseas wheat buyers in the Asia-Pacific region likely recall the challenges faced in 2015 during a lengthy contract negotiation that occasionally interrupted the West Coast supply chain. Although the dispute was finally settled with a contract through June […]
PNW Vessel Delays Begin to Improve
By Steve Wirsching, USW Vice President and West Coast Office Director This winter the Pacific Northwest (PNW) has seen snowstorms and record rainfall that reduced vessel loading and inbound rail service. A slowing of rail service for just a few weeks manifested itself into long vessel lineups and loading delays of up to three to […]
Winter Weather and Strong U.S. Grain Demand Add Up to Unusual Port Delays
By Stephanie Bryant-Erdmann, USW Market Analyst The sharp inverse in export basis between March delivery and April delivery for U.S. wheat at both Gulf and Pacific Northwest (PNW) ports indicates that exporters have faced logistical challenges during a brutally cold and snowy winter. It also provides a savings opportunity for those customers who can wait […]
Wheat Exports Rebounding: Even More Impressive on Value
By Stephanie Bryant-Erdmann, USW Market Analyst 2016 ended on a high note for U.S. wheat exports, which posted the largest volume of sales in the fourth quarter since 2010. From October through December, the United States exported 6.5 million metric tons (MMT) of wheat, 48 percent above last year’s sales and 28 percent greater than […]