Rail Merger Proposals Should Improve Competition, Hold Down Wheat Shipping Rates
On March 21, 2021, Canadian Pacific (CP) Railways announced a $25 billion plan to merge with Kansas City Southern (KCS), calling it a “transformative” remake of the freight-rail industry. The proposed new railroad would be the first U.S.-Mexico-Canada-linked rail line. Not to be outdone, Canadian National Railway (CN) began talks with KCS in late April, […]
USW Harvest Report for 2021/22 Returns May 14
The new U.S. winter wheat crop is rapidly developing and U.S. Wheat Associates (USW) will publish its first “Harvest Report” for marketing year 2021/22 on Friday, May 14. USW Harvest Reports are published every Friday afternoon, Eastern Daylight Time, throughout the season with updates and comments on harvest progress, crop conditions and current crop quality […]
Global Growth Forecast Likely to Support Higher Ocean Freight Rates
As the world’s economies begin picking up pace, the increasing demand for raw materials is pushing up ocean freight rates worldwide. A less volatile freight market is possible but there are factors that suggest rates will remain higher for some time. Aristides Pittas, CEO of EuroDry, noted recently that dry bulk rates in January were […]
U.S. Hard Red Winter Wheat Farmers Looking for Rain
The 2021/22 U.S. hard red winter (HRW) wheat crop is developing under a range of conditions. However, rain makes grain, so anxious farmers are looking for clouds on the horizon. Based on the USDA’s Crop Progress reports, issued each week on Mondays, the HRW crop seems to be starting on average footing compared to condition […]
USDA Predicts Decline in U.S. Spring Wheat Planted Area as Dryness Continues in the Northern Plains
According to the March 31 USDA 2021 Prospective Plantings report, total U.S. total spring wheat planted area is expected to fall to 11.7 million acres (4.34 million hectares), down 4% from last year, if realized. This estimate includes 10.9 million acres (4.41 million hectares) of hard red spring (HRS), down 5% from last year and […]
Ocean Freight Rates Follow Rising Bulk Commodity Demand
A spike in ocean freight rates is creating some heartburn for dry bulk commodity buyers who may be uncovered over the next few months as strong global demand for grain and coal stresses vessel supply. Fortunately, lower freight futures prices in the second half of 2021 could hold if commodity demand eases, as expected. “We […]
Historic Freeze, Severe Dryness Challenge U.S. Winter Wheat Crop
Winter wheat farmers in several states have not had an easy winter. All eyes are on Kansas, Nebraska and Colorado as “a perfect storm” of a historic freeze combined with severe dryness threatens new crop yield potential in the heart of the country’s breadbasket. Producers in the Great Plains have seen sustained temperatures below 10° […]
Fundamental, Technical Factors Lifted U.S. Wheat Futures Prices
Given the strong surge in U.S. wheat futures prices over the past several weeks, U.S. Wheat Associates (USW) wants to share more information about the market factors behind the rise. Some of the bullish factors do not appear to be short-lived. Driving the recent highs was remarkably higher Chinese demand for U.S. soybeans, corn and […]
U.S Wheat Associates Shares Winter 2021 Wheat Supply and Demand Outlook
The U.S. Wheat Associates (USW) Board of Directors includes wheat farmer leaders appointed to represent each of the 17 state wheat commissions that are members of USW and meets three times during each marketing year (June to May). For each of the meetings, the USW Market Analyst prepares a “Wheat Supply and Demand Outlook” report […]
Favorable Weather and Strong Income Potential Support 2021 Winter Wheat Seeding
For the first time since 2013/14, total U.S. winter wheat planted area increased on the year as producers took advantage of dry seeding conditions and strong prices through fall 2020. USDA’s 2021/22 Winter Wheat Seeding report, released Jan. 12, reported U.S. farmers planted 32.0 million acres (12.9 million hectares) of winter wheat for harvest in 2021, […]