CPKS Railroad Merger and U.S. Wheat Exports
On April 18, 2023, Kansas City Southern Railway Company (KCS) and Canadian Pacific Railway Limited (CP) officially merged to create a new Class 1 railroad CPKS, the first single-line service across Canada, the U.S., and Mexico (map above from Trains.com). Rail logistics comprise a sizeable portion of U.S. wheat export basis, encompassing the costs of […]
Wheat Industry News
News and Information from Around the Wheat Industry Speaking of Wheat “Until some of these geopolitical conflicts are resolved — it’s difficult to envision a return to the level of free trade we enjoyed through the late 20th and early 21st centuries. Difficult as it may be, governments must resist the urge to limit […]
USDA Reports Confirm the Tight U.S. Wheat Balance Sheet
On March 31, the United States Department of Agriculture (USDA) released its yearly Prospective Plantings Report, and Quarterly Grains Stocks reports. The reports provide valuable insights for U.S. wheat importing customers as we enter the final two months of the 2022/23 marketing year and look ahead to the 2023 harvest. In this article, we will […]
Wheat Industry News
News and Information from Around the Wheat Industry Speaking of Wheat “In my view, [news that Cargill and Viterra will stop loading Russian grain] puts more questions around Russia’s ability to export. Russian state exporters claim that they’ll be able to keep grain moving out at the same pace, but major speculative funds holding […]
Perspectives on March 31 Prospective Plantings and Stocks Reports
Each year, on March 31, those who grow, trade or import U.S. agricultural commodities look to USDA’s annual Prospective Plantings and Quarterly Grain Stocks Report for indications of potential price movements. The consensus from analysts across the industry on how this week’s reports will affect wheat markets is generally bullish. For reference, in its January […]
Changing Weather Patterns Could Favor U.S. Wheat Production
Over the last few weeks, we have analyzed several factors that are shifting or have the potential to shift U.S. wheat value toward wheat importers. A combination of lower futures prices, a break in dry bulk freight prices, an increase in planted area, and the potential for a weaker dollar all point to a wheat […]
Markets Look for Weaker Dollar as Purchasing Conditions Improve
With recent breaks in U.S. and global wheat futures and lower freight rates, the wheat market seems to have turned a corner to favor buyers after two years of volatility and risk. Despite the improved general outlook, inflationary pressures persist, influencing macroeconomic conditions both in the U.S. and for our customers overseas. For example, major […]
Wheat Export and Production Issues in Focus, as Black Sea Grain Deal Discussions Continue
By Keith Good, Farm Policy News, Reprinted with Permission Late last week, Bloomberg writers Aine Quinn and Megan Durisin reported that, “After a slow start to the season, Russia’s grain exports are booming as buyers load up on its attractive bumper supplies. “The country’s shipments of wheat — its main crop — almost doubled in January and February from a year […]
U.S. Farmers Respond to Higher Wheat Prices by Planting More
Since Russia’s unprovoked invasion of Ukraine sent them soaring one year ago, global and U.S. wheat prices have decreased significantly. Continued Black Sea Grain Corridor exports and improved production outlook in major exporters such as Russia and Australia have helped relieve the market of some supply pressure. Bulk ocean freight rates have also broken in […]
Wheat Prices Trend Lower Even As Uncertainty Continues
Following a year of dramatic volatility, several factors have pressured global wheat prices back to levels last seen before Russia’s invasion of Ukraine in early 2022. There are several factors behind this trend. In this article, U.S. Wheat Associates (USW) examines the tenacity of world wheat trade even in the face of serious market uncertainty. […]