Riding a Tugboat Carrying U.S. Wheat On Its Way to Export
It is 3:00 on a brisk and overcast Tuesday afternoon, and the sun is already low in the sky. I am sitting in the galley of a tugboat — state of the art, I am told. The tugboat has all the amenities any crew would need with five staterooms, a kitchen, a washer and dryer, […]
USW to Surface Transportation Board: “Uphold the Values of Competition.”
In 2021, the Canadian Pacific Railroad (CP) announced plans to purchase the Kansas City Southern Railroad (KCS). After a few sidetracks, the proposed transaction is now under final review by the U.S. Surface Transportation Board (STB) to determine whether the two Class I railroads can merge. If successful, the new system will become the first […]
Dry Conditions Continue Affecting Global Wheat Production
In a market-moving report in February, USDA cut its 2021/22 global wheat production estimate by more than 2 million metric tons (MMT) from its January estimate. USDA also increased its world wheat consumption estimate. What is behind this change so late in the marketing year? This year, high wheat prices remain a fixture as drought in […]
What is Driving Wheat Market Volatility?
Since late December, U.S. wheat futures prices moved down through mid-January and have bounced up and down since then. For example, prices surged early the week of January 24 but lost steam by the end of the week. And the March ’22 hard red winter future price lost 4% as of Wednesday’s close. Such wheat […]
USDA Reports Reflect Why U.S. Farmers Seeded More Winter Wheat
Last week, USDA released three reports giving some indication of what may be ahead for the 2022 global wheat market. Those USDA reports were the monthly World Agricultural Supply and Demand Estimates (WASDE) report, the quarterly Grain Stocks report, and the annual Winter Wheat Seedings report. Considering all three reports, U.S. Wheat Associates (USW) notes […]
Fundamental Support for Wheat Prices Shared with USW Farmer Directors
By Michael Anderson, USW Market Analyst U.S. Wheat Associates (USW) represents the interests of wheat farmers in export markets. Each time the USW Board of Directors meet, we report on the latest market information that affects the U.S. wheat marketing environment. At their meeting the week of Jan. 10, 2022, our directors will see continued […]
Adjusting to USDA Estimates in a Record-Setting Year
Marketing year 2021/22 (June to May) has been record-setting to date. USDA estimates of global production, trade, and consumption have all outpaced previous years. However, since it’s initial 2021/22 World Agricultural Supply and Demand Estimates (WASDE), USDA has adjusted its forecast down, led by a 17 million metric ton (MMT) reduction in global wheat production […]
Stocks-to-Disappearance Ratio Suggests Continuing Wheat Market Volatility
By Michael Anderson, USW Market Analyst The Food and Agriculture Organization (FAO), a branch of the United Nations (UN), in a biannual report published this month, said “the ratio of major wheat exporters’ closing stocks to their total disappearance is expected to fall to 12.5 percent.” The report also noted that, if realized, this will […]
Wheat Exporting Countries Control Just 18% of Global Stocks
By Michael Anderson, USW Market Analyst As the U.S. wheat 2021/22 marketing year reaches its halfway point, U.S. Wheat Associates (USW) summarizes market factors affecting global wheat supply and demand with its farmer board of directors. The data comes from USDA’s October reports, which will be updated on November 9. We want to share some […]
Freight Markets Ride the Waves of Uncertainty
Look at a line graph that tracks freight markets over the last two years and you may mistake it for the very waves the vessels traverse on the open ocean. Up and down the vessel goes, and so have the rates. The Baltic Dry Index (BDI), an assessment of the average cost to ship raw […]