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 […]
Things to Know When Buying U.S. Wheat
U.S. Wheat Associates (USW) works on behalf of U.S. wheat producers to help millers, bakers, wheat food processors and government officials understand the process of buying U.S. wheat at the best value possible. The U.S. grain marketing system is reliable and transparent but can be complicated. So, USW keeps buyers and wheat food processors informed […]
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 […]
How the U.S. Wheat Export System Delivers Quality and Value
Private grain companies in the U.S. wheat export system in the Pacific Northwest (PNW) overcome challenging logistics to deliver wheat that consistently meets contract specifications to buyers around the world. Grain sellers based in Gulf, Lakes and Atlantic ports operate very similar logistical systems to export wheat and other grains. We are sharing a video […]
Agriculture Calls on STB to Increase Rail Competition Following Executive Order
On the heels of a White House Executive Order on competition this month, a large group of agricultural shippers recently wrote to the U.S. Surface Transportation Board (STB) to advocate for several policy proposals in front of the board that can make a significant difference in increasing rail competition in transportation of wheat and other […]
Rail Rates Directly Affect Basis Values for Wheat Importers
Grain companies serving Pacific Northwest (PNW), Gulf, Lakes and Atlantic ports overcome challenging logistics to efficiently deliver wheat that consistently meets contract specifications to buyers around the world. Rail rates, for example, make up a significant percentage of U.S. wheat export basis and, ultimately, the FOB price paid by importers. Exporting grain companies draw from […]
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, […]
U.S. Farm and Industry Organizations Respond to Dam Breaching Proposal
A coalition of Pacific Northwest (PNW) agricultural and commercial organizations recently responded with serious concerns to a controversial dam breaching proposal that would tear out four dams on the Snake River. The dam breaching proposal, presented by U.S. Representative Mike Simpson of Idaho, aims to restore fish populations on the river while compensating groups affected […]
Secondary Rail Rates, Tight Elevation Capacity Continue to Support Wheat Export Prices
By Claire Hutchins, U.S. Wheat Associates Market Analyst Gulf and Pacific Northwest (PNW) hard red spring (HRS) and hard red winter (HRW) basis values have jumped significantly in the last month due to increased domestic secondary rail rates and limited export elevation capacity, both driven by stronger-than-expected U.S. agricultural export sales to China. It is […]
USW Transportation Group Supports Proposed Change in Rail Rate Review
By Claire Hutchins, USW Market Analyst U.S. railroads are a crucial part of the most efficient grain supply system in the world. The rail system fulfills an essential logistical function that neither grain handlers nor farmers can perform on their own. Yet rail rates and charges paid by wheat shippers make up a large portion […]
