How Long Can Russia Underduct U.S. Wheat Prices?
Southwest Farmpress – 11/1/2018
Oct. 26 reports noted that the U.S tendered two cargos (60,000 metric ton each) of wheat for Egypt. It was tendered (priced) at $219/MT ($5.96/bu) FOB (free on board vessel). Ocean freight was estimated to be about $30/MT (82 cents) making the C&F (cost and freight) to Egypt $249/MT ($6.78/bu). Oct. 29 reports indicated that Egypt bought one cargo of U.S. wheat.
Aussie Wheat Wreck to Boost Prices
Western Producer – 10/30/2018 (video story)
One of Canada’s main rivals in the grain export business is having a wretched year and that will likely lead to increased demand and higher prices for Canadian crops, says an analyst. The Australian Department of Agriculture and Water Resources (ABARES) forecasts a total winter crop of 28.22 million tonnes. That would be the smallest crop since 2007-08 and 31 percent below the previous 10-year average.
Additional U.S. Tariffs Possible, Markets Absorb Impact
Ag Trade – 10/31/2018
Trade tensions between the U.S. and China persist, while Chinese tariffs on U.S. commodities continue to roil markets. Despite a variety of impeding economic variables, a news article notes that the current ag economy is sturdier than when the 1980s farm crisis unfolded. Meanwhile, export competitors move forward with a Trans Pacific Partnership agreement, while the benefits of the new USMCA may be overshadowed by ongoing tariff disputes.
More Farmers Double Down on Winter Wheat; Planting Nears End
Farm Week Now– 10/31/2018
A boost in wheat acres appears to have worked out well for many Illinois farmers this year, particularly those who followed it with double-crop soybeans. Illinois farmers produced an average wheat yield of 66 bushels per acre this year with reports of double-crop beans yielding in the mid-to-upper 50s. That success, along with some planting windows in the past month, could add up to even more wheat seedings for 2019.
Kansas Wheat Estimates Imperiled As Heavy Rains Delay Seeding
Ag Update – 11/1/2018
One of the wettest Octobers on record in Kansas, the largest U.S. wheat producer, may lead farmers to plant fewer acres with the grain than expected. Parts of eastern and central Kansas have gotten double or triple the amount of normal rainfall in October, with one station in Emporia recording 9 inches, according to Paul Markert, a senior meteorologist for Radiant Solutions in Gaithersburg, Maryland. All this rain has slowed down the harvest of soybeans and delayed seeding of winter wheat on that same ground.
Source: U.S. Wheat Associates