March 22, 2018

PNW exporters and Canadian exporters have seen an excellent run of business this week, but exporters at the gulf are not seeing any business despite the break in flat price. In fact they say “there are no consumptive buyers but there are no sellers either”, shippers/warehousemen are content to carry their wheat for the storage…

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March 6, 2018

The cash markets don’t have anyone pushing to buy wheat unless it is for nearby logistics. The HRW gulf bid/offer is called unchanged and the HRW domestic market saw mills bidding for April/May 5 ct/bu below the spot market. The SRW cif market was still looking for offers, but the bloom is off the domestic…

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February 14, 2018

Nearby freight premiums and March trains are starting to drive the cash basis higher for Feb/March.  This combined with cash carry is pushing Apr/May values higher as well. HRW basis values traded unchanged for A/M but there are no offers for Feb/Mar. The Kansas City domestic market saw a record number of cars on the…

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February 13, 2018

Today was slower than yesterday in the cash wheat markets. The rail freight is having the biggest impact on cash basis with shuttles bid $900/car premium to tariff for Feb with no offer & March bid/offer $500/$750 for last half of month. The premium for the nearby freight increases the cash carry to deferred months…

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Australian Bureau of Statistics cuts 2016/17 Wheat Crop to 30.4 million MT

ABS released updated crop production estimates for 2016/17 marketing year lowering wheat production to 30.4 million MT, 3.0 million MT below USDA.  ABS also reduced 2015/16 wheat production 400 thousand tonnes to 21.9 million MT, compared to USDA’s 22.28 million MT.  USDA will have to adjust its 2017/18 Australian wheat export forecast in its January…

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January 2, 2018

U.S. wheat futures found support from the weekend’s sub-zero temperatures in the central & northern plains and Midwest, as the threat of winterkill was debated today, with nearby Chicago closing up 6.50 cents, Kansas City up 7.50 cents, and Minneapolis tagged along to close up 3.25 cents. The cash markets have been supporting the Mar/May…

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The drop in futures to new contract lows is starting to price some business. HRW exporters saw Algerian shorts bidding today and we expect something traded since the bid/ask was only 5 ct/bu. Domestic mills have been pricing old and new crop cash business for HRW, but Kansas City spot basis was off today as…

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Cash basis was on fire in domestic HRW business, although it wasn’t shown in the spot close, 11.1% to 11.3% protein was bid +165 KWH8, up 35 ct/bu.  Domestic mills and resellers are bidding after disappointing applications to December procurement contracts. The gulf market closed unchanged, but looking for offers in most positions. The domestic…

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