Wheat

Average change in the price of selected raw materials

Changes in export volumes for certain types of wheat may be reflected in changes in freight flows, according to reports from the U.S. Department of Agriculture.

“I’m expecting massive crop losses – as devastating as we’ve ever seen…A lot of the standing stuff is flattened to the ground.”

Generic corn and wheat futures are up nearly 30% since May 10 on depressed yields and constrained transportation in the Midwest.

Locks are closed, tons of grains can’t get to ports for export.

The Grain Transport Report, a weekly publication by the Agricultural Marketing Service (a division of the U.S. Department of Agriculture) released information showing that total export inspections for grain (corn, wheat and soybeans) declined 22 percent from the previous week.

Missing USDA data on wheat stockpiles has traders reacting cautiously.

We see falling demand for oil, lumber, and wheat out of Canada in the future due to a combination of market forces. Canadian Pacific Railroad appears to be especially exposed to this freight recession.

Europe is witnessing a searing heatwave which has destroyed a chunk of its grain production, providing leeway for U.S. farmers to improve their export percentages this year.

There is a migration of grain haulers from the industry due to various reasons – lower grain prices, a stronger dollar, record wheat production in Russia leading to lesser exports, and the ELD mandate.

The threat of retaliatory tariffs on American agricultural products could hurt wheat exports, which are already struggling to compete on the international market. Railroad grains volumes in 2018 YTD are down, in many cases by double digits.