US Oil Pushes Canadian Wheat Off The Tracks
Canadian grain exports to the US have fallen sharply as railways expand the more lucrative cross-border crude oil shipments, a shift that Canada’s farmers say is pushing their crops to lower priced overseas markets, says the Wall Street Journal.
The shift of Canadian grain abroad is likely to prop up prices for US farmers and consumers, analysts say. In particular, wheat growers in states such as North Dakota and Minnesota could see higher bids for supplies from US buyers with less access to cheaper wheat across the border.
The decline in grain exports is an unintended consequence of recent regulatory changes aimed at guaranteeing farmers rail time in the face of stiff competition from crude by rail. Those changes aren’t always helping farmers, as rail companies look for quicker journeys for grain to meet federal requirements, sending cargoes to ports in Vancouver and along the St Lawrence River.
Egypt's GASC picked up 180,000 tonnes of wheat in a tender Thursday, two cargoes being Russian origin and one of French. The prices paid were significantly cheaper than their last purchase, and it was particularly interesting to see Russian wheat be competitive again, said one analyst. Some are suggesting that this was a "let's get it sold and shipped whilst we still can" move.
Is Russia closer to intervening in wheat market? "News eventually began to trickle out that a Russian ag minister made statements indicating they would attempt to reduce exports and would eventually raise Russian intervention prices to keep the domestic market supplied," said Benson Quinn. That's the first time that there's been anything but a flat denial from Russia that this sort of move could be on the cards, even if it has been widely rumoured.
It has projected India’s wheat production at a record 95.9 million tonnes against 93.5 million last year. The cause for the US agency’s optimism is unknown since sowing of wheat, a rabi or winter crop, is trailing this year. Hm throw out a big crop even if its late.
Still their are some who believe the winter crop has problems in Russia and USA.
Wheat futures recorded solid gains. There’s more concern about winterkill in Russia and forecasts for the US Plains over the next week do show less rainfall than originally expected
Ah wheat what a crop.
Canadian grain exports to the US have fallen sharply as railways expand the more lucrative cross-border crude oil shipments, a shift that Canada’s farmers say is pushing their crops to lower priced overseas markets, says the Wall Street Journal.
The shift of Canadian grain abroad is likely to prop up prices for US farmers and consumers, analysts say. In particular, wheat growers in states such as North Dakota and Minnesota could see higher bids for supplies from US buyers with less access to cheaper wheat across the border.
The decline in grain exports is an unintended consequence of recent regulatory changes aimed at guaranteeing farmers rail time in the face of stiff competition from crude by rail. Those changes aren’t always helping farmers, as rail companies look for quicker journeys for grain to meet federal requirements, sending cargoes to ports in Vancouver and along the St Lawrence River.
Egypt's GASC picked up 180,000 tonnes of wheat in a tender Thursday, two cargoes being Russian origin and one of French. The prices paid were significantly cheaper than their last purchase, and it was particularly interesting to see Russian wheat be competitive again, said one analyst. Some are suggesting that this was a "let's get it sold and shipped whilst we still can" move.
Is Russia closer to intervening in wheat market? "News eventually began to trickle out that a Russian ag minister made statements indicating they would attempt to reduce exports and would eventually raise Russian intervention prices to keep the domestic market supplied," said Benson Quinn. That's the first time that there's been anything but a flat denial from Russia that this sort of move could be on the cards, even if it has been widely rumoured.
It has projected India’s wheat production at a record 95.9 million tonnes against 93.5 million last year. The cause for the US agency’s optimism is unknown since sowing of wheat, a rabi or winter crop, is trailing this year. Hm throw out a big crop even if its late.
Still their are some who believe the winter crop has problems in Russia and USA.
Wheat futures recorded solid gains. There’s more concern about winterkill in Russia and forecasts for the US Plains over the next week do show less rainfall than originally expected
Ah wheat what a crop.
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