850 N 4TH AVE. * WALLA WALLA, WA 99362 Walla Walla Office (509) 525-6510 Dayton Office (509) 382-2571 St. John Office (509) 648-3316 FAX (509) 529-6050 Office Hours: 7:30am to 12:00pm and 1:00pm to 4:30pm
BIDS ARE SUBJECT TO CHANGE AT ANY TIME. REMINDER PRICES ARE NOW DELIVERED COAST RED WHEAT MARKETS ARE MORNING ONLY Buying Hours: Monday - Thursday 8:30am - 11:00am and 2:30pm - 4:30pm Friday 8:30am - 11:00am and no afternoon market
Club Wheat Premium: +.00 max 12.0% protein
Old Crop 2018 SWH vs. SRW Futures Basis = $0.89/bu. SRW July 2018 futures
New Crop 2018 SWH vs. SRW Futures Basis = $0.62/bu. SRW Sept 2018 futures
New Crop SWH bids are for Max 10.5% Protein Market Scales Time of Delivery
14% DNS Scales: +.06/-.10 ea. 1/4 from 14%, 16% max
11.5% HRW Scales: +.10/-.20 ea. 1/2% from 11.5%, 13% max
2018 Winter Wheat RP Base Price = $5.92/bu. Portland 2018 Spring Wheat RP Base Price = $6.30/bu. MGE Barge Fuel Surcharge: April -1.5% = -$.005/bu. (negative means you get a credit back)
Country Elevator (truck/rail) Fuel Surcharge: April 18% = $.021/bu.
5/22/18 - Dry conditions all around the globe is the main story at this moment. Australia, Canada and Black Sea conditions are all of concern moving forward. Most concering is the Black Sea region which has been extremely dry for the past 30 days. It's easy to get bullied up with the weather issues and fund money rolling in but keep in mind this is a typical spring weather rally that will most likely end with a slight change in forecasts. Balance sheets for all wheat still remain heavy and for this to change we would need mulitple areas to remain dry for longer than 30 days. White wheat buisness seems to be picking up a touch after falling off the past few weeks. Indonesia is looking for a September cargo and we have the typical Japanese tender buisness in this week.
The Weekly Top Five
These are the 5 biggest issues that NWGG feel are affecting today's markets and items to watch for as we progress through the year.
1: 5/10/18 The latest USDA supply and demand report was generally bearish for wheat despite the cut to HRW production this year caused by the drought in the Southern Plains. 2: 5/10/18 The USDA did not include a new line item that would show world wheat balances with Chinese stocks removed as had been discussed earlier in the month and will include that information on the June report. The information is already available in the report in its current state you just have to do the math yourself so it shouldn't be any kind of shock to the system but could generate a bullish headline. From the data on this month's report world wheat ending stocks less China show 125.7 mmt vs last year at 143.65 mmt, it is also the lowest number since 2013. 3: 5/10/18 The most bullish item on May's supply and demand report was world corn ending stocks which are projected to fall from 194.85 mmt this year to 159.15 mmt for the 2018/19 crop year, the stocks to use ratio falls from 18.2% to 14.6%. The U.S. stocks situation is also bullish as projected ending stocks drop from 2.18 billion bushels to 1.68 bb next year and the stocks to use ratio drops from 14.8% to 11.5% 4: 5/10/18 Given the projected tightness of corn supplies it puts extra pressure on the U.S. to have a good crop this year and makes final corn acreage a much more important number. Planting progress has been behind average but made good progress last week and should see another healthy chunk planted this week. Spring wheat progress is also behind average but not in danger of losing acres yet. 5: 5/10/18 Russian wheat areas have been dry over the last few weeks but had good subsoil moisture to sustain the crop. The length of the dry spell had begun to generate some concern but now there is rain in the forecast which should keep their crop prospects looking good for the time being.