Global Wheat Markets: Please Stand-By . . . .

Ok, I’m that old . . . . Growing up on a dairy and grain farm in southern Alberta, TV was one channel black ‘n white affair complete with a rooftop antenna that would get hit by lightning on-occassion. And when the local station messed up, PLEASE STAND BY appeared on-the-screen.

As old and retro this photo is; it reminds me of today’s wheat market.

Wheat growers are now watching and standing by, waiting, waiting for any price improvement. Bins brimming with unpriced wheat. ‘30 percent off’ signs everywhere across global markets from year ago levels. Storage has been a difficult marketing strategy. Returns simply vanished.

MINNEAPOLIS SPRING WHEAT

So what now? Wait for the wheat ship to-rite or pull-the plug ‘n sell?

1CWRS 13.5% milling bids now range $9 to $9.50/bu delivered across the prairies. A disappointment. Feed wheat bids bids hover at a $1/bu discount to red spring milling. 1CWAD 13% durum bids have gradually eased from their $15/bu early fall highs, now ranging $12.75 to $13.50/bu for mid/ late winter delivery.

Bottom line . . . China now aggressively buying lower quality wheat these days. But Black Sea prices remain highly competitive. Expect spring wheat bids to remain ‘on-standby’ heading into the Feb market. Then maybe lightning will strike and prices maybe show some spark? Until then . . . .

Stay tuned to Errol’s Commodity Wire, Calgary