Wilco Daily Wheat Market Analysis

Chicago wheat futures for December hemmed and hawed today, before finishing up one point at this morning’s close.  Weekly export numbers issued last Friday showed strong exports for the three major grains.  SWW exports were over 5 million bushels which is excellent.  Port of Portland security officers did not strike on Sunday, agreeing to a contract that lasts just two years.  But this averted a very bad situation for Portland where the remaining container shipping companies well could have decided to never come to Portland again. Now we will hear this Wednesday whether the longshoremen at the grain terminals will accept the “last and final” contract offer from the terminal owners. 25% of all the grain exported in the U.S. goes down the Columbia River.  The water levels in the Mississippi continue to go lower, so the PNW in the short run will be very important for exports.

Markets were also affected . . . . . again . . . . . by European debt news, particularly what is up with Greece.  At the end of last week European “higher ups” could not decide to even cut their administration budget (which is running 6% of total expenditures) in light of all the debt problems.  PNW prices did bump a little north today.  Crop progress report later today.  Look for the Hard Red Wheat numbers to continue to fade.

Mike Wilhoit, Key Account Representative

Happy Thanksgiving!

As we all sit down with family and friends for a bit (more than a bit probably)  of good food and good cheer, let’s really try to be thankful for our gifts.  Where all of us are today with our operations and businesses just didn’t happen.  A lot of hard work for a long time has got us to where we are today . . . . . has gotten the U.S. to the greatest country in the world.  There are a lot of headwinds for the country. But putting a hand out and asking it to be filled will not get the job done.  

Many times we hear the politicians talk about two hundred plus years for the U.S.  But really it is four hundred years since the first folks came to the East Coast looking for a better life and liberty.  We all like the cute pictures from the “first” Thanksgiving, but have you tried to imagine what it was like to land on a sand spit in the winter in a totally foreign land, and then figure out food and shelter and safety?  A lot of hard work for a long time.  Think about your ancestors in the farming business, persevering with horses, and axes, saving seed, keeping enough food for the winter, writing letters for the only communication, and on and on.  A lot of hard work for a long time . . . . . to get where we are today.  

So give everybody a hug and enjoy the get togethers, be thankful, and do not forget what it took to get to 2012.

Happy Thanksgiving!!

Mike Wilhoit, Key Account Representative

Wilco-Winfield LLC

200 Industrial Way-P.O. Box 258 | Mt. Angel, OR 97362

Wilco Daily Wheat Market Analysis

November 20, 2012

Not much to report today with the disinterest in the markets due to the short holiday week.  Chicago finished up just over two points at the morning close.  Weather and the longshoremen talks will continue to be the buzz amongst the traders.

It was reported in today’s Oregonian that the longshoremen at the Portland container yard have been billing one of the ocean shipping lines, Hanjin, for lost wages.  That is, every time an electrical union worker plugs in or unplugs a container at the dock the longshoremen consider that a lost work hour.  It was reported that the total wages billed to date are over $ 700,000!  Hanjin has indicated in no way will they pay.  First of all they do not hire any union labor at the port; a private company who operates the port for the city hires the union labor.  What  happen is the shipping lines will stop calling on Portland. 

In Monday’s crop progress report, Hard Red Wheat conditions declined further to 23% good/excellent, 46% fair, and 31% poor/very poor.  These are the worst numbers since the USDA began this measure in 1987.  In parts of Kansas, Oklahoma, and Nebraska, the rainfall totals this year are the lowest since records began to be kept in 1895! Our soft white ratings were as follows: 60% good/excellent, 38% fair, and only 2% poor/very poor.  The wheat in that last category is swimming for its life after yesterday’s rainfall.  A week ago in the PNW, the good/excellent rating was 73%.

Mike Wilhoit, Key Account Representative
Wilco-Winfield LLC
200 Industrial Way-P.O. Box 258 | Mt. Angel, OR 97362
Phone 503-569-0186 |Fax 503-845-9580
mwilhoit@wilco.coop  | www.wilco.coop

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