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