OVERVIEW FOR 2018/19

Global wheat production is up this month mainly due to a larger crop in Russia. Global trade is up marginally due to higher imports for Iraq and Turkey. Exports are raised for Russia, Pakistan, and Turkey but cut for Australia. The U.S. season-average farm price is unchanged at $5.15 per bushel.

WHEAT PRICES

Overall, U.S. wheat prices were up at the end of January as export prospects improved amidst ideas of tighter international supplies. Hard Red Winter (HRW) increased $9/ton to $240, Soft Red Winter (SRW) up $7/ton to $227, and Soft White Winter (SWW) gained $11/ton to $249 based on weather-related concerns in winter wheat areas. Hard Red Spring (HRS) rose $8/ton to $254.

Global:

Global exporter quotes were mostly up in January, except for Australia, which remained relatively unchanged. Canada and United States prices are at the same levels year-over-year. Black Sea wheat prices ended higher than U.S., leaving the United States more competitive on the international market for the month of January. This seems likely to boost the monthly pace of U.S. exports. Argentina prices were up due to concerns over wet weather during harvest.

Month Ending Prices for Major Wheat Exporters

Month Ending

Argentina

Australia

Black Sea

Canada

EU

US

January

$243

$313

$246

$265

$240

$240

December

$233

$313

$239

$250

$238

$231

November

$219

$315

$226

$269

$231

$239

Source: IGC

Note on FOB prices: Argentina - 12.0%, up river; Australia - average of APW; Fremantle, Newcastle, and Port Adelaide; Black Sea - milling; Canada - CWRS 13.5% St. Lawrence; EU - France grade 1, Rouen; US - HRW 11.5% Gulf