Market Morsel: Wheat goes out the door.
The past two harvests have been huge. In order to export the volumes produced and carried over has been a logistic challenge of monumental proportions.
I thought it was worthwhile having a quick look at the date on how the export program has gone.
The first chart below shows the monthly wheat exports since 2011. We can see in this chart that volumes have been consistently high in the past two years, especially when considering the previous drought years.
The second chart shows the cumulative exports. I have used December-November in this charting. We can see the volume that we have we are on track for record volumes of wheat exports this year.
I have also placed 2019 and the average to show how large these past two years have been in terms of exports.
One of the reasons given for basis levels being so low has been the inability to get wheat onto the global market. It seems that we have been able to get large volumes out there.
This year is still likely to be a big crop, albeit poor quality. We now know that we have the capacity for a large export program. If we can harvest it!