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Palouser
Senior Advisor

Canada's big crop held up by railroads - Pro Farmer

The issue of rail cars and shipping priorities was always a problem under the Canadian Wheat Board. They had some clout to keep things moving.

 

 

Subject: Pro Farmer's Evening Report

November 11, 2013

Evening Report

CANADIAN RAIL CAR SHORTAGE CAUSES FREIGHT PRICE SURGE... The harvest of record-setting crops in Canada this year has overwhelmed the shipping industry, creating a shortage of grain cars and pushing freight prices sharply higher. Burlington Northern and Sante Fe (BNSF) say the upgrading of track has slowed average train speeds and further tightened supplies. The two major carriers for the country, Canadian National Railway Co. and Canadian Pacific Railway Ltd., are each providing 5,000 to 5,500 cars each week, but demand is for more than double that amount. USDA's Ag Marketing Service (AMS) says this has pushed non-shuttle bids and multi-car shuttle train rates sharply higher this week.

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6 Replies
farmerguy89
Advisor

Re: Canada's big crop held up by railroads - Pro Farmer

The cwb never had producers grow a crop. It alaays rained Them out or they were baked. It'll move eventually. Demands not good. It'll likely go south
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Palouser
Senior Advisor

Re: Canada's big crop held up by railroads - Pro Farmer

The hell you say!

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Palouser
Senior Advisor

Re: Canada's big crop held up by railroads - Pro Farmer

So, demand for wheat is good here but rotten for Canada? Is that what you are saying? You got numbers?

 

I'll skip the other questions I have in mind and keep it simple.

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farmerguy89
Advisor

Re: Canada's big crop held up by railroads - Pro Farmer

At this pace wheat stocks grow here. That's what 30% above trend prarie yields do. Our dollar is crap right now. Your gonna buy prarie wheat, no matter what because of these two things. Use is only on track to increSe stocks in the praries.
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Whitesand_Farms
Veteran Contributor

Re: Canada's big crop held up by railroads - Pro Farmer

I have read also about rail car shortages but in my neck of the woods the local elevator has shipped over 800 rail cars since late Sept. I hauled out over half my wheat crop off the combine to fill contracts so if it does slow down now I'm not too worried because the rest of my wheat will get priced down the road for spring- summer delivery.
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Whitesand_Farms
Veteran Contributor

Re: Canada's big crop held up by railroads - Pro Farmer

Also talked with elevator manager this fall and grain isn't moving to port east, west or north it's all going south to US and Mexico.
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