North Dakota and the Canadian Prairies produce a lot of wheat, but American farmers are finding theirs easier to move.
“For the most part, producers who have wanted to deliver have been able to,” said Jim Peterson, marketing director of the North Dakota Wheat Commission.
“It is tight, but I’m not aware of elevators totally plugged where they’re having to turn producers away.”
Many congested prairie elevators in Canada are taking only crops that they have already contracted, but North Dakota elevators are generally able to take more crop.
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North Dakota farmers harvested excellent yields of spring wheat, but unlike their northern neighbours, they haven’t had to fight for rail space with other crops.
Corn and soybeans are harvested weeks later than most wheat crops, so wheat has time to move through the system before it has to go head-to-head with corn and soybeans.
An excellent export pace has also helped clear wheat from North Dakota, while significant areas that couldn’t seed because of spring saturation have left room in the logistics system to handle large crops from other parts of the state.
Peterson said farmers worry that basis levels could worsen and movement become more difficult now that the corn harvest has started.
“There’s a feeling that things might get tighter as the year progresses,” said Peterson.
Farmers also worry that some grain merchants might try to take advantage of the looser rail system in the U.S. northern tier and try to move Canadian grain through there to Portland.
As well, they have been fretting over the possible competition for rail crews, engines and capacity with burgeoning oil shipments from northwestern North Dakota.
However, Peterson said problems with competing commodities have not been a particular problem.
