USW of FacebookUSW on TwitterUSW on YouTube
April 8, 2016
  • Wheat futures ended the week lower due to improved crop conditions and slow export demand. Projections for smaller wheat planted area in the Black Sea lent limited support as abundant global stocks continue to weigh on the market. CBOT May wheat fell 15 cents to $4.60/bu, KCBT lost 18 cents to close at $4.60/bu and MGEX declined 16 cents to $5.13/bu. CBOT May corn added 8 cents to $3.62/bu and CBOT May soybeans dipped a penny to $9.17/bu.
  • Farmer selling slowed this week as their focus shifted to planting preparations, which provided support for basis.
  • In its weekly Export Sales Report, USDA reported net reductions of 58,100 metric tons (MT) for delivery in marketing year 2015/16---a marketing year low---were down noticeably from the previous week and the prior 4-week average. Sales were well below trade expectations of 150,000 to 350,000 MT and included significant quantities switched to 2016/17. Total known outstanding sales and accumulated exports of all wheat classes for marketing year 2015/16, through Mar. 31, 2016, were 19.2 million metric tons (MMT), 17% lower than last year's year-to-date total of 23.2 MMT.
  • USDA rated 59% of the U.S. winter wheat crop as good to excellent as of April 5, up from 44% at this time last year. USDA rated just 7% of the crop as poor or very poor, down from 16% last year.
  • UkrAgroConsult estimated Ukraine will produce 18.5 MMT of wheat in 2016, up from its previous estimate of 17.7 MMT, but still 30% lower than last year’s production.
  • SovEcon projected Russian 2016 wheat production at 57.0 MMT, down 8% from 2015 production after unfavorable weather during fall planting constrained winter wheat planted area.
  • Egypt’s General Authority for Supply Commodities (GASC) lowered the moisture content specification for imported wheat to 13%. Previously, it was 13.5%. The change was in place for Thursday’s tender.
  • The Baltic Panamax Index climbed to 517, up 20% from last week’s close of 429.
  • The Dollar Index slipped to 94.21, down slightly from 94.65 last Friday.
  • Current HRS price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. Soft red winter (SRW) indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.

File Name
PR 160408.pdf
2008-2013 U.S. Wheat Associates. All Rights Reserved
CCBot/2.0 (http://commoncrawl.org/faq/) - Is Mobile: Privacy Policy | Non-Discrimination Statementfalse