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June 19, 2009

(See attached file: PR 090619.pdf) (See attached file: PR 090619.xlsx)

Highlights:

Futures finished sharply lower on improving expectations for the advancing winter wheat harvest and a continued lack of supportive export demand. Warm, mostly dry weather late this week in the U.S. Plains and southern Midwest was favorable for harvesting, making up for some of the early harvest delays in Oklahoma and Texas. July CBOT wheat futures closed 28 cents/bu lower on the week at $5.55/bushel. July KCBT futures dropped 22 cents/bu, finishing at $6.15/bushel. MGE futures saw the largest drop, closing 34 cents/bu down from last week at $6.99/bushel. Soybeans were off 66 cents/bu on the week, closing at $11.79/bushel and corn declined 25 cents/bu to finish at $3.99/bushel.

The USDA reported that 9% of the winter wheat crop is harvested, which is 7 points behind the pace this time last year and 10 points behind the 5-year average. Oklahoma had harvested 22 percent of its HRW crop, the slowest pace since 1999.

Sales for the week totaled 268,800 metric tons, down from 359,900, but were within trade expectations of 200,000 to 400,000 metric tons. Sales of 3.7 MMT for the new marketing year are 54 percent behind last year’s pace, due mostly to slow HRW and SRW demand .

Nearby SRW basis rallied 30 cents this week to 5 cents over July futures amid growing concern over crop quality. The SW/SRW spread narrowed $6/MT to $18/MT the smallest this marketing year.

The Baltic Panamax Index finished at 3,125, up 12% from last week’s close of 2,754. Destination rates were also firm, with Gulf/Japan moving $8/MT higher to $62/MT, the highest level in nine months. The Pacific/Japan route was slightly higher at $36/MT.

The ICE Dollar Index, used to track the currency against those of six major trading partners, declined 0.5 percent on Friday to 80.23, trimming its gain for the week to 0.1 percent. The dollar declined against most major counterparts as speculation that the global recession is easing prompted investors to move to higher-yielding assets. For the week, the dollar gained 0.4 percent against the euro while depreciating nearly 2 percent against the yen.


File Name
PR 090619.pdf
PR 090619.xlsx
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