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March 24, 2016
  • Cold weather in the Southern Plains supported wheat futures markets this week. Abundant global supplies continue to limit gains. CBOT May wheat closed flat this week at $4.63/bu, KCBT May wheat added 2 cents to $4.72/bu and MGEX rose 3 cents to $5.12/bu. CBOT May corn also grew 3 cents to $3.70/bu and CBOT May soybeans climbed 13 cents to $9.10/bu.
  • With several overseas markets closed due to Holy Week, basis remained mostly unchanged. The Great Lakes-St. Lawrence Seaway will reopen on March 31.
  • In its weekly Export Sales Report, USDA reported net sales of 368,900 metric tons (MT) for delivery in marketing year 2015/16, which were 73% higher than the previous week. Sales were above trade expectations of 150,000 to 350,000 MT and 16% higher than prior 4-week average. Total known outstanding sales and accumulated exports of all wheat classes for marketing year 2015/16, through Mar. 17, 2016, were 18.9 million metric tons (MMT), 17% lower than last year's year-to-date total of 22.7 MMT.
  • European Union (EU) crop monitoring service (MARS) March report, pegged EU 2016/17 soft (non-durum) wheat yields at an average 88.7 bu/acre (5.96 t/ha), down from 93.1 bu/acre (6.26 t/ha) last year. The European Commission projects EU wheat production to total 142 MMT, down from 151 MMT in 2015/16.
  • Kansas and Oklahoma, which produce over half of the U.S. hard red winter (HRW) crop, experienced an extended period of cold weather. USDA estimates 20 percent of the Kansas crop and 38 percent of the Oklahoma crop was in the vulnerable jointing stage on Mar. 21. USDA will resume weekly crop progress reports for the entire United States on April 4.
  • Russia agriculture consultancy SovEcon estimates Russia will produce 5% less wheat in 2016/17 with production projected at 58.0 MMT.
  • The Baltic Panamax Index rose to 401, up 2% from last week’s close of 392.
  • The Dollar Index rallied to 96.08, up from 95.10 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 160324.pdf
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