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September 8, 2006
Highlights
Futures markets eased back slightly this week as weather in the U.S. Plains, considered very beneficial for the 2007/08 crop, weighed against optimistic import demand and pessimistic Australian harvest outlook. All basis offers quoted over December (Z6) delivery prices. CBOT down 4 cents/bu, KCBOT down 5 cents, MGE off 9 cents

HRW and HRS basis stay firm. Exporters finding it difficult to bid wheat from farmers/elevators

SRW basis much stronger this week as the world soft wheat complex appears tighter on demand from India, North Africa/Egypt and Brazil combined with production problems in the EU and Australia

At $1.04/bu ($39/MT), the spread between SRW and HRW cash values is at the lowest level since April. The spread was as high as $1.77/bu ($65/MT) in July

Barge rates declined this week. The longer Mississippi routes at the lowest levels in two months. Low water levels persisting on the Ohio limiting draft and capacity, keeping rates there stronger. Minneapolis to NOLA at $33/MT, Cincinnati to NOLA $25/MT

Rail tariff rates firm, secondary rail rates remain strong on impending corn/bean harvest

SRW cash value premium to SW settled back to 28 cents/bu ($10/MT), from 33 cents/bu last week

Ocean rates continue to climb with most routes up $1/MT over last week. The PNW - Japan route is up 40% ($10/MT) from last June, Gulf - Egypt up 44% ($14/MT)

(See attached file: PR060908.xls)(See attached file: PR060908.pdf)

File Name
PR060908.xls
PR060908.pdf
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