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July 17, 2015
• U.S. wheat futures fell sharply this week on advancing harvest pressure and poor export demand. Pressure spilled over from last week’s WASDE report which showed significant world supplies. The U.S. dollar surged again this week, making U.S. products less competitive on the world market, stunting sales and driving futures markets down. USDA increased its rating of U.S. spring wheat conditions, which pushed MGEX contracts lower. CBOT September wheat lost 22 cents to close at $5.54/bu, KCBT and MGEX each fell 26 cents to $5.47/bu and $5.82/bu, respectively. CBOT September corn lost 15 cents to close at $4.20/bu and CBOT August Soybeans dropped 17 cents to $10.15/bu.
• Trade experts reported that many farmers took advantage of last week’s futures rally to free up bin space in preparation for harvest, which is underway in many parts of the U.S. The resulting increased supply coupled with weak export demand weighed heavily on markets this week.
• Current HRS price indications are for Northern Spring only. Premiums for Dark Northern Spring will vary. SRW indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.
• According to the USDA’s weekly Export Sales Report, net sales of 291,500 MT for delivery in marketing year 2015/2016 were down 16% from the previous week and were slightly below trade expectations of 300,000 to 500,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat, through July 9, 2015 were 6.48 MMT, 24% lower than last year's year-to-date total of 8.48 MMT. USDA forecasts 2015/16 U.S. wheat exports to reach 25.9 MMT.
• In its weekly crop progress update, USDA estimated winter wheat harvest was 65% complete as of July 12, up from 55% a week earlier and below the 5-year average of 68%. USDA increased the percentage of U.S. spring wheat rated as good or excellent to 71%, up from 70% both last week and the prior year. The percentage rated poor or very poor remained unchanged at 6%.
• The Baltic Panamax Index closed at 1,162 on Friday, up from last week’s 1,052.
• The US Dollar Index closed at 97.99, up 2% from 95.97 last Friday.

File Name
PR 150717.pdf
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