USW of FacebookUSW on TwitterUSW on YouTube
May 6, 2011

(See attached file: PR 110506.pdf)(See attached file: PR 110506.xls)

Highlights:
  • Futures fell for a second consecutive week with continued fund selling and a stronger dollar pushing down prices. The CBOT May contract reached its lowest point since mid-March, losing 44 cents on the week to close at $7.24/bu on Friday. The MGEX May contract lost 34 cents this week, closing at $9.10/bu. KCBT losses were minimized by ongoing dryness, losing 25 cents from last week to close at $8.68/bu. Corn and soybean prices fell sharply this week as poor export demand, along with fund selling and a stronger dollar, weighed on prices. The CBOT May corn contract lost 71 cents on the week, closing at $6.82/bu. CBOT soybean nearbys lost 67 cents, to $13.25/bu.
  • Informa Economics released their May production and acreage estimates on Friday. Informa pegged the 2011/12 U.S. winter wheat crop at 39.2 MMT, down four percent from their March forecast. Of this total, HRW accounted for 21.6 MMT, SRW for 11.4 MMT, and winter white for 6.3 MMT. Informa also reduced their U.S. spring wheat planted area projection, from 14.2 million acres to 14.1 million acres.
  • Statistics Canada released their March grain stocks report on Friday. The agency reported Canada’s all wheat stocks as of March 31, 2011 at 15.6 MMT, down nine percent from the previous year. This included durum stocks of 2.9 MMT, which was down 40 percent from 2010.
  • The annual hard red winter wheat tour took place this week in Kansas. Participants projected a yield of 37.4 bushels per acre, down eight percent from last year’s estimated 40.7 bushels per acre. The tour projected Kansas production at 256.7 million bushels (7.0 MMT), down from 333.5 million bushels (9.1 MMT) last year and the lowest projected crop since 1996.
  • SRW FOB basis was up this week following rainfall in some SRW producing areas. Concerns are growing over the quality of this year’s SRW crop due to the heavy rainfall received in parts of Missouri and Illinois. SRW basis for nearby delivery out of the Gulf was up $0.15/bu from last week, to $1.00/bu.
  • A strong dollar weighed on prices this week. The ICE Dollar Index made sharp gains on Thursday and Friday, climbing three percent from last week to close at 74.80.
  • Freight rates climbed again this week, largely due to increased Chinese demand for coal. The Baltic Panamax Index closed at 1,769 on Friday, up from 1,450 a week ago.

File Name
PR 110506.pdf
PR 110506.xls
2008-2013 U.S. Wheat Associates. All Rights Reserved
CCBot/2.0 (http://commoncrawl.org/faq/) - Is Mobile: Privacy Policy | Non-Discrimination Statementfalse