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October 29, 2010

(See attached file: PR 101029.pdf)(See attached file: PR 101029.xls)

Highlights:
  • Wheat prices posted gains for five consecutive days due to the dry conditions in the southern plains, leading to the lowest crop ratings for this time of year since 2001. Prices were also supported by adverse weather in Australia, where the east is too wet and the west is too dry. CBOT nearbys gained 46 cents this week, closing at $7.17/bu. KCBT nearbys were up 52 cents, to $7.71/bu, and MGEX was up 48 cents, to $7.76/bu. A weakening dollar and strong global demand pushed corn and soybean prices higher. The December CBOT corn contract gained 22 cents on the week, closing at $5.82/bu, and the November soybean contract gained 26 cents, closing at $12.26/bu.
  • The International Grains Council (IGC) released their latest grain market report, maintaining their 2010/11 global wheat production estimate at 644 MMT. IGC decreased their Australian production forecast by 1.0 MMT, to 23.0 MMT, due to dryness in Western Australia and excessive rainfall in the east. However, this was offset by a 1.0 MMT increase in the Chinese production estimate, which currently stands at 115.0 MMT. IGC increased their world wheat consumption forecast by 1.0 MMT, to 658 MMT, due to an expected increase in feed use.
  • USDA reported 47 percent of this year’s winter wheat crop is in either good or excellent condition, which is the lowest rating for this time of year since 2001 and down from 62 percent a year ago. Dry conditions have persisted in most winter wheat producing areas throughout this year’s planting campaign.
  • The Canadian wheat harvest, which last month was at its slowest pace in six years, was 99 percent complete as of Monday. Dry weather during October allowed farmers to make significant progress, bringing the harvest back to a normal pace.
  • The Dollar Ice Index was down slightly this week, standing at 77.18 on Friday, compared to 77.21 a week ago.
  • Freight rates were stronger this week with growing Chinese demand for coal and iron ore. The Baltic Panamax Index climbed to 2,410, up from 2,219 last week. The Gulf to Japan route stood at $60/mt, while PNW/Japan was up to $35/mt.

File Name
PR 101029.pdf
PR 101029.xls
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