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January 30, 2015
  • Wheat futures were pushed down early this week to a three month low due to continued news about plentiful global supplies, beneficial rains across the US Plains and Midwestern wheat belts, and continued strenghtening of the US Dollar versus competitors currencies. However, the market did find strength in the latter half of the week with stronger than expected exports and technical buying rallying the market from Wednesday lows. Overall the market closed down. Chicago dropped 27 cents to $5.03 per bushel, Kansas City dropped 24 cents to 5.40 per bushel, and Minneapolis dropped 19 cents to $5.57 per bushel. Chicago corn futures dropped 17 cents to $3.87 on large global supplies and weak exports. Soybeans followed suit, dropping 12 cents to $9.73, the market weakening as China shifts to cheaper South American supplies.
  • 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.
  • The HRS market continues to be plagued by low DHV levels. Trade sources indicate that a minimum DHV level of 65% can carry a premium of around $1.25 per bushel over normal NS/DNS prices.
  • Officials in both India and Pakistan announced plans to export wheat I order to clear government storage capacity before the upcoming harvests. Both countries hope to capitalize on the recent export curbs in both Russia and Ukraine.
  • Ocean freight rates continue to plunge downward on weak demand for ocean freight, especially out of China, and an oversupply of ships on the market. The Baltic Dry Index hit its lowest level since 1986 this week.
  • According to the USDA's Export Sales Report, weekly sales of 544.4 TMT for delivery in the 2014/2015 marketing year were above trade expectations of 250 to 450 TMT. Total known outstanding sales and accumulated exports of all classes of wheat, through January 22, 2015 were 19.9 MMT, 24% lower than last year's year-to-date total of 26.1 MMT. HRW export sales were down 37%, SRW export sales down 53%, HRS export sales up 22%, SW export sales down 4%, and durum export sales up 21%.
  • The Baltic Panamax Index closed this week at 508, down sharply from last week at 685.
  • The US Dollar Index closed this week at 94.84, down slightly from last week at 94.99.

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