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January 25, 2013

(See attached file: PR 130125.pdf) (See attached file: PR 130125.xls)

  • All three nearby wheat futures fell this week due to technical selling as traders tried to lock in profits from last week’s increase. KCBT and MGEX losses were limited by crop development concerns caused by persistent drought conditions. Futures markets received a bump on Friday thanks to stronger than expected export sales. CBOT March wheat suffered the biggest loss of the three nearby contracts, falling 15 cents to $7.77/bu. KCBT fell 8 cents to $8.30/bu and MGEX lost 4 cents to close at $8.65/bu. CBOT March corn dropped 4 cents to $7.21/bu and CBOT March soybeans closed at $14.41, a 12 cent gain.
  • PNW basis levels increased some this week because the Columbia River has closed for regularly scheduled annual maintenance.
  • Extreme drought conditions worsened this week in Kansas, the largest wheat producing state. The U.S. drought monitor classifies conditions in 100 percent of Kansas, Colorado, Nebraska and Oklahoma as severe drought or worse.
  • USDA reported commercial wheat sales of 572,500 MT this week, up 7 percent from last week and above trade estimates of 350,000 to 550,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat for the 2012/13 marketing year, through January 17, 2013, were 20.4 MMT, 3 percent lower than last year's year-to-date total of 21.1 MMT. Egypt purchased 67,200 MT of SRW this week, putting the country’s total U.S. purchases in the last six weeks at 920,200 MT. Total 2012/13 U.S. sales to Egypt are 1.07 MMT.
  • Ukraine’s Economy Ministry said this week it expects total 2012/13 wheat exports to reach 6.1 MMT. In October, the government announced an unofficial wheat export ban in order to protect the domestic price of bread. Wheat traders reported the export limit was 5.0 MMT. Ukraine exported 5.4 MMT of wheat in 2011/12, according to the Ministry.
  • The Baltic Panamax Index closed at 715 on Friday, down from 740 last week. Poor weather in Australia and Asia and a slow developing South American harvest slowed exports this week. Maritime Research's Grain Freight Index increased this week from 496.2 to 499.0.
  • The US Dollar Index decreased this week from 80.12 to 79.82.

File Name
PR 130125.pdf
PR 130125.xls
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