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September 8, 2017
  • U.S. wheat futures ended the week mixed supported by short-covering and a weaker U.S. dollar which makes U.S. wheat more competitive against other origins. Large global supplies of lower protein wheat pressured CBOT lower on the week. CBOT December wheat slipped 1 cent to $4.38/bu, KCBT added 3 cents to $4.41/bu and MGEX climbed 6 cents to $6.47/bu. CBOT December corn gained 1 cent to $3.57/bu and CBOT January soybeans grew 13 cents to $9.72/bu.
  • Export basis for October, November and December shipment are supported by increased demand for freight during corn and soybean harvest across the United States. Last week’s Gulf port closures support nearby export basis for all classes as exporters work to resume normal service. The Columbia River Gorge was closed to nighttime vessel traffic due to wildfire activity causing minor delays and further supporting nearby export basis for the Pacific Northwest (PNW).
  • Texas Gulf port export terminals have re-opened, but delays continue as elevators work through the backlog of vessels and handle railroad delays. BNSF and Union Pacific railroads report rail service is restored for nearly all lines, though some delays for signal and track work continue.
  • USDA’s weekly Export Sales Report included net wheat sales of 375,500 metric tons (MT) for marketing year 2017/18. Sales were within trade expectations of 350,000 to 550,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat for 2017/18, through August 31, 2017, were 12.5 million metric tons (MMT), in line with last year’s total on this date, but slightly behind the 5-year average. USDA expects 2017/18 U.S. wheat exports to reach 26.5 MMT.
  • On September 5, USDA reported spring wheat harvest is 89% complete, ahead of the 5-year average of 78%.
  • The September 5 U.S. Drought Monitor reported continued expansion of drought conditions across the U.S. Northern Plains and Pacific Northwest, which is providing fuel for massive wildfire across the region. Lack of subsoil moisture has some farmers waiting to begin winter wheat planting across both regions. The 10-day forecast shows few opportunities for moisture across the driest regions in the United States, but expects Hurricane Irma to bring excessive rain and flooding to the U.S. Southeast this weekend.
  • The Saskatchewan weekly crop report reported continued hot, dry weather allowed harvest to progress across the province. Winter wheat harvest is 99% complete, up slightly from last week. Durum harvest is 62% complete, up from 32% last week, and spring wheat harvest is 38% complete, up from 14% one week ago. In Alberta, spring wheat harvest is 31% complete, ahead of the 5-year average of 22%, while durum harvest is 68% complete.
  • The Russian Ministry of Agriculture reported Russian wheat harvest is 72% complete, up from 62% complete last week. Russian farmers harvested 72.4 MMT of wheat to date with an average yield of 53.7 bu/acre (3.61 MT/ha).
  • Reuters reported winter wheat sowing is underway in Ukraine and is likely to total 15.1 million acres (6.1 million hectares), similar to last year.
  • On September 7, Bolsa de Cereales, the Buenos Aires Grain Exchange, reported 71% of the country’s wheat is in good to excellent condition, 23% is in fair condition and 6% is poor or very poor. Bolsa estimates 2017/18 Argentine wheat planted area totaled 13.2 million acres (5.35 million hectares).
  • The Baltic Index climbed to 1296, up from the prior week’s close of 1183.
  • The Dollar Index decreased to 91.07 from last Friday’s close of 92.81, and the lowest point since January of 2015.

File Name
PR 170908.pdf
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