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June 29, 2012
(See attached file: PR062912.xlsx)(See attached file: PR 062912.pdf)
  • Wheat futures closed higher on all three exchanges for the second week in a row. Concerns over reports indicating smaller than expected wheat harvests in the US, Russia, and Ukraine have pushed the market upward. Futher support came from continued dry weather across the corn belt, pushing up corn prices and increasing the liklihood that wheat will again be a competitive feed grain in the coming market year. Gains in spring wheat futuers were subdued thanks to healthy spring wheat crops in the US and Canada. CBOT gained 66 cents this week closing at $7.39 per bushel; KCBT closed up 53 cents at $7.39 per bushel; MGEX rose 5 cents to close at $8.64 per bushel; CBOT corn closed up 81 cents at $6.72 per bushel; and CBOT soybeans rallied 71 cents to close at $15.13 per bushel.
  • India has sold 200.0 TMT of wheat into the Middle East and expects futher sales in the near future. Government officials recently admitted that 6.0 MMT of grains could rot due to a lack of storage space. However, critics point out that a total of 19.0 MMT is currently being stored out in the open.
  • The analyst group SovEcon is predicting that Russia's wheat production in 2012/13 will only rach 48.5 MMT, down 13.7 percent compared to last year. The drop is due to a large amount of winterkill this year and a severe spring drought. Russian wheat exports are expected to fall to 11.0 MMT, down significantly due to the lower production and tighter stocks in areas easily accessible to exporters. The Ukrainian government released similar reports indicating that Ukraine would only produce 12.3 MMT, down 44.8 percent compared to last year, again due to drought in the fall and spring combined with a severe winter.
  • The Baltic Panamax Index closed at 984, down 64 points compared to last week as demand for Panamax size vessels remains light. This is the second week of declines in a row. The Baltic Panamax Index has fallen approximately 40.0 percent compared to this time last year. Maritime Research's Grain Freight Index remains unchanged compared to last week at 516.2.
  • The ICE Dollar Index fell sharply on Friday, closing for the week at 81.59, down from 82.44 on Friday of last week. News from Europe that the EU member countries have agreed to drop the preferred creditor status on emergency loans to Spanish banks spurred the largest single day drop so far this year.

File Name
PR062912.xlsx
PR 062912.pdf
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