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August 7, 2009

(See attached file: PR 090807.pdf)(See attached file: PR 090807.xls)
  • Futures once again finished lower on the week, as ample supplies and a firm dollar put downward pressure on prices. CBOT September futures closed at $4.91/bu, which is down 37 cents from last week. KCBT September futures reached a new contract low today, falling 34 cents on the week and closing at $5.25/bu. MGEX also suffered from significant declines, falling 32 cents from last week to finish at $5.73/bu. Strong demand, tight supplies, and hotter weather pushed soybean prices up for the third consecutive week. Soybeans gained 47 cents from last week and closed at $11.81/bu. Corn dropped 17 cents and finished at $3.22/bu.
  • Global supplies continue to put pressure on wheat prices. Informa Economics released their latest production forecasts earlier this week. Although production is down from last year, Informa expects global supplies to be 21 MMT greater this year. Informa estimates total U.S. production at 59.1 MMT, which is 1.6 MMT greater than USDA’s forecast from last month. USDA will release their latest supply and demand estimates next week.
  • The Baltic Panamax Index fell again this week, closing at 2,599. Chinese demand for iron ore has been the primary driver of the index, and slowing demand is pushing freight rates down. The BPI has fallen 26% over the past two weeks. Destination routes were also down, with the Gulf/Japan route at $57/MMT and PNW/Japan at $30/MMT.
  • USDA released its annual report on farm production expenditures. The report found that production costs in 2008 rose by 8.3% from 2007, with higher expenditures on fertilizers, equipment, seeds, and fuel. Farm production costs last year totaled $307 billion.
  • The Dollar ICE index finished higher this week, closing at 78.94. The index made a sharp decline on Monday, pushing futures prices up, but rallied late in the week to push futures back down.

File Name
PR 090807.pdf
PR 090807.xls
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