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December 16, 2011

(See attached file: PR 111216.pdf)(See attached file: PR 111216.xls)
  • All three wheat futures markets closed lower again this week despite very little fundamental news. A slightly weaker U.S. dollar was overshadowed by continued uncertainty about the European debt crisis, which pressured both financial and commodities markets. KCBT led the wheat market decline with a 22 cent loss on the week, closing at $6.40/bu. MGEX closed the week 16 cents lower at $8.11/bu and CBOT finished at $5.84/bu, a 12 cent loss. The CBOT nearby corn contract lost 11 cents on the week to close at $5.83/bu and CBOT soybeans closed at $11.30/bu, a 23 cent gain.
  • French analyst Strategie Grains released its first official 2012 crop forecasts on Thursday, showing soft wheat production in the 27 country EU at 133.5 MMT, a 3 percent increase over 2011. Following a drought stricken year in 2011, production is expected to rise in all western EU countries but will be slightly offset by a reduction in some central and southeast EU countries.
  • The Buenos Aires Grains Exchange increased its wheat production forecast this week from 13.0 MMT to 13.6 MMT, following similar increases by other agricultural entities. Last week the Rosario grain exchange raised its production outlook to 12.8 MMT from 12.4 MMT and USDA raised its estimate to 14.5 MMT from 13.0 MMT. Argentina‚Äôs agricultural ministry has said publicly that production will reach 13.5 MMT, despite the current official forecast of 12.0 MMT. Much needed rain had a positive impact on yields, resulting in the improved outlook.
  • The Baltic Panamax Index gained this week thanks to relatively steady demand for grain and coal shipments. The index closed at 1,775 on Friday, up from 1,713 last week.
  • The ICE Dollar Index gained 2 percent this week to settle at 80.34, up from 78.63 last week.

File Name
PR 111216.pdf
PR 111216.xls
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