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July 24, 2009

(See attached file: PR 090724.pdf)(See attached file: PR 090724.xlsx)

Highlights:
  • Futures traded lower this week, with pressure on prices coming from ample supplies and profit taking. CBOT September futures closed 26 cents/bu down from last week at $5.16/bu. KCBT September futures were down 18 cents/bu, closing at $5.49/bu. MGEX finished the week at $5.91/bu, down 25 cents for the week. Corn CBOT futures showed a strong rally on Thursday due to rumors that USDA might cut their acreage estimate for corn. However, corn prices settled back down Friday to finish the week at $3.16/bu, down 6 cents from last week. Soybeans were up 13 cents/bu and closed at $10.22/bu.
  • Chairman Gary Gensler of the Commodity Futures Trading Commission (CFTC) addressed the Subcommittee on Convergence in Agricultural Commodity Markets on Tuesday. He called the lack of convergence in the wheat markets “unacceptable” and that recent changes to contract specifications have not solved the problem. He mentioned that the CFTC would consider further action if necessary. Traders exited long positions due to concerns over increased government intervention, causing wheat futures markets to close lower on Wednesday.
  • Given abundant global stocks, export sales continue to be lighter than normal for this period in the marketing year. Last week’s sales of 342,300 metric tons were down 19% from the previous week, but fell within trade estimates of 300,000 to 500,000 MT. Increases were reported for Japan (54,104 HRW, 14,232 HRS, 26,240 white), Nigeria (64,186 HRW, 13,566 SRW), Mexico (35,717 HRW, 21,475 SRW), Colombia (5,096 HRW, 25,976 SRW), South Korea (4,540 HRW, 14,200 HRS, 451 SRW, 6,230 white), Canada (17,000 SRW), and the Dominican Republic (2,500 HRW, 8,000 HRS, 1,500 SRW).
  • The Baltic Panamax Index closed higher again this week at 3,524, a 6% gain from last week. Destination rates were up, with Gulf/Japan at $58/MT and the Pacific/Japan at $34/MT.


File Name
PR 090724.pdf
PR 090724.xlsx
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