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March 27, 2009

(See attached file: PR 090327.pdf) (See attached file: PR 090327.xlsx)

  • Futures traded sharply lower this week amid helpful moisture in the dry U.S. hard red winter belt and positioning ahead of Tuesday’s USDA plantings and quarterly stocks reports. For the week, nearby CBOT futures were down 43 cents/bu, KCBT was 53 cents/bu lower, while the MGE was off 28 cents/bu to end the week at $6.08/bu. Corn futures closed 10 cents/bu lower while soybeans were down 35 cents/bu.
  • The southern US Plains HRW wheat belt received beneficial rains this week, relieving crop stress in the driest part of the region. An estimated 0.3 to 1.5 inches of rain fell yesterday in the wheat belt from southwestern Texas to southwestern Kansas, with additional precipitation expected over the weekend.
  • Spring wheat plantings are expected to decrease by at least four percent due to lower prices and severe flooding in the Red River Valley. Plantings in North Dakota, Minnesota, Montana and South Dakota are pegged at 12.3 million acres, down from 12.8 million acres the previous year. According to reports, acreage could be further reduced by at least 0.5 million acres due to flooding and wet weather. More snow and cold temperatures are forecast for the northern Plains over the weekend which could exacerbate the situation.
  • The International Grains Council (IGC) increased its forecast for 2009/10 wheat production 2 MMT to 651 MMT, but still down 5 percent from last year’s record 688 MMT. Additionally, IGC expects world ending stocks to jump to 171 MMT, up 11 MMT on weak demand for animal feed and slightly lower food consumption
  • Total net weekly export sales were 264,200 metric tons, up 24 percent from the previous week, but down 20 percent from the prior 4-week average. Year to date exports of all classes of wheat for the 2008/09 marketing year stand at 25.1 MMT, down 23 percent from this time last year.

File Name
PR 090327.pdf
PR 090327.xlsx
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