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February 26, 2010

(See attached file: PR 100226.pdf)(See attached file: PR 100226.xls)

  • Futures prices were up this week, highlighted by a 16-cent gain in the CBOT March contract on Friday. The rally was sparked by a weakening dollar, which fell sharply on Friday after posting gains earlier in the week. CBOT nearbys closed at $5.07/bu, up 16 cents from last week and its highest close since January 18. KCBT nearbys were up 12 cents, to $5.11/bu, and MGEX nearbys were up 8 cents, to $5.16/bu. Corn and soybean prices were up as well, with corn gaining 18 cents to close at $3.78/bu and soybeans gaining 6 cents, at $9.51/bu.
  • The International Grains Council (IGC) released their latest wheat production estimates, increasing their 2009/10 global production estimate to 675 MMT, up 1.0 MMT from last month. The increase was due to increased estimates for Russia, Australia, and Algeria. IGC’s current forecast for 2010/11 global production is 659 MMT, which is a 6.0 MMT increase from last month’s projection. IGC anticipates U.S. production to decrease 10 percent, from 60.3 MMT in 2009/10 to 54.0 MMT in 2010/11.
  • The Canadian Wheat Board (CWB) also released their 2010/11 production estimates this week. The CWB expects 2010/11 Canadian production to fall 9 percent from last year, from 26.5 MMT to 24.0 MMT. The CWB projects global production in 2010/11 to reach 651 MMT, which is 8.0 MMT less than IGC’s estimate.
  • The Baltic Panamax Index continued to climb, gaining 7 percent on the week and closing at 3,399. Destination routes were also firmer, with Gulf/Japan at $65/mt and PNW/Japan at $38/mt.
  • The ICE Dollar Index was lower this week, falling from 80.64 last week to 80.38 this week. The index was as high as 80.85 on Tuesday before falling sharply on Friday. Despite the fall this week, the index is up 1 percent over the past month and 4 percent since the beginning of 2010.

File Name
PR 100226.pdf
PR 100226.xls
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