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June 21, 2013

(See attached file: PR 130621.pdf) (See attached file: PR 130621.xls)

  • All three U.S. wheat futures markets closed higher this week due to stronger demand prospects and technical bargain buying. Tight supplies of high-protein wheat ahead of harvest and rain-related harvest delays added support to KCBT wheat. Forecasts for drier weather that should allow spring wheat farmers to finishing planting this week limited MGEX gains. KCBT July wheat gained 25 cents on the week to close at $7.37/bu and CBOT July wheat added 17 cents to $6.98/bu. The MGEX July contract closed at $8.14/bu, a 2 cent increase. CBOT July corn added 7 cents to $6.62/bu and CBOT July soybeans dropped 23 cents to $14.93/bu.
  • Lower relative wheat prices in the last few weeks have made wheat an attractive feed alternative for livestock producers struggling from tight corn supplies. The potential for increased wheat use supported futures this week.
  • On Monday, USDA said winter wheat harvest was 11 percent complete as of June 16, below last year’s 51 percent and the five-year average of 25 percent. USDA reported 92 percent of spring wheat planting was complete as of June 16, compared to 100 percent complete last year and the five-year average of 97 percent.
  • The Taiwan Flour Millers' Association bought 85.5 MMT of U.S. wheat this week, its first purchase of U.S. supplies since the discovery of an unapproved strain of genetically modified wheat in an Oregon field in May. The move added support to markets as a sign of increased demand.
  • In its weekly commercial sales report on Thursday, USDA said that 2013/14 export sales of wheat were 432,700 MMT in the latest week, in line with estimates for 350,000 to 550,000 MMT. Total known outstanding sales and accumulated exports of all classes of wheat for the 2013/14 marketing year, through June 13, 2013 were 7.84 MMT, 23 percent greater than last year's year-to-date total of 6.39 MMT.
  • The Baltic Panamax Index increased for the second consecutive week, up 68 points to 927. Steady demand from Brazil and China is mostly responsible for the increase. Maritime Research's Grain Freight Index increased from 480.7 to 484.0.
  • The US Dollar Index gained 2 percent this week up from 80.66 to 82.52.

File Name
PR 130621.pdf
PR 130621.xls
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