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May 3, 2013


(See attached file: PR 130503.pdf) (See attached file: PR 130503.xls)

Highlights:
  • All three wheat futures contracts increased sharply this week due to weather induced production concerns for HRW and HRS wheat. Snow and freezing temperatures in Kansas, Colorado and Nebraska added stress to the developing HRW wheat, which is already struggling due to persistent drought conditions. Storms in the northern Plains have significantly delayed spring plantings. Strong export demand and strength in the corn market also supported wheat this week. The MGEX May contract had the largest gain, up 47 cents to $8.59/bu. KCBT May gained 34 cents to $7.90/but and CBOT wheat closed up 23 cents at $7.11/bu. CBOT May corn gained 56 cents to $7.00/bu and CBOT May Soybeans closed at $14.55/bu, a 24 cent gain.
  • The percentage of the winter wheat crop rated good to excellent fell one percent this week to 35 percent, according to USDA, compared to 63 percent last year at this time and the lowest since 1996. The percentage of the crop rated poor to very poor increased 2 points to 33 percent, compared to just 10 percent last year. Just 8 percent of the winter crop has headed, compared to 42 percent last year and below the 5-year average of 19 percent.
  • Significant spring wheat planting delays have caused production concerns and supported futures markets this week. USDA reports just 7 percent of total spring wheat as planted, down from 52 percent at this time last year and below the 5-year average of 24 percent. Washington and Idaho are both ahead of the 5-year average planting pace but North Dakota and Minnesota have not reported any spring planting to date, compared to 42% and 80% complete last year, respectively. USDA reports spring wheat in South Dakota and Montana is 6 percent planted, compared to 90% and 45% planted last year, respectively.
  • In its weekly report released Thursday, USDA reported commercial wheat sales for the 2012/13 marketing year of 219,200 MT, up noticeably from the previous week and within trade estimates of 150,000 to 250,000 MT. Commercial sales of 497,300 MT for delivery in the 2013/14 marketing year exceeded trade estimates of 300,000 to 400,000 MT.
  • The Baltic Panamax Index fell from 1082 last week to 1010 points on Friday. Lower activity due to holidays in Asia and much of Europe weighed on the market this week. Waning demand from the South American grain harvest added pressure. Maritime Research's Grain Freight Index fell from 491.9 to 489.6.
  • The US Dollar Index dropped 0.37 points this week to close at 82.20.

File Name
PR 130503.pdf
PR 130503.xls
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