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April 1, 2010

(See attached file: PR 040110.pdf) (See attached file: PR 040110.xlsx)

Highlights:
  • Futures prices traded lower this week, pushed down by a bearish USDA planting report and large world supplies. The markets were supported by larger than expected export sales this week and short-covering by commodity funds with large net short positions. Overall, CBOT wheat futures lost 10 cents on the week, closing at $4.55/bu. The KCBT May contract was down 6 cents, to $4.70/bu, and MGEX was down 8 cents, to $4.89/bu. Soybean prices continued downward dropping 10 cents on the week to close at $9.42/bu. Corn was also down, losing 11 cents and closing at $3.45/bu.
  • The USDA is predicting in its Potential Planting Report that US wheat acres will fall 9.0% to 53.8 million acres. HRW acres are expected to fall 8.4% to 28.3 million acres. SRW acres are expected to fall 28.6% to 6.0 million acres. HRS acres are expected to rise 4.7% to 13.3 million acres. White wheat acres are expected to fall 7.0% to 4 million acres. Durum acres are expected to fall 12.0% to 2.2 million acres.
  • Striking dockworkers shutdown three of Argentina's largest grain ports, slowing grain exports, stopping grain deliveries, and shutting down the Rosario grain market. The government intervened and an agreement to end the strike was reached on Wednesday. Argentina's soybean farmers were further hit when China, the worlds largest soy importer, advised its private companies to stop buying Argentine soy oil on quality concerns.
  • The US dollar fell this week after the government released data showing lower than expected jobless claims, higher than expected increases in manufacturing productivity, sharp jumps in automobile sales, and strengthening treasury yields. Investors are becoming more confident that a world economic recovery has started.
  • The Baltic Panamax Index continued its downward course this week closing on Thursday at 3708. Continued worries about the growing ocean freight fleet pushed the index downward. Maritime Research’s Grain Freight Index was also down, closing at 557.7. Some support was provided by long ship queues at ports in Australia and Brazil.

File Name
PR 040110.pdf
PR 040110.xlsx
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