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December 7, 2012


(See attached file: PR 121207.pdf) (See attached file: PR 121207.xls)

Highlights:
  • All three wheat markets remained relatively unchanged this week as no new fundamental news was present. Technical selling early in the week pushed futures lower but continued dry weather in the U.S. plains minimized losses. Following a round of bargain buying that supported prices on Wednesday, a firmer U.S. dollar and weakness in the corn market pressured wheat on Thursday and Friday. CBOT and MGEX December wheat each fell 1 cent to $8.44/bu and $9.17/bu, respectively. KCBT fell 2 cents to $8.96/bu. CBOT December corn closed 15 cents lower at $7.33/bu and CBOT January soybeans gained 34 cents to $14.72/bu.
  • ABARES cut its 2012/13 Australian wheat production estimate this month by 2.3 percent to 22.0 MMT due to dry weather in Western Australia. Production is expected to fall far short of last year’s record crop of 29.5 MMT.
  • Last weekend, Egypt's GASC made the first U.S. wheat purchase of the marketing year. The news helped to support prices early on Monday.
  • Extremely low water levels in the Mississippi River are causing logistical issues for grain movement and supporting basis levels in the Gulf.
  • The Baltic Panamax Index fell from 980 last week to 936 on Friday. Demand from Chinese steel mills, which heavily influences the index, is lower as mills draw on port stocks rather than seaborne imports. Maritime Research's Grain Freight Index fell 1.7 points to end at 502.3.
  • The US Dollar Index fell from 81.31 last week to 80.40 on Friday.

File Name
PR 121207.pdf
PR 121207.xls
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