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June 10, 2011

(See attached file: PR110610.pdf)(See attached file: PR 110610.xlsx)

Highlights:
  • Futures traded down this week as the expected reopening of Russia's grain export market put downward pressure on wheat prices. The HRW and SRW harvests have started to hit full swing. Farmers in Kansas reported better than expected yields and good quality. Profit taking and the slow export market also put downward pressure this week. Overall, the CBOT July contract lost 14 cents on the week, closing at $7.59/bu. KCBT July futures lost 46 cents, closing at $9.14/bu. Despite ongoing planting delays and more rain falling this week in the Northern Plains, the MGEX July contract posted a 60-cent loss from last Friday, closing at $10.00/bu. CBOT corn rose this week on continued worries of a world supply shortage and adverse weather cut expected planted acres in the US. CBOT July corn gained 33 cents from last Friday, closing at $7.87/bu. Soybeans prices fell sharply due to lower demand and expectations that farmers unable to plant corn or spring wheat will switch to soybeans. Soybeans lost 54 cents this week to close at $14.15/bu.
  • USDA released their first Crop Progress report of the spring this week. USDA reported 37 percent of the winter wheat crop in either good or excellent condition, down from 65 percent last year and the lowest rating in the past nine years. HRW conditions are currently below average due to ongoing dry conditions, especially in Texas and Oklahoma. SRW and winter white conditions are currently above average.
  • Informa Economics released their April US Crop Reports this week. Informa projected 2011/12 US winter wheat production at 40.7 MMT, down from their March projection of 41.7 MMT, but still one percent greater than last year’s total. Of this, HRW accounted for 23.1 MMT, SRW totaled 11.5 MMT, and projected winter white output stood at 6.2 MMT.
  • As of June 5 the spring wheat planting continued to be slow with 79.0 percent of the crop planted compared to a five year average of 98.0 percent.
  • The USDA ag attache in Russia reported that the country may have as much as 6.0 MMT in storage more than what earlier reports indicated.
  • As of June 5 North Dakota's durum crop is reported to be only 25.0 percent planted compared to a five year average of 94.0 percent.
  • French wheat production is expected to fall 13.0 percent this year due to drought. French wheat exports are expected to fall by as much as 45.0 percent.
  • The ICE Dollar Index rose this week due to concerns over the euro following a European Central Bank meeting, putting downward pressure on commidity prices. The index stood at 74.83 on Friday, down from 73.72 a week ago.
  • The Baltic Panamax Index was up this week, rising 136 points to close at 1,927 on Friday. The Baltic Dry Index continued to fall this week, closing at 1,418 on Friday, down from 1,489 a week ago due to continued worries over increased ship deliveries.

File Name
PR110610.pdf
PR 110610.xlsx
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