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April 12, 2013
(See attached file: PR041213.pdf)(See attached file: PR041213.xlsx)

  • US wheat futures ended higher this week. Prices rallied early in the week due to a cold snap possibly damaging the HRW crop and delaying the planting of the HRS crop. A mid-week drop due to improved crop conditions and higher projected ending stocks was quickly overcome by a late week rally thanks to additional feed demand and a large purchase of SRW by China. Chicago futures closed 16 cents higher at $7.15, Kansas City futures closed 27 cents higher at $7.53, and Minneapolis futures closed 20 cents higher at $8.08. Soybean markets rallied higher due to projections that the US will have its lowest soybean ending stocks in ten years. Worries about the possibility of a late planting season also boosted prices. Soybean futures closed up 51 cents to $14.13 per bushel. Corn futures as well rallied on concerns over delayed planting due to wet weather across the Corn Belt. Corn futures closed up 30 cents to $6.59 per bushel.
  • A later than normal start to spring has plagued the US Midwest and Plains, Western Canada, Western Europe, and the Black Sea Region. The later spring has raised concerns over possible crop damage, possible delays to harvest seasons, and a delay in the planting of spring grains.
  • India has found itself priced out of the export market, removing concerns of Indian wheat flooding the world market. The government has been unable to sell wheat below $300 per MT ($8.17 per bushel), below which they will be losing money on the deal. The Indian government's past two export tenders did not attract any offers.
  • Weekly US wheat export sales for April 4 reached 263.5 TMT, up 87 percent from the previous week, down 50 percent from the prior 4 week average, and above market expectations of 100 to 250.0 TMT. Total US wheat export sales for 2012/13 up to April 4 reached 25.7 MMT, 2.2 percent lower than this same time last year.
  • The Baltic Panamax Index climbed 18 points this week to close at 1112. The past few weeks have seen increased demand for Panamax sized bulk vessels as shipments of corn and soybeans from South America have increased following Brazil and Argentina's harvests. Maritime Research's Grain Freight Index rose 0.8 points to 497.7.
  • The US Dollar Index fell 0.47 points this week to 82.13. The weakness this week is largely due to the strengthening Japanese yen and concerns over poor US retail sales.

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