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November 9, 2006

(See attached file: PR061109.pdf)(See attached file: PR061109.xls)

Futures prices fell again this week despite strength in corn futures, which rose to a 10 year high. CBOT nearbys down 5 cents/bu for the week are 38 cents/bu ($13/MT) lower than October 13. KCBOT nearbys down 8 cents and MGE down 2.

USDA left their forecast for the U.S. wheat complex unchanged in today's WASDE release, surprising the trade who expected a decrease in export projections. With 13.4 MMT on the books at the midpoint of the marketing year, export sales are 53% of the 25.2 MMT forecast by USDA.

HRW premium to SRW off slightly this week to 45 cents/bu ($16/MT). SRW nearby cash premium to SW down to 35 cents/bu ($13/MT).

Durum export sales remain limited by strong prices in the domestic market, trading at a premium to the export market. A nominal price range for the Lakes program is $5.58/bu ($205/MT) to $5.99/bu ($220/MT) and 90 cents/bu ($33/MT) more at the Gulf.

Barge rates on the Mississippi continue to be volatile while the Ohio stays unchanged. After increasing 32% last week, the Minneapolis to NOLA rate fell 15% this week to $34/MT. The rate increase was due to a correction from the spike in the previous week and warm weather that increased draft and vessel capacity. Mississippi rates remain between 28% and 47% higher than this week last year. Rates on the Ohio were generally stable from last week and year ago levels. The Cinncinnati - NOLA rate is $19/MT.

Ocean freight has become a serious drag on U.S. exports out of PNW and Lakes ports. The Pacific jumped again with most rates $3/MT higher than last week. The benchmark PNW-Japan rate is $42/MT, $17/MT (68%) higher than this week last year. Rates out of the Lakes are 80% higher than last year with the Duluth-Algeria rate fixing at $75/MT. Duluth-Morocco is at $70/MT. Gulf routes were unchanged again this week, remaining generally equal to levels paid last year.

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