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October 2, 2009

(See attached file: PR 091002.pdf)(See attached file: PR 091002.xls)
  • Futures traded lower this week, with all exchanges reaching new contract lows. A weakening dollar sparked a rally on Wednesday, but the rally was short-lived due to increased U.S. production estimates by USDA in their Small Grains Summary. CBOT December contracts closed at $4.41/bu, down 8 cents from last week. KCBT nearbys closed at $4.59/bu, down 9 cents, and MGEX nearbys closed at $4.78/bu, down 8 cents. Informa Economics increased their production estimates for corn and soybeans, causing them to trade lower as well. Soybeans were down sharply, dropping 39 cents on the week to close at $8.92/bu. Corn dropped 1 cent and closed at $3.33/bu.
  • USDA released both their Small Grains Summary and Grain Stocks Report on Wednesday. The Small Grains Summary projected total U.S. wheat production at 2.2 billion bushels (60.4 MMT), up 2% from the August forecast. The summary also indicated record yields for spring and durum wheat, 45.0 bpa and 43.7 bpa, respectively. The Grain Stocks Report stated that wheat stored in all positions as of September 1, 2009 totaled 2.22 billion bushels, up 19% from a year ago.
  • The CME Group announced it would implement variable storage rates for its Chicago Board of Trade wheat futures contracts in an effort to facilitate convergence between futures and cash prices. CME plans to implement the variable storage rates with the expiration of the September 2010 contract.
  • Export sales were up 6% from last week, totaling 538,200 metric tons. Increases were reported for Mexico (42,695 HRW, 10,285 HRS, 16,823 SRW), Philippines (25,542 HRS, 38,733 white), Nigeria (8,500 HRW, 24,000 SRW, 10,000 white, 20,500 durum), Egypt (62,997 SRW), Venezuela (12,500 HRW, 30,000 HRS), Chile (26,250 HRW, 6,600 HRS, 9,512 white), Italy (42,000 durum), and Japan (6,000 HRW, 18,960 HRS, 6,870 white).
  • The Baltic Panamax Index was relatively flat this week, closing 44 points higher than last week at 2,361. While destination routes from the PNW and Gulf to Japan remained unchanged from last week, routes from the Great Lakes to Europe climbed higher due to a lack of inbound ships. The Great Lakes/Rotterdam route is currently at $65/mt and St. Lawrence/Rotterdam at $32/mt.

File Name
PR 091002.pdf
PR 091002.xls
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