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April 26, 2013


(See attached file: PR 130426.pdf) (See attached file: PR 130426.xls)

Highlights:
  • Wheat futures closed mixed this week. Forecasts for drought-easing rain in HRW country led all three futures contracts lower early in the week. Weaker prospects for U.S. exports due to higher planted wheat area in Canada and a re-emergence of Black Sea exporters also added pressure. On Thursday, cold weather and snow showers sparked fear of further crop damage and sent futures notably higher, particularly KCBT. Following Thursday’s gains, a round of profit taking sent markets lower on Friday. KCBT was the only nearby wheat contract to add value this week, gaining 11 cents to $7.57/bu. MGEX lost 14 cents to close at $8.11/bu and CBOT closed 21 cents lower at $6.89/bu. CBOT May corn lost 8 cents to $6.44/bu and CBOT May soybeans gained 3 cents to $14.31/bu.
  • Events in the Black Sea countries this week indicated greater competition and lower potential for U.S. wheat exports. A flour mill in Oman bought 35.0 MMT of milling wheat, likely of Russian origin. Russia was inactive in the world export market for months due to low supply and high prices. Ukraine’s Agriculture Ministry lifted a cap on wheat exports, allowing traders to ship an additional 500,000 MT.
  • A disappointing U.S. commercial sales report reinforced concerns that demand for U.S. wheat exports is weakening. USDA said on Thursday that export sales for marketing year 2012/13 were 71,700 MT in the latest week, below forecasts for 200,000 to 400,000 MMT. New-crop export sales for marketing year 2013/14 were 234,700 MT compared to forecasts for 400,000 to 600,000 MT.
  • In its first planting intentions report released Wednesday, Statistics Canada estimated all-wheat planted area in Canada to reach 26.6 million acres, up from 23.7 million acres last year and well above analysts’ expectations. A shift away from canola helped push wheat acres higher.
  • Delayed spring wheat plantings limited MGEX losses early in the week. Northern spring wheat areas received snow this week and USDA reported just 7 percent of the spring crop planted, down from the five-year average of 24 percent.
  • The Baltic Panamax Index fell 114 points this week to close at 1082. Lower activity in both grain and iron ore shipping weighed on the market. In addition, analysts anticipate a drop in demand next week due to holidays in Asia. Maritime Research's Grain Freight Index fell from 495.2 to 491.9.
  • The US Dollar Index dropped 0.18 points this week to close at 82.57.

File Name
PR 130426.pdf
PR 130426.xls
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