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November 5, 2010

(See attached file: PR 101105.pdf)(See attached file: PR 101105.xls)

Highlights:
  • Futures traded higher this week, primarily supported by the weaker dollar. Wheat prices were down on Monday due to profit taking, but the Federal Reserve’s decision to buy $600 billion in Treasury bonds pushed the dollar lower and commodity prices soared. CBOT nearbys gained 23 cents on Thursday and finished the week at $7.28/bu, an 11-cent gain from last Friday. KCBT nearbys were up 15 cents, to $7.86/bu, and MGEX gained 20 cents, to $7.97/bu. Soybean prices were up sharply, gaining 47 cents from a week ago, due to strong export sales and the weaker dollar. The CBOT November soybean contract closed at $12.73/bu on Friday. Corn prices were also up, with CBOT nearbys gaining 5 cents from last week and closing at $5.87/bu.
  • Informa Economics increased their 2010/11 wheat production forecast for both Argentina and Australia in their latest crop production estimates. Informa pegged Argentine production at 13.0 MMT, up 1.8 MMT from their previous forecast, and increased their Australian projection by 1.2 MMT, to 25.2 MMT.
  • Winter wheat conditions were slightly lower this week as dryness persists in many HRW and SRW growing areas. USDA reported 46 percent of the winter wheat crop in good or excellent condition, down from 47 percent last week.
  • Hard red spring Gulf FOB basis was a bit softer this week with increased farmer selling. Gulf HRS FOB for 14 percent protein was at $2.20/bu this week, compared to $2.40/bu last week.
  • The dollar was lower this week following the Federal Reserve’s decision to buy Treasury bonds, with the Dollar Ice Index falling from 77.27 last week to 76.58 on Friday. The index reached its lowest point since early December of last year on Thursday, at 75.88. The Australian dollar reached a new 28-year high against the U.S. dollar for five consecutive days following the Reserve Bank of Australia’s surprise decision to increase interest rates.
  • The Baltic Panamax Index was softer this week, losing four percent from a week ago and closing at 2,304. The Baltic Exchange’s main sea freight index, the Baltic Dry Index, fell to a one-month low on Friday, closing at 2,495, due to growing vessel availability.

File Name
PR 101105.pdf
PR 101105.xls
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