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May 24, 2013


(See attached file: PR 130524.pdf) (See attached file: PR 130524.xls)

Highlights:
  • All three front-month wheat futures contracts closed higher this week. The largest boost came from much higher than expected export sales data on Thursday. Spillover strength from the corn market added support midweek and the MGEX July contract moved higher due to tight spring wheat stocks on the cash market. CBOT had the largest gain of the three this week, up 20 cents to $7.03/bu. KCBT added 17 cents to close at $7.55/bu and MGEX closed 10 cents higher at $8.13/bu. CBOT July corn gained 9 cents to $6.62/bu and CBOT July soybeans added 51 cents to close at $15.00/bu on Friday.
  • HRW basis levels from the gulf increased this week as a result of greater demand, particularly from Brazil. Brazil temporarily lifted its import tariff, allowing up to 2.0 MMT of duty-free wheat imports from non-Mercosur countries.
  • In its weekly commercial sales report on Thursday, USDA reported better than expected export sales for both old-crop and new-crop US wheat. USDA said wheat sales for the 2012/13 marketing year were 239,000 MT, greater than trade estimates for up to 200,000 MT. Weekly wheat sales for marketing year 2013/14 were 713,600 MT, well above expectations for sales of 300,000 to 400,000 MT.
  • The Baltic Panamax Index fell for the fifth straight week, down 76 points to 854. The index has fallen 29 percent since April 19. Despite steady business from the South American grain industry, vessel supply still greatly exceeds demand and continues to weigh heavily on the index. Maritime Research's Grain Freight Index fell from 481.9 to 399.2.
  • The US Dollar Index fell this week from 84.39 to 83.76.

File Name
PR 130524.pdf
PR 130524.xls
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