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August 2, 2013


(See attached file: PR 130802.pdf) (See attached file: PR 130802.xls)

Highlights:
  • U.S. wheat futures closed higher this week. Rising world demand and worries that global production won’t be sufficient to meet that demand contributed to gains. Concerns that global production issues will lead to tight supplies of high protein wheat supported KCBT and MGEX future. Markets fell slightly on Thursday due to spillover pressure from sharp declines in corn futures. KCBT September wheat added 15 cents to close at $7.07/bu on Friday. CBOT wheat closed 10 cents higher at $6.61/bu and MGEX added 5 cents to $7.42/bu. CBOT September corn fell 5 cents to $4.88/bu and CBOT August soybeans dropped 19 cents to $13.31/bu.
  • The $1.73/bu premium of nearby CBOT wheat to CBOT corn is the largest since February 2011.
  • Japan purchased nearly 90,000 MT of U.S. Western White wheat in a tender on Thursday. It was the first such purchase since late May when Japan suspended new purchases of Western White following the discovery of volunteer wheat plants with an unapproved genetically modified trait in a single field in Oregon. The wheat is scheduled for October delivery.
  • In its monthly report, the International Grains Council (IGC) raised its forecast for 2013/14 global wheat production by 4.0 MMT to 687 MMT, compared to 654 MMT the prior year. IGC raised estimated global consumption by the same margin to 686 MMT, up from 673 MMT in 2012/13. Higher than expected feed use in China and the US account for the increased consumption estimates.
  • On Thursday, USDA reported weekly commercial wheat sales of 596,900 MT. Total known outstanding sales and accumulated exports of all classes of wheat for the 2013/14 marketing year, through July 25, 2013 were 12.9 MMT, 45 percent greater than last year's year-to-date total of 8.92 MMT. USDA forecasts 2013/14 U.S. wheat exports (including donations) to reach 29.3 MMT.
  • The Baltic Panamax Index fell for the second consecutive week, down 83 points to 1021. An oversupply of ships remains and the market could not sustain the July rally. Limited growth in grain exports weakened support for Panamax freight. Maritime Research's Grain Freight Index decreased from 491.2 to 489.5.
  • The US Dollar Index increased from 81.76 last Friday to 81.98.

File Name
PR 130802.pdf
PR 130802.xls
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