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March 26, 2010
(See attached file: PR 032610.pdf) (See attached file: PR 032610.xlsx)

Highlights:
  • Futures prices traded lower this week, pushed down by bearish news in the markets, a strengthening US dollar, good crop weather, and French and Russian wheat sales into Latin America and Asia. Overall, CBOT wheat futures lost 19 cents on the week, closing at $4.65/bu. The KCBT May contract was down 16 cents, to $4.76/bu, and MGEX was down12 cents, to $4.97/bu. Soybean prices changed direction due to a falling oil price, rising US dollar, and improving weather in the Midwest, dropped 10 cents on the week to close at $9.52/bu. Corn was also down, losing 19 cents and closing at $3.56/bu.
  • French wheat traders have made several sales into markets where French wheat is not usually sold. Recent sales to Brazil, Mexico, Venezuela, Thailand, Puerto Rico, and Peru are seen as only deals of the moment. Russia wheat was also sold to Peru and Venezuela. The weakening Euro and special freight deals on empty ships returning to the western hemisphere helped spur the sales.
  • The US winter wheat crop has reportedly emerged from its winter dormancy in good condition and little winter kill. Despite reduced acres many analysts are predicting excellent yields this year which is helping push US wheat prices lower. Some regions have experienced extreme variations in weather. Oklahoma got significant snowfall last weekend, but in parts reached 70 degrees Farenheit by the middle of the week.
  • The US dollar was pushed higher this week as credit rating agencies downgraded Portugal, spreading further worries about the stability of the Euro. Greece is reportedly requesting help from the International Monetary Fund and many other smaller countries in the Eurozone are beleived to be close to their own debt crisis.
  • The Baltic Panamax Index reversed its course this week closing down Friday at 3965, its lowest in three weeks. Weakness in the Capesize markets from a lack of iron ore shipments is pulling all shipping down. Maritime Research’s Grain Freight Index was also down, closing at 562.6. The freight market is not expected to have large growth this year due to new ships coming online.

File Name
PR 032610.pdf
PR 032610.xlsx
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