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October 14, 2016
  • US wheat futures rose this week on an improve outlook for exports as prices become more competitive with other world suppliers. A round of technical buying and short covering following the markets breaking above key resistance points also helped fuel the rally. Chicago wheat futures closed the week at $4.21 per bushel, up 26 cents compared to last week. Kansas City wheat futures closed up 15 cents at $4.18 per bushel. Minneapolis futures closed at $5.29 per bushel, up 4 cents. Corn and soybean markets also closed higer on strong exports, which are expected to continue until the harvest of new crop in South America. Corn futures rose 14 cents to $3.54 and soybean futures rose 6 cents to $9.63 per bushel.
  • French wheat exports are 30 percent behind last year, and continuing to fall.
  • Global premiums for high protein wheat are on the rise due to limited quality supplies.
  • Rainfall and frosts in Australia are raising quality concerns for the near record crop.
  • Heavy rainfall continues to hamper the Western Canadian spring wheat and durum havest, which is already well behind schedule. Concerns are rising that up to a third of the crop may not be of good enough quality to be exported without blending.
  • The USDA lowered its forecast for world ending stocks by 0.7 MMT, but they are still a record.
  • The USDA raised its forecast for US wheat exports by 0.7 MMT, on better competitiveness, but also raised US ending stocks by 1.0 MMT on lower feed and residual use, partially offset by lower production.
  • The Baltic Dry Index fell to 885, down from 915 last week, on weak econmic news from China.
  • The US Dollar Index rose to 98.06, up from 96.62 last week, on expected higher interest rates.

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