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January 8, 2010

(See attached file: PR 100108.pdf)(See attached file: PR 100108.xls)

  • Heavy fund buying as investors reallocate their portfolios continues to override bearish fundamentals in the wheat markets. Nearby prices climbed higher for the third consecutive week, with CBOT nearbys up 10 cents to $5.68/bu. KCBT nearbys rose 9 cents, to $5.60/bu and MGEX climbed 14 cents, to $5.75/bu. Soy prices declined sharply this past week, by 36 cents, due to slowing demand from China and increased production estimates in South America. CBOT soy nearbys closed at $10.13/bu on Friday. Corn nearbys were up 4 cents, to $4.23/bu.
  • USDA will release its 2010 winter wheat seedings report on Tuesday. The trade projects a 6 percent decrease in total U.S. winter wheat plantings, from 43.3 million acres last year to 40.5 million acres this year. The largest decline will be in soft red winter wheat plantings, which are expected to fall 16 percent, from 8.3 million acres to 7.0 million acres.
  • The wheat harvest in Argentina made significant progress this past week. The Buenos Aires Grains Exchange reports the harvest at 93 percent complete, up from 71 percent a week ago, but down 5 percent from this time last year.
  • Commercial sales were a marketing-year low for the week ending December 31, 2009. Net sales of 93,400 metric tons were 75 percent below the previous week and well below trade estimates of 250,000 to 450,000 metric tons. Increases were reported for Yemen (50,000 white), Nigeria (33,861 HRW, 1,000 SRW), Ecuador (7,283 HRW, 16,317 SRW), Israel (17,527 HRW), and Mexico (8,143 SRW).
  • The Baltic Panamax Index (BPI) climbed for the second consecutive week, to 4,218. The index is up 10 percent from Monday‚Äôs close and 18 percent since December 24. An increased demand for coal due to colder weather has supported freight rates.

File Name
PR 100108.pdf
PR 100108.xls
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