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December 11, 2009

(See attached file: PR 091211.pdf)(See attached file: PR 091211.xls)

  • A strengthening dollar and slow exports pressured U.S. wheat prices this week. CBOT nearby prices fell 17 cents, closing at $5.19/bu. KCBT December contracts closed at $5.17/bu, down 18 cents from last week, and MGEX nearbys dropped 20 cents to close at $5.27/bu. Soybean prices were also down, falling 8 cents to $10.35/bu. CBOT corn prices climbed higher on the week due to harvest delays caused by blizzard conditions in the Midwest. Corn nearby prices climbed 15 cents to $3.89/bu.
  • The U.S. Department of Agriculture (USDA) released their December World Agricultural Supply and Demand Estimates (WASDE) this week. The report contained bearish news for global wheat markets, increasing total production by 2.0 million metric tons (MMT) to 674 MMT. The increase was primarily due to better yields in Canada. USDA also increased global ending stocks, by 2.6 MMT, to 191 MMT.
  • The Australian Bureau of Agriculture and Resource Economics (ABARE) released their latest production estimates this week. ABARE decreased the Australian production forecast to 21.9 MMT, down from 22.7 last month. The reduction was due to untimely rains in Western Australia that interfered with harvest and severe heat in northeastern Australia, which reduced yields. If realized, 21.9 MMT would be the largest Australian wheat crop since the 2005/06 marketing year, which reached 25.2 MMT.
  • Last week’s export sales totaled 245,200 metric tons, a 37 percent decrease from the previous week and below trade estimates of 350,000 to 450,000 MT. Increases were reported for Nigeria (49,998 HRW, 48,342 SRW), Japan (24,600 HRS, 33,080 white, 251 durum), Peru (25,000 HRW, 5,000 white), Canada (25,803 HRS), South Korea (7,500 HRW, 4,900 HRS, 500 SRW, 11,610 white), Venezuela (16,998 HRW, -138 HRS), Algeria (15,843 durum), and Mexico (10,282 HRW, 199 HRS, 3,570 SRW).
  • The dollar continued to strengthen this week, reaching a two month high. The ICE dollar index was at 76.52 on Friday, up from 75.78 a week ago.
  • The Baltic Panamax Index (BPI) fell 6% on the week, closing on Friday at 3,673. Chinese demand for iron ore, the primary driver of the index, has slowed this past week due to large stockpiles. Destination routes were also lower, with Gulf/Japan at $69/mt and PNW/Japan at $39/mt.

File Name
PR 091211.pdf
PR 091211.xls
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