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September 20, 2013
  • Wheat futures closed mixed this week. Cool temperatures and rain in the U.S. Plains boosted planting conditions for the winter wheat crop, which pressured futures. Plentiful supplies of HRW and HRS after harvest also weighed on markets. Better-than-expected weekly export sales and a seven-month low U.S. dollar value supported wheat markets. CBOT December wheat added 5 cents to $6.46/bu and KCBT closed 1 cent higher at $6.93/bu. MGEX December wheat fell 6 cents to $7.00/bu. CBOT December corn dropped 8 cents to $4.51/bu and CBOT November soybeans fell 66 cents to $13.15/bu.
  • As a result of the narrowing spread between the KCBT and MGEX December contracts, low protein HRS is cheaper than high protein HRW. Traders anticipate a shift in demand from HRW to HRS. Consequently, the protein spread for HRS narrowed in the PNW and HRW basis for December forward eased.
  • In its weekly crop progress report, USDA reported spring wheat harvest as 90% complete, compared to 99% at this time last year and up from the 5-year average of 87%. Winter wheat planting is on pace with the 5-year average at 12 percent complete as of September 15.

  • USDA reported weekly commercial wheat sales of 704,400 MT, up 30 percent from the previous week and above trade expectations of 500,000 to 650,000 MT. Total outstanding sales and accumulated exports of all classes of wheat for the 2013/14 marketing year, through September 12, 2013 were 17.1 million metric tons (MMT), 38 percent greater than last year's year-to-date total. USDA forecasts 2013/14 wheat exports to reach 29.9 MMT.
  • The Baltic Panamax Index rose from 1,306 last Friday to 1,453. The index has increased 61% since August 23. Seasonally high export demand from Brazil and import demand from China supported freight indices.
  • The US Dollar Index fell from 81.46 last Friday to 80.55.

File Name
PR 130920.pdf
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