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August 5, 2011

(See attached file: PR 110805.pdf)(See attached file: PR 110805.xls)

Highlights:
  • Futures traded mixed this week with the CBOT and KCBT nearbys posting gains, while the MGEX September contract fell from last week. Spillover from the strength in corn prices pushed wheat prices sharply higher early in the week. On Tuesday, the CBOT and KCBT nearbys gained 41 cents and 36 cents, respectively, while the gain in the MGEX nearby contract, which gained 15 cents, was limited by favorable weather conditions for the developing spring wheat crop. Prices fell by the week’s end, however, as concerns over the global economy and a strengthening dollar pressured prices. Overall, the CBOT September contract gained six cents from last week, closing at $6.79/bu, and the KCBT September contract gained 13 cents, to $7.80/bu. The MGEX September contract lost three cents from last Friday, closing at $8.27/bu. Corn prices were up on the week as concerns that warm temperatures would limit the crop’s yield potential supported prices. The CBOT September corn contract reached the daily maximum limit on Tuesday, closing 30 cents higher, and closed on Friday at $6.93/bu, up 27 cents from a week ago. The CBOT August soybean lost 22 cents this week, closing at $13.31/bu., as concerns over the global economy, a sharp decline in petroleum prices, and improving weather conditions pressured prices.
  • Agriculture and Agri-Food Canada reduced its 2011/12 Canadian wheat production outlook this week. AAFC reduced their all-wheat production estimates from last month’s projections due to a reduced harvested area outlook. AAFC projected Canadian durum production at 3.8 MMT, down from July’s estimate of 4.0 MMT. AAFC’s projected 2011/12 all-wheat production for Canada stands at 23.0 MMT, down from an estimated 24.0 MMT last month and below last year’s total of 23.2 MMT.
  • Informa Economics released its August US Crop Report this week. Infoma revised its 2011/12 U.S. wheat production estimate to 57.6 MMT, an increase of 0.3 MMT from July, which would be down 2.5 MMT from a year ago. The report projected US winter wheat production at 40.9 MMT, up 0.4 MMT from last month. Estimated spring wheat production stood at 15.1 MMT, up 0.1 MMT from the July forecast. US Durum production was pegged at 1.6 MMT, 0.2 MMT lower than last year and 1.4 MMT below last month’s projection.
  • The ICE Dollar index rose this week, thanks mostly to a strong showing on Thursday. The index gained over one percent on Thursday, reaching 75.12. On Friday, the Dollar Index stood at 74.50, up from 73.85 a week ago.
  • The Baltic Panamax Index fell again this week. The index stood at 1,478 on Friday, down from 1,511 last week. Destination rates were also lower, with the Gulf/Japan route down $1 to $50/MT.

File Name
PR 110805.pdf
PR 110805.xls
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