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January 9, 2015
  • Wheat futures closed lower this week due to continued pressure from record world stocks and high U.S. prices relative to competitors. The U.S. dollar hit a nine-year high, further reducing demand for U.S. wheat. A bearish USDA export sales report showed net weekly cancellations of 29,329 metric tons for HRW. Frigid temperatures throughout the U.S. plains threatened crops and lent support to futures. CBOT March wheat fell 18 cents to $5.64/bu, KCBT dropped 17 cents to $6.01/bu and MGEX closed 8 cents lower at $6.03/bu. CBOT March corn added 5 cents to $4.00/bu and CBOT January soybeans closed 49 cents higher to $10.52/bu.
  • The nearby MGEX contract closed higher than KCBT for the first time since July, reflecting weak export demand for HRW.
  • Current HRS price indications are for Northern Spring only. Premiums for Dark Northern Spring will vary. SRW indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.
  • In a crop conditions update on Monday, USDA lowered wheat ratings in several states. The largest drop was in Illinois where USDA rated 24% of the crop as good or excellent as of January 4, down from 56% in the last report released November 24. In Kansas, the largest wheat producing state, USDA rated 49% of the crop as good to excellent, compared to 61% on November 24.The percentage of wheat rated good or excellent in Nebraska dropped 12% since November to 57%. Extremely cold weather, including record low temperatures in much of the country, affected crop conditions the last few weeks.
  • According to the USDA's Export Sales Report, weekly sales of 151,000 metric tons for delivery in the 2014/2015 marketing year--a marketing-year low--were below trade expectations of 200,000 to 400,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat, through January 1, 2015 were 18.6 MMT, 24% lower than last year's year-to-date total of 24.6 MMT. USDA forecasts 2014/15 U.S. wheat exports (including donations) to reach 25.2 MMT.
  • The Baltic Panamax Index closed at 764 on Friday, down from 827 last week.
  • The US Dollar Index closed at 92.15 on Friday, up from 91.13 last week.

File Name
PR 150109.pdf
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