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September 6, 2013
  • Wheat futures closed mixed in a short week of trading. Wheat followed corn lower on Tuesday and higher on Friday. Expectation for rising global wheat supplies and fears that U.S. prices were too high relative to competitors pressured futures on Wednesday and Thursday. KCBT September was the only wheat contract to close higher than last Friday, adding 9 cents to $7.09/bu. CBOT September fell 8 cents to $6.35/bu and MGEX dropped 12 cents to $7.08/bu. CBOT September corn fell 6 cents to $4.92/bu and CBOT September soybeans added 7 cents to $14.37.
  • The KCBT September wheat contract closed one cent higher than the MGEX September on Friday. However, trading volume on the September contracts is light as most traders have moved to the December contract. MGEX December holds a 17 cent premium to the KCBT December.
  • The UN Food and Agriculture Organization forecast 2013/14 global wheat production at 710 MMT this week. USDA’s current forecast is 705 MMT.
  • Despite worries that U.S. supplies are too expensive to compete on the export market at current price levels, weekly U.S. commercial sales of 668,400 MT for delivery in the 2013/2014 marketing year were up 21 percent from the previous week and 18 percent from the prior 4-week average, and exceeded trade expectations of 425,000 to 600,000 MT.
  • The Baltic Panamax Index jumped 12% this week to 1,012. The end of Europe’s August holiday and China’s effort to rebuild iron ore and steel stocks increased demand for vessels.
  • The US Dollar Index closed mostly unchanged from last Friday at 82.17.

File Name
PR 130906.pdf
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