USW of FacebookUSW on TwitterUSW on YouTube
March 16, 2012


(See attached file: PR 120316.pdf) (See attached file: PR 120316.xls)

Highlights:
  • Wheat futures closed higher this week thanks to support from a weaker dollar and strength in the corn market. Favorable weather conditions in the U.S. plains pressured prices midweek. CBOT let the way with a 29-cent gain to close at $6.72/bu. KCBT gained 22 cents to close at $7.06/bu and MGEX finished the week at $8.23/bu, a 18 cent gain. CBOT corn gained 28 cents to close at $6.73 and CBOT soybeans closed up 36 cents at $13.74/bu. The CBOT May corn contract closed with a 1-cent premium to the CBOT May SRW contract.
  • Needed precipitation and mild temperatures in the U.S. Plains boosted winter wheat prospects this week. Unseasonably warm weather has prompted rapid crop growth and may allow for early planting of spring crops. The favorable weather pressured futures prices, particularly early in the week.
  • Basis for HRW and HRS were slightly firmer this week in the PNW due to increased interest outpacing farmer selling.
  • Ukraine's Agriculture Ministry cut its 2012/13 wheat harvest forecast from 16.0 MMT at 14.0 MMT this week. Damage to the winter crop is expected due to unusually dry and cold weather conditions. The ministry said Ukraine will have 7.0 MMT of carryover stocks at the beginning of its marketing year in July, up from 2.6 MMT a year earlier.
  • French analyst Strategie Grains on Thursday reduced its 2012/13 soft wheat production estimate to 131.1 MMT due to likely crop damage caused by both cold weather and drought. If realized, production would be up 1 percent from the previous year. Strategie Grains also reduced its production estimate for durum wheat to 8.4 MMT, down 400,000 tons from last month but 2 percent greater than 2011/12. The analyst said it was still too early to fully assess the extent of the crop damage.
  • The Baltic Panamax index closed higher this week at 971, up from 889 last week. A slight increase in freight activity pushed the index higher this week. Maritime Research’s Grain Freight Index declined for the first time in a month, down from 513.2 to 512.5.
  • The ICE Dollar Index closed lower this week at 79.73, down from 80.08 last Friday. The weaker dollar contributed to gains in wheat markets Thursday and Friday.

File Name
PR 120316.pdf
PR 120316.xls
2008-2013 U.S. Wheat Associates. All Rights Reserved
CCBot/2.0 (http://commoncrawl.org/faq/) - Is Mobile: Privacy Policy | Non-Discrimination Statementfalse