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September 4, 2015
  • Wheat futures continued downward this week with KCBT falling to an 8-year low on Wednesday and CBOT hitting a 5-year low on Thursday. A strong U.S. dollar and aggressive competition in the global wheat market, driven by plentiful global supplies, continue to weigh on the market. From this time last year, September CBOT, MGEX and KCBT wheat futures are down 17%, 21% and 28%, respectively. September CBOT wheat fell 19 cents to $4.58/bu this week, KCBT lost 9 cents to close at $4.49/bu and MGEX dropped 6 cents to $4.85/bu. September CBOT corn was off 14 cents to close at $3.50/bu and September CBOT soybeans declined 16 cents to $8.77/bu.
  • 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.
  • Statistics Canada pegged total Canadian wheat stocks at 7.1 MMT, down 32% from the 20-year high reached in 2014 due largely to reduced on-farm stocks in Saskatchewan in its September report. Canadian durum wheat stocks are projected to be 982,000 MT a 45% decline from the prior year.
  • The French Farm Ministry estimates the French soft wheat crop at a record 40.8 MMT, up 4% from last month’s estimate and 9% from last year’s actual production.
  • Protein spreads in soft white wheat (SW) continue to widen. In this week’s crop quality report, USW reported an average SW protein level of 10.9%, which is equal to the 2014 average, but higher than the 5-year average of 9.9%. Club wheat production is expected to be down this year due to drought in the Pacific Northwest.
  • In its weekly crop progress update, USDA reported spring wheat harvest is 88% complete, ahead of the 5-year average pace of 62%.
  • According to USDA’s weekly Export Sales Report, net sales of 277,500 MT for delivery in marketing year 2015/16 were down 48% from the previous week and 47% from the prior 4-week average, but were within trade expectations of 250,000 to 500,000 MT. Total known exports and outstanding sales for delivery in 2015/16 of 10.1 MMT are 12% below last year’s sales.
  • The Baltic Panamax Index closed at 837 on Friday, down 14% from 974 last week.
  • The US Dollar Index closed at 96.22, up slightly from 96.12 last Friday.

File Name
PR 150904.pdf
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