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May 7, 2010

(See attached file: PR 100507.pdf)(See attached file: PR 100507.xls)
  • Wheat futures traded higher this week despite facing pressure from a strengthening dollar. The markets gained nearly 10 cents on Tuesday due to short covering and concerns of freezing temperatures this weekend across the Midwest and Great Plains. CBOT nearbys gained 8 cents on the week, closing at $5.00/bu, while KCBT gained 7 cents to close at $5.12/bu. MGEX nearbys gained 3 cents, to $5.29/bu. Soybean prices were down significantly from gains in the dollar and slowing export demand. CBOT soy nearbys were down 38 cents this week, to $9.51/bu. Corn futures were down 1 cent, to $3.64/bu.
  • The annual Hard Red Winter Wheat Quality Tour took place this week in Kansas. Participants from the tour estimated yield and production levels similar to last year, forecasting Kansas production at 333.5 million bushels (9.1 MMT) and a yield of 40.7 bushels per acre. Last year the tour estimated production at 333.3 mb and a yield of 40.8 bushels per acre.
  • Informa Economics released their latest U.S. winter wheat production estimate, projecting the 2010/11 winter wheat crop at 1.5 billion bushels (40.8 MMT) with an average yield of 46 bushels per acre. The projection is 57 million bushels below last year’s U.S. winter wheat production. USDA will release their preliminary winter wheat production forecast next week.
  • HRW Gulf basis continued to slide as traders try to move old crop inventories and make room for the upcoming harvest. HRW Gulf basis for ordinary protein stood at approximately 10 cents/bu on Friday, down from 20 cents last week and 60 cents in late March.
  • The ICE Dollar Index, which measures the U.S. dollar against six major currencies, reached a one-year high this week, reaching 84.89 on Thursday. The index made sharp gains this week due to continued concerns over the Greek debt crisis, which has substantially weakened the Euro. The Euro fell to a 14-month low vs. the dollar earlier in the week.
  • The Baltic Panamax Index closed higher for the third straight week. The index closed at 4,062 on Friday, up from 3,900 a week ago. Maritime Research’s Grain Freight Index was also up, climbing to 587.8 from 581.5 last week. Gulf/Japan is at $71/mt, while PNW/Japan is at $41/mt.

File Name
PR 100507.pdf
PR 100507.xls
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