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December 23, 2016
  • Wheat futures ended the week lower pressured by a strengthening U.S. dollar and weaker export demand ahead of the Christmas holiday. CBOT March wheat fell 16 cents to $3.93/bu, KCBT wheat dropped 8 cents to $4.06/bu and MGEX lost 13 cents to $5.31/bu. CBOT March corn declined 10 cents to $3.46/bu and CBOT January soybeans plummeted 48 cents for the week to $9.89/bu.
  • Protein spreads for hard red winter (HRW) and hard red spring (HRS) widened across the United States due to continued strong export demand. Export basis also saw support from limited farmer selling ahead of the Christmas holiday. The extended Columbia-Snake river system maintenance closure began Dec. 16. The Great Lakes-St. Lawrence Seaway System closed for the season on Dec. 20 and will reopen at the end of March.
  • USDA’s weekly Export Sales Report included net wheat sales of 297,800 metric tons (MT) for marketing year 2016/17. Sales were just below trade expectations of 300,000 to 500,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat for 2016/17, through Dec. 22, 2016, were 20.2 million metric tons (MMT), 31% higher than a total of 15.4 MMT last year on this date, and 6% above the 5-year average. USDA expects 2016/17 U.S. wheat exports to reach 26.5 MMT.
  • The Dec. 22 U.S. Drought Monitor reported moderate rain across parts of the Pacific Northwest. An Arctic outbreak pushed temperatures across the U.S. Northern Plains to -40 F (-40 C), and dropped temperatures below 0 F (-18 C) throughout the Midwest and down into the panhandles of Oklahoma and Texas. The 6 to 10-day forecast expects normal to above normal precipitation for most of the United States with the notable exceptions of the U.S. Northern Plains and Southeastern United States. Year to date, rainfall in the Southeastern United States is 18.75 inches (48 cm) below normal.
  • Russian consultancy SovEcon lowered its forecast for Russian wheat exports by 500,000 MT to 28.5 MMT due to a strengthening of the Russian ruble against the U.S. dollar and increased competition from other origins.
  • On Dec. 19, UkrAgroConsult reported 95% of Ukrainian winter wheat had emerged with 39% rated in good condition, 45% rated in satisfactory condition and 16% rated in weak condition. UkrAgroConsult estimates Ukrainian farmers planted 5.70 million hectares (14.1 million acres) of winter wheat, down 5% from last fall.
  • This will be the last Price Report for 2016. Price Report will resume on Jan. 6, 2017.
  • The Baltic Index fell to 926, down 17% from last week’s close of 1122.
  • The Dollar Index rose to 102.95, up 1% from 101.45 last Friday.
  • Current hard red spring (HRS) price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. SRW indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.

File Name
PR 161223.pdf
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