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April 29, 2016
  • Wheat futures closed higher this week bolstered by short-covering. A softer U.S. dollar and a strong export sales report also lent support. Rain across the hard red winter (HRW) growing region limited KCBT gains. CBOT May wheat climbed 11 cents to $4.78/bu, KCBT added 3 cents to $4.65/bu and MGEX grew 14 cents to $5.40/bu. CBOT May corn increased 18 cents to $3.90/bu and CBOT May soybeans rose 34 cents to $10.21/bu.
  • With farmers in the fields, farmer selling decreased dramatically week over week supporting nearby basis.
  • In its weekly Export Sales Report, USDA reported net sales of 351,900 metric tons (MT) for delivery in marketing year 2015/16, which were up 19% from the previous week, and up noticeably from the prior 4-week average. Sales were above trade expectations of 75,000 to 175,000 MT. Total known outstanding sales and accumulated exports of all wheat classes for marketing year 2015/16, through April 21, 2016, were 20.0 million metric tons (MMT), 14% lower than last year's year-to-date total of 23.2 MMT.
  • USDA rated 59% of the U.S. winter wheat crop as good to excellent as of April 25, up from 57% last week. USDA rated just 8% of the crop as poor or very poor, 1% lower than the prior week and down from 16% last year. USDA reported spring wheat planting at 42% complete compared to the 5-year average of 28%.
  • The International Grains Council (IGC) increased its projection for 2016/17 world wheat production to 717 MMT due to improved crop conditions in the European Union (EU) and Russia. If realized, 2016/17 world wheat production would decrease 2% year over year.
  • European wheat yields are expected to reach 6.11 MT/ha (90.9 bu/acre) in 2016, 3% lower than 2015 yields but above the 5-year average of 5.87 MT/ha (87.3 bu/acre) according to MARS, the European crop monitoring service.
  • According to Reuters, Russia’s wheat export tax is expected to remain unchanged in 2016/17.
  • Morocco officials plans to extend its 30% customs duty on imported soft wheat through the end of 2016 according to a Reuters report.
  • The Baltic Index climbed to 710, up 3% from last week’s close of 688.
  • The Dollar Index rose to 93.18, down 2% from 95.18 last Friday.
  • Current hard red spring (HRS) price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. Soft red winter (SRW) indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.

File Name
PR 160429.pdf
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