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August 21, 2015
  • Even with a brief rally on Thursday, supported by uncertainty about export delays from Russia, a weaker U.S. dollar and reports of Argentina losing an estimated 6% of its wheat crop to floods, wheat futures markets ended the week on a bearish note. With ample global supplies and weak export demand continuing to pressure the market, futures continued a long trend down. September CBOT wheat closed 7 cents lower at $5.00/bu, KCBT fell 19 cents to $4.71/bu and MGEX lost 6 cents to $5.13/bu for the week. September CBOT soybeans closed down 20 cents at $9.05/bu and September CBOT corn was up 1 cent from last week at $3.65/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.
  • Agricultural consulting group, SovEcon, reported that year-to-date Russian wheat exports at 1.7 MMT are down 50% from the same time in 2014/15 due to harvest delays and the export tariff put in place on July 1. This is the lowest level seen in four years, but trade experts caution it may be artificially low because of reporting delays.
  • In its weekly crop progress update, USDA reported spring wheat harvest is 53% complete, ahead of the 5-year average pace of 31%. Crop conditions improved with 70% rated good to excellent, up one percent from the prior week and an unchanged 6% rated poor.
  • According to USDA’s weekly Export Sales Report, net sales of 314,400 MT for delivery in marketing year 2015/16 were down were down 25% from the previous week and 49% from the prior 4-week average, but were within trade expectations of 300,000 to 500,000 MT. However, total export shipments this week reached a new marketing year high at 606,200 MT, up 46% from the prior 4-week average. Total known exports and outstanding sales for delivery in 2015/16 of 9.26 MMT are 15% below last year’s sales and behind the 5-year average of 20%.
  • The Baltic Panamax Index closed at 994 on Friday, down 6% from 1,057 last week.
  • The US Dollar Index closed at 94.99, down from 96.52, a 2% decline from last Friday.

File Name
PR 150821.pdf
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