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September 24, 2010

(See attached file: PR 100924.pdf)(See attached file: PR 100924.xls)
  • Wheat prices were mixed this week on profit taking countered by better than expected export sales. CBOT nearby prices lost 20 cents, closing at $7.20/bu. KCBT gained 5 cents on the week, closing at $7.73/bu, while MGEX lost 6 cent, to $7.71/bu. CBOT corn prices gained 8 cents, closing at $5.22/bu, due to continued concerns over tight corn supplies. CBOT soy prices were 56 cents higher, closing at $11.26/bu.
  • The availability of ships is reportedly limiting grain exports out of the Great Lakes in the nearby months. Demand has outstripped the supply of grain ships on the Great Lakes.
  • US Traders are reportedly continuing to provide only limited offers for the front months due to limited loading capacity. Many buyers have tendered and gotten offers from only one or two trading companies. Due to the high demand for US grains, this trend is expected to continue into the near future.
  • Traders are reporting that the delay in the durum harvest in both the US and Canada has literally shut down the market. Nobody knows what the final quality or quantity of the durum still unharvested will be. A large amount of high quality durum is in storage, but farmers are refusing to sell until they have a better idea of what this years crop looks like.
  • The rising price of corn and the limiting of exports by the top feed wheat producer, Ukraine, is pushing up the price of feed wheat. Many end users are reportedly purchasing milling quality wheat to use as feed wheat. The spread between feed wheat prices and milling wheat prices is reportedly narrowing to levels not seen in several years.
  • US Export sales were higher than trader expectations this week, giving wheat prices some support. Net sales reached 950,300 MT, well above trade estimates of 450,000 to 650,000 MT. Increases were reported for Egypt (233,494 HRW and 55,000 white), Unknown (197,500 HRW, 23,478 white, and -16,700 durum), Nigeria (82,161 HRW, 77 HRS, -123 white, and 4,952 durum), Dominican Republic (37,014 HRW, 18,180 HRS, and 15,685 SRW), Japan (2,100 HRW and 66,551 HRS), South Korea (15,392 HRW, 19,860 HRS, and 29,028 white), and Saudi Arabia (52,342 HRW).
  • The US Dollar Index fell to 79.301 on Friday, down from 81.39 a week ago. Returning risk appetite and a strengthening Yen are helping to push the dollar downward.
  • The Baltic Panamax dropped to 2,719 this week, down from a week ago. The index is being driven down by negative sentiment due to new ships coming online.

File Name
PR 100924.pdf
PR 100924.xls
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