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April 8, 2011
(See attached file: PR 040811.pdf)(See attached file: PR 040811.xlsx)
  • Futures jumped upwards on Monday, largely pushed up by a continued rally in the corn market, but remained largely unchanged over the rest of the week as traders awaited the release of the USDA's latest World Supply and Demand Report on Friday. The report was little changed from the previous month, so the markets were not overly affected by its release on Friday. Overall, the CBOT May contract was up 36 cents from a week ago, closing at $7.96/bu. Continued concerns over dryness in the HRW growing region and possible flooding in the HRS growing region continued to push prices upward. The KCBT May contract gained 26 cents from a week ago, closing at $9.33/bu, while the MGEX May contract gained 32 cents, closing at $9.55/bu. The CBOT May corn contract gained 31 cents from last week, closing at $7.68/bu. Soybean prices, unlike corn and wheat, did not see a jump in price on Monday and remained stable throughout the week. The CBOT May soybean contract remained unchanged from last week, closing at $13.93/bu.
  • USDA released their first Crop Progress report of the spring this week. USDA reported 37 percent of the winter wheat crop in either good or excellent condition, down from 65 percent last year and the lowest rating in the past nine years. HRW conditions are currently below average due to ongoing dry conditions, especially in Texas and Oklahoma. The HRW crop is reported to be in very good condition in the states of California, South Dakota, and Montana. SRW and winter white wheat conditions are currently above average.
  • Two major barge lines on the Mississippi River system announced that they would be raising demurrage fees by 50.0 percent or more. The move is meant to limit the use of barges as floating storage and decrease the loading and unloading time at terminals.
  • Informa Economics released their April US Crop Reports this week. Informa projected 2011/12 US winter wheat production at 40.7 MMT, down from their March projection of 41.7 MMT, but still one percent greater than last year’s total. Of this, HRW accounted for 23.1 MMT, SRW totaled 11.5 MMT, and projected winter white output stood at 6.2 MMT.
  • Russia is expected to extend its grain export ban past the current July 1 end point into either September or October. The Russian government want to have a good idea of this years harvest first.
  • The World Supply and Demand estimate showed corn ending stocks largely unchanged from a month ago, running counter to a separate report released last week showing a larger than expected drop in corn inventories over the winter. The earlier report had caused a rally in corn prices.
  • The Baltic Panamax Index (BPI) was again down this week as an excess of tonnage and slow trade weighs on the market. The BPI fell to 1,696 on Friday, down from 1,925 last week and reaching its lowest point since early March.

File Name
PR 040811.pdf
PR 040811.xlsx
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