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May 31, 2013


(See attached file: PR 130531.pdf) (See attached file: PR 130531.xls)

Highlights:

  • Wheat futures closed mixed this week, assisted by a rally in corn and soybeans on Friday. The discovery of some genetically modified volunteer wheat plants proved to be a non-event for futures markets. Helpful precipitation boosted futures early in the week but severe weather pressured prices mid-week. Strong export demand also supported wheat futures on Friday. MGEX July wheat lead the way with a 7 cent increase, closing at $8.20/bu. CBOT July wheat gained 2 cents to $7.06/bu and KCBT lost 4 cents to $7.51/bu. CBOT July corn remained unchanged from last Friday at $6.62/bu and CBOT soybeans added 11 cents to $15.10/bu.
  • After wheat futures closed on Wednesday, USDA announced that a few volunteer wheat plants from a single Oregon field were found to have an unapproved genetically modified trait. As a result, Japan canceled a white wheat tender and the EU released a statement, which was reported to indicate that it would inspect all incoming U.S. wheat. Risks associated with issue are just now under study and review in the EU by their regulatory authorities. The wheat does not pose a food safety issue and no evidence of the trait has been found beyond the single field. Wheat markets fell modestly on Thursday but regained the losses on Friday.
  • Beneficial rain showers early in the week turned to severe storms, including heavy rain, flooding and tornados, which threatened HRW crops and recently seeded HRS.
  • On Friday, USDA reported net commercial sales of 35,900 MT for delivery in the 2012/2013 marketing year, within trade expectation of zero to 200,000 MT. Net sales of 728,300 MT for delivery in the 2013/2014 marketing year exceeded expectations of 250,000 to 450,000 MT.
  • The Baltic Panamax Index fell for the sixth consecutive week, down 59 points to 795. The index has fallen 34 percent since April 19. Vessel supply continues to outpace demand, weighing on the market. Maritime Research's Grain Freight Index increased from 479.2 to 481.7.
  • The US Dollar Index fell this week from 83.76 to 83.40.

File Name
PR 130531.pdf
PR 130531.xls
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