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September 25, 2015
  • CBOT and KCBT wheat futures markets closed 4% higher than last week, while MGEX finished 2% higher. All three markets hit their highest points since Aug. 4 on support from technical buying and dry weather concerns in Australia and the Black Sea region. The markets largely ignored record global production, potential for increased export competition from Russia and a stronger U.S. dollar, which grew 2% from the prior week and makes U.S. wheat less competitive in foreign markets. December CBOT and KCBT wheat both added 21 cents to end at $5.08/bu and $5.00/bu, respectively. December MGEX climbed 13 cents to $5.23/bu. December CBOT corn increased 9 cents to $3.89/bu and October CBOT soybeans gained 22 cents to $8.89/bu.
  • Current HRS price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. SRW indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.
  • Corn and soybean competition for freight during this busy harvest time pushed barge freight prices and basis levels higher this week.
  • Protein premiums for low protein U.S. wheat continue to grow due to limited availability.
  • In its weekly crop progress update on Sept. 21, USDA reported winter wheat planting is 19% complete, similar to the 5-year average of 20%. Colorado, Nebraska, South Dakota and Washington are 50% complete. Spring wheat harvest is complete, and durum harvest is 95% complete in Montana and North Dakota.
  • According to USDA’s weekly Export Sales Report, net sales of 282,800 MT for delivery in marketing year 2015/16 were down 25% from the previous week and 23% from the prior 4-week average and within trade expectations of 250,000 to 400,000 MT. Total known exports and outstanding sales for delivery in 2015/16 are 11.0 MMT, 14% lower than last year's year-to-date total of 12.8 MMT.
  • In its September report, the International Grains Council raised its forecast of 2015/16 world wheat production to a record 727 MMT, up from the previous report’s 720 MMT.
  • The Russian Prime Minister approved the proposal to reduce the Russian wheat export duty from 50 rubles per MT to 10 rubles per MT effective October 1.
  • The Baltic Panamax Index closed at 943 on Friday, down from 960 last week.
  • The US Dollar Index closed at 96.32, up 2% from 94.87 last Friday.

File Name
PR 150925.pdf
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