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December 4, 2009

(See attached file: PR 091204.pdf)(See attached file: PR 091204.xls)

Highlights:
  • Futures traded lower this week as a firm dollar put pressure on wheat prices. The dollar surged on Friday, triggering an 11-cent drop from last week in CBOT nearbys. CBOT December contracts closed Friday at $5.36/bu. KCBT and MGEX nearbys were also down, to $5.36/bu and $5.48/bu, respectively. Corn and soybean prices dropped on the week as well. CBOT corn closed at $3.73/bu and soybeans fell 10 cents to $10.43/bu.
  • The International Grains Council (IGC) released their latest wheat production estimates last week. IGC increased their world production forecast by 1 million metric ton (MMT), to 668 MMT, due to better than expected harvests in Italy and Kazakhstan. IGC’s early estimate for 2010 wheat plantings is 222 million hectares (MH), which is 1.5 MH below 2009 plantings. IGC anticipates a 3% decrease from last year in the U.S.
  • The U.S. Commodity Futures Trading Commission (CFTC) approved their variable storage rate plan on Monday. The CFTC will implement their plan for Chicago Board of Trade wheat contracts beginning with the July 2010 contract. Variable storage rates, which will fluctuate depending on the spread between futures contracts, will replace seasonal storage rates.
  • The ICE dollar index was higher this week, reaching its highest point since the first week of November. The index was at 75.78 on Friday, which is up from 74.99 last week.
  • The Baltic Panamax Index (BPI) finished 60 points higher than last week, at 3,928. The BPI is down 11% from two weeks ago when the BPI was at its 2009 high (4,424). Maritime Research’s Grain Freight Index was down slightly on the week, from 575.6 last week to 564.2 this week.

File Name
PR 091204.pdf
PR 091204.xls
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