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February 12, 2010

(See attached file: PR 100212.pdf)(See attached file: PR 100212.xls)

Highlights:
  • Futures markets finished the week higher due to short covering, which sparked a 14-cent rally on Wednesday in the CBOT March wheat contract. This was the largest percentage gain for nearby CBOT prices since late December. CBOT nearbys gained 13 cents on the week, closing at $4.86/bu. KCBT nearbys were up 10 cents, to $4.94/bu, and MGEX gained 2 cents, to $5.04/bu. Soybean prices were up sharply on the week as farmers were reluctant to sell following recent price drops. CBOT soy prices were up 31 cents, to $9.45/bu. Corn was up 10 cents, to $3.61/bu.
  • In their February World Agricultural Supply and Demand Estimates, USDA increased 2009/10 global wheat production by 1.3 MMT, to 677 MMT. The increase was due to better-than-expected yields in both Argentina and Ukraine. USDA also raised global consumption by 1.1 MMT, to 646 MMT, due to greater food use in Afghanistan and greater feed use in Canada.
  • USDA estimated 2010 total wheat plantings at 55.0 million acres in their annual Agricultural Long-term projections report. This is down from 59.1 million acres last year. USDA currently estimates winter wheat plantings at 37.1 million acres.
  • USDA’s Economic Research Service (ERS) released their 2010 Farm Sector Income Forecast on Thursday, projecting net farm income to reach $63 billion. This is a 12 percent increase from 2009, which is primarily due to recovery in livestock prices. ERS expects crop cash receipts to decline by $6 billion in 2010 due to lower prices and reduced quantities sold. Production costs are expected to increase slightly, by 0.3 percent, to $281 billion.
  • The Baltic Panamax Index (BPI) continued to slide this week, falling to 3,028 on Friday. This is down from 3,141 last week. Destination routes were also down, with Gulf/Japan at $61/mt and PNW/Japan at $35/mt.

File Name
PR 100212.pdf
PR 100212.xls
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