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February 7, 2014
  • All three futures markets closed higher this week for the first time since October 18, 2013. Concerns about declining crop conditions in the U.S. Plains and expectations for light deliveries on the March contracts provided support. Strong export demand for U.S. supplies also boosted futures. Logistical problems in Canada complicated the movement of high-protein wheat and provided support to the MGEX index. The MGEX March contract added 35 cents to close the week at $6.39/bu. KCBT gained 34 ents to $6.49/bu and CBOT increased 22 cents to $5.78/bu. CBOT March corn added 10 cents to $4.44/bu and CBOT March soybeans gained 49 cents to $13.32/bu.
  • USDA’s National Agricultural Statistics Service downgraded winter crop conditions this week. In Kansas, the largest HRW producer, the percentage of wheat rated good to excellent fell from 58% a month ago to 35%. The percentage rated poor to very poor increased from 6% to 20%. In Oklahoma, the percentage of wheat rated poor to very poor increased from 8% to 24%. Wheat conditions also deteriorated in Texas and Nebraska. Despite the declining crop conditions during January, wheat ratings are still higher than last year at this time. Thirty-nine percent of the Kansas wheat crop was rated as poor to very poor at the end of January 2013.
  • According to USDA, weekly net sales of 638,800 MT were down 15 percent from the previous week, but up 62 percent from the prior 4-week average and within trade expectations of 500,000 to 750,000 MT. Total known outstanding sales and accumulated exports of all classes of wheat for the 2013/14 marketing year, through January 30, 2014 were 26.7 million metric tons (MMT), 27 percent greater than last year's year-to-date total of 21.0 MMT. USDA forecasts 2013/14 U.S. wheat exports (including donations) to reach 30.6 MMT.
  • The Baltic Panamax Index fell from 1,337 last week to 1,304. Freight activity is low due to Chinese New Year celebrations.
  • The US Dollar Index fell from 81.4 last week to 80.77.

File Name
PR 140207.pdf
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