USW of FacebookUSW on TwitterUSW on YouTube
September 3, 2010

(See attached file: PR 100903.pdf)(See attached file: PR 100903.xls)

Highlights:
  • Wheat prices were sharply higher this week following news that Russia will extend its grain export ban through the completion of next year’s harvest. Strong export demand for U.S. wheat, including recent sales to Egypt’s GASC and Germany, also sent prices higher. CBOT nearby prices reached a three-week high, closing at $7.08/bu. KCBT gained 43 cents on the week, closing at $7.43/bu, while MGEX gained 35 cents, to $7.42/bu. CBOT corn prices gained 28 cents as adverse weather has caused concerns over this year’s corn yields. CBOT corn closed at $4.49/bu on Friday. CBOT soy prices were also higher, but gains were limited by harvest pressure and expectations of a large soy crop. CBOT soy was up 7 cents, to $10.29/bu.
  • The Russian government announced it would extend its grain export ban through next year’s harvest. The ban had originally been set to expire at the end of the calendar year, but will now likely last through mid-2011.
  • Rains in Germany continue to cause production and quality concerns with the EU wheat crop. The German Agriculture Ministry projected this year’s German wheat crop at 23.9 MMT, which is 5 percent less than last year. Earlier this week, German wheat prices reached their highest level since April 2008, climbing to 240 euros/ton.
  • Agriculture and Agri-Food Canada raised their 2010/11 Canadian production estimate to 22.7 MMT, a 1.8 MMT increase from their July estimate. However, much of the Canadian harvest remains well behind schedule as wet weather has delayed crop development and slowed harvest. Saskatchewan Agriculture reports harvest at 8 percent complete, compared to a five-year average of 28 percent. The Canadian Wheat Board reports all of western Canada’s harvest at 11 percent complete, compared to an average of 17 percent.
  • Informa Economics released its September crop report on Friday, reducing their 2010/11 Russian wheat production forecast by 2.5 MMT, to 42.5 MMT. Informa sharply reduced their final U.S. corn yield estimate, to 158.5 bushels per acre, compared to USDA’s estimate of 165 bushels per acre. Total U.S. corn production is projected at 13 billion bushels. Informa’s U.S. soybean production forecast is projected at 3.4 billion bushels with a yield of 44.1 bushels per acre.
  • The CME Group announced it would raise storage rates for CBOT wheat contracts by 3 cents per bushel. The increase will be implemented on September 18. Under the Variable Storage Rate plan, storage rates increase when nearby spreads are greater than 80 percent of full carry. The September/December spread has averaged 112 percent of full carry.
  • Announced sales of US spring wheat to Germany and HRW to Egypt’s GASC provided support to wheat prices. Germany purchased 20,000 MT of HRS, which was its first purchase of HRS in three years. GASC purchased 225,000 MT of HRW.
  • Export sales once again exceeded trader expectations this week and provided support to wheat prices. Net sales reached 1,024,100 MT, exceeding trade estimates of 750,000 to 950,000 MT. Increases were reported for Nigeria (171,742 HRW), Turkey (110,000 HRS, 15,750 durum), Mexico (41,358 HRW, 4,425 HRS, 43,699 SRW, 1,851 white), Egypt (83,258 HRW), unknown destinations (-63,001 HRW, 116,100 HRS, 9,117 durum), Taiwan (2,021 HRW, 50,080 HRS), and Japan (13,390 HRS, 38,360 white).
  • The Dollar Ice Index fell to 82.06 on Friday, down from 82.92 a week ago and its lowest point in the past three weeks. A sharp fall on Wednesday contributed to a 23-cent rally in CBOT nearbys.
  • The Baltic Panamax climbed to 3,121 this week, up from 2.978 a week ago. Destination rates were also up, with Gulf/Japan at $67/mt and PNW/Japan at $39/mt.

File Name
PR 100903.pdf
PR 100903.xls
2008-2013 U.S. Wheat Associates. All Rights Reserved
CCBot/2.0 (http://commoncrawl.org/faq/) - Is Mobile: Privacy Policy | Non-Discrimination Statementfalse