Price Report - February 24, 2017
*Technical selling and concerns over old crop supplies continued to push wheat prices downward, despite dry weather and lower than expected USDA forecast for wheat acres offering support. CBOT fell 10 cents to $4.31 per bushel, KCBT fell 2 cents to $4.54 per bushel, and MGEX fell 1 cent to $5.45 per bushel. Corn and soybean futures fell on large South American supplies coming into the market. Corn fell 4 cents to $3.64 per bushel and soybeans fell 18 cents to $10.14 per bushel.
*Pacific Northwest grain exports continue to be plagued by logistical issues as rail lines deal with landslides and flooding in many areas. PNW exporters are beginning to work their way through the backlog, but it is expected to take some time. Similar port congestion is being reported for Western Canada and Western Australia.
*The Russian Farmers Union announced that Russian farmers are finding planting spring wheat less attractive this year due to a decline in profitability stemming from a strengthening rouble.
*Argentina raised its estimate for its recently harvested wheat crop from 15.0 to 18.3 MMT.
*US wheat export sales reached 451.3 TMT for the week ending February 16, in line with market expectations. This brings total US wheat export sales so far this year to 24.0 MMT, up 39 percent compared to this same time last year.
*The USDA is forecasting US wheat acres for 2017/18 at 46 million acres, down 7 percent compared to last year as farmers look for more profitable crops amidst high stocks of all wheat classes.
*The Baltic Dry Index rose sharply this week, from 710 to 875, on increased ship demand.
*The US Dollar Index rose slightly from 100.93 to 101.12.
*Current hard red spring (HRS) price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. Soft red winter (SRW) indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.