Friday, October 1, 2010

Local Wheat Prices Mixed This Week

Local wheat prices were mixed this week: SWW ranged from 10 cents lower to 10 cents higher; HRW ranged from 16 cents lower to 2 cents higher; and DNS ranged from 3 to 36cents higher.

U.S. wheat export sales last week for MY 2010/11 were well above trade expectations at 950.3 TMT, but were offset by a 490.5 TMT cancellation for MY 2011/12. Current marketing year sales were up 96% from the previous week and 7% from the prior 4-week average. Export shipments last week totaled 918.6 TMT, up 5% from the previous week and 40% from the previous 4-week average.

The EU approved 527 TMT of wheat export licenses this week, bringing their cumulative wheat export licenses for the marketing year to 5.3 MMT, compared to 4.2 MMT for the same period last year. Some traders are speculating that EU may be sold out of milling quality wheat stocks by the end of December.

The Buenos Aires Grain Exchange has pegged Argentine wheat production at 7.9 MMT, due to current dry conditions, compared to USDA’s current estimate of 12 MMT. Egypt purchased 220 TMT of hard wheat from the U.S. this week.

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