October 19, 2018
- U.S. wheat futures ended the week lower after a three-session slide. A strengthening U.S. dollar limited gains. CBOT December wheat futures ended the week 7 cents down at $5.14/bu, KCBT lost 8 cents to $5.16/bu and MGEX lost 3 cents to $5.88/bu. CBOT December corn dropped 1 cent to $3.67/bu and CBOT January soybeans dropped 26 cents to $8.56/bu.
- USDA’s weekly Export Sales Report included net wheat sales of 476,000 metric tons (MT) for marketing year 2018/19. Total known outstanding sales and accumulated exports of all classes of wheat for the 2018/19 marketing year were 12.11 million metric tons (MMT), 15% behind last year’s year-to-date total of 14.2 MMT. USDA expects 2018/19 U.S. wheat exports to reach 27.9 MMT.
- On October 14, USDA reported U.S. winter wheat planting is 65% complete, slightly behind the 5-year average of 67%. Winter wheat is 44% emerged, ahead of the 5-year average of 41%. Persistent rain in the Southern Plains has slowed planting there.
- The October 18 U.S. Drought Monitor reported heavy rain fall across much of the continental United States, improving soil moisture conditions but causing widespread flooding in some parts. The U.S. High Plains received both rain and snow bringing beneficial moisture. Dry weather remains in the Pacific Northwest (PNW) with average rain fall more than 12 inches below normal in some parts. The forecast calls for drier conditions across the United States next week, and a cold front for much of the country.
- Harvest delays continued in Canada’s western provinces due to snow and wet weather. The Saskatchewan weekly crop report reported 82 percent wheat harvested and in the bin. A warm weather forecast for next week means farmers will be able to continue their combining. In Alberta, spring wheat harvest is not much changed from last week and remains significantly behind last year’s pace.
Baltic and U.S. Dollar Indices
- The Baltic Index increased to 1576, up from 1515 the week prior.
- The Dollar Index was mostly steady at 95.70 this week, up slightly from 95.14 last week.
Source: U.S. Wheat Associates