September 3, 2010
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Corn and wheat futures lead the charge and finished the week on a high note. The US corn crop could be shrinking and the demand for US wheat is on the up swing. Two strong drivers working in tandom to chase pre-holiday weekend values to the bullish side of the street. SWW tracks also felt 'the force' and stood taller at the close.
am
US exporters busy selling wheat to needy, wary end-users and top importing nations. USDA reports US HRW wheat sales to private Egyptian buyers totaling 110,000 Mt. Another 275,000 Mt was book to unknown destinations. These sales along with GASC's recent US purchases helps reinforced the 'global demand argument'. It puts US hard wheat origination in the 'first chair' as US export tallies and projections climb higher. Tight world stocks now appear even tighter especially in light of Russia's 'no exports until new crop' proclamation. Asian buyers are also on the move; holding tenders and seeking additional coverage. SWW track cash values should obey the 'PNW ratio' and move to higher ground at a less accelerated pace.