US Wheat Price Report : Wheat Futures Closed Lower

• Wheat futures closed lower this week under pressure from ample world supplies and strong export competition. A stronger U.S. dollar and weak export sales also added pressure. Drought conditions in Australia and demand for higher protein wheat limited losses. CBOT September wheat fell 2 cents to $5.50/bu, KCBT dropped 7 cents to $6.26/bu and MGEX closed 13 cents lower at $6.15/bu. CBOT September corn lost 7 cents to $3.59/bu and CBOT September soybeans fell 77 cents to $10.90/bu.
• The International Grains Council (IGC) revised its 2014/15 world wheat estimates on Friday, increasing global production by 11.0 MMT to a record 713 MMT based on larger than expected crops in Russia, the EU and China. Higher projected demand (706 MMT) for both food and feed use resulted in just a 2.0 MMT increase in carryout stocks of 195 MMT, up from 188 MMT in 2013/14. USDA currently projects world production of 716 MMT and carryout stocks of 193 MMT.
• Romania’s agricultural ministry said it expects the country to set a production record for the second consecutive year with 7.4 MMT thanks to higher yields. Romania has significantly increased its wheat exports the past few years, particularly to Egypt, including 60,000 tons this week to the world’s largest wheat importer.
• Russia’s Grain Union forecasts 2014/15 Russian wheat production at 60.0 MMT, compared to the current USDA forecast of 59.0 MMT. The group projects total Russian wheat exports to reach 22.0 MMT, slightly lower than the USDA forecast of 22.5 MMT.
• Ukraine’s agricultural ministry reports that with 99% of the harvest complete the country has produced 24.4 MMT of wheat, higher than USDA’s August estimate of 22.0 MMT.
• According to USDA, total known outstanding sales and accumulated exports of all classes of wheat for 2014/15, through August 21, 2014 were 11.3 MMT, 26% lower than last year's year-to-date total of 15.2 MMT. Weekly sales of 403,600 metric tons were up 94 percent from the previous week, but down 17 percent from the prior 4-week average. USDA forecasts 2013/14 U.S. wheat exports (including donations) to reach 25.2 MMT, which would be 21% lower than 2013/14.
• The Baltic Panamax Index closed 59 points higher than last Friday at 871.
• The US Dollar Index closed higher this week at 82.77, up from 82.40.

Source : uswheat.org