US Wheat Price Report : U.S. Wheat Futures Fell This Week Due To Increasing Harvest Pressure

• U.S. wheat futures fell this week due to increasing harvest pressure and strong export competition that is limiting U.S. sales. Spillover weakness in corn also added pressure. HRW futures were supported midweek by Brazil’s announcement to temporarily lift its import tariff on wheat and SRW futures were supported by harvest delays. KCBT July wheat dropped 3 cents to $7.26/bu, CBOT July fell 8 cents to $5.85/bu and MGEX closed 20 cents lower at $6.83/bu. CBOT July corn lost 8 cents to $4.43/bu and CBOT July soybeans added 11 cents to $14.32/bu.
• SRW basis rose significantly due to harvest delays and lower quality wheat received at elevators as a result of rain. HRS basis, particularly in the PNW, is up sharply due to relatively short supply and limited farmer selling.
• The Brazilian government officially approved the import of up to 1.0 MMT of tariff-free wheat before August 1, improving U.S. export prospects to the country. The U.S. sold more than 4.0 MMT of HRW to Brazil in 2013/14 during a tariff-free period.
• USDA reported winter wheat harvest as 33% complete as of June 22, compared to 19% last year and above the five-year average of 31%.
• USDA reported weekly export sales of 359,400 MT, putting total known outstanding sales and accumulated exports for the 2014/15 marketing year, through June 19, 2014 at 7.26 MMT, 15 percent lower than last year's year-to-date total of 8.57 MMT. USDA forecasts 2013/14 U.S. wheat exports (including donations) to reach 25.2 MMT.
• The Baltic Panamax Index fell from 461 last week to 419. The index has dropped 60% since closing at 1,041 on May 16.
• The US Dollar Index closed lower this week, down from 80.44 last Friday to 80.08.

Source : uswheat.org