Daily Market Comment - 10/04/07

Friday, April 13, 2007

U.S. wheat futures ended mixed overnight after rallying in early trading on concerns about crop damage from cold weekend weather. The developing U.S. winter wheat crop appears to have suffered substantial damage after extended periods of freezing weather hit growing areas over the weekend. This supported Kansas City wheat to reach limit-up in some contracts early in the session. Ideas that it will take several days if not weeks to get a clear assessment of damage helped spark the long liquidation selling shortly after the opening which helped push futures to the lows of the day into the mid-session. The damage may push some farmers to abandon the wheat crop and plant corn instead this spring.

Chicago wheat for May 2007 is up 2 ½ cents at 447 ½ cents per bushel.

Chicago wheat for December 2007 is up 3 ¾ cents at 486 ½ cents per bushel.

Chicago corn for July 2007 is down 1 ¾ cents at 376 ¼ cents per bushel.

Winnipeg canola for November 2007 is down $0.50 at $378.00 Canadian per tonne.

AWB’s Multi-Varietal contract price (based on APW) for the 07/08 season unchanged today at:
• $206.40 – Newcastle
• $205.40 – Port Kembla
• $203.70 – Geelong
• $201.10 – Portland
• $190.00 – Port Adelaide
• $187.10 – Port Lincoln
• $198.00 – Fremantle
• $188.00 – Geraldton

AWB’s 07/08 canola price is down $6 today at $424 per tonne, based on 42% oil, delivered Geelong and Melbourne.
All prices are quoted GST exclusive.