Pacific Northwest Weekly Grain Summary (Part 1)

PORTLAND - May 15/08 - SNS -- Part one of the USDA's week ending summary of price and export trade activity through U.S. Pacific Northwest ports.

Portland Weekly Grain Review Part 1
Pacific Northwest Weekly Grain Summary

   Pacific Northwest market summary:  Cash bids for May delivery ended the
reporting week on Thursday, May 15, lower for hard red winter wheat compared to
week ago bids.  Bids for soft white wheat and dark northern spring wheat bids
for May delivery were not established as most exporters were not issuing old
crop bids.

   July wheat futures ended the reporting week on Thursday, May 15, widely mixed
as follows compared to last Thursday's closes:  Chicago 50-1/2 cents lower at
7.71-1/2, Kansas City 46-1/2 cents lower at 8.21-1/2, and Minneapolis 3-3/4
cents higher at 10.07.  Chicago July corn futures closed 31-1/4 cents per bushel
lower at 5.99 and July soybean futures closed 37-1/2 cents higher at 13.47-1/2.
July wheat futures, especially in Chicago and Kansas City, were pressured during
the week by ongoing expectations of a record world 2008/09 wheat crop.  On
Friday, the USDA forecast global wheat production at a record 656 million tons,
up 8 percent from last year and up 5 percent from the previous record set during
the 2004/05 crop year. The expanding winter wheat harvest in parts of the
southern U.S., disappointing new export sales for the week ending May 8, and
lower corn futures during the week, also weighed on wheat futures. Minneapolis
wheat futures were supported during the week by ongoing concerns over short old
crop supplies. July corn futures were pressured by profit taking; by a 24
percent increase in corn planting progress made during the week, at 51 percent
completed as of May 11 compared to only 27 completed on May 4; forecasts calling
for continued good planting weather this week; lower crude oil markets and a
higher U.S. Dollar on Wednesday.  On Thursday, a bullish new export sales report
released by the USDA for the week ended May 8, were supportive to corn futures.
Soybean futures were supported by a bullish May World Supply and Demand
Estimates released by the USDA on Friday, which projected tight 2007/08 ending
stocks; lagging planting progress, at only 11 percent complete compared to the
year ago figure of 26 percent and the five year average of 29 percent; improved
corn planting progress which should limit the need to plant additional soybean
acres; higher crude oil prices early in the week; and the ongoing farmers strike
in Argentina.  On Thursday, soybean futures were pressured by profit taking and
thoughts that progress may possibly be being made with the strike in Argentina.

   Bids for US 1 Soft White Wheat for May Portland delivery were not fully
established as most exporters were not issuing old crop bids for May and first
half June delivery.  Continued limited new export demand for old crop loadout
was reflected in the lack of nearby bids.

   Bids for 11.5 percent protein US 1 Hard Red Winter Wheat for May Portland
delivery were not well tested as some exporters were still not issuing old crop
bids, but indications were 46 cents per bushel lower than last Thursday's noon
bids in lining up with the sharply lower Kansas City July wheat futures.  On
Thursday, bids for 11.5 percent protein were as follows: May 9.32 to 9.72,
mostly 9.52; first half June 9.22 to 9.52, last half June 9.22; July 1-10 9.22,
July 11-20 8.92 to 9.12, July 21-31 8.92 to 9.02; August New Crop 8.91 to 8.99;
and September 8.96 to 9.09.

   Bids for 14 percent protein US 1 Dark Northern Spring Wheat for May Portland
delivery were not well tested as most exporters were not issuing bids for old
crop delivery.  On Thursday, bids for 14 percent protein were as follows: May
and June were not quoted; July 1-10 10.47 to 10.82, July 11-20 10.47 to 10.57,
July 21-31 10.07 to 10.47; August 1-20 9.72 to 9.87, August 21-31 9.67 to 9.87;
first half September 9.67 to 9.87, and last half September 9.71 to 9.87.

   Pacific Northwest export news:  There were nine grain vessels in Columbia
River ports on Thursday, May 15, with four docked compared to six last Thursday
with one docked.  New confirmed export sales made during the week were limited
to Japan.  Japan purchased 14,000 metric tons (MT) of western white wheat and
26,000 MT of 11.7 percent protein hard red winter wheat for June 21 to July 20
shipment.

Source:  USDA Market News, Portland, OR

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STAT News Service