Drought Continues and El NiñoThreatens to Emerge

Posted by on May 9, 2014 in Blog | 0 comments

  Welcome to the bulk food market news update.  Ocean data is pointing to a increased chance that an El Niño will appear later this year.  A spike in Pacific Ocean sea temperatures and the rapid movement of warm water eastwards have increased concerns that an El Nino weather pattern this year could be one of the strongest in several decades, an Australian climate scientist said.  The warming of sea-surface temperatures in the Pacific affects wind patterns and can trigger both floods and drought in different parts of the globe,...

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4-28-14: Drought Increases in Kansas

Posted by on May 5, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  The bad news continues for the upcoming wheat harvest. Kansas, the largest wheat producing state in the U.S., expects production to be down 6.3% from last year.  One Kansas farmer said, “if we don’t get widespread heavy rain in the next two weeks, it will be a disaster.”  In Kansas “severe to exceptional drought” is now being reported in 72% of the state according to Drought Monitor. The annual Wheat Tour is taking place this week as experts evaluate the current...

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4-17-14 Market News: Drought Continues

Posted by on May 5, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  Drought conditions in Kansas, which is the largest wheat producing state in the U.S., have worsened.  U.S. Drought Monitor reports that about 18% of  Kansas is now in “extreme drought”. Due to to winter kill and lack of precipitation the winter wheat crop in the U.S. is expected to be only 1.5 billion bushels and the total crop (including spring wheat) is expected to come in at around 2 billion bushels.  Although the U.S. crop should be lower than previously expected, the...

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4-10-14 Market News Update

Posted by on Apr 17, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  Extreme weather has sent food prices to a 10 month high on everything from meat to dairy to grains. In the corn market, the fear of $3.50 corn is gone. Corn demand in ethanol, exports and animal feed has rapidly diminished the inventory left over from the record 2013 harvest. The USDA corn stocks estimate for this fall after the 2014 harvest was lowered again this week from the March estimate.  Export demand for U.S. corn has doubled from last year and does not appear to be relenting. In the...

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3-31-14 Market Update

Posted by on Apr 17, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  The wheat market is up over 25% since bottoming in January.  Although there is uncertainty surrounding political events in the Ukraine, the key factor driving prices is the dry conditions across the southern U.S., southern Russia and the Ukraine. In the U.S. as winter wheat emerges from dormancy analysts are trying to determine the extent of the winter kill due to the extreme cold this past winter.  However, limited rainfall has made it difficult to even evaluate. Analysts are asking whether...

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Wheat Officially Enters Bull Market

Posted by on Mar 20, 2014 in Blog | 0 comments

Welcome to the bulk food market news update. Both the wheat market and the corn market have been screaming higher since making lows in January. Wheat is up over 29% and corn is up over 18%. The rally in wheat and corn can be attributed to the Ukraine turmoil, speculators, soybean rally and weather conditions. Both markets have been boosted by the recent events in the Ukraine. The Crimea “voted” (there was no option to stay are part of the Ukraine on the ballot) to secede from the Ukraine and join Russia this week. The Crimea houses...

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Drought Ravages California

Posted by on Mar 20, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  California has been stricken with its third drought since 1990.  According to Business Week, “2013 ended as the driest year on record for many regions of California.”  California is the nations top farming state with a $44 billion agricultural industry.  California’s agricultural resources are phenomenal.  It has a unique combination of moderate weather, great sun resources and quality soil but water availability is always a concern.  The last two winters have been very...

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Wheat up 10% in Past Four Weeks

Posted by on Mar 3, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  The wheat market has moved up over 10% in the past four weeks from the low of $5.50 to around $6.16.  The USDA projected that wheat ending stocks would be flat in September 2014 from September 2013 at the USDA annual grain outlook conference held this past week.  Exports continue to be strong in wheat, as well as persistent concern over lost yield in winter wheat due to the harsh winter.  From the charting perspective, wheat has turned up sharply on the monthly chart at the rising trend...

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USDA Feb Crop Report Surprises Market

Posted by on Feb 17, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  The USDA Feb 10th crop report surprised the market by substantially lowering the expected September 1, 2014 inventory levels for corn and wheat.  As you can see in the chart below, the average trade (analyst) guess for wheat was a carryout (inventory) of 603 bushel whereby the USDA report came in at 558 million bushels.  Similarly, the average trade guess was 1,619 million bushels but the USDA report came in at 1,481.  The conclusion of the report is that lower prices for corn and wheat have...

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Wheat Breaks Support, Corn Turns

Posted by on Feb 4, 2014 in Blog | 0 comments

Welcome to the bulk food market news update.  The wheat market continues to look for a bottom.  However, due to the lower prices, demand is picking up.  Exports continue to rise for high quality U.S. wheat. Lower prices are encouraging large importing but cash strapped countries like Egypt to be more selective. Most recently, Egypt lowered the acceptable moisture content from 13.5% to 13% which effectively locked out French wheat from the Egyptian market and opening the door for the U.S.  From the charting perspective, wheat broke the...

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