There are several story lines to the grain markets right now.  The wheat market is experiencing continued strength in the cash market due to high demand from Brazil for high quality U.S. hard red winter wheat.    As we have been pointing out for the last few weeks, the futures market in wheat continues to hold weekly support as seen by the chart below.  This means that there is a lot of buying support at this level and that this could be a low in the wheat market.  Wheat has been dragged down by corn since it is not competitive in the feed market at these corn prices since corn and wheat are substitutes for each other.  Another challenge is that U.S. wheat is priced out of the Egyptian market since it costs about $1.00 more per bushel than wheat delivered from the Black Sea and France.The USDA reported an increase in the expected corn harvest.  Estimates are now in excess of 13.8 billion bushels.  As we have shown for the past few weeks, the corn market is holding the monthly support trend line as seen in the monthly corn chart below at the moment, but there is downside risk to the $4.20 area.  Therefore, due to the larger than expected corn harvest corn could go down in price further, to the $4.20 area.
Check out the articles below for a more comprehensive look at the bulk food market news.  Contact us at sales@bulkfoodinternational.com or 816 888-8290 and we can help you get started investing in bulk foods as a tangible asset you have possession of, instead of just a piece of paper.  You can download a copy of our product catalog here http://data.axmag.com/data/201308/20130823/U105716_F235063/index.html

 

SPECIAL ANNOUNCEMENT  
Our CEO and Founder, Terry Leverett conducts weekly conference calls
Wednesday at 1:30 PM and 6:00 PM CDT.
Please join us for these discussions and ask any questions you may have.
The call-in number is 712-451-6000, pin: 200574#

Weekly Wheat Review

Weekly Corn Review

Fastest Wheat Sales in Six Years Diminish Inventory: Commodities

Floods and Droughts Causing Major Crop Problems in China

USDA Reports Provide Surprises, Again

Dry Bean Update

Leave a Reply

Your email address will not be published. Required fields are marked *