So, how does the government shutdown effect the grain market?  Well, not that much really.  The USDA will not release their reports and they have turned off their websites (even the ones that are static).  Other than that, there is no great effect.  Corn farmers are starting to harvest crops, spring wheat is almost completely harvested, and winter wheat is starting to be planted.   The gridlock in Washington is delaying the new farm bill which includes large subsidies to farmers.  Now to the markets…
As we have watched for weeks, the weekly wheat chart has bounced off the rising support trend line and encountered the first level of resistance.  To keep going up, wheat needs to break out of the parallel channel it has been in since March.  A weekly close above the down sloping line and traders will get interested in buying more.  Wheat exports remain strong but wheat is somewhat weighed down by the falling corn market.  The USDA report released on Sept 30 had expected wheat stocks at 1.93 billion bushels with actual stocks coming in a 1.85 billion bushels.  Fewer bushels than expected was bullish for the market.  In summary, wheat is bottoming and now is a good time to purchase.
Corn supplies came in much higher in the USDA report than expected at 824 million bushels versus forecast of 688 resulting in further downward pressure on the corn market.  Again, as seen in the c0rn chart below, it appears corn is headed to the bottom on the monthly channel at the $4.10-$4.25 range.

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

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