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 the crop is in poor condition due to winter kill or lack of moisture. Only when some rainfall arrives and the crop starts to grow will the extent of the winter will become evident.  The drought in Kansas has grown more severe over the past 30 days due to the extreme dryness.  With limited rainfall in the forecast, analysts expect the crop to deteriorate substantially in the first two weeks of April.  The old adage is coming true that precipitation is more important than politics in agriculture.

The March 31st USDA report came out today surprising the market with expected corn plantings. Corn planting for 2014 are expected to be 4% lower than last year while soybeans acres are up 6% as farmers shift acreage to beans.  Corn rallied sharply on news.  Corn inventories after last year’s huge crop are 30% above inventories this time last year.

Contact us at sales@bulkfoodinternational.com or 816-833-8062 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.

Weekly Wheat Review

Weekly Corn Review

Political instability in Ukraine, weather worries on American plains driving up wheat prices

Drought in Kansas grows more severe; wheat market closes lower

Kansas winter wheat breaks dormancy amid concerns of potential freeze damage, drought

Higher Wheat Prices More Complex Than Ukraine Turmoil

USDA: Farmers to Plant 4% Fewer Corn Acres, 6% More Soy

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