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 resulted in an increase in demand.  Furthermore, other regions of the world such as Argentina are having issues which is restricting the global supply.  Both corn and wheat prices rose with the release of the report this morning.The long anticipated Farm Bill was signed by President Obama yesterday.  The key features of the bill:

  • Eliminates direct payments to farmers while strengthening and expanding crop insurance options.
  • Puts into place a permanent livestock disaster assistance fund.
  • Reforms dairy policy by repealing outdated programs and creating a new voluntary margin protection program, without imposing government-mandated supply controls.
  • Consolidates conservation programs and focuses those efforts on working lands.
  • Continues funding for agricultural research and creates support for beginning farmers.
  • Reforms the Supplemental Nutrition Assistance Program by addressing fraud and misuse.

From the charting perspective, the wheat market has reversed off of the rising trend line and horizontal support at the $5.64 area.  Exports of U.S. wheat to China have gone up over 5000% over the last year which have provided price support.  Similarly, the corn market bounced off the rising monthly trend line. Corn exports have remained strong as well despite the dispute over U.S. GMO corn exports to China.

Put your plan into place now on how to take advantage of the low prices in bulk food commodities.

Check out the articles below for a more comprehensive look at the bulk food market news.  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.

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