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 horizontal support line on the monthly chart at the $5.66 area closing the month at $5.55.  Additional support should be at the $5.30 area with the blue rising trend line.   Major support lies at the $4.30 area.  In other news, the NY Times wrote an article entitled,  “We Need GMO Wheat“, which outlines the history of how farmers have long resisted GMO wheat but that sentiment toward GMO wheat may be shifting.

In the corn market export demand has picked up with Spain purchasing 110,000 metric tons deliverable by August 2014.  Furthermore, ethanol production is up over 10% from last year as producers are taking advantage of the lower prices.  From the charting perspective, on the monthly chart prices followed through moving higher in January.  Major Support lies at the $3.20 area if prices break the trend line.

This week we are also taking a look at the Oats market and the Sugar market.  Charts for both can be seen below.  Oats have held steady over the last few years and appear ready to test resistance around $4.24 area.  Sugar has been in a long slide since making major highs in early 2011.  However, prices have come all the way back to the major monthly trend line and could be making a turn.

Smart tangible asset investors are using the lower prices as an opportunity to strategically acquire bulk foods.

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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