Welcome to the bulk food market news update.  In the wheat market, U.S. wheat won export tenders to Saudi Arabia, Algeria, Iraq and China.  The bad news it that it took multi-year lows in the wheat market to attract the attention of big buyers.  Furthermore, there is a lot of wheat still available on the market from the Black Sea, Europe and Australia and Canada.  However, Canada is facing a major issue of transporting wheat to the coast for export due to competition for rail car space with oil exports Alberta.  See the article below for more on this dynamic.  From a charting perspective, wheat continues to sit right at key support on the monthly chart at around $5.70.  This support is illustrated on the chart by the black dotted line and the rising red trend-line.

In the corn market, last month China took advantage of low prices to import over 800,000 metric tons of corn from the U.S. However, Chinese inspections have found the presence of an unapproved form of GMO wheat from the chemical company Syngenta.  China has rejected 600,000 metric tons due to the presence of this type of GMO corn.  China is not against GMO corn having approved 15 different varieties of GMO corn to be imported.  This type of GMO corn is approved in the U.S. and has been awaiting approval by the Chinese authorities for two years.  It appears the real story is China subsidizes domestic corn farmers.  Cheap imports from the U.S. could undercut the more expensive domestic Chinese corn.  China is simply protecting its domestic market with trade policy.  From the charting perspective, as can be seen in the second chart below, the market slide has stopped for now at the rising trendline.

Prices are well off the highs in both the wheat and corn markets.  Smart buyers will use this time to put together a buying strategy for taking advantage of the fall in prices.

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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