Welcome to the bulk food market news update. Both the wheat market and the corn market have been screaming higher since making lows in January. Wheat is up over 29% and corn is up over 18%. The rally in wheat and corn can be attributed to the Ukraine turmoil, speculators, soybean rally and weather conditions.

Both markets have been boosted by the recent events in the Ukraine. The Crimea “voted” (there was no option to stay are part of the Ukraine on the ballot) to secede from the Ukraine and join Russia this week. The Crimea houses the main agricultural export terminals on the Black Sea for overseas markets. There are concerns that Ukrainian producers will hold back their crops from being exported to hedge their risks of a currency devaluation. Furthermore, spring plantings in the Ukraine are way behind because financing has dried up for farmers.

The rally has also been fueled by hedge funds and other speculators. Managed money increased its net long positions in one month by the second most in history next to July 2010 when the Russian drought sent prices soaring. The wheat market is also net long for the first time since last October.

Soybeans have also been very strong over the last two months. Corn competes for acreage with soybeans and thus a strong soybean market might limit corn plantings.

Finally, the weather in the western plains of the U.S. has remained dry calling into question winter wheat yields. Australian farmers need six inches of rain to plant winter wheat but that amount of rainfall would be unseasonable.

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

Evening markets: Crimea, US and Egypt combine to lift wheat

Wheat Prices Are On A Two-Month-Long Tear

Wheat price rises amid Crimea tension but drought saps Australian hopes

Hedge funds most bullish on ags in three years

Wheat Poised for Biggest Quarterly Advance Since 2012

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