Market Report For 10-17-16

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Weekly Market Highlights

  • December hard red winter wheat futures prices are lower this week, falling below $4.00 per bushel. Hard red spring wheat fell just a few cents per bushel.
  • The USDA reported a decline in U.S. spring wheat stocks this week, supporting spring wheat futures. Early this year, the Kansas City and Minneapolis markets traded only $.23 cents per bushel apart; that spread is now $1.23.
  • Basis premium prices have climbed steadily for higher protein winter wheat and all grades of spring wheat, leading to higher flour prices.
  • The higher basis prices reflect the slowing wheat supply from producers who have lost interest in selling at low prices and have other crops to harvest during this time of the year.
  • At the same time, mills who must keep a steady supply of wheat in the pipelines represent a steady demand.
  • We could see this trend continue in the coming weeks, but as the harvest wraps up and producers reward higher prices with better wheat movement, wheat and prices may return to lower levels.

Facts on Flour

Soft White Wheat is primarily grown in the Pacific Northwest. It is also grown in areas scattered throughout
Montana. Soft wheat flour is used in cakes, crackers, cookies, pastries, quick breads, muffins and snack foods. The
bulk of this wheat class is exported for use in flat breads, noodles and sponge cake.
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