Market Report Update 5-8-17

Market Trends

Weekly Market Highlights

  • Wheat futures and basis premium prices are sharply higher this week.
  • Kansas City winter wheat posted solid gains in both futures and basis following a dramatic late spring snow event that covered a wide area where the crop had been developing nicely. It will be some time, and possibly harvest, when we can calculate the ultimate harm done to the quality and quantity of this crop.
  • Spring wheat planting has made progress, but is still significantly delayed due to wet and cold weather.
  • Hopes for higher protein in this year’s winter wheat crop seem to be dwindling, which could lead to still higher prices for good protein winter wheat this year.
  • Although there is much speculation, for now, market participants need to take a wait and see approach regarding the ultimate state of the winter wheat crop and its effect on prices. Wheat is a very resilient crop; however, the recent weather event surpassed most we are familiar with in severity.

Facts on FlourHard Red Winter Wheat

Hard Red Winter Wheat is the largest class of wheat produced in the U.S. Why? Well, when you go to the store to buy that 1 lb. a loaf of fluffy white bread, or a bag of chocolate chip cookies, or a 5 lb. bag of all-purpose flour, you’re buying Hard Red Winter Wheat. This wheat type has its use across a wide range of baked goods; from pan bread to cookies, from pizza to pie crusts, from doughnuts to soft rolls. Hard Red Winter Wheat has enough protein strength for good strong dough but is mellow enough to deliver a soft texture.
Hard wheat can produce all-purpose flour with a protein around 10 percent up to bread flour with a protein content of 12 percent. With the right ingredients, Hard Red Winter Wheat flour can make a wide variety of baked goods. This variety is what makes Hard Red Winter Wheat the largest class of wheat produced.

 Legacy Market News May 5

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