Weekly Market Highlights
- Wheat futures and basis premium prices have moved higher since our last communication two weeks ago.
- Futures have moved gradually higher from their late August lows.
- Basis premiums are being supported by higher transportation costs in the form of rail freight rates. The higher basis also reflects the slow pace of wheat movement to market that leads millers to pay up for certain levels of protein when they become available.
- Overall though mill pipelines are considered to be adequately full.
- The USDA will issue their Small Grains Summary and Stocks reports Friday. Reports are not expected to lead to a major move in the market. We could see the current minor strength in futures and basis continue through the remainder of the row crop harvest.
Facts on Flour
Most of the durum wheat grown in the U.S. is produced in the northern Plains, with 70 to 80 percent grown in North Dakota alone. Durum wheat is milled into a granular product called semolina, which is used primarily for pasta products in the U.S. Other uses of semolina include couscous and bread products.
Pasta products from durum are superior because of the desirable golden color and nutty flavor, and because they hold their shape and firm texture when cooked. A by-product of semolina production is durum flour, which is used in breads and pre-cooked pasta products