Market Update 7-17

Market Trends Pizza

Weekly Market Highlights

  • Wheat futures have fallen back from the highs set mid last week. Basis premium prices have softened a bit as wheat movement has been steady. This is due in part to the premium price wheat producers can collect following the recent run-up.
  • The USDA published their first wheat forecast of the season Wednesday, somewhat surprising the market with better than expected projections. It’s important to remember this report was based on wheat conditions in very early July; subsequent reports could better reflect the drop in production resulting from issues with drought in the spring wheat crop, harvest weather and disease in the winter wheat crop.
  • The report did project a 22% smaller crop than last year, but thoughts were that is already factored into the market following weeks of higher futures trades.
  • World wheat stocks remain adequate or better; crop issues in the U.S. and other countries were offset by better prospects for the Russian crop. No allowance for a drop in the EU or Canada was reported yet in the USDA’s forecast.
  • Welcome news was that some pockets of higher protein hard red winter wheat have been harvested in Kansas. The market is taking a breather for now, but with the drought still worsening in Montana and the Dakotas, no doubt the volatility will continue.

Facts on Flour Enriched Flour

In the 1930s, nutritional surveys conducted by the Department of Agriculture revealed widespread nutritional deficiencies of thiamin, riboflavin and niacin (B vitamins) in the American diet. These findings prompted the fortification of certain staple foods.

The Food and Nutrition Board recommended a program for fortifying white flour and white bread with thiamin, riboflavin, niacin and iron, with calcium and vitamin D as optional.

In May 1941, the flour enrichment standards were issued and finally adopted in 1943. The standards were recently changed, and as of January 1, 1998, enriched flour now also must contain folic acid. The enrichment of flour has no affect on its baking performance or caloric value.

Legacy Market News July 14

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