December 2015: The Flour Report

December 2015: The Flour Report

ORGANIC UPDATE

Organic winter wheat offerings are tight due to reduced stocks in the US Midwest only one-third of way into marketing year, with many end-users seeking to procure year’s worth of needs early in crop year to ensure supply.

BULLS & BEARS

– USDA cut export projections to 800 myln bu from last report of 850 million bushels.

+ IGC projected global wheat stocks-to-use ratio at end of 2015-16 to 31.6% up from 29.9% a year ago.

Flour market bulls and bears

FUTURES MARKET

flour futures market

RECAP

Market volatility has been muted due to abundant wheat stocks and lack of fresh demand allowing wheat to slow drift lower. The USDA raised production estimates for corn, beans and raised carryout stocks on corn, beans and wheat. This coupled with a reduction in wheat export projections to lowest level since 1972 only added to the bearish tone for the past 30 days in the wheat market.

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