January 2016: The Flour Report

January 2016: The Flour Report

ORGANIC UPDATE

Pricing is range bound and a quiet market was seen in December with little wheat offered for sale. This should continue until spring planting season gets under way for wheat in the coming months.

BULLS & BEARS

– Winter wheat seeding report lowered acreage planted versus a year ago at 36.6 mlyn acres vs. 39.46 yr ago.

+ US exports lag 15% versus a year ago at 583 million bu for 2015-16 marketing year and carry out stocks are forecasted up 30 mil bu since December report to 941 million bushels.

Flour market bulls and bears

FUTURES MARKET

January flour.com futures market

RECAP

Weak markets in wheat continued for December.  Early December saw a fugacious rally on technical short covering but that was short-lived. The Fed soon raised interest rates for the first time in almost 10 years – which added to the US dollar strength – only hurting export opportunities and putting pressure on markets further.  Crop conditions for winter wheat planted were uneventful and absent any bullish inputs – pricing held in a range for much of December and as we began 2016.

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