25/10/12: FFI; US wheat prices; avoiding mycotoxins

Hello,

• The Flour Fortification Initiative (FFI) is celebrating a decade of flour fortification progress. In the past decade, the number of countries requiring wheat flour fortification with at least iron or folic acid has more than doubled from 33 to 75, and the proportion of industrially milled flour being fortified has risen from 18 to 30 percent. Advocates say this progress is due to leaders in the public, private, and civic sectors working together to improve health through fortified flour.  Read more...

• US wheat futures have received a boost after Ukraine announced a halt to wheat exports. Chicago Board of Trade December wheat futures settled up 1.8 percent at $8.84 a bushel. KCBT December wheat rose 1.5 percent to $9.21 a bushel. MGEX December wheat rose 1.1 percent to $9.55 a bushel. Read more...

• With the threat of mycotoxins looming, this article by Alltech provides some useful hints on how to avoid this pesky problem. Read more...

Unsifted wheat flour (Photo credit: Wikipedia)

Wheat tumbles on improved weather - Grain and Soy Review

US wheat futures tumbled Wednesday on a combination of investors reducing risk exposure in the market and weather conditions that should ease stress to crops in the US and Europe. Wheat for July delivery ended down 35 cents, or 4.1 percent, at US$8.12 (UK£4.875) a bushel at Chicago Board Of Trade. At the Kansas City Board of Trade, hard red winter wheat for July delivery lost 3.9 percent to US$9.23 (UK£5.542)  a bushel. Hard red spring wheat for July delivery closed down 2.8 percent at US$9.54 (UK£5.728) 1/4 a bushel at the MGEX in Minneapolis.

Broad based selling was consistent across the grain complex at CBOT, reflective of investors reducing risk in the absence of a fundamental change in the market, said Shawn McCambridge, grains analyst with Prudential Bache in Chicago. Traders reduced risk after recent gains, worried Federal Reserve's rate decision and Fed Chairman Ben Bernanke's history making news conference might sway the US dollar or other markets that influence commodities, McCambridge said. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine and International Milling Directory from Perendale Publishers

Cash wheat hits US$10 in the U.S

Export demand and concerns about planting have pushed U.S. cash prices for hard red spring wheat above US$10 a bushel for the first time in 31 months.

Demand for spring wheat, a high-protein variety grown in northern Plains states like North Dakota, has been strong after rains lowered the quality of wheat in Canada and Australia. Traders are worried wet weather may prevent farmers from planting a big crop this spring to replenish supplies because heavy snows could lead to flooding and saturated soils.

"Rivers and streams are still running full. It could be a mess," said Mike Krueger, president of the Money Farm, a grain marketing advisory service near Fargo, N.D. National cash price indexes maintained at the Minneapolis Grain Exchange last traded at US$10.05 1/2 a bushel for hard red spring wheat, reflecting an average basis of - 4 3/4 cents relative to Wednesday's settlement of the MGE hard red spring wheat futures contract. The average cash price jumped from US$9.77 a day earlier.

Snow cover should remain "very deep" across key growing areas in North Dakota, eastern South Dakota and Minnesota, according to MDA EarthSat Weather, a private weather firm. Hard red spring wheat is often blended with lower-quality wheat varieties, such as soft red winter wheat, or used to make bread. Read more...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.

U.S Corn stocks even tighter, more rationing ahead

U.S. ending stocks for corn and soybeans declined further from last month, based on projected lower yields and continued strong demand, according to USDA’s monthly update of last year’s crops. In its January. 12 Crop Production Report and World Agricultural Supply and Demand Estimates, USDA also raised projected U.S. production for cotton and rice.

In a Minneapolis Grain Exchange press briefing on the report, Peter Georgantones, Abbott Futures, said the competition for acres between corn, cotton, wheat and soybeans this spring is bound to push prices higher. With the lowering of corn yield and very low stocks numbers, “there is going to have to be a rationing process taking place in corn. That’s why we’re at US$6.25 now, but I think we’re going to have to ration more. We’ll have to fight for acres with other commodities.”

Estimated U.S. corn production is 93 million bushels lower based on a 1.5-bushel-per-acre reduction in the national average yield, according to USDA. Corn used for ethanol was raised 100 million bushels due to record ethanol production in December. Projected corn ending corn stocks for 2010-11 were lowered 87 million bushels to 745 million, down 963 million bushels from last year. The stocks-to-use ratio is projected at 5.5 percent, the lowest since 1995-96 when it dropped to 5 percent. Read more...


This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.