Click Weekly Commodity Report 7-22-16 for full report
Bookings of flour expanded this week on stabilizing flour prices near some of the cheapest levels in quite a few years. Winter wheat harvest ran into some increased rainfall that slowed harvest slightly, but overall the crop is now more than 80% completed. Both the Chicago and Minneapolis futures contracts made new contract lows this past week, setting multi-year lows in the process. Kansas City wheat futures traded a penny away from recent lows. Protein reports during the HRW wheat harvest continue to come in right around the 11.2% level, down substantially from the prior year. This will make the old crop – new crop transition much more difficult for the millers and have kept support under basis quotes. The continued weakness in the corn market has kept pressure on millfeed values, as has the abundance of other feed ingredients available to the market. Current Q3 coverage is estimated at 80% complete, with Q4 approaching 40% finished.