A major influence is the healthy state of most corporate balance sheets, reflected in the peak cash holdings as well as cautious borrowing during recent years of global economic uncertainty.
Considering all that happened last year in grain-based foods, the solidity just revealed in the production of wheat flour by U.S. mills is truly striking.
As weakness in commodity markets persists and projections are made that this will continue for at least another year, companies in food manufacturing need to explore whether the effect is as benign as first thought.
Gaining basic understanding of the drivers of price moves in markets like wheat, rice and coarse grains requires a basic look at determinants that measure price effects like the relation of production to demand.
The latest forecast of world trade in wheat and flour by the International Grains Council places likely U.S. exports at 24 million tonnes while Russia is forecast to ship 23.1 million.