Food Business News - September 11, 2012 - 55

Market commentary for one-week period ended September 7, 2012

Wheat Futures
Wheat markets continued to seek direction last week in day-to-day trading that alternated price losses with gains. Prices tumbled at midweek but bounced back during the final two sessions to end the week with solid gains. World demand for wheat increased and underpinned world wheat prices. Egypt purchased 840,000 tonnes of Russian, Ukrainian and Romanian wheat in two transactions. While Russian government officials recently asserted there would be no restrictions on wheat exports despite a drought-reduced harvest, the market remained wary, given heavy Russian wheat sales thus far this marketing year. Last week’s sales were concluded at levels that indicated U.S. wheat offers may be becoming increasingly competitive. Saudi Arabia announced a purchase of 575,000 tonnes of wheat, which was expected to include supply from the United States. The Commodity Credit Corp. purchased U.S. wheat for donations to Congo and Mozambique, and other C.C.C. wheat tenders were working. The pace of C.C.C. purchases often picks up with the approach of the end of a fiscal year. The U.S. Department of Agriculture indicated net export sales of U.S. wheat during the week ended Aug. 30 totaled

554,400 tonnes, up 9% from a week earlier and up 10% from the four-week average. The value of the dollar declined partly in response to the announcement by the European Central Bank it would buy “unlimited” volumes of government bonds to bring down borrowing costs for struggling European Union member states. The announcement strengthened the euro in relation to the dollar. The drop in the dollar index provided a boost to commodity futures, including wheat. The U.S.D.A. indicated the spring wheat harvest was 95% completed by Sept. 2 compared with 72% as the recent five-year average for the date. Combining continued only in Montana, Idaho and Washington. The planting of the 2013 hard winter wheat crop was just under way across northern areas. Planting was 2% completed in South Dakota and 1% completed in Nebraska on Sept. 2. Advances in wheat came even in the face of a lackluster corn market and weaker soybean futures. FBN

Millfeed
Millfeed prices were mixed but mostly ﬁrmer and in narrow ranges amid lackluster trading during the holiday week. Material was seen at attractive levels, but demand was slack in some areas. Supplies were

ample. Upper Midwest creep feed buying kept some values ﬁrm. Flour grind ranged from four to seven days as some mills chose to forego downtime during the holiday weekend. Resellers said markets felt “heavy” in Southwest, Southeast and Northeast. Endusers covered through September were expected to need fresh supplies soon, which may improve demand. Some traders hoped for lower millfeed prices after the recent softening in the cash corn basis in some areas. Traders said they would focus more on corn futures as the harvest progressed. Southwest spot rail values advanced $10 a ton with truck material up $5 from the previous Friday. Upper Midwest spot also gained $10 a ton. Spot values in Central states rose $5 a ton, Northeast fell $5 and Southeast was unchanged. Paciﬁc Northwest spot gained $15 a ton last week while California spot was up $5. Deferred values were mixed from a week earlier. Wheat germ held steady. Millfeed was $220 a ton in Kansas City and $264 in Minneapolis, on a rail basis, compared with corn at $292 a ton and sorghum at $267 a ton, both K.C. Corn gluten feed was $10 higher at $305 a ton, distillers’ dried grain eased $5 to $300 a ton, and dehydrated alfalfa was steady at $340 a ton, all K.C. FBN

Wheat futures
$ per bu; change in cents per bu Sept. 7 Kansas City September December March May Chicago September December March May Minneapolis September December March May 8.99¼ 9.23¼ 9.34¼ 9.31¼ 8.84¾ 9.05 9.15½ 9.14½ 9.40¾ 9.58 9.66¾ 9.73¼ — Change from — Week’s Aug. 31 Aug. 24 High Low +18½c +17¼c +16c +20¼c +14¾c +15½c +16c +19½c +9c +9¾c +10c +10c +23c +22c +21c +21c +17¼c +16½c +17c +26c +22¼c +28c +28¼c +28c 9.06¾ 9.32¾ 9.43½ 9.36½ 8.90¾ 9.12½ 9.21¾ 9.18¾ 9.48 9.64¾ 9.73¼ 9.79 8.61½ 8.85¼ 8.98 8.95¾ 8.44 8.65¼ 8.78¼ 8.80 9.13¾ 9.29 9.39 9.46½ Year ago 8.10¼ 8.32½ 8.45 8.47 7.01 7.29¾ 7.64½ 7.84½ 9.45¾ 9.07¼ 9.04 9.01 High 9.84 9.92¼ 9.86½ 9.85 9.63¼ 9.77¼ 9.82 9.72 10.35 10.34 10.34½ 10.19¼ Season’s Low (05-26-11) (05-26-11) (05-25-11) (05-25-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (07-20-12) (07-23-12) (07-23-12) (07-01-12) 6.25½ 6.50 6.64½ 6.74 6.06¾ 6.29½ 6.52 6.65 7.09½ 7.34 7.43 7.53½ (05-14-12) (05-11-12) (05-14-12) (05-11-12)

Kansas City wheat futures
December contract, $ per bu
10.50 9.00 7.50 6.00 S D M
Previous Year

J
Current Year

(05-14-12) (05-14-12) (05-14-12) (05-14-12) (10-05-10) (05-14-12) (05-14-12) (05-11-12)

Chicago wheat futures
December contract, $ per bu
$10.15 $9.15 $8.15 $7.15

Bulk middlings
$ per ton, delivered rail unless noted Spot Kansas City 220 @ 230 Southwest, f.o.b. truck 245 @ 255 Minneapolis 264 @ 269 Upper Midwest, f.o.b. truck 260 @ 265 Chicago West 277 @ 282 Central states, f.o.b truck 230 @ 240 Buffalo 195 @ 210 Southeast 185 @ 195 N. & S. California 254 @ 274 Los Angeles, f.o.b. truck 250 @ 270 Paciﬁc Northwest 270 @ 290 Upper Midwest, sacked 330 Wheat germ 290 @ 310 Sept. 225@ 230 250@ 255 264@ 269 260@ 265 277@ 282 230@ 240 195@ 215 185@ 195 254@ 274 250@ 270 270@ 290 — Change from — Year Aug. 31 Aug. 24 ago 0 @ -5 0 @ -5 218 @ 225 +5 @ +5 +10 @ +5 240 @ 245 +10 @ +5 +20 @ +15 209 @ 224 +10 @ +5 +20 @ +15 205 @ 220 +10 @ +5 +20 @ +15 222 @ 237 +5 @ +5 — 187 @ 192 -5 @ 0 -35 @ -25 162 @ 172 — -10 @ -10 165 @ 172 +8 @ +8 — 189 @ 204 +8 @ +8 — 185 @ 200 +15 @ +20 +15 @ +20 170 @ 180 Oct.-Dec. 235@ 242 255@ 260 234@ 244 230@ 240 247@ 257 230@ 240 185@ 195 190@ 200 249@ 269 245@ 265 275@ 295 Jan.-Mar. 225 @ 233 245 @ 250 229 @ 239 225 @ 235 242 @ 252 232 @ 242 170 @ 185 190 @ 200 239 @ 259 235 @ 255 285 @ 305
S D M
Previous Year

$6.15 J
Current Year

Week's change (cents per bu) Minneapolis wheat futures

December contract, $ per bu
$10.50 $9.50 $8.50 $7.50 $6.50 S D M
Previous Year

J
Current Year

September 11, 2012

FOODBUSINESS NEWS

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Food Business News - September 11, 2012

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