Food Business News - January 15, 2013 - 44

Ingredient Markets
Market commentary for one-week period ended January 11, 2013
Wheat futures
Prices of wheat futures advanced last
week, interrupting the downtrend that
began in late November. Wheat markets
drifted without direction until the release
on Friday, Jan. 11, of a battery of U.S.
Department of Agriculture reports that
were viewed as bullish for wheat.
The U.S.D.A. estimated area planted
to winter wheat for harvest in 2013 at
41.8 million acres, up just 1% from 2012.
The estimate fell toward the low end of
pre-report trade estimates that averaged
42.6 million acres. While farmers planted
more soft red winter wheat than the trade
expected, they planted less hard red winter
wheat than anticipated. Soft red winter
wheat acreage was up 16% from 2012, and
hard winter wheat area was 2% smaller
than a year ago.
The U.S.D.A. estimated Dec. 1, 2012,
wheat stocks in all positions at 1.66 billion
bus, down slightly from 2011 and lower
than the average of trade estimates at 1.674
billion bus.
The U.S.D.A. forecast the U.S. carryover
of wheat on June 1, 2013, at 716 million bus,
down 38 million bus from the December
projection and down 27 million bus from
2012. The average of pre-report trade
forecasts for the 2013 carryover was 743
million bus. Most of the adjustment from
$ per bu; change in cents per bu
Wheat futures
Kansas City
March 8.07 +2½c -19c
May 8.17
July 8.24¾ +7c -18¾c 8.35½
September 8.37¾
Chicago
+3¾c
+9¾c
March 7.54¾ +7½c -24c
+1¼c -32c
July 8.66¼ +7c -21¼c 8.77 8.52¾
September 8.67½
+9½c
N=Nominal
Spot
Kansas City
180 @ 190
Southwest, f.o.b. truck 230 @ 240
Minneapolis 209 @ 219
Upper Midwest, f.o.b. truck 205 @ 215
Chicago West
222 @ 232
Central states, f.o.b truck 195 @ 205
Buffalo 170 @ 180
Southeast 175 @ 185
N. & S. California
Los Angeles, f.o.b. truck 222 @ 242
Pacifi c Northwest
Upper Midwest, sacked
Wheat germ
44 FOODBUSINESSNEWS
®
226 @ 246
240 @ 260
290 @ 310
320
Jan.
-19¾c 8.78¾
$ per ton, delivered rail unless noted
Bulk middlings
— Change from — Year
Jan. 4 Dec. 28 ago Feb.-Mar. Apr.-June
183 @ 193 +1 @ +1 -22 @ -27 125 @ 130 175 @ 180 140 @ 150
210 @ 220 -15 @ -15 -45 @ -45 145 @ 155 200 @ 210 165 @ 175
199 @ 209 -5 @ -5 -55 @ -60 129 @ 139 194 @ 204 167 @ 177
195 @ 205 -5 @ -5 -55 @ -60 125 @ 135 190 @ 200 163 @ 173
212 @ 222 -5 @ -5 -55 @ -60 142 @ 152 207 @ 217 180 @ 190
190 @ 200 -5 @ 0 -55 @ -60 110 @ 125 180 @ 190 155 @ 165
165 @ 175 -20 @ -20 -55 @ -60 115 @ 125 145 @ 155 125 @ 135
160 @ 170 -15 @ -15 -25 @ -25 90 @ 100 150 @ 160 130 @ 140
219 @ 239 +5 @ +5 -10 @ -10 174 @ 189 209 @ 229 190 @ 210
215 @ 235 +5 @ +5 -10 @ -10 170 @ 185 205 @ 225 186 @ 206
240 @ 260 —
— 180 @ 195 230 @ 250 230 @ 250
JAJ O
Previous Year
Current Year
January 15, 2013
JA
JO
Week's change (cents per bu)
Previous Year
Current Year
Minneapolis wheat futures
March contract, $ per bu
8.54
+5c
7.86¾
Jan. 11 Jan. 4 Dec. 28 High Low ago
8.19¾
-19c
8.29
-17½c 8.45½
May 7.62 +5¼c -26½c 7.81¾
July 7.67 +3¾c -28c
September 7.76
Minneapolis
-23¾c
7.95 6.79¼
8.03½
8.16¼
6.88¾
7.03¾
7.73 7.36¼
7.45¼
7.52¼
6.02¼
6.24¼
6.45¾
7.93¾ 7.65¼ 6.67½
March 8.45¼ +4¼c -22½c 8.57½ 8.30 8.01¼
May 8.55¼
8.69¼ 8.42¼ 7.85¾
7.77¾
7.64½
7.85¼
— Change from — Week’s
Year
6.70
Season’s
High
Low
9.86½ (05-25-11) 6.64½ (05-14-12)
9.85 (05-25-11)
9.50 (05-26-11)
9.46¾ (11-29-12) 6.87¾ (12-14-11)
9.82 (05-26-11)
9.72 (05-26-11)
9.47 (05-26-11)
9.05¾ (11-08-12) 6.79 (11-25-11)
10.34½ (07-23-12) 7.43 (05-14-12)
10.19¼ (07-01-12) 7.53½ (05-11-12)
10.00 (07-20-12) 7.60 (06-05-12)
9.70 (09-14-12)
7.48 (06-01-12)
6.52 (05-14-12)
6.65 (05-14-12)
6.63 (11-25-11)
6.74 (05-11-12)
6.80¼
(05-14-12)
JAJ O
Previous Year
March contract, $ per bu
Chicago wheat futures
Current Year
December was attributed to a 35-millionbu
increase in the forecast for feed and
residual use of wheat in the current year to
350 million bus. Feed and residual use of
wheat during the previous year totaled 164
million bus.
The U.S.D.A.’s forecast for wheat exports in
2012-13 was unchanged at 1,050 million bus,
which was the same as the 2011-12 outgo.
The Dec. 1 corn stocks estimate also
was watched closely by wheat traders.
The U.S.D.A. estimated the Dec. 1 corn
inventory at 8.03 billion bus, down 17%
from a year earlier and compared with an
average trade estimate at 8.21 billion bus.
The smaller-than-expected corn stocks
provided wheat markets a boost.
The U.S.D.A. indicated net export sales
of U.S. wheat during the week ended Jan.
3 totaled 233,700 tonnes, down 42% from
the previous week and down 64% from the
recent four-week average. Egypt last week
bought 55,000 tonnes of U.S. soft red winter
wheat for shipment at the end of February;
but the world’s largest wheat importer
purchased 60,000 tonnes of Canadian soft
red winter wheat. FBN
Millfeed
Prices were mixed as the market sought
to establish values following the holidays,
when some prices, especially spot, spiked
as the result of temporary tightness caused
by abbreviated fl our mill grind.
Mills were almost all in full operation
with fl our grind at fi ve-plus days. In the
Southwest, nearby supplies remained tight
but in most other locations were adequate.
Demand materialized early last week but
proved elusive as the weekend approached.
Traders were mystifi ed why there was not
more buying enthusiasm for deferred
contracts that were trading at attractive
discounts to nearby values.
The consensus was that buyers and
sellers sought to reduce risk in advance of a
slew of key U.S. Department of Agriculture
reports last Friday. Key data from the
reports on corn, soybeans and wheat
were seen providing possible direction for
millfee d and other feed ingredients.
Viewed as most relevant in the reports
was the Dec. 1, 2012, corn stocks number
of 8.03 billion bus, down 17% from 2011 and
lower than the average trade estimate at
8.21 billion bus.
Millfeed was $180 a ton in Kansas City
and $209 in Minneapolis, on a rail basis,
compared with corn at $258 a ton and
sorghum at $246 a ton, both K.C. Corn
gluten feed was up $5 at $240 a ton, distillers’
dried grain was up $15 at $270 a ton, and
dehydrated alfalfa was steady at $355 a ton,
all K.C. Wheat germ held steady. FBN
March contract, $ per bu
Kansas City wheat futures
$6.00
$7.50
$9.00
$10.50
$5.40
$7.00
$8.60
$10.20
$6.75
$7.75
$8.75
$9.75
$10.75
Food Business News - January 15, 2013

Table of Contents for the Digital Edition of Food Business News - January 15, 2013
