Food Business News - February 26, 2013 - 58

Ingredient Markets
Market commentary for one-week period ended February 22, 2013

Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were unchanged to 3c a bu lower. Downward adjustments to the basis were the rule across
the bottom two-thirds of the protein scale.
Premiums across the top third of the protein
scale were unchanged and mostly untested.
A massive winter storm rolled across
the hard winter wheat region on Wednesday and Thursday. The storm lay a thick
blanket of snow across Kansas, Nebraska,
Colorado and the panhandles of Texas and
Oklahoma. Snow cover of a foot or more
was evident across a broad swathe of the
region. All of the drought-afflicted areas
received moisture, and it was hoped the
storm augured well for the emergence of
an overall wetter weather pattern into the
spring. The hard winter crop entered dormancy in poor condition in many areas,
and the first half of winter was mostly dry
especially in Kansas.
The storm was forecast well ahead of
the event, and the trade had plenty of time
to prepare, even if the snowfall exceeded
most expectations. That the cash basis registered declines during the week even in
the midst of the storm reflected mills were
successful in maintaining pipelines to sustain what has in any event been a lackluster mill grind. The efforts were assisted by
timely deliveries of wheat for application
against February contracts.
The storm stalled rail car loadings and
shipments and truck logistics through
Thursday and early Friday. Elevators were
closed or operated with skeleton staffs.
Mills and the regions also were closed for
the duration of the storm.
Even before the storm, there was no indication of significant business being transacted in the market for to-arrive wheat with
bids and offers still too far apart to generate much interest.

No. 1 hard winter
Basis Kansas City Mar., cents per bu
Feb. 22
Premium
Ordinary 68 @ 83
11%
78 @ 93
11.2% 83 @ 98
11.4% 93 @ 108
11.6% 97 @ 112
11.8% 102 @ 117
12% 105 @ 120
12.2% 105 @ 120
12.4% 105 @ 120
12.6% 105 @ 120
12.8% 105 @ 120
13% 120 @ 135
13.2% 120 @ 135
13.4% 120 @ 135
13.6% 120 @ 135
13.8% 120 @ 135
14% 120 @ 135

— Change from —
Feb. 15
Feb. 8
-2 @ -2
-2 @ -2
-2 @ -2
-2 @ -2
-2 @ -2
-2 @ -2
-2 @ -2
-2 @ -2
-3 @ -3
-3 @ -3
-2 @ -2
-2 @ -2
-1 @ -1
—
-1 @ -1
—
-1 @ -1
—
-1 @ -1
—
-1 @ -1
—
—
—
—
—
—
—
—
—
—
—
—
—

FOODBUSINESS NEWS

Year
ago
30 @ 45
42 @ 57
50 @ 65
73 @ 88
73 @ 88
75 @ 90
85 @ 100
89 @ 104
89 @ 104
90 @ 105
95 @ 110
105 @ 120
105 @ 120
160 @ 175
160 @ 175
160 @ 175
190 @ 205

Farmer selling of hard winter wheat remained negligible. Producers earlier sold
up to 85% of their production at most locations. Two factors militated against additional sales: disappointment with recent
steep declines in wheat prices and concerns over new crop prospects because of
drought conditions across the Plains states.
Last week’s storm may rekindle hopes for a
good start to the 2013 growing season, but
it was uncertain that would translate into
new sales. Producer forward sales of new
crop supply remained behind the average
for the date.
In the case of elevators, the carry in
wheat futures prices encouraged storing
and not aggressively loading out wheat.
In Fort Worth, nearby bids on hard red
winter wheat were 15c over K.C. March,
unchanged; new crop, the July K.C. price.
Salina truck bids at terminal elevators
were at 10c under K.C. March, unchanged;
new crop, 15c under July. Hutchinson elevator bids were at 5c under K.C. March,
unchanged; new crop, 15c under July. Gulf
bids on hard red winter wheat with 12%
protein for February were 125c over K.C.
March, up 1c.
HARD SPRING. Premiums on hard red
spring wheat quoted as delivered Chicago/
beyond value in relation to the Minneapolis
March wheat future were unchanged to 15c a
bu higher last week. The adjustments were at
15% protein, which was the only protein for
which there were quotes the previous Friday.
Most wheat moving across the northern
Plains was for delivery against February

SOFT RED. Mill bids on soft red winter
wheat were mostly unchanged last week.
Kansas City bids on No. 1 soft red wheat
remained withdrawn. Gulf bids on soft
red for February were 70c over Chicago
March, down 3c. St. Louis nearby mill bids
were 25c over Chicago March, unchanged.
Chicago mill bids were 25c over Chicago
March, unchanged; new crop, 25c under
July. Mill bids in Toledo for nearby were
10c over Chicago March, unchanged; AprilMay, 10c over May; new crop, 20c under
July. Elevator bids were 20c under Chicago
March; new crop, 20c under July. Cincinnati nearby mill bids were at 10c over Chicago March, down 5c; new crop, 15c under
July. Elevator bids were 10c over Chicago
March; new crop, 18c under July. Michigan white wheat mill bids for nearby were
at 10c under Chicago March to 20c over, unchanged; new crop; July price to 10c over.
A strong winter storm extended into Missouri, northern Arkansas and western Illinois after laying a thick blanket of snow
across much of hard winter wheat belt. The
moisture may benefit the soft red winter
crop. FBN

Kansas City hard winter premiums, 12.2%

No. 1 hard spring
Basis Minneapolis Mar., delivered Chicago/beyond
cents per bu
Feb. 22 — Change from —
Year
Premium Feb. 15
Feb. 8
ago
Ordinary
...
...
...
…
11%
...
...
...
…
12%
...
...
...
…
13%
110
...
+10
104 @ 119
13.5%
...
...
...
…
14%
115 @ 120
…
+10 @ +10 114 @ 154
14.5%
...
...
...
…
15%
115 @ 130 +15 @ +10 +5 @ +10 205 @ 215
16%
...
...
...
…

Exporter bids and oﬀers
For
Feb. 22
shipment
Bid
Offer
No. 1 Hard 11%, Track Gulf
Basis Kansas City future, cents per bu
February
+125 March
…
March
+125 March 140
April
+122 May
133
May
+122 May
136
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
+70 March
…
March
+68 March
73
April
+65 May
74
May
+53 May
59

contracts. West coast export elevators bid
on spring wheat from time to time, but export outlets otherwise were narrow because
of closing of Great Lakes to ocean-going vessels until spring.
Farmer selling of spring wheat remained
light amid disappointment with declining
wheat prices.
Snow cover was evident across nearly all
of the northern Plains.

Year ago
bid

…
+116 March
+110 May
+115 May

+63
+63
+60
+60

March
March
May
May

cents per bu

150
130
110
90
70
50

Cash wheat
Feb. 22 — Change from —
For shipment
Bid
Feb. 15 Feb. 8
No. 1 Soft White, Track, Portland
$ per bu
February
...
...
...
March
...
...
...
April
8.65
-.15
-.05
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
February
1.30
+.10
+.20
March
1.30
+.10
+.20
April
1.25
+.15
+.20
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
February
1.10
+.05
-.05
March
1.10
+.05
-.05
April
1.15
+.10
+.15

Year
ago

…
6.95
6.95
0.80
0.80
0.80
1.45
1.45
1.50

February 26, 2013

Food Business News - February 26, 2013

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