Food Business News - March 12, 2013 - 52

Ingredient Markets
Market commentary for one-week period ended March 8, 2013

Wheat futures
Wheat futures prices dropped last week
amid improved weather across the droughtstressed winter wheat region and U.S. and
world wheat supply-and-demand forecasts
that confirmed ample supplies.
The U.S. Department of Agriculture on
March 8 raised its forecast for the U.S.
carryover of wheat on June 1, 2013, to 716
million bus, up 25 million bus from the
February projection and down 27 million
bus, or 4%, from 743 million bus in 2012. The
adjustment from February was the result of
the U.S.D.A. lowering its 2012-13 forecast
for U.S. wheat exports to 1,025 million bus
from 1,050 million bus both as the 201213 February projection and as the 201112 outgo. The U.S.D.A. said, “Continued
strong competition, particularly from the
European Union-27 and the former Soviet
Union-12, further reduce prospects for
U.S. wheat shipments.” The 2013 carryover
forecast was in line with the average of prereport trade estimates.
The U.S.D.A. raised its forecast for 201213 world wheat ending stocks to 178.23
million tonnes from 176.73 million tonnes as
the February projection and compared with
196.47 million tonnes in 2011-12. World wheat
supplies for 2012-13 were raised because of a
1.87-million-tonne increase in estimated world
wheat production to 655.48 million tonnes.

The next important U.S.D.A. reports,
March 1 Grain Stocks and Prospective
Plantings, will be issued on March 28.
Snow across the drought-stressed hard red
winter wheat belt from two impressive storms
during the previous two weeks was melting.
The moisture boosted spirits and engendered
hopes the drought’s grip may loosen as
the growing season begins. The northern
Plains and Corn Belt received additional
moisture last week. Kansas, Oklahoma and
Texas began to issue crop condition ratings
on a weekly basis with the latest ratings
indicating only slim improvements. Much
more moisture was required for the crop to
register significant improvement from last
fall’s abysmal outlook.
The U.S.D.A. indicated net export sales
of U.S. wheat during the week ended Feb.
28 for the current marketing year totaled
618,100 tonnes, up 66% from the previous
week and up 23% from the prior four-week
average. The U.S.D.A. also announced net
export sales of wheat for 2013-14 at 210,000
tonnes in the week. FBN

Millfeed
Spot and balance-March prices firmed
in the Northeast and Central states but
were narrowly mixed elsewhere as nearby
supplies remained tight. Deferred prices
were mostly steady. Nearby feed demand

was apparent, and market participants
complained that flour mill run times were
not sufficient to fully meet buying interest.
Still, upward pressure on prices was limited
in part by generally lower corn futures
prices and caution before Friday’s U.S.D.A.
supply-and-demand report.
Grind toward the end of last week
approached normal levels of 5½ to 6½
days, depending on location. A Northeast
trader said grind in his region was only
4½ days and that some supplies were
“shipping backward”—west to east—to
ease tightness. He also said some corn and
soy byproducts were starting to displace
millfeed in rations.
Early last week, attention temporarily
shifted to the news that ConAgra Foods,
Cargill and CHS, Inc. were planning a flour
milling merger, the largest in U.S. history.
The new entity, named Ardent Mills, would
control about a third of total U.S. wheat
and durum flour capacity and prompted
traders to express concerns about industry
concentration.
Millfeed was $175 a ton in Kansas City and
$214 in Minneapolis, on a rail basis, compared
with corn at $262 a ton and sorghum at $248 a
ton, both K.C. Corn gluten feed was steady at
$240 a ton, distillers’ dried grain was up $15 at
$280 a ton, and dehydrated alfalfa was steady
at $355 a ton, all K.C. FBN

Kansas City wheat futures

Wheat futures

May contract, $ per bu
$10.00

$ per bu; change in cents per bu

Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

Season’s
Low

— Change from —
Week’s
March 1 Feb. 22 High
Low

Year
ago

High

7.38¼
7.34¼
7.40
7.52¾

-17¾c
-21¾c
-21c
-20½c

-11½c
-25¼c
-27½c
-28¾c

7.52¼
7.57
7.61¾
7.73½

7.27
7.23
7.30¼
7.43¼

6.79½
6.84
6.92½
7.07¼

9.86½
9.85
9.50
9.46¾

(05-25-11)
(05-25-11)
(05-26-11)
(11-29-12)

6.64½
6.74
6.80¼
6.87¾

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

6.90
6.97
6.98¾
7.05¼

-23¼c
-23½c
-23½c
-24½c

-25c
-21¾c
-24¾c
-27¼c

7.14
7.22
7.23
7.30

6.74¾
6.81
6.86
6.94¾

6.38¾
6.43
6.53½
6.71

9.82
9.72
9.47
9.05¾

(05-26-11)
(05-26-11)
(05-26-11)
(11-08-12)

6.52
6.65
6.63
6.79

(05-14-12)
(05-14-12)
(11-25-11)
(11-25-11)

8.06¼
7.92
7.91½
7.91½

-13½c
-13¼c
-18¼c
-19c

+3½c
-20c
-28c
-30c

8.20
8.05½
8.07½
8.10

7.99
7.80
7.79¾
7.81¾

8.01¾
8.05
8.01
7.84

10.34½
10.19¼
10.00
9.70

(07-23-12)
(07-01-12)
(07-20-12)
(09-14-12)

7.43
7.53½
7.60
7.48

(05-14-12)
(05-11-12)
(06-05-12)
(06-01-12)

March 8

$8.50
$7.00
$5.50
M

J

S

D

Previous Year

Current Year

Chicago wheat futures
May contract, $ per bu
$10.20
$8.60

Bulk middlings

$7.00

$ per ton, delivered rail unless noted
N=Nominal
Spot
Kansas City
175 @ 185
Southwest, f.o.b. truck
230 @ 240
Minneapolis
214 @ 224
Upper Midwest, f.o.b. truck 210 @ 220
Chicago West
227 @ 237
Central states, f.o.b truck 215 @ 225
Buffalo
180 @ 190
Southeast
180 @ 190
N. & S. California
238 @ 258
Los Angeles, f.o.b. truck 234 @ 254
Paciﬁc Northwest
215 @ 235
Upper Midwest, sacked
350
Wheat germ
290 @ 320

52

FOODBUSINESS NEWS

®

— Change from —
March
March 1
Feb. 22
175@ 185
—
-10@ -10
225@ 235 +5 @ +5
-10@ -10
214@ 224 -5 @ -5
-15@ -15
210@ 220 -5 @ -5
-15@ -15
227@ 237 -5 @ -5
-15@ -15
210@ 220 +20 @ +20
-5@ -5
175@ 185 +5 @ +5
—@ -5
170@ 180 +5 @ +10 -15@ -15
229@ 249
—
—
225@ 245
—
—
215@ 235
—
—

Year
ago
128@ 138
165@ 175
169@ 179
165@ 175
182@ 192
160@ 170
155@ 165
135@ 145
174@ 184
170@ 180
180@ 200

$5.40

April-June
150 @ 158
175 @ 185
179 @ 189
175 @ 185
192 @ 202
160 @ 170
135 @ 145
145 @ 155
210 @ 230
206 @ 226
215 @ 235

July-Sept.
146 @ 154
171 @ 181
179 @ 189
175 @ 185
192 @ 202
150 @ 160
128 @ 138
140 @ 150
186 @ 206
182 @ 202
…@…

M

J

S
Previous Year

D
Current Year

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

May contract, $ per bu
$10.75
$9.75
$8.75
$7.75
$6.75
M

J

S
Previous Year

D
Current Year

March 12, 2013
Food Business News - March 12, 2013

Table of Contents for the Digital Edition of Food Business News - March 12, 2013
