Food Business News - April 9, 2013 - 58

Ingredient Markets
Market commentary for one-week period ended April 5, 2013

Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were 7c a bu
higher to 5c lower last week. The 5@7c
gains were applied to wheat with protein
of less than 11.4% while 5c declines were
posted on wheat with protein from 11.6%
through 12%. The basis across the rest of
the protein scale was unchanged and mostly untested.
Mill demand was tempered by steady
receipt of wheat shipments for application
against first-half April wheat contracts.
Lackluster mill grind also curbed interest
in spot supply. Gulf export elevator bids on
hard winter wheat remained firm despite
sluggish foreign demand for U.S. wheat in
the latest week.
Business in the market for to-arrive
wheat remained light. Many mills earlier
contracted for most of their second-quarter
needs, and bids and offers for fill-ins remained too wide to generate enthusiasm
for more active purchasing.
Farmer selling of wheat remained light.
Producers earlier sold between 80% and
85% of their 2012 production and were
expected to remain tight holders of their
remaining old crop supply until the 2013
crop’s prospects become more certain.
The U.S. Department of Agriculture on
April 1 issued its first Crop Progress report
of the season, which indicated hard winter wheat was struggling to recover from
the worst drought conditions in decades.
Wheat rated good to excellent on March 31
was 31% in Kansas (40% fair and 29% poor
to very poor), 27% in Oklahoma (40% fair,
33% poor to very poor), 16% in Texas (35%
fair, 49% poor to very poor), 12% in Colorado (46% fair, 42% poor to very poor), 2%
in South Dakota (22% fair, 76% poor to very
poor) and 50% in Montana (38% fair,12%
poor to very poor).
Subsoil moisture across the region also

No. 1 hard winter
Basis Kansas City May, cents per bu
Apr. 5
Premium
Ordinary 65 @ 80
11%
77 @ 92
11.2% 80 @ 95
11.4% 80 @ 95
11.6% 97 @ 112
11.8% 100 @ 115
12% 105 @ 120
12.2% 110 @ 125
12.4% 110 @ 125
12.6% 110 @ 125
12.8% 110 @ 125
13% 115 @ 130
13.2% 115 @ 130
13.4% 120 @ 135
13.6% 125 @ 140
13.8% 135 @ 150
14% 145 @ 160

58

— Change from —
Mar. 29
Mar. 22
+5 @ +5 +5 @ +5
+7 @ +7 +7 @ +7
+5 @ +5 +5 @ +5
—
—
-5 @ -5 -13 @ -13
-5 @ -5 -10 @ -10
-5 @ -5
-5 @ -5
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

FOODBUSINESS NEWS

®

Year
ago
35 @ 50
35 @ 50
55 @ 70
65 @ 80
80 @ 95
85 @ 100
105 @ 120
113 @ 128
113 @ 128
113 @ 128
113 @ 128
113 @ 128
120 @ 135
125 @ 140
125 @ 140
145 @ 160
187 @ 202

reflected lingering effects of drought. The
U.S.D.A. indicated subsoil moisture rated
short to very short as of March 31 was 81%
in Kansas, 84% in Oklahoma, 96% in Nebraska, 87% in South Dakota and 83% in
Colorado.
Wheat progress was behind the average
pace for the date. Kansas wheat was 13%
jointed versus 22% as the five-year average for the date. Oklahoma wheat was 50%
jointed against an average of 65%. Texas
wheat was 8% headed compared with 10%
as the average. Indications were 26% of
South Dakota winter wheat was lost to
winterkill.
In Fort Worth, bids on hard red winter
wheat were 20c over K.C. May for nearby,
unchanged; new crop, 10c over July. Salina
truck bids at terminal elevators were at 10c
under K.C. May, unchanged; new crop, 15c
under July. Hutchinson elevator bids were
at 5c under K.C. May, unchanged; new crop,
15c under July. Gulf bids on hard red winter wheat with 12% protein for April were
128c over K.C. May, unchanged.
HARD SPRING. Premiums on hard red
spring wheat quoted as delivered Chicago/
beyond values in relation to the Minneapolis May wheat future dropped 18@35c a bu
last week with quotes only at 14% protein.
Increased offers exerted pressure with
wheat movement expanding ahead of the
spring thaw, which sees road restrictions
and this year was expected to bring flooding along the Red River and its tributaries.
The U.S.D.A. field office in North Dakota estimated the average date for the

SOFT RED. Mill bids on soft red winter
wheat were firm to higher. Kansas City
bids on No. 1 soft red wheat remained withdrawn. Gulf bids on soft red for April were
55c over Chicago May, up 5c. St. Louis
nearby mill bids were 25c over Chicago
May, unchanged. Chicago mill bids were
25c over Chicago May, up 5c; new crop, 15c
under July. Mill bids in Toledo for nearby
were 20c over Chicago May, up 10c; new
crop, 20c under July. Elevator bids were
12c under Chicago May; new crop, 10c under July. Cincinnati nearby mill bids were
at 20c over Chicago May, up 5c; new crop,
5c under July. Elevator bids were 8c over
Chicago May; new crop, 5c under July.
Michigan white wheat mill bids for nearby
were at 10c under Chicago May to 20c over;
new crop, July price to 10c over.
Winter wheat rated good to excellent
on March 31 was 69% in Missouri, 68% in
Illinois, 64% in Indiana, 56% in Ohio (39%
fair), 55% in Michigan (31% fair), 65% in
North Carolina and 59% in Arkansas (32%
fair). Soft red winter wheat had adequate
moisture. FBN

Kansas City hard winter premiums, 12.2%

No. 1 hard spring
Basis Minneapolis May, delivered Chicago/beyond
cents per bu
Apr. 5
— Change from —
Year
Premium Mar. 29
Mar. 22
ago
Ordinary . . .
...
...
…
11%
...
...
...
…
12%
...
...
...
…
13%
...
...
...
…
13.5%
...
...
...
…
14%
90 @ 107 -35 @ -18 -25 @ -18 140 @ 180
14.5%
...
...
...
…
15%
...
...
...
…
16%
...
...
...
…

Exporter bids and oﬀers
For
Apr. 5
shipment
Bid
Offer
No. 1 Hard 11%, Track Gulf
Basis Kansas City future, cents per bu
April
+128 May
…
May
+128 May
137
June
+118 July
128
July
+118 July
128
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
April
+55 May
63
May
+50 May
…
June
+48 July
53
July
+48 July
53

beginning of fieldwork in the state at April
23 compared with an unusually early April
3 in 2012.
The Great Lakes were open to oceangoing vessels. The first “saltie” of the season, the Federal Hunter, arrived in DuluthSuperior on March 28. The ship docked at
the CHS grain terminal in Superior and was
loaded with 15,000 tonnes of durum and
spring wheat for shipment to France and
the United Kingdom.

Year ago
bid

+118 May
+115 May
+98 July
+98 July

+64
+63
+50
+50

May
May
July
July

cents per bu

150
130
110
90
70
50

A

J

O

J

Cash wheat
Apr. 5 — Change from —
For shipment
Bid
Mar. 29 Mar. 22
No. 1 Soft White, Track, Portland
$ per bu
March
...
...
...
May
8.00
-.60
-.45
June
...
...
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
March
1.45
—
—
May
1.45
—
—
June
1.35
+.70
+.70
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
March
1.50
+.05
+.05
May
1.45
+.05
+.05
June
1.45
+.45
+.45

Year
ago

7.00
7.00
7.00
1.00
1.00
1.00
1.45
1.45
1.45

April 9, 2013
Food Business News - April 9, 2013

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