Food Business News - April 9, 2013 - 59

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

Wheat Futures
Prices of wheat futures were higher last
week except in the case of the Kansas City
May contract. Advances in K.C. were slim,
but Chicago and Minneapolis futures prices
posted moderate gains. At the week’s
outset, all three markets experienced
follow-through pressure from bearishly
interpreted U.S. Department of Agriculture
March 1 Grain Stocks and Prospective
Plantings reports issued March 28. Prices
bounced from their Monday lows in
subsequent trading and spiked at midweek
as rumors swirled that China was a buyer
of U.S. wheat. When those rumors failed to
be confirmed, prices set back.
The U.S.D.A. in its first Crop Progress
report of the season issued April 1 rated
the condition of the winter wheat crop as of
March 31 at 34% good to excellent, 36% fair
and 30% poor to very poor. This compared
with 58% good to excellent, 30% fair and 12%
poor to very poor a year earlier. The ratings
for the 2013 crop were little changed from
last fall, when the crop on Nov. 25 was rated
33% good to excellent, 41% fair and 26% poor
to very poor. It was abysmal early-season
condition ratings in the drought-stricken
hard winter wheat belt that pulled down the
average for the overall winter wheat crop
as condition ratings in the soft wheat states
were mostly good to excellent.

At the same time, weather patterns were
improving with the hard winter wheat belt
receiving additional moisture. There have
been occasional attacks of arctic air, and
the risk of freezing temperatures remained.
The U.S.D.A. field office in South Dakota
indicated 26% of that state’s struggling
hard winter wheat crop has been lost to
winterkill.
The U.S.D.A. indicated net export sales
of U.S. wheat during the week ended March
28 for shipment in 2012-13 totaled 141,200
tonnes, down 76% from the previous week
and down 78% from the prior four-week
average. The weekly sales aggregate was
the smallest for the marketing year to date.
The U.S.D.A. reported net export sales for
2013-14 of 174,800 tonnes. The export sales
for the two years combined fell well below
the range of pre-report trade estimates.
The soy complex was under pressure
all week. Old crop corn futures prices
tumbled, but new crop contracts posted
minor gains from the previous week. FBN

Millfeed
Nearby prices were mostly $10@20 a ton
lower, partly reflecting the dramatic selloff
in corn and soybean futures prices since
the March 28 release of the March 1 Grain
Stocks and Prospective Plantings reports
by the U.S. Department of Agriculture.

Wheat futures also tumbled but started
paring losses at midweek, yet flour
bookings remained slack.
The data in the grain stocks report
revealed
larger-than-expected
corn,
soybean and wheat stocks. While corn and
soybean byproduct prices fell, challenging
the viability of millfeed in rations, steady
demand continued until nearby supplies in
a host of areas sold out and pricing became
nominal. Mill grind ranged from three to six
days and has been lackluster for weeks.
Despite tight supplies, lower corn values
put downward pressure on millfeed prices.
Traders noted that warmer weather would
allow pastures to provide an increasing
portion of livestock feed, limiting millfeed
demand. Competition from lower-priced
ingredients such as corn gluten feed or soy
hulls also was seen as adding pressure.
The major exception to falling prices
was the Upper Midwest, where nearby
values were $15@20 a ton higher on strong
demand despite active flour grind.
Millfeed was $180 a ton in Kansas City
and $229 in Minneapolis, on a rail basis,
compared with corn at $239 a ton and
sorghum at $221 a ton, both K.C. Corn
gluten feed was down $25 to $210 a ton,
distillers’ dried grain was down $15 at $250
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
Season’s
Low

Apr. 5
Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

— Change from —
Week’s
Mar. 29 Mar. 22 High
Low

Year
ago

High

7.26
7.32¾
7.45
7.62½

-¾c
+½c
+1¼c
+3c

-35½c
-33¾c
-33¼c
-30¾c

7.43½
7.50¼
7.62¾
7.80½

7.04½
7.11½
7.23½
7.39½

6.62
6.72
6.86
7.06½

9.85
9.50
9.46¾
9.92¼

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

6.74
6.80¼
6.87¾
6.50

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

6.99
7.04¼
7.12¼
7.25

+11¼c
+13¼c
+13c
+11¾c

-30¾c
-25c
-22¾c
-21¼c

7.05½
7.10¼
7.19
7.33¼

6.59¾
6.64¾
6.73¾
6.88½

6.38½
6.46¼
6.59¼
6.80¾

9.72
9.47
9.05¾
9.77¼

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

6.59¾
6.63
6.73¾
6.29½

(04-01-13)
(11-25-11)
(04-01-13)
(05-14-12)

7.87½
7.86½
7.87
7.97½

+7¼c
+6c
+6¼c
+8c

-19c
-20c
-19c
-15¾c

8.06¼
8.03¼
8.03
8.12½

7.61¼
7.60
7.63
7.75¼

8.46
8.39
8.24¼
8.14½

10.19¼
10.00
9.70
10.34

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

7.53½
7.60
7.48
7.34

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

$8.50
$7.00
$5.50
A

J

O

J

Previous Year

Current Year

Chicago wheat futures
May contract, $ per bu
$10.20
$8.60
$7.00

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
180 @ 190
Southwest, f.o.b. truck
235 @ 245
Minneapolis
229 @ 239
Upper Midwest, f.o.b. truck 225 @ 235
Chicago West
242 @ 252
Central states, f.o.b truck 220 @ 230
Buffalo
165 @ 175
Southeast
195 @ 215
N. & S. California
237 @ 257
Los Angeles, f.o.b. truck 233 @ 253
Paciﬁc Northwest
210 @ 230
Upper Midwest, sacked
350
Wheat germ
290 @ 320

April 9, 2013

Apr.
185@ 195
240@ 250
224@ 234
220@ 230
237@ 247
205@ 215
170@ 180
180@ 190
224@ 244
220@ 240
210@ 230

— Change from —
Mar. 29
Mar. 22
-5 @ -5
-10@ -5
-10 @ -10 +10@ +10
+20 @ +20 +15@ +15
+20 @ +20 +15@ +15
+20 @ +20 +15@ +15
-10 @ -10
+5@ +5
—
+20@ +15
+10 @ +10
-5@ -5
-15 @ -10 -10@ -5
-15 @ -10 -10@ -5
—
—

Year
ago
111@ 116
125@ 130
124@ 134
120@ 130
137@ 147
130@ 138
115@ 125
90@ 98
174@ 189
170@ 185
180@ 190

$5.40

May-June
153 @ 162
190 @ 200
194 @ 209
190 @ 205
207 @ 217
165 @ 175
125 @ 135
145 @ 155
217 @ 237
213 @ 233
210 @ 230

July-Sept.
135 @ 145
170 @ 180
184 @ 194
180 @ 190
197 @ 207
150 @ 160
120 @ 130
140 @ 150
174 @ 194
170 @ 190
200 @ 220

A

J

O

J

Previous Year

Current Year

W k' h
Minneapolis ( t
wheat

b )
futures

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

J

O
Previous Year

J
Current Year

FOODBUSINESS NEWS

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59
Food Business News - April 9, 2013

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