Milling & Baking News - January 13, 2004 - 35

I N G R E D I E N T

ries and pipelines, and no urgent needs
were revealed last week. Domestic users
have adjusted the best they could to poor
railroad logistics, with railroads still up
to three or four weeks late in placing cars
for loading at key country origins. Some
"double-buying" has been routine.
Should the railroads make significant
progress in catching up on orders, the
basis could come under pressure. But no
such catching up was evident last week.
A prominent feature in the weaker
market for low-protein wheat was a setback in bids from export elevators at the
Gulf, reflecting a recent waning in the
pace of vessel loading as well as more
plentiful wheat offers. Exporter bids for
nearby slipped 6c last week, to 57c over
K.C. March.
Demand for wheat from the West coast
was fairly slack, as was demand from
across rail gateways to the east. Demand
was expected to recover gradually as mill
running times pick up.
There was very little business in the
market for to-arrive wheat. This reflected
both sluggish flour bookings and uncertainty regarding delivery of wheat already bought but delayed in shipment.
Farmer selling slowed from the preceding week, when rallying wheat futures set
off a flurry of country selling. At the
flurry's end, it was estimated that hard
red winter growers had sold up to 90% of
their 2003 production, compared with 80%
as the previous estimate. Growers could
be tight holders of the remainder of their
wheat until new crop prospects are more
certain. At the same time, Southwestern
growers have begun to sell limited volumes of wheat for new crop delivery.
The week began bitter cold, but temperatures warmed toward the weekend.
Conditions remained dry.
Minor deterioration in condition from
end of November was indicated for wheat
in Kansas, Nebraska and Oklahoma. Kansas wheat at beginning of January was
rated 7% excellent, 46% good, 26% fair,
17% poor and 4% very poor, compared
with 10%, 42%, 26%, 17% and 5%, respectively, at start of December.
HARD SPRING. Premiums on hard red
spring wheat at Minneapolis last week
were 10c a bu higher to 8c lower. Quotes
were provided on 14.5% protein wheat
for the first time since late November.
Mills were more willing buyers after
the two holiday-shortened weeks. Some
who had sat out the market for nearly the
entire month of December returned as
bidders last week. But grind was picking
up only gradually, so demand was not
too insistent.
Farmer selling picked up the preceding Friday and continued last Monday in
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response to the recent rally in wheat futures prices. Sales were said to have been
constrained, though, by bitterly cold temperatures that prevented many growers
from hauling grain New Year's week.
Many country elevators already were full
at any rate and were waiting only for railroads to place cars so they could load out
some wheat. Railroads remained about
four weeks late in placing cars at elevators along many key corridors.

W E E K

Duluth export elevators were bidding
on wheat again, but their quotes were too
low to draw rail business.
SOFT RED. Mill bids on soft red winter
wheat were mostly steady last week. What
few changes were quoted were narrow. A
weaker market at the Gulf was evident.
In Kansas City, No. 1 soft red bids remained at 10@35c over K.C. March. Gulf
bids on nearby declined 3c, to 32c over

Chicago Wheat Futures

No. 1 Hard Winter

March contract, $ per bu

Basis Kansas City March, cents per bu
Premium Week's Change Year ago
Ordinary
28 @38
-
51@61
11%
30 @40
-3 @ -3
51@61
11.2%
32 @42
-1 @ -1
51@61
11.4%
32 @42
-1 @ -1
51@61
11.6%
32 @42
-2 @ -2
51@61
11.8%
34 @44
-
51@61
12%
34 @44
-
51@61
12.2%
34 @44
-
51@61
12.4%
34 @44
-
51@61
12.6%
34 @44
-
51@61
12.8%
34 @44
-
51@61
13%
36 @46
-
51@61
13.2%
36 @46
-
51@61
13.4%
36 @46
-
51@61
13.6%
36 @46
-
51@61
13.8%
36 @46
-
51@61
14%
36 @46
-
47@57

Chicago Wheat Futures
May contract, $ per bu

No. 1 Hard Spring, Minneapolis
Milling quality, basis March, cents per bu
Premium Week's Change Year ago
Ordinary
...
...
...
11%
...
...
...
12%
...
...
...
13%
35
+7
...
14%
35 @ 42
0 @ -8
45 @ 50
14.5%
...
...
...
15%
70 @ 85
+10 @ -5
60 @ 65
16%
...
...
...
17%
...
...
...

Wheat Futures
No. 1 Hard Amber Durum

$ per bu
Jan. 9
Kansas City
March
May
July
September
December
Chicago
March
May
July
September
December
Minneapolis
March
May
July
September
December

Week's
change
(cents) High

Track, $ per bu
Low

Year
ago
Choice milling

3.921/4 -163/4
3.921/4 -171/4
3.831/4 -71/2
3.84
-121/4
3.891/2
-7

4.07
4.041/2
3.901/2
3.91
3.98

3.92
3.891/2
3.771/2
3.801/2
3.86

3.451/4
3.39
3.37
3.371/2
3.461/2

3.851/2 -201/4
3.903/4 -121/2
3.811/4 -51/4
3.85
-5
3.931/4 -71/4

4.051/2
4.05
3.881/2
3.90
3.99

3.85
3.90
3.761/4
3.781/2
3.88

3.191/4
3.203/4
3.183/4
3.221/2
3.321/2

4.013/4
-14
3.973/4 -151/4
3.93
-7
3.87
-2
3.93
-1

4.133/4
4.09
3.991/2
3.931/4
3.981/2

4.001/2
3.96
3.92
3.83
3.90

3.751/2
3.771/2
3.723/4
3.663/4
3.731/2

Jan. 9
5.10

Week's
change
0.05

Year
ago
5.80

Exporter bids and offers
No. 1 Hard 11%, Track Gulf
Basis Kansas City future, cents per bu
For shipment
Bid
Offer
Year ago bid
January
56 over March 65 64 over March
February
56 over March 62 63 over March
March
56 over March 60 62 over March

No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
For shipment
Bid
Offer
Year ago bid
January
32 over March 36 55 over March
February
38 over March 40 54 over March
March
40 over March 43 53 over March

Milling & Baking News, January 13, 2004 / 35

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Milling & Baking News - January 13, 2004

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