Milling & Baking News - August 16, 2005 - 48

I N G R E D I E N T

W E E K

 Wheat Futures

Prices of wheat futures ended last
week with irregular changes. Prices advanced in Kansas City. Chicago posted
narrow and mixed price changes. Spring
wheat harvest pressure exerted a downward tug on Minneapolis prices, though a
larger-than-expected reduction in the U.S.
Department of Agriculture's projection
for 2005 production of spring wheat other
than durum provided some support.
Through much of the week, Kansas City
and Chicago wheat futures largely tracked
movements in the corn futures market.
Corn prices had advanced through Thursday on trade ideas that the U.S.D.A. would
lower its projection of 2005 corn production by about 530 million bus because of
drouth conditions in Illinois and parts of
Missouri. Corn prices beat a retreat on
Friday, when the Department lowered its
corn projection by only 435 million bus, to
10,350 million.
Minneapolis futures prices were
weaker on harvest pressure, even though
the U.S.D.A. dropped its projection for
other-spring wheat production to 553
million bus, below the average of prereport trade estimates at 561 million.
The U.S.D.A. projected the 2006 carryover of wheat at 636 million bus, down

66 million from the July forecast and
compared with 540 million bus in 2005.
The reduction was due to a 41-million-bu
reduction in the production projection, to
2,167 million bus, and a 25-million-bu increase in the 2005-06 wheat export projection, to 975 million bus. U.S. wheat exports
in 2004-05 totaled 1,063 million bus. The
2005-06 wheat export number increased
primarily from an increase in foreign demand for hard red winter wheat.
The U.S.D.A. projected world wheat
2005-06 ending stocks at 141.45 million
tonnes, down 1.89 million tonnes from the
July forecast and compared with 148.36
million tonnes in 2004-05. Crop production forecasts were lowered for the U.S.,
Argentina and the European Union. MBN

 Millfeed

The multi-week downtrend in nearby
millfeed prices slowed and even reversed
in some markets last week. While most
markets still registered narrow declines,
prices in the Upper Midwest soared.
Flour mill grind was about the same
as a week earlier at six days or better in
most regions. Millfeed supplies remained
ample. The exception was the Upper
Midwest, where August prices jumped
$6 a ton (spot up $10) as power curtail-

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu
Aug. 12
Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

ments and seasonal fumigations cut into
flour mill grind and millfeed load-out
times. Additionally, the seasonal increase
in creep feed demand hit last week.
Prices dropped $4 in the Northeast and
Southeast as some flour mills shipped
early on contracts or accepted low bids
just to clear product. Feed mixers in the
Carolinas were inundated with millfeed
and were not giving bids by midweek.
The Southwest and Central states eased
$1 on mostly ample supplies.
Excessive heat and reduced feed demand remained the rule in many areas.
But significantly cooler temperatures
were expected throughout the Midwest
over the weekend and this week, which
should be positive for feed demand.
California markets continued to be
pressured by flour mill running times
near seven days. Pacific Northwest prices
were steady, with feed demand sufficient
to balance six to seven days of grind.
Wheat germ prices were unchanged
and activity quiet last week.
Bulk middlings at $40 a ton in K.C. and
$49 in Minneapolis compared with corn
at $71.75 and sorghum at $74.25 a ton,
both at K.C. Corn gluten feed was at $60 a
ton, distillers' dried grain at $75 a ton and
dehydrated alfalfa at $136 a ton. MBN

- Change from -
Aug. 5 July 29

Week's
High
Low

Year
ago

High

Season's
Low

3.41¼
3.51¼
3.56¾
3.56

+6¼c
+5¼c
+4¾c
+3c

+2c
-¼c
-1c
-5½c

3.48
3.58
3.64
3.66

3.31
3.42
3.48¾
3.52

3.16¼
3.27½
3.37½
3.42

4.00
4.44
4.43
4.28

(06-03-04)
(05-05-04)
(05-03-04)
(04-07-04)

3.12
3.21
3.22
3.13

(01-28-05)
(01-27-05)
(01-27-05)
(04-18-05)

3.21¼
3.35¾
3.48½
3.55

+1¼c
-¼c
-½c
-

-6½c
-6½c
-6c
-6c

3.32
3.44¾
3.56¾
3.61½

3.17½
3.31½
3.44
3.52½

2.99½
3.13½
3.25¼
3.30

3.80
4.40
4.41½
4.30

(03-15-05)
(04-05-04)
(04-05-04)
(04-08-04)

3.08
2.82½
2.87
2.95

(05-04-05)
(12-02-04)
(02-04-05)
(01-31-05)

3.39
3.48
3.57½
3.62½

-6½c
-4¾c
-3c
-4c

-10¼c
-10½c
-10½c
-11½c

3.48¼
3.56
3.63½
3.68

3.36½
3.45½
3.55½
3.62

3.31¼
3.41½
3.52
3.58¼

4.05
4.57
4.53
4.34

(06-24-04)
(04-05-04)
(03-29-04)
(06-01-04)

3.25
3.25
3.26
3.10½

(02-09-05)
(12-01-04)
(02-16-05)
(04-15-05)

October
59 @ 63
62 @ 66
51 @ 56
47 @ 52
64 @ 69
41 @ 46
25 @ 30
37 @ 42
79 @ 84
75 @ 80
60 @ 65

Oct-Dec
64 @ 67
69 @ 72
54 @ 59
50 @ 55
67 @ 72
49 @ 54
40 @ 45
45 @ 50
82 @ 87
78 @ 83
67 @ 72

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
40 @ 44
Southwest, f.o.b. truck
42 @ 46
Minneapolis
49 @ 54
Upper Midwest, f.o.b. truck 45 @ 50
Chicago West
62 @ 67
Central states, f.o.b truck 30 @ 34
Buffalo
16 @ 21
Southeast
20 @ 25
N. & S. California
79 @ 84
Los Angeles, f.o.b. truck
75 @ 80
Pacific Northwest
62 @ 67
Upper Midwest, sacked
140
Wheat germ
200 @ 220

August
42 @ 46
44 @ 48
49 @ 54
45 @ 50
62 @ 67
30 @ 34
16 @ 21
20 @ 25
77 @ 82
73 @ 78
62 @ 67

50 / Milling & Baking News, August 16, 2005

- Change from -
Aug. 5
July 29
-1 @ 0 -10 @ -9
-1 @ 0 -10 @ -9
+6 @ +6 +1 @ +3
+6 @ +6 +1 @ +3
+6 @ +6 +1 @ +3
-1 @ -1
-2 @ -2
-4 @ -4
-6 @ -6
-5 @ -5 -11 @ -10
-2 @ -2
-4 @ -4
-2 @ -2
-4 @ -4
0@0
+2 @ +2

Year
ago September
56 @ 60 53 @ 57
... @ ... 55 @ 59
67 @ 71 51 @ 56
63 @ 67 47 @ 52
80 @ 84 64 @ 69
55 @ 59 33 @ 37
55 @ 60 20 @ 25
58 @ 62 30 @ 35
76 @ 79 79 @ 84
72 @ 75 75 @ 80
75 @ 80 60 @ 65

Minneapolis wheat futures
September contract, $ per bu

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Milling & Baking News - August 16, 2005

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