Milling & Baking News - November 29, 2005 - 34

I N G R E D I E N T

W E E K

 Wheat Futures

Wide price declines were sustained
in wheat futures last week, extending a
slide that had developed the previous
week. Kansas City wheat futures prices
dropped the furthest, as traders at the
K.C. Board of Trade liquidated a portion
of a large speculative long position. The
same trend was evident in Minneapolis
during the holiday-shortened workweek.
Losses in Chicago were less severe, as the
trade there actually increased its net short
position in the course of the week.
Precipitation forecast for broad sections of the hard winter states pressured
Kansas City wheat futures. The Southwest has been mostly dry for the past
several weeks. Dryness was reflected in
winter wheat condition ratings, which
have been declining in recent weeks,
particularly across the Southwest. The
U.S. Department of Agriculture rated
winter wheat condition as of Nov. 20 at
55% good to excellent, compared with
56% a week earlier and 76% on the same
date in 2004. Thirty-three per cent of the
crop was rated in fair condition.
Export sales of U.S. wheat in the week
ended Nov. 17, at 454,600 tonnes, fell
within the range of trade expectations.
At the same time, net sales were 19%

below those of the previous week and
34% under the prior four-week average.
Both the Australian and Canadian wheat
boards were assuming more aggressive
stances in world wheat markets.
Weakness in corn futures and the
soy complex exerted a downward tug
on wheat. A Census Bureau soybean
crush report that indicated a heavierthan-expected yield of oil per bushel of
soybeans crushed was a factor driving
the soy complex lower.
Farmer selling of wheat Thanksgiving
week was light.
Several bakers took advantage of declining wheat futures prices to book a
portion of their first-quarter flour needs.
Many of those who refrained from pricing flour at least hedged in futures their
prospective flour purchases. MBN

 Millfeed

An abrupt decline early last week terminated the bull market that had been
in evidence across much of the country.
Declines to some extent caught the market by surprise, given the fact that a large
number of participants were not even in
their offices because of the Thanksgiving
holiday. Prices normally do not move
much during the holiday period. Never-

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu

Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

Season's
Low

- Change from -
Nov. 18 Nov. 11

Week's
High
Low

Year
ago

High

3.47¾
3.52¾
3.47½
3.44½

-10½c
-9¼c
-9¾c
-4¾c

-23¼c
-22¼c
-20¼c
-15¾c

3.60
3.64
3.58
3.50½

3.45
3.50
3.46½
3.42¾

3.39¾
3.31½
3.30½
3.31¼

4.44
4.43
4.28
3.82

(05-05-04)
(05-03-04)
(04-07-04)
(07-12-04)

3.21
3.22
3.13
3.04½

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

2.97
3.12¼
3.20¾
3.30½

-5c
-5½c
-6¼c
-4½c

-14½c
-16c
-16¼c
-14¾c

3.03½
3.19½
3.27½
3.35½

2.95¼
3.11
3.20
3.28½

2.91¼
3.03
3.09¼
3.16¾

4.40
4.41½
4.30
4.00

(04-05-04)
(04-05-04)
(04-08-04)
(05-04-04)

2.82½
2.87
2.95
3.02¼

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

3.64
3.65½
3.61¾
3.59¾

-5¾c
-8c
-8¾c
-6¼c

-12c
-16¾c
-16c
-15½c

3.71½
3.74½
3.70½
3.66½

3.59
3.62½
3.61
3.59¼

3.38
3.45¾
3.50½
3.52

4.57
4.53
4.34
4.19

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

3.25
3.26
3.10½
3.18

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

Nov. 25

theless, jobbers, beginning last Tuesday
(Nov. 22), sharply cut their quotes at a
number of points. Kansas City, which
had been the bellwether for the earlier
gains, broke $5@6 a ton, mostly within
a few hours. Northeast was mainly $1@3
a ton off. Some California numbers were
lower, with the Pacific Northwest unchanged. Upper Midwest and Central
states prices did not show a clear trend.
Most mixers had covered their requirements in advance of the holiday.
Mills at many points ran no better than
three to four days. However, some areas
came in closer to five.
Mixers reported business in some areas
was a shade slower. This partly reflected
additional mild weather, but a spate of
storms in the East and Central states
around midweek promised a change.
Wheat germ was unchanged. Scattered
quantities changed hands within the
quoted range. Some in the trade, however,
underscored a sizable backlog of orders.
Bulk middlings at $66 a ton in K.C.
and $49 in Minneapolis compared with
corn and sorghum at $58 a ton, both at
K.C. Corn gluten feed held steady at
$52 a ton, distillers' dried grain up $5,
to $70, and dehydrated alfalfa steady
at $146. MBN

Chicago wheat futures
March contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
66 @ 68
Southwest, f.o.b. truck
68 @ 70
Minneapolis
49 @ 51
Upper Midwest, f.o.b. truck 45 @ 47
Chicago West
62 @ 64
Central states, f.o.b truck 46 @ 50
Buffalo
37 @ 44
Southeast
47 @ 52
N. & S. California
85 @ 88
Los Angeles, f.o.b. truck
81 @ 84
Pacific Northwest
85 @ 92
Upper Midwest, sacked
150
Wheat germ
280 @ 310

Nov.
66 @ 68
68 @ 70
49 @ 51
45 @ 47
62 @ 64
46 @ 50
37 @ 44
46 @ 53
85 @ 88
81 @ 84
85 @ 92

- Change from -
Nov. 18
Nov. 11
-5 @ -6
-1 @ -4
-3 @ -4 +1 @ 0
0 @ -4 +2 @ -1
0 @ -4 +2 @ -1
0 @ -4 +2 @ -1
+1@0
+7 @ +8
-3 @ -1
-1 @ -1
-2 @ 0
+2 @ +1
-2 @ -2 +1 @ +1
-2 @ -2 +1 @ +1
...
...

34 / Milling & Baking News, November 29, 2005

Year
ago
65 @ 68
...
51 @ 56
47 @ 52
64 @ 69
55 @ 59
47 @ 54
...
97 @ 101
93 @ 97
85 @ 90

Dec.
66 @ 68
68 @ 70
50 @ 52
46 @ 48
63 @ 65
48 @ 51
41 @ 47
46 @ 53
83 @ 88
79 @ 84
85 @ 92

Jan.
64 @ 68
66 @ 70
50 @ 52
46 @ 48
63 @ 65
48 @ 50
43 @ 49
46 @ 53
79 @ 83
75 @ 79
85 @ 92

Jan.-Mar.
61 @ 63
63 @ 65
47 @ 52
43 @ 48
60 @ 65
42 @ 47
37 @ 41
39 @ 46
79 @ 83
75 @ 79
85 @ 92

Minneapolis wheat futures
March contract, $ per bu

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Milling & Baking News - November 29, 2005

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