Milling & Baking News - March 14, 2006 - 52

I N G R E D I E N T

 Cash Wheat

HARD WINTER. Premiums on hard red
winter and dark hard wheat in Kansas
City were unchanged to 5c a bu higher
last week. The widest gains applied to
wheat with protein from 11.4% through
12.4%. The basis across the top third of
the protein scale was unchanged except
at 14%, where premiums rose 2c. The
spread between top and bottom ends of
premium ranges on wheat with 11.4%
through 11.8% widened to 14c from 12c.
The spread between the top and bottom
end of the premium range on 12% protein wheat widened to 15c, to match
premium ranges across the rest of the
top two-thirds of the protein scale. The
lowest protein wheat retained a 10c
spread between top and bottom ends of
premium ranges.
The adjustments to the basis the last
two weeks reflected increasing demand
of wheat with preferred origin and
rail billing that facilitated transport
to where the wheat was most needed.
Mills concerned about supply prospects in the last few months before new
crop and with space to fill were willing to bid higher to draw wheat from
country elevators. But their demand
was for specific qualities and origins.
Wheat lacking those qualities and origins were bid at wide discounts.
Indications were some elevators have
ordered additional cars to load out
wheat in an effort to take advantage of
the stronger basis. But it was expected
it would be some time before these cars
move and pressure the market.
Wheat pipelines to Gulf export elevators have been plugged in recent
weeks. Nearby bids on hard winter
at the Gulf had been lacking or nominal. Elevators began to bid on March
wheat again last week.

No. 1 hard winter
Basis Kansas City May, cents per bu
March 10 - Change from -
Premium March 3 Feb. 24
Ordinary 18 @ 28 +2 @ +2 -5 @ -5
11%
18 @ 28
-
-7 @ -7
11.2%
18 @ 28
-
-7 @ -7
11.4%
29 @ 43 +6 @ +8 +4 @ +8
11.6%
32 @ 46 +4 @ +6 -3 @ +1
11.8%
36 @ 50 0 @ +2 +1 @ +5
12%
38 @ 53 +1 @ +4 0 @ +5
12.2%
41 @ 56 +4 @ +4 +2 @ +7
12.4%
42 @ 57 +5 @ +5 +3 @ +8
12.6%
44 @ 59
-
+4 @ +9
12.8%
45 @ 60 +1 @ +1 0 @ +5
13%
45 @ 60
-
-7 @ -2
13.2%
45 @ 60
-
-7 @ -2
13.4%
45 @ 60
-
-7 @ -2
13.6%
45 @ 60
-
-7 @ -2
13.8%
47 @ 62
-
-7 @ -2
14%
53 @ 68 +2 @ +2 -5 @ 0

bakingbusiness.com/world-grain.com

Year
ago
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60
40 @ 60

Several hard winter wheat states gave
beginning-of-month estimates of crop
condition. Kansas wheat on March 5
was rated 27% good to excellent (52% a
month earlier), 46% fair and 27% poor
to very poor. Nebraska wheat was rated
42% good to excellent (52% last month),
45% fair and 11% poor to very poor. Texas wheat was rated 4% good, 9% fair and
87% poor to very poor. Oklahoma wheat
was rated 4% good, 26% fair, 35% poor
and 35% very poor. Topsoil moisture in
the state was 99% short to very short,
subsoil at 98% short to very short.
Rain has begun to fall. The drought
was seen as ending. But progress was
expected to be slow, with relief beginning in eastern sections of the belt and
working westward. It was uncertain
how well the Texas and Oklahoma
crops would rebound.
HARD SPRING. Premiums on hard red
spring wheat at Minneapolis were 13c a
bu higher to 15c lower.
While wheat movement for spot marketing hasn't been particularly heavy,
offers have exceeded demand. The mild
winter weather has helped railroads
keep close to schedules. Timely receipt
of wheat purchased earlier diminished
reliance on the spot market. Mill pipelines were full.
Exporter demand for spring wheat
has been sluggish. The export elevators
at Duluth-Superior have been absent
from the rail market for the past couple

of months. Their inventories seemed adequate for the upcoming start to a new
Great Lakes shipping season.
Farmer selling has continued, including some new crop sales. Farmers eyed
wheat futures prices and developments
in the hard winter states while considering planting options.
SOFT RED. Mill bids on soft red winter wheat were mostly steady last week.
Farmers were selling new crop.
In Kansas City, No. 1 soft red bids
declined 2c, to 4c under K.C. May to
16c over. Gulf bids on soft red dropped
11c a bu, to 20c over Chicago May. St.
Louis mill bids for April were steady at
35c over Chicago May. The Chicago mill
basis held at 30c over Chicago May. Mill
bids in Toledo for nearby were 30c under Chicago May; April, 26c under May;
new crop, 25c under July. Elevator bids
were 23c under March; new crop, 40c
under July. Cincinnati nearby mill bids
were 20c under Chicago May. Elevator bids for nearby were at 27c under
May; new crop, 35c under July. Michigan
white wheat mill bids on 1 p.p.m. vomitoxin ranged widely from 40@70c over
Chicago May.
Illinois wheat was rated March 5 at
74% good to excellent (84% a month earlier), 18% fair and 8% poor to very poor.
More precipitation was needed to replenish subsoil moisture. In the Southeast,
North Carolina wheat was rated 65%
good to excellent, Georgia at 63%. MBN

No. 1 hard spring

Cash wheat

Milling quality, basis Minneapolis May, cents per bu
March 10
- Change from -
Year
Premium March 3
Feb. 24
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
...
...
...
49 @ 55
13.5%
50
...
-7
75 @ 100
14%
60 @ 80
-5 @ +13 -10 @ -10
110
14.5%
...
...
...
165
15%
70 @ 100 -15 @ 0
-15 @ -15 185 @ 205
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
March 10
shipment
Bid
Offer
No. 1 Hard 11%, Track Gulf
Basis Kansas City future, cents per bu
March
+70 May
77
April
+70 May
80
May
+68 May
80
June
+63 July
...
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
March
+24 May
26
April
+22 May
24
May
+18 May
24
June
+12 July
18

W E E K

Year ago
bid

+59 May
+58 May
...
...

+70
+60
+50
+40

May
May
May
July

March 10 - Change from -
For shipment
Bid
March 3 Feb. 24
No. 1 Soft White, Track, Portland
$ per bu
Nearby
3.59
-.07
+.02
March
3.59
-.07
+.01
April
3.59
-.07
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Nearby
0.40
-.05
-.04
March
0.40
-.05
-.07
April
0.43
-.04
...
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Nearby
1.05
-.07
-.04
March
1.05
-.07
-.07
April
1.12
-.04
...

Year
ago

3.96
3.96
3.96
0.74
0.74
0.74

1.45
1.45
1.48

Canadian domestic milling wheat
In-store, Thunder Bay,
Canadian $ per tonne March 10
Western red spring 13.5% 221.63
Soft white spring
172.70
Amber durum
204.68
U.S. $ per bu
Western red spring 13.5%
5.20
Soft white spring
4.05
Amber durum
4.80

March 3
+7.34
+2.52
+4.46
0.06
-0.03
-

Year
ago
215.89
197.31
227.83
4.88
4.46
5.15

Milling & Baking News, March 14, 2006 / 53
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Milling & Baking News - March 14, 2006

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