Milling & Baking News - March 14, 2006 - 53

I N G R E D I E N T

W E E K

 Wheat Futures

Trading in wheat futures last week
was choppy. New contract highs were
set when prices rallied Friday.
Prices were pressured early in the
week by rain across the hard winter
states and by forecasts for more precipitation. At the same time, hard winter wheat conditions have deteriorated
markedly from a month ago, and it
was uncertain how well the Texas and
Oklahoma crops in particular would
rebound even should a wetter weather
pattern be established. The drought was
seen as ending, but relief was expected
to be gradual, from east to west.
Long positions tightly held by index
funds supported prices. It was not certain what would encourage these funds
to liquidate their long positions.
High prices have diminished foreign
demand for U.S. wheat. Indications
were Iraq bought only 150,000 tonnes
of wheat from U.S. firms against a tender for up to 1.5 million tonnes.
Export sales of U.S. wheat in the
week ended March 2 totaled 327,800
tonnes, 19% below the recent fourweek average.
The U.S.D.A. made no changes from
February in its 2005-06 wheat supply/

demand projections. The projected carryover of wheat on June 1, 2006, remained 542 million bus, up 2 million
bus from 540 million bus in 2005. Wheat
supply in 2005-06 was projected at 2,730
million bus, down 45 million bus from
2004-05. Domestic use in 2005-06 was
projected at 1,888 million bus, up 16 million bus from the previous year. Exports
were projected at 1,000 million bus compared with 1,063 million bus in 200405. The average farm price of wheat in
2005-06 was projected at $3.35@3.45 a
bu, unchanged from the February range
and compared with $3.40 a bu in both
2004-05 and 2003-04. MBN

 Millfeed

A sudden burst of strength early last
week sent spot prices in several regions
to the highest levels since December.
Spot prices in the Southwest jumped
$16 a ton, with a final spurt at the
weekend. While less dramatic than the
Southwest, the Upper Midwest, Central states and Northeast also posted
appreciable gains, although the latter
market lacked definition as mills struggled to move higher-priced millfeed
to other areas. West coast markets saw
fairly insignificant changes.

Wheat futures

Kansas City wheat futures
May contract, $ per bu

$ per bu; change in cents per bu
- Change from -
March 10 March 3 Feb. 24
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

In sharp contrast, April-forward positions showed relatively little change,
especially where markets were well defined. Southwest nearby levels closed
just short of $40 above May-June quotes.
Most sources agreed the Texas market was the engine behind the gains.
Truck millfeed in west Texas reached
$135@140 a ton delivered, and buyers,
having exhausted available nearby
material, sought millfeed from the Inter-Mountain territories as well as the
Central states and even the East.
Also contributing to the strength,
Midwest grind again was unexpectedly
slack. But mills in the Central states and
East operated close to six days. This
brisk eastern grind engendered some
local pressure before the weekend.
Beginning at midweek a large number of participants were attending a
major feed meeting, bringing trade
throughout much of the country almost to a halt.
Wheat germ rebounded $10 a ton.
Bulk middlings at $82 a ton in K.C. and
$69 in Minneapolis compared with corn
at $73 a ton and sorghum at $71, both
K.C. Corn gluten feed moved up to $74 a
ton and distillers' dried grain to $80, but
dehydrated alfalfa held at $160. MBN

Season's
Low

Week's
High
Low

Year
ago

High

4.49
4.56
4.62½
4.64½

4.31
4.34½
4.37
4.42

3.77
3.67
3.55
3.60¾

4.49
4.56
4.62½
4.64½

(03-10-06)
(03-10-06)
(03-10-06)
(03-10-06)

3.30
3.44¾
3.43½
3.48

(02-09-05)
(09-07-05)
(11-25-05)
(08-31-05)

4.47
4.53¼
4.59½
4.61¼

+4c
+7¾c
+11c
+8¼c

+13c
+13¾c
+15¼c
+16¼c

3.74½
3.81½
3.93½
4.05

+1c
-3½c
-2½c
+1¾c

+6¼c
+1½c
+3¾c
+5c

3.80
3.90
4.00
4.10

3.64½
3.74
3.85
3.94

3.51½
3.58
3.66
3.70¼

3.93
3.90½
4.00
4.10

(03-15-05)
(02-28-06)
(02-28-06)
(02-28-06)

3.07
3.16½
3.26½
3.34½

(12-09-05)
(12-09-05)
(02-04-05)
(12-09-05)

4.38
4.34¾
4.39¾
4.43

+17c
+6c
+4¾c
+3½c

+20c
+8½c
+6½c
+5¼c

4.38
4.40
4.44
4.46

4.16½
4.17
4.25½
4.29½

3.70
3.73
3.78½
3.76

4.38
4.40
4.44
4.46

(03-10-06)
(03-10-06)
(03-10-06)
(03-10-06)

3.41½
3.47
3.47
3.57½

(09-07-05)
(01-27-05)
(01-27-05)
(11-28-05)

Chicago wheat futures
May contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
92 @ 95
Southwest, f.o.b. truck
100 @ 105
Minneapolis
80 @ 86
Upper Midwest, f.o.b. truck 76 @ 82
Chicago West
93 @ 99
Central states, f.o.b truck 72 @ 78
Buffalo
54 @ 62
Southeast
69 @ 74
N. & S. California
86 @ 91
Los Angeles, f.o.b. truck
82 @ 87
Pacific Northwest
88 @ 93
Upper Midwest, sacked
150
Wheat germ
250 @ 260

March
82 @ 85
87 @ 90
69 @ 74
65 @ 70
82 @ 87
68 @ 73
52 @ 57
56 @ 64
85 @ 90
81 @ 86
88 @ 93

54 / Milling & Baking News, March 14, 2006

- Change from -
March 3 Feb. 24
+10 @ +8 +15 @ +14
+2 @ 0 +15 @ +14
+5 @ +4 +15 @ +15
+5 @ +4 +15 @ +15
+5 @ +4 +15 @ +15
+8 @ +8 +21 @ +21
+12 @ +12 +17 @ +17
+3 @ +3 +13 @ +14
+2 @ +2 +4 @ +5
+2 @ +2 +4 @ +5
-
-

Year
ago
53 @ 57
57 @ 60
45 @ 49
41 @ 45
58 @ 62
37 @ 42
37 @ 41
35 @ 40
72 @ 74
68 @ 70
60 @ 65

April
May-June
61 @ 65 48 @ 53
66 @ 70 53 @ 58
49 @ 54 44 @ 49
45 @ 50 40 @ 45
62 @ 67 57 @ 62
50 @ 55 39 @ 44
37 @ 42 32 @ 37
46 @ 54 36 @ 44
81 @ 86 79 @ 84
77 @ 82 75 @ 80
88 @ 93 83 @ 86

July-Sep.
52 @ 56
57 @ 61
49 @ 56
45 @ 52
62 @ 69
38 @ 43
25 @ 30
36 @ 44
76 @ 81
72 @ 77
83 @ 86

Minneapolis wheat futures
May contract, $ per bu

bakingbusiness.com/world-grain.com
http://www.bakingbusiness.com/world-grain.com
Milling & Baking News - March 14, 2006

Table of Contents for the Digital Edition of Milling & Baking News - March 14, 2006
