Milling & Baking News - August 15, 2006 - 42

I N G R E D I E N T

 Wheat Futures

be smallest wheat carryover since 1996.
The reduction from the July report was
due to the 5-million-bu decrease in production. Other all-wheat supply and demand estimates were unchanged from
July. The average farm price of wheat in
2006-07 was projected at $3.90@4.50 a bu,
up 20c from the July forecast.
The U.S.D.A. projected 2006-07 world
wheat ending stocks at 128.42 million
tonnes, down 4.78 million tonnes from
the July forecast and down 17.27 million
tonnes from 145.69 million tonnes the
previous year. It would be the smallest
end-of-year world inventory since 198182. Global production in the current marketing year was projected at 598 million
tonnes, down 7.21 million tonnes from
the July forecast and down 20.46 million
tonnes from a year ago.
Net sales of U.S. export wheat in the
week ended Aug. 3 totaled 395,600 tonnes,
32% below the previous week. MBN

Wide price declines were sustained
in wheat futures last week. Losses easily offset gains scored the previous week
and marked the resumption of a retreat
from recent highs set in mid-July. Prices
trended lower ahead of the release on
Friday of U.S. Department of Agriculture
wheat production and supply/demand
estimates for 2006-07. An official spring
wheat production estimate well above
the average of pre-report trade estimates
accelerated the market decline.
The U.S.D.A. on Aug. 11 estimated U.S.
all-wheat production in 2006 at 1,801 million bus, down 5 million bus from the July
projection and down 14% from the 2005
outturn of 2,105 million bus. The trade had
expected a production estimate of about
1,765 million bus. Production of spring
wheat other than durum was estimated at
464 million bus, down 1.8 million bus from
the July forecast and down 8% from 504
million bus last year. The average pre-report trade estimate of other-spring wheat
production was 428 million bus.
The U.S.D.A. lowered its projection
for the U.S. carryover of wheat on June
1, 2007, by 4 million bus, to 434 million
bus. That compared with a June 1, 2006,
inventory at 568 million bus and would

 Millfeed

Millfeed prices posted wide losses
in most markets last week, as supply
exceeded demand. But some increased
buying interest was noted at lower prices levels late in the week.
The widest losses were in the Upper

Midwest and Central states, with nearby
prices down $9@10 a ton for the week.
Cheap material from Northeast mills
moving into Central states and competing markets was the main pressuring
factor. Prices in the Northeast, around
$20 a ton and down $7@8 for the week,
were low enough to make freight work
to other regions, easing the local supply
glut some. Southwest prices were off $5
for rail. Declines for truck delivered material in the Southwest were less severe
as demand shifted away from rail after
rate increases by one rail carrier.
Pressure came from increased supply
due to heavier mill grind in most regions.
Demand was little changed or was even
still off due to summer heat, especially
in the Southwest. Temperatures in most
other regions moderated. Spot flour mill
outages in the Southwest limited supply.
On the West coast, Pacific Northwest
prices held steady, while California was
pressured by continued heavy supply.
Wheat germ prices were unchanged.
Bulk middlings at $55 a ton in K.C.
and $53 in Minneapolis compared with
corn at $75.25 a ton and sorghum at $74
a ton, K.C. Corn gluten feed was $67 a
ton; distillers' dried grain $67 a ton, and
dehydrated alfalfa $172 a ton. MBN

Wheat futures

Kansas City wheat futures
September contract, $ per bu

$ per bu; change in cents per bu

Kansas City
September
December
March
May
Chicago
September
December
March
May
Minneapolis
September
December
March
May

Season's
Low

- Change from -
Aug. 4 July 28

Week's
High
Low

Year
ago

High

4.54¼
4.72¾
4.80
4.78

-31¾c
-28¼c
-27c
-22c

-29¾c
-27¼c
-23¾c
-19c

4.86½
5.02
5.09
4.96

4.53½
4.70
4.78½
4.78

3.41¼
3.51¼
3.56¾
3.56

5.28
5.39
5.42
5.22

(05-23-06)
(07-11-06)
(07-11-06)
(07-11-06)

3.48
3.58
3.30
4.19

(08-31-05)
(09-07-05)
(02-09-05)
(02-06-06)

3.73¾
3.95½
4.13¾
4.24

-22¼c
-21¾c
-21¼c
-20c

-14¾c
-12½c
-10¾c
-8½c

3.95½
4.15½
4.33
4.41½

3.73
3.93½
4.11½
4.22

3.21¼
3.35¾
3.48½
3.55

4.45½
4.62
4.76
4.59½

(05-23-06)
(05-23-06)
(05-23-06)
(04-11-06)

3.34½
3.46
3.07
3.75

(12-09-05)
(12-09-05)
(12-09-05)
(01-18-06)

4.57
4.67¾
4.76¾
4.79

-25¼c
-26¼c
-25½c
-24c

-21c
-19¼c
-18¼c
-17c

4.81¾
4.94
5.01½
5.04

4.56½
4.66½
4.75½
4.79

3.39
3.48
3.57½
3.62½

5.35
5.42
5.36
5.25

(07-12-06)
(07-11-06)
(07-11-06)
(07-11-06)

3.57½
3.66
3.41½
3.82

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

Aug. 11

W E E K

Chicago wheat futures
September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
55 @ 59
Southwest, f.o.b. truck
65 @ 70
Minneapolis
53 @ 58
Upper Midwest, f.o.b. truck 49 @ 54
Chicago West
66 @ 71
Central states, f.o.b truck 35 @ 40
Buffalo
20 @ 25
Southeast
43 @ 48
N. & S. California
68 @ 74
Los Angeles, f.o.b. truck
64 @ 70
Pacific Northwest
70 @ 75
Upper Midwest, sacked
160
Wheat germ
150 @ 160

bakingbusiness.com/world-grain.com

Aug.
55 @ 59
65 @ 70
53 @ 58
49 @ 54
66 @ 71
35 @ 40
21 @ 26
43 @ 48
68 @ 74
64 @ 70
70 @ 75

- Change from -
Aug. 4
July 28
-5 @ -4
-8 @ -7
-3 @ -3
-3 @ -1
-9 @ -9
-9 @ -9
-9 @ -9
-9 @ -9
-9 @ -9
-9 @ -9
-9 @ -8 -13 @ -13
-7 @ -7 -13 @ -13
-7 @ -7
-7 @ -9
-6 @ -5
-6 @ -6
-6 @ -5
-6 @ -6
-
-

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

Sept.
56 @ 60
66 @ 71
53 @ 58
49 @ 54
66 @ 71
38 @ 43
24 @ 29
43 @ 48
71 @ 77
67 @ 73
70 @ 75

Oct-Dec
66 @ 70
71 @ 76
59 @ 64
55 @ 60
72 @ 77
55 @ 60
42 @ 47
48 @ 53
80 @ 86
76 @ 82
75 @ 80

Jan.-Mar.
67 @ 71
72 @ 77
60 @ 65
56 @ 61
73 @ 78
55 @ 60
42 @ 47
49 @ 54
80 @ 86
76 @ 82
73 @ 78

Minneapolis wheat futures
September contract, $ per bu

Milling & Baking News, August 15, 2006 / 43
http://www.bakingbusiness.com/world-grain.com
Milling & Baking News - August 15, 2006

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