Milling & Baking News - November 7, 2006 - 42

I N G R E D I E N T

W E E K

 Wheat Futures

Moderate to wide price declines predominated in wheat futures last week.
Markets weakened from 10-year highs set
a couple of weeks earlier. The widest losses
were sustained in Chicago. That the "correction" in pricing was more dramatic in
Chicago was not unexpected, given stocks
of soft red winter wheat, traded on the Chicago Board of Trade, were considered ample, while stocks of hard red winter wheat,
traded in Kansas City, and hard red spring
wheat, traded in Minneapolis, were tight.
Declining prices seemed to draw forth
increased foreign demand for U.S. wheat.
Net sales of U.S. export wheat in the week
ended Oct. 26 totaled 938,700 tonnes, a
marketing year high and 91% higher than
the recent four-week average. Iraq's purchase of 400,000 tonnes of hard red winter
was the largest single transaction.
At the same time, some of the world's
largest buyers of U.S. wheat continued
to find lower-priced supplies elsewhere.
Egypt bought only 60,000 tonnes of U.S.
soft white wheat last week, while buying 150,000 tonnes of milling wheat from
Russia. The Japanese agriculture ministry canceled its weekly tender for U.S.
wheat, stating prices were too high.
The Australian wheat harvest was un-

der way. That crop was projected just the
previous week at only 9.5 million tonnes,
down 15.5 million tonnes from the year
before. It was uncertain how much world
wheat demand usually satisfied by Australia will shift to the U.S., Canada and
other exporting countries.
Markets expected wheat acreage for
harvest in the U.S. and across the rest of
the Northern Hemisphere in 2007 to increase significantly. This was reflected in
contracts relating to the 2007 wheat crop
trading at wide discounts to those relating to the current year's supply.
Ninety-one per cent of the U.S. winter
wheat crop was planted by Oct. 29, according to the U.S. Department of Agriculture.
Winter wheat condition improved in the
week ended Oct. 29, with 60% rated good
to excellent and 32% fair, compared with
57% and 33%, respectively, the week before. Conditions improved in each of the
hard winter wheat states. MBN

 Millfeed

Exceptional, even stunning, advances
transpired in major regions last week.
Deferred gains often outdistanced the
nearby. In some cases, prices moved up
as much as $10@15 a ton before some fell
back somewhat at the weekend.

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu
Nov. 3
Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

The extraordinary strength surprised and
confused traders. Some participants withdrew offers after midweek, while others
acknowledged they were only guessing on
late price lists. Traders became more serious
toward the weekend, with significant forward "paper" trade indicated, with Southwest April-September going at $83@85 a
ton. A few mixers showed concern over
prospective availability in the winter.
Mills mostly held back on forward
sales, reflecting the absence of flour bookings. But sellers also had to deal with
burdensome spot supplies. South central
buyers have been less active, reflecting
rain and grass growth in the region, although extremely tight hay supplies continued to impact the market. North Carolina hog feeders were said to be out of the
market, but that market showed surprising strength on some days. West coast
markets located needed outside supplies
but at significantly higher levels.
Mill grind generally was brisk.
Wheat germ prices advanced $10 a ton.
Bulk middlings at $86 ton in K.C. and $76
in Minneapolis compared with corn at $119
a ton and sorghum at $111 a ton, K.C. Corn
gluten feed was up $2 at $80 a ton; distillers'
dried grain up $5 at $95 a ton, and dehydrated alfalfa gaining $7 at $188 a ton. MBN

- Change from -
Oct. 27 Oct. 20

Season's
Low

Week's
High
Low

Year
ago

High

5.37¼
5.51
5.38
4.89

5.11
5.26
5.16
4.70½

3.66¾
3.71¾
3.65
3.60½

5.56
5.67½
5.48
5.02

(10-25-06)
(10-25-06)
(10-25-06)
(10-04-06)

3.58
3.30
4.19
3.79

(09-07-05)
(02-09-05)
(02-06-06)
(01-10-06)

5.22½
5.37¼
5.25
4.81¾

-8¼c
-5¾c
-2c
-1¼c

-8½c
-6c
-
-2¾c

4.92½
5.14
4.98
4.69

-16c
-11c
-7½c
+2½c

-12½c
-10½c
-3½c
+3c

5.10
5.27
5.10
4.77

4.78
4.98
4.81
4.55

3.11¼
3.27¼
3.36
3.45

5.57
5.60
5.32
4.85

(10-17-06)
(10-12-06)
(10-12-06)
(10-04-06)

3.46
3.07
3.75
3.48

(12-09-05)
(12-09-05)
(01-18-06)
(08-16-05)

5.03
5.18
5.21
5.12

-5c
-4¾c
-5c
-3c

-6¾c
-7c
-7c
-5c

5.16
5.30
5.35
5.20

4.92
5.05
5.10
5.00

3.72½
3.78
3.75¼
3.74¼

5.42
5.52
5.53
5.35

(07-11-06)
(10-12-06)
(10-17-06)
(10-17-06)

3.66
3.41½
3.82
4.01

(11-28-05)
(09-07-05)
(11-28-05)
(01-09-06)

Chicago wheat futures
December contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
76 @ 80
Southwest, f.o.b. truck
87 @ 91
Minneapolis
72 @ 76
Upper Midwest, f.o.b. truck 68 @ 72
Chicago West
85 @ 89
Central states, f.o.b truck 71 @ 75
Buffalo
70 @ 75
Southeast
62 @ 67
N. & S. California
109 @ 114
Los Angeles, f.o.b. truck 105 @ 110
Pacific Northwest
108 @ 115
Upper Midwest, sacked
165
Wheat germ
215 @ 225

- Change from -
Nov.
Oct. 27
Oct. 20
86 @ 90
+6 @ +6 +1 @ +2
94 @ 98
+4 @ +4 +3 @ +4
76 @ 80
+7 @ +6 +3 @ +2
72 @ 76
+7 @ +6 +3 @ +2
89 @ 93
+7 @ +6 +3 @ +2
77 @ 82 +10 @ +11 +9 @ +9
72 @ 77
+3 @ +1 +6 @ +6
65 @ 70
+5 @ +4 +4 @ +4
109@ 119 +5 @ +10 +16 @ +16
105@ 115 +5 @ +10 +16 @ +16
108@ 115 +11 @ +10 +11 @ +10

42 / Milling & Baking News, November 7, 2006

Year
ago
56 @ 59
63 @ 66
45 @ 49
41 @ 45
58 @ 62
38 @ 42
35 @ 39
37 @ 40
82 @ 86
78 @ 82
80 @ 85

Dec.
98 @ 101
106 @ 109
88 @ 94
84 @ 90
101 @ 107
94 @ 99
76 @ 81
75 @ 80
111 @ 121
107 @ 117
108 @ 115

Jan.-Mar. April-June
99 @ 102 83 @ 87
107 @ 110 91 @ 95
86 @ 93
68 @ 75
82 @ 89
64 @ 71
99 @ 106 81 @ 88
85 @ 91
76 @ 81
68 @ 73
64 @ 69
75 @ 80
70 @ 75
106 @ 116 99 @ 104
102 @ 112 95 @ 100
108 @ 115 90 @ 105

Minneapolis wheat futures
December contract, $ per bu

bakingbusiness.com/world-grain.com
http://www.bakingbusiness.com/world-grain.com
Milling & Baking News - November 7, 2006

Table of Contents for the Digital Edition of Milling & Baking News - November 7, 2006
