Milling & Baking News - February 26, 2008 - 58

Ingredient Week

Cash Wheat

HARD WINTER. Premiums on hard red
winter wheat in Kansas City were mixed
last week, ranging from 5c a bu higher to
40c lower. Wheat with 11.4% protein and
12% through 12.2% protein advanced 5c
a bu, ordinary wheat dropped 2c, wheat
with 13% through 13.6% protein was
10@40c lower and the remainder of the
protein scale was unchanged. Although
wheat offered on the spot market was
ample to provide a good test to the basis, cars varied widely in protein levels,
with some quality issues also noted, and
on more than one day last week trading
was at a standstill when the basis was set.
Traders said strong wheat prices encouraged sales of some lower quality wheat.
High-protein hard winter wheat remained actively sought by mills across the
country as a substitute for spring wheat,
although more hard wheat was offered
last week, which pressured the basis in the
13% through 13.6% range. Wheat offered
on the spot market in Kansas City and
spread to other locations usually sold at
the high side of premium ranges or above.
Even though nearby hard red spring
wheat futures as well as the cash basis on
spring wheat were extremely volatile and
the premium to hard red winter narrowed
last week, millers still were concerned
that quality hard red spring wheat supply
would run out before harvest.
Export demand for hard winter wheat
showed some life last week and was bid
for delivery before June at the Gulf for
the first time since early February. Hard
red winter with 11.5% protein was bid at
90c over Kansas City March futures for
March delivery.
Farmer selling of hard winter wheat
was light with producers already having sold most of their 2007 production.
Farmer selling of new crop wheat was
mostly light last week as well.

No. 1 hard winter
Basis Kansas City March, cents per bu
Feb. 22 - Change from -
Premium Feb. 15 Feb. 8
Ordinary 63@ 78
-2 @ -2 +15 @ +15
11%
65@ 80
-
+8 @ +8
11.2%
69@ 84
-
-
11.4% 110@ 125 +5 @ +5 -20 @ -20
11.6% 130@ 145
...
-25 @ -25
11.8% 175@ 190
...
-25 @ -25
12%
205@ 220 +5 @ +5 -20 @ -20
12.2% 215@ 230 +5 @ +5 -20 @ -20
12.4% 225@ 240
-
-25 @ -25
12.6% 250@ 265
-
-25 @ -25
12.8% 290@ 305
-
-25 @ -25
13%
355@ 370 -40 @ -40 -40 @ -40
13.2% 390@ 405 -30 @ -30 -30 @ -30
13.4% 420@ 435 -25 @ -25 -25 @ -25
13.6% 460@ 475 -10 @ -10 -10 @ -10
13.8% 495@ 510
-
-
14%
595@ 610
-
-
bakingbusiness.com / world-grain.com

Year
ago
35 @ 50
45 @ 60
45 @ 60
45 @ 60
45 @ 60
46 @ 61
46 @ 61
46 @ 61
46 @ 61
49 @ 64
49 @ 64
49 @ 64
49 @ 64
49 @ 64
46 @ 61
43 @ 58
43 @ 58

Texas wheat remained in mostly poor
condition with little change in the latest
week. The Texas field office of the U.S.D.A.
rated wheat in the state at 1% excellent, 8%
good, 27% fair, 32% poor and 32% very
poor. Much of Texas received significant
amounts of precipitation the previous
weekend, with one inch of moisture indicated at several locations. The state office observed for the week ended Feb. 17,
"Small grains benefited from rain in the
Blacklands. Irrigation was under way in
wheat and oats fields due to lack of moisture. Wheat condition was very poor to
fair statewide. Soil moisture was mostly
very short to short across the state."
A series of three modest storms were
forecast to deposit beneficial moisture to
parts of the hard winter wheat belt south
of Interstate 70 through midweek.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis fluctuated
widely last week but ended with only
modest changes. Spring wheat with 14%
protein ended the week unchanged to
up 25c a bu while 15% protein wheat
was unchanged to 50c lower.
Mill interest in spring wheat showed
signs of wavering and one merchandiser even called the pipeline "pluggy" at
midweek. Increased offerings on the spot
market in Minneapolis, and continued
buying of high protein hard red winter,
appeared to satisfy millers' appetites at
least temporarily. But concern that quality supplies of spring wheat could be depleted before harvest persisted.

Some increased farmer selling of
spring wheat was evident last week, although it was estimated that producers
had previously sold 85% or more of their
2007 production.
SOFT RED. Mill bids on soft red winter
wheat were weak to sharply lower last
week. In Kansas City, No. 1 soft red bids
held at 10@45c over K.C. March. Gulf
bids on soft red for February were 60c
over Chicago March; March also bid at
60c over. St. Louis mill bids were 10c over
the Chicago March price for 2 p.p.m. or
less vomitoxin. Chicago mill bids were
unchanged at 20c over Chicago March.
Mill bids in Toledo were 130c under
Chicago July; March, 125c under; new
crop, 100c under July. Elevator bids were
13c under March; new crop, 80c under
July. Cincinnati mill bids dropped 60c,
to 60c under Chicago March. Elevator
bids were 30c under March; new crop,
125c under July. Michigan white wheat
mill bids were 50c under Chicago March;
new crop, 70c under July.
The U.S.D.A. field office in Georgia
rated that state's wheat condition as of
Feb. 17 at 10% excellent, 54% good, 33%
fair and 3% poor.
"Most of south and middle Georgia received significant rainfall over the weekend," the office said. "The rain delayed
some producers who were topdressing
wheat and other small grains." Topsoil
moisture was rated 14% surplus, 64%
adequate, 18% short and 4% very short,
little changed from a week earlier. MBN

No. 1 hard spring

Cash wheat

Milling quality, basis Minneapolis May, cents per bu
Feb. 22
- Change from -
Year
Premium Feb. 15
Feb. 8
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
400
...
...
42 @ 55
13.5%
...
...
...
...
14%
425
+25 @ 0
0 @ -10 40 @ 55
14.5%
...
...
...
...
15%
500 @ 600
0 @ -50 -125 @ -25 40 @ 60
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
Feb. 22
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
February
+60 March
...
March
+60 March
70
April
+50 May
65
May
... May
...
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
February
... March
...
March
... March
...
April
... May
...
Ma
... May
...

Year ago
bid

+72
+78
+72
+68

March
March
May
May

+18
+18
+8
+5

March
March
May
May

Feb. 22 - Change from -
For shipment
Bid Feb. 15
Feb. 8
No. 1 Soft White, Track, Portland
$ per bu
Nearby
...
...
...
February
...
...
...
March
...
...
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
Nearby
1.70
+.25
+.30
February
1.70
+.25
+.30
March
1.75
+.20
+.25
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
Nearby
4.00
-
-
February
4.00
-
-
March
4.10
+.05
+.05

Year
ago
5.50
5.50
5.50
0.75
0.75
0.78

0.85
0.85
0.87

Canadian domestic milling wheat
Change
Year
In-store, Thunder Bay,
Feb. 22 from Feb. 15 ago
Canadian $ per tonne
Western red spring 13.5% 762.48 +31.77
246.36
Soft white spring
498.18
-.49
243.91
Amber durum
1026.22 +14.15
270.30
U.S. $ per bu
Western red spring 13.5% 20.43
0.57
5.79
Soft white spring
13.35
-0.20
5.73
Amber durum
27.50
-2.45
6.35
Milling & Baking News

February 26, 2008 / 59

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Milling & Baking News - February 26, 2008

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