Milling & Baking News - October 19, 2010 - 35

Ingredient Week 

Wheat Futures
Prices of wheat futures on the three
exchanges of Kansas City, Chicago and
Minneapolis dropped last week, giving
back a portion of the sensational gains
scored the previous week.
The decline in the wheat market took
place even as the rally in corn futures
prices continued. It primarily was the
U.S. Department of Agriculture's unexpectedly large reductions to its corn
yield and production forecasts issued on
Oct. 8 that rocketed grain and oilseed futures prices higher. The rally continued
in corn and soy complex futures markets, but the wheat market refused to follow, at least for the time being. Looming
behind the pyrotechnics in the agricultural markets was continued erosion in
the value of the dollar that suggested to
some analysts U.S. export potential for
wheat and other agricultural commodities may not be fully appreciated as yet.
The trade watched closely weather developments in the Southern Hemisphere
where the wheat harvest soon will begin
in earnest. Conditions remained very dry
in Western Australia, where about 40%
of that nation's crop is grown, but conditions were excellent in eastern areas.
The U.S.D.A. estimated net export sales
of U.S. wheat during the week ended

Oct. 7 at 377,000 tonnes, down 53% from
the previous week and down 47% from
the recent four-week average. But, Egypt
bought 222,000 tonnes of hard red winter wheat last week and Iraq was said to
have purchased 100,000 tonnes.
The spring wheat harvest drew to a
close, and the fall crop harvest gained
momentum across the northern Plains.
Nationwide, the corn harvest was 51%
completed on Oct. 10 compared with 30%
as the recent five-year average for the
date, and the nation's soybean harvest
was 67% completed compared with 48%
as the average, according to the U.S.D.A.
Winter wheat seeding was 70% completed by Oct. 10 compared with 68% as
the average for the date. Wheat emergence was at 38% compared with 39% as
the average.
Farmer selling of wheat was light because of the large percentage of the crop
already sold and because of preoccupation with the fall harvest. MBN

Millfeed
Price advances in millfeed slowed and
in some instances peaked last week with
a number of participants describing their
markets as "heavy" before the weekend.
Corn, which had been the primary engine for recent gains in millfeed and in

Wheat futures

Kansas City wheat futures
December contract, $ per bu

$ per bu; change in cents per bu

Kansas City
December
March
May
July
Chicago
December
March
May
July
Minneapolis
December
March
May
July

$8.00

Season's
Low

- Change from -
Oct. 8
Oct. 1

Week's
High
Low

Year
ago

High

7.45
7.59¾
7.68½
7.71½

-13½c
-13¼c
-11c
-¼c

+55¾c
+56¾c
+60c
+64c

7.76
7.90
7.91½
7.85

7.34¼
7.48½
7.55¼
7.55

5.10½
5.25¾
5.37
5.48½

10.28¾
8.43½
8.14
10.50

(08-21-08)
(08-06-10)
(08-05-10)
(06-26-08)

4.85
5.03
4.61½
4.55¼

(06-11-10)
(06-11-10)
(03-31-10)
(06-11-10)

7.04½
7.40¾
7.57¾
7.65¼

-14¾c
-13c
-11¾c
+¼c

+49½c
+52¼c
+54½c
+63¼c

7.39¾
7.73¾
7.84½
7.76¼

6.95
7.30½
7.45½
7.43¾

4.98¾
5.17¾
5.30
5.40¼

10.28½
8.64¼
8.28¼
10.32¼

(08-21-08)
(08-06-10)
(08-06-10)
(06-26-08)

4.72¾
5.05
4.47
4.25½

(06-08-10)
(06-11-10)
(04-05-10)
(06-08-10)

7.54
7.68
7.76
7.80½

-10½c
-10¾c
-8½c
-3c

+48c
+48¼c
+50½c
+55¾c

7.80
7.93¾
7.98¼
7.99½

7.41¾
7.55½
7.63¼
7.62¾

5.26½
5.42¾
5.53½
5.64¼

8.40
8.44¼
9.65
9.65

(08-06-10)
(08-06-10)
(08-13-08)
(08-13-08)

5.14
5.32¼
4.81½
4.84½

(06-10-10)
(06-09-10)
(03-31-10)
(06-11-10)

Oct. 15

other feed ingredients, sputtered after
spectacular gains starting Oct. 8 and continuing into the first part of last week.
Feed manufacturers again delayed
or cancelled a number of shipments, in
part due to a shortage of available trucks
in some markets where competition for
transportation was intense due to the fall
harvests. However, some mixers late in
the week underscored more competition
from other feed ingredients that serve as
potential substitutes for millfeed. This
represented an important change from
the preceding week.
Supplies at a number of points still
were quite tight with some short covering
in evidence. Mills in many regions had little or no feed to offer up to yearend, and
some, especially in the western states, already were sold out for the first quarter as
well. Many mills had no millfeed to offer
because of a lack of flour contracts.
Wheat germ advanced $10 a ton. Demand was moderately active while offers were generally limited.
Bulk middlings were $140 a ton in
K.C. and $130 in Minneapolis compared
with corn at $183 a ton and sorghum at
$172.50, both K.C. Corn gluten feed was
$180 a ton, distillers' dried grain was
$165 a ton and dehydrated alfalfa was at
$205 a ton, all K.C. MBN

$7.00
$6.00
$5.00
$4.00
O

J

A
Previous Year

WChicago
k' h
( t
wheat

J
Current Year

b )
futures

December contract, $ per bu

$8.00
$7.00
$6.00

Bulk middlings

$5.00

$ per ton, delivered rail unless noted
Spot
Kansas City
140 @ 145
Southwest, f.o.b. truck
150 @ 155
Minneapolis
134 @ 144
Upper Midwest, f.o.b. truck 130 @ 140
Chicago West
147 @ 157
Central states, f.o.b truck 132 @ 142
Buffalo
135 @ 143
Southeast
127 @ 135
N. & S. California
164 @ 179
Los Angeles, f.o.b. truck 160 @ 175
Pacific Northwest
145 @ 155
Upper Midwest, sacked
270
Wheat germ
300 @ 320

30 5

Oct.
140@ 145
150@ 155
134@ 144
130@ 140
147@ 157
132@ 142
133@ 145
127@ 135
160@ 175
156@ 171
145@ 155

36 / October 19, 2010 Milling & Baking News

- Change from - Year
Oct. 8
Oct. 1
ago Nov.-Dec. Jan.-Mar.
-
+10@ +10 90 @ 94 145 @ 150 148@ 153
-5 @ -5
+5@ +5 100 @ 105 155 @ 160 158@ 163
-5 @ -7
0@ +5
88 @ 91 134 @ 147 139@ 149
-5 @ -7 0@+5
84 @ 87 130 @ 143 135@ 145
-5 @ -7
0@ +5 101 @ 104 147 @ 160 152@ 162
-3 @ -3
+6@ +6
90 @ 95 142 @ 152 130@ 140
+3 @ +5 +15@ +17 100 @ 105 135 @ 145 130@ 140
+4 @ 0 +17@ +20 70 @ 75 132 @ 140 132@ 140
+3 @ +8 +16@ +16 114 @ 124 160 @ 170 157@ 167
+3 @ +8 +16@ +16 110 @ 120 156 @ 166 153@ 163
-
+10@ +10 110 @ 117 145 @ 155 145@ 155

$4.00

Apr.-June
114 @ 118
124 @ 128
...@ ...
...@ ...
...@ ...
105 @ 115
95 @ 115
...@ ...
...@ ...
...@ ...
...@ ...

O

J

A
Previous Year

J
Current Year

Minneapolis wheat futures
December contract, $ per bu

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Milling & Baking News - October 19, 2010

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