Milling & Baking News - December 14, 2010 - 43

Ingredient Week 

Wheat Futures
The rally in wheat futures prices
continued last week with the exception
of December and March contracts in
Chicago. Kansas City and Minneapolis
reached the highest levels since summer
2008. Futures prices derived support
from mounting concerns over weather
damage to the Australian wheat crop
and extreme dryness across western sections of the U.S. hard winter wheat belt.
The Australian Bureau of Agricultural
and Resource Economics forecast Australian wheat production in 2010-11 at a record 26.8 million tonnes, up from its September projection of 25.1 million tonnes
and up 22% from 21.9 million tonnes
in 2009-10. ABARE said above-average
spring rainfall resulted in further upward
revisions to production in New South
Wales, Victoria and South Australia, while
continued dry conditions led to a further
downward revision for Western Australia.
But rainfall during the late spring and into
early December in eastern states delayed
harvest and lowered crop quality. ABARE
projected Australian wheat exports in
2010-11 at 16 million tonnes, down from
18.4 million tonnes forecast earlier but up
8% from 14.8 million tonnes in 2009-10.
The ABARE estimates were higher
than those issued for Australia by the

U.S. Department of Agriculture on Dec.
10. The U.S.D.A. estimated the Australian wheat crop at 25.5 million tonnes and
projected exports at 15 million tonnes.
The U.S.D.A. projected U.S. carryover
of wheat on June 1, 2011, at 858 million
bus, up 10 million bus from November
but down 12% from 976 million bus in
2009. The increase in the carryover forecast was attributed to a 10-million-bu
decrease in projected 2010-11 food use of
wheat to 930 million bus because flour
extraction rates were indicated to be
higher than the long-term average.
The U.S.D.A. projected 2010-11 world
wheat ending stocks at 176.72 million
tonnes, up 4.21 million tonnes from November but down 10% from 196.68 million tonnes the previous year.
Iraq bought 250,000 tonnes of U.S.
wheat last week. The U.S.D.A. said
net export sales of U.S. wheat during
the week ended Dec. 2 totaled 535,500
tonnes for the current year and 191,000
tonnes for 2011-12. MBN

Millfeed
With the exception of the Northeast
and Central states, where nearby values
surged as much as $15 a ton, millfeed
price changes were modestly firmer in
most regions last week. Markets were

in holiday mode with several mills not
quoting spot or last-half December prices and trading volume becoming thin.
Typically in the last half of December, reseller short covering or last-minute end user
fill-in buying results in price spikes while
actual markets may be nominal. But there
was some nearby material available and
trading in most markets last week, although
it was thought most business was done for
the month in the Southwest, where nearby
prices gained $5@6, and nearly completed
in other areas, where prices were mostly
firm to $2 higher. Northeast prices still were
well below those in most other regions. In
the Central states, where supply usually
is tightest of any region during the holidays, traders noted substitution of millfeed
with lower-priced ingredients and competition from other regions
Flour grind was steady to strong but
was expected to drop this week with
some mills running as little as three days
over the holiday period.
Wheat germ prices were unchanged.
Bulk middlings were $165 a ton in K.C.
and $155 a ton in Minneapolis compared
with corn at $198 a ton and sorghum at
$176 a ton, both K.C. Corn gluten feed
held at $175 a ton, distillers' dried grain
was up $3 at $178 a ton, and dehydrated
alfalfa unchanged at $205 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March 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

Season's
Low

- Change from -
Dec. 3 Nov. 26

Week's
High
Low

Year
ago

High

8.22¼
8.32
8.38½
8.39

+10½c +101½c
+10c +95¼c
+9¾c +92¾c
+16c +86¾c

8.37½
8.54
8.63
8.56

8.09½
8.19
8.27
8.23

5.17¼
5.27½
5.39¼
5.51

8.63¾
8.54
8.63
8.56

(11-09-10)
(12-07-10)
(12-07-10)
(12-07-10)

5.59½
5.03
5.15¼
5.27¼

(06-11-10)
(06-11-10)
(06-11-10)
(06-11-10)

7.35½
7.75½
8.01¼
8.04¾

-2½c
-3½c
+10½c
+18c

+87¼c
+88¼c
+89¼c
+80¼c

7.61½
8.11
8.24¾
8.22¾

7.25¾
7.66¼
7.87¼
7.84

5.19¼
5.37½
5.50¾
5.60¼

8.68
8.64¼
8.28¼
8.35

(08-06-10)
(08-06-10)
(08-06-10)
(11-09-10)

4.72¾
5.05
5.21
5.40

(06-08-10)
(06-11-10)
(06-11-10)
(06-11-10)

8.54¼
8.69½
8.74½
8.71¼

+37c
+34¼c
+30½c
+27c

+120¼c
+118½c
+114½c
+106½c

8.65
8.83
8.87
8.83

8.26
8.32
8.44
8.40

5.27½
5.42½
5.55¼
5.66

8.65
8.83
8.87
8.83

(12-10-10)
(12-10-10)
(12-10-10)
(12-10-10)

5.14
5.32¼
5.43¼
5.53¼

(06-10-10)
(06-09-10)
(06-09-10)
(06-11-10)

Dec. 10

Chicago wheat futures
March contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted
Spot
Kansas City
165 @ 170
Southwest, f.o.b. truck
170 @ 180
Minneapolis
159 @ 169
Upper Midwest, f.o.b. truck 155 @ 165
Chicago West
172 @ 182
Central states, f.o.b truck 165 @ 175
Buffalo
140 @ 150
Southeast
130 @ 135
N. & S. California
165 @ 175
Los Angeles, f.o.b. truck 161 @ 171
Pacific Northwest
155 @ 165
Upper Midwest, sacked
270
Wheat germ
290 @ 300

- Change from - Year
Dec.
Dec. 3
Nov. 26
ago
165@ 170 +5 @ +5 +17@ +14 107 @ 112
170@ 175
0 @ +5 +3@ +8 115 @ 120
164@ 174 +5 @ +8 +13@ +15 99 @ 109
160@ 170 +5 @ +8 +13@ +15 95 @ 105
177@ 187 +5 @ +8 +13@ +15 112 @ 122
165@ 175 +8 @ +10 +13@ +13 120 @ 130
145@ 155 +15 @ +17 +20@ +22 108 @ 118
130@ 135 +7 @ +5 +5@ 0
90 @ 95
166@ 176 +1 @ +1 +1@ +1 142 @ 152
162@ 172 +1 @ +1 +1@ +1 138 @ 148
155@ 165
-
+5@ +5 135 @ 145

40 / December 14, 2010 Milling & Baking News

Jan.
Jan.-Mar.
155 @ 160 147@ 152
165 @ 170 157@ 162
149 @ 159 139@ 149
145 @ 155 135@ 145
162 @ 172 152@ 162
148 @ 158 140@ 150
128 @ 138 115@ 125
126 @ 131 122@ 127
166 @ 176 165@ 175
162 @ 172 161@ 171
155 @ 165 155@ 165

Apr.-June
110 @ 115
120 @ 125
104 @ 114
100 @ 110
117 @ 127
110 @ 120
95 @ 105
116 @ 121
...@ ...
...@ ...
...@ ...

Minneapolis wheat futures
March contract, $ per bu
$9.50
$8.50
$7.50
$6.50
$5.50
$4.50
D

M

J
Previous Year

S
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - December 14, 2010

Table of Contents for the Digital Edition of Milling & Baking News - December 14, 2010
