Milling & Baking News - April 19, 2011 - 44

Ingredient Week 

Wheat Futures
Prices of wheat futures slumped last week bringing to an end a four-week advance. The rally that drove corn prices to all-time highs and the Chicago May corn future to a premium to Chicago May wheat ran out of steam, at least temporarily. Lacking prodding from the corn market, wheat futures retreated without encountering serious obstacles. Rain across much of the hard winter wheat belt and forecasts calling for more precipitation in some parched western areas of the region doused some worst-case scenarios envisioned for the 2011 hard winter wheat crop. Late-week rains came none too soon with already poor winter wheat condition ratings showing further declines in the U.S. Department of Agriculture’s April 11 Crop Progress report. The U.S.D.A. rated the winter wheat crop on April 10 at 36% good to excellent, 28% fair and 36% poor to very poor compared with 37%, 31% and 32%, respectively, a week earlier. Good-to-excellent ratings declined in the hard winter wheat states and stood at only 28% in Kansas, 11% in Oklahoma, 11% in Texas, 36% in Nebraska and 12% in Colorado. Rain last week affected western hard winter wheat areas mostly north of Interstate 70. Southwestern Kansas and the

Oklahoma and Texas panhandles received little moisture, and temperatures dipped below freezing across northern areas of the hard winter wheat belt including the western third of Kansas toward the week’s end. Forecasts called for additional rain, and hopes were with the weather pattern remaining active, storms may set up progressively farther west to embrace areas that remained starved for moisture. The U.S.D.A. indicated net export sales of U.S. wheat for 2010-11 during the week ended April 7 totaled 443,600 tonnes, down 3% from the previous week and down 14% from the prior four-week average. Sales for 2011-12 aggregated 102,000 tonnes. Prospects for a rebound in world wheat production in key exporting nations, including Russia, and ideas export bans may be lifted earlier than scheduled offered some resistance to futures. MBN

Millfeed
Regional advances stood out in millfeed last week, although some markets were unchanged or even slightly lower. The widest advances were in the Central states and the Northeast followed by the Upper Midwest. West coast markets showed little change, while Southwest values in some instances eased. Nearby through April

saw the widest gains with deferred prices showing little or no change. Mounting tightness in some areas reflected ongoing disappointing flour mill grind. A number of mills failed to attain even a five-day grind for several weeks with grind expected to be even lighter around the Easter weekend. Some mill sources said bakery customers were planning to shut down well in advance of the holiday, possibly due to inventory adjustments. This forced mills to cut back, resulting in short positions in millfeed and ongoing upward pressure. Mill shutdowns due to Red River Valley flooding also were a factor. Some participants noted feed mixers came back into the market, often paying higher prices as a consequence of recent price resistance or delays due to slack commercial feed business. Despite the gains, millfeed prices were competitive with most other ingredients. Wheat germ was $5 a ton lower. Bulk middlings were $150 a ton in Kansas City and $163 ton in Minneapolis compared with corn at $261 a ton and sorghum at $236 a ton, both K.C. Corn gluten feed was unchanged at $185 a ton, distillers’ dried grain was $5 lower at $215 a ton, and dehydrated alfalfa was steady at $205 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu Apr. 15 Kansas City May July September December Chicago May July September December Minneapolis May July September December 8.65½ 8.76 8.89½ 9.08¼ 7.44¼ 7.80 8.17¼ 8.48 8.89 8.97¾ 8.99¾ 9.13¾ — Change from — Apr. 8 Apr. 1 -67¼c -67c -67½c -63¾c -53¼c -52¼c -50¼c -48½c -64¼c -63½c -63½c -59½c -41c -41¼c -42c -40c -15¼c -16c -17c -15½c -33½c -32¾c -34¼c -31¼c Week’s High Low 9.44½ 9.55 9.66½ 9.91¼ 8.09¼ 8.43¼ 8.78 9.05¼ 9.62¼ 9.70¾ 9.70 9.78¾ 8.54¼ 8.65 8.79 8.97 7.30 7.65¼ 8.06 8.35½ 8.80 8.88¼ 8.93 9.05¼ Year ago 5.06½ 5.17½ 5.29½ 5.47¼ 4.90½ 5.02½ 5.19¼ 5.46 5.20 5.30¾ 5.43 5.60½ High 10.01½ 10.09¾ 10.20¾ 10.34 9.25½ 9.50¾ 9.71½ 9.86¾ 10.48 10.54¾ 10.51½ 10.51 Season’s Low (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-09-11) (02-14-11) (02-14-11) (02-14-11) (02-14-11) 5.15¼ 5.27¼ 5.42 5.59½ 5.21 5.40 5.60½ 4.72¾ 5.43¼ 5.53¼ 5.65 5.14 (06-11-10) (06-11-10) (06-09-10) (06-11-10) (06-11-10) (06-11-10) (06-09-10) (06-08-10) (06-09-10) (06-11-10) (06-11-10) (06-10-10)

Kansas City wheat futures
May contract, $ per bu
10.00 8.00 6.00 4.00 A J O Previous Year J Current Year

WChicago wheat k' h ( t

b ) futures

30 5
$9.25 $8.25 $7.25 $6.25 $5.25

May contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted Spot Kansas City 150 @ 155 Southwest, f.o.b. truck 185 @ 190 Minneapolis 167 @ 172 Upper Midwest, f.o.b. truck 163 @ 168 Chicago West 180 @ 185 Central states, f.o.b truck 200 @ 220 Buffalo 185 @ 190 Southeast 145 @ 150 N. & S. California 192 @ 212 Los Angeles, f.o.b. truck 188 @ 208 Paciﬁc Northwest 165 @ 175 Upper Midwest, sacked 285 Wheat germ 265 @ 295 April 145@ 150 175@ 180 164@ 169 160@ 165 177@ 182 190@ 200 185@ 190 140@ 145 186@ 191 182@ 187 160@ 170 — Change from — Year Apr. 8 Apr. 1 ago May-June July-Sept. -2 @ -1 +6@ +4 56 @ 60 135 @ 140 137@ 142 +3 @ +3 +16@ +14 66 @ 72 155 @ 160 157@ 162 +7 @ +5 +15@ +15 70 @ 75 149 @ 159 149@ 159 +7 @ +5 +15@ +15 66 @ 71 145 @ 155 145@ 155 +7 @ +5 +15@ +15 83 @ 88 162 @ 172 162@ 172 +20 @ +20 +35@ +35 84 @ 88 158 @ 168 140@ 150 +20 @ +20 +35@ +30 80 @ 85 145 @ 150 135@ 140 +5 @ +5 +10@ +9 73 @ 79 135 @ 140 130@ 135 -3 @ -8 +6@ +1 109 @ 124 179 @ 189 177@ 187 -3 @ -8 +6@ +1 105 @ 120 175 @ 185 173@ 183 — +10@ +10 100 @ 115 170 @ 180 175@ 185 Oct.-Dec. 148 @ 153 168 @ 173 154 @ 164 150 @ 160 167 @ 177 145 @ 155 140 @ 150 …@ … …@ … …@ … …@ …
A J O Previous Year J Current Year

$4.25

Minneapolis wheat futures
May contract, $ per bu
$10.50 $8.50 $6.50 $4.50 A J O Previous Year J Current Year

44 / April 19, 2011 Milling & Baking News

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Milling & Baking News - April 19, 2011

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