Milling & Baking News - August 9, 2011 - 36

Ingredient Week 

Wheat Futures
Whipsaw price action prevailed in wheat futures markets last week. Prices rallied early, fell hard at midweek but bounced on Friday to finish the week mostly higher. Corn exerted dominance in early trading but shared the stage with crumbling equity markets and a difficult export environment for U.S. wheat at midweek. Kansas City wheat futures led the way higher at the week’s end. Corn futures surged early as private crop analysts forecast corn yields lower than the most recent U.S. Department of Agriculture estimates because of recent torrid temperatures across key areas. At the same time, weather forecasts held out hope for much needed rain across the Corn Belt in the next several days, which tempered the upward bias for prices. Congress and the administration agreeing to a deal on the federal government’s debt ceiling failed miserably to calm equity markets in the face of mounting concerns about a double-dip recession in the United States and worldwide. The buckling of equity prices across the globe exerted a downward tug on agricultural and other commodity markets. Crude oil prices tumbled nearly $15 a barrel from its recent high of near $100 a barrel

posted just the preceding week. The U.S.D.A. in its weekly Crop Progress report indicated 81% of the winter wheat crop was harvested by July 31 compared with 86% as the recent five-year average for the date. The hard winter wheat harvest was centered in South Dakota and Montana. The quality of much of the wheat harvested to date in those states was disappointing. A wet spring and summer resulted in disease pressure. Those same wet conditions generated concerns about spring wheat quality in the region as well. The U.S.D.A. indicated net export sales of U.S. wheat during the week ended July 28 totaled 499,600 tonnes, up 5% from a week earlier and up 14% from the prior four-week average. At the same time, Egypt continued to turn to other nations for supply, purchasing 240,000 tonnes of wheat from Russia and Romania. MBN

Millfeed
Millfeed price changes were irregular last week, reflecting an unsettled market amid rising but volatile corn futures, heavy nearby supplies in some areas and massive outside macroeconomic pressure, which weighed on prices late in the week. Nearby values were mostly lower and deferred prices were mostly higher.

Heavy nearby supplies pressured values in the Upper Midwest and especially in Central states with flour grind active and feed demand off due to hot, humid weather in the latter region. Weakness in the Central states pressured values in the Northeast, which needed exports to other regions to support earlier gains. The major exception was the Southwest, where drought across Texas and parts of surrounding states created strong demand for supplemental feed. Spot prices rose about $5 a ton, and nearby material was lacking in the region, also weakness was evident at week’s end. Deferred prices posted mostly modest advances across most regions with support from corn futures and unusual discounts to summer months in some areas. Only scattered buying was evident. Wheat germ prices were higher based on recent sales of $280 a ton and above. Lower milling yields in some areas were expected to tighten germ output. Millfeed was $200 (nominal) a ton in Kansas City and $179 in Minneapolis on a rail basis compared with corn at $249 a ton and sorghum at $222 a ton, both K.C. Corn gluten feed held at $190 a ton, distillers’ dried grain was up $3 at $208 a ton and dehydrated alfalfa held at $235 a ton. MBN

Wheat futures
$ per bu; change in cents per bu Aug. 5 Kansas City September December March May Chicago September December March May Minneapolis September December March May 7.80¼ 8.03½ 8.18 8.24¾ 6.79 7.23 7.60¼ 7.76½ 8.27½ 8.34¾ 8.46 8.52¼ — Change from — July 29 July 22 +13¼c +10½c +11½c +13½c +6½c +7¼c +13½c +14c -3¼c +3¼c +5¾c +9¾c +¼c -¾c +1¼c +3¼c -13¼c -8c -3¼c -5c -11c -7c -5¾c -3¼c Week’s High Low 8.10¾ 8.36 8.50 8.53 7.23 7.64½ 7.93½ 8.10¼ 8.60 8.65¾ 8.73¼ 8.81 7.59¾ 7.84½ 7.99½ 8.05½ 6.64¼ 7.07¾ 7.41¼ 7.58½ 8.08 8.15 8.28¼ 8.36¼ Year ago 7.20 7.35 7.43 7.22 7.25¾ 7.55¼ 7.58 7.32¾ 7.23 7.32½ 7.37¾ 7.35 High 10.20¾ 10.34 10.14¼ 10.01½ 9.71½ 9.86¾ 9.54¾ 9.25½ 10.55¼ 10.55¼ 10.55¾ 10.56 Season’s Low (02-09-11) (02-09-11) (05-26-11) (02-09-11) (02-09-11) (02-09-11) (05-26-11) (02-09-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) 5.42 5.59½ 5.03 5.15¼ 5.60½ 4.72¾ 5.05 5.21 5.65 5.14 5.32¼ 5.43¼ (06-09-10) (06-11-10) (06-11-10) (06-11-10) (06-09-10) (06-08-10) (06-11-10) (06-11-10) (06-11-10) (06-10-10) (06-09-10) (06-09-10)

Kansas City wheat futures
September contract, $ per bu
10.50 8.50 6.50 4.50 A N F Previous Year M Current Year

WChicago wheat k' h ( t

b ) futures

30 5
$10.25 $8.75 $7.25 $5.75

September contract, $ per bu

Bulk middlings
$ per ton, delivered rail unless noted Spot Kansas City 200 @ 206 Southwest, f.o.b. truck 215 @ 225 Minneapolis 179 @ 185 Upper Midwest, f.o.b. truck 175 @ 181 Chicago West 192 @ 198 Central states, f.o.b truck 165 @ 172 Buffalo 143 @ 153 Southeast 150 @ 160 N. & S. California 193 @ 208 Los Angeles, f.o.b. truck 189 @ 204 Paciﬁc Northwest 165 @ 170 Upper Midwest, sacked 290 Wheat germ 280 @ 310 Aug. 190@ 196 210@ 215 180@ 186 176@ 182 193@ 199 166@ 173 140@ 150 145@ 151 176@ 191 172@ 187 165@ 170 — Change from — Year July 29 July 22 ago -4 @ -4 +3@ +4 62 @ 68 -5 @ -5 +10@ +10 78 @ 84 -4 @ -6 +1@ 0 76 @ 82 -4 @ -6 +1@ 0 72 @ 78 -4 @ -6 +1@ 0 89 @ 95 -7 @ -7 -9@ -9 62 @ 68 — -3@ -3 54 @ 60 -5 @ -4 -7@ -9 52 @ 58 +4 @ +4 +5@ +5 107 @ 122 +4 @ +4 +5@ +5 103 @ 118 — — 95 @ 110 Sept. Oct.-Dec. 184@ 190 172@ 177 199@ 204 187@ 192 181@ 187 169@ 179 177@ 183 165@ 175 194@ 200 182@ 192 166@ 173 165@ 172 136@ 146 134@ 144 140@ 146 145@ 151 164@ 179 159@ 174 160@ 175 155@ 170 165@ 170 160@ 165 Jan.-Mar. 172 @ 177 187 @ 192 169 @ 179 165 @ 175 182 @ 192 165 @ 172 132 @ 142 …@… …@… …@… …@…
A N F Previous Year M Current Year

$4.25

Minneapolis wheat futures
September contract, $ per bu
$10.50 $8.50 $6.50 $4.50 A N F Previous Year M Current Year

36 / August 9, 2011 Milling & Baking News

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Milling & Baking News - August 9, 2011

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