Milling & Baking News - November 29, 2011 - 36

Ingredient Week 

Wheat Futures
Steep price declines were sustained in wheat futures last week. Minneapolis losses were the most severe in contrast with the previous week, when Minneapolis was partly successful in resisting the downward tug exerted by Chicago and Kansas City. Macro-economic influences again were at play. Equity markets tumbled amid concerns over the ongoing crisis in the euro zone and the failure of a congressional “super committee” to come up with a plan to reduce the U.S. budget deficit and create the conditions for stronger economic growth. The U.S. dollar index advanced to the highest levels since early October. The stronger dollar exerted weight on commodities including wheat and the other agricultural commodities. Ample world and U.S. wheat supplies contributed to the bearish tone, as did wide declines in corn and soy complex futures. Nearby corn futures prices dropped below $6 a bu but continued to trade above Chicago wheat futures. The U.S.D.A. indicated net export sales of U.S. wheat during the week ended Nov. 17 were 614,500 tonnes, up 94% from the previous week and up 96% from the prior four-week average. Notable was a purchase of 110,000 tonnes of

wheat by China. South Korea mills were the largest buyers during the week purchasing a total of 188,300 tonnes. At the same time, the U.S. was shut out of tenders for 740,000 tonnes of wheat and durum last week with Russia, Ukraine and other Black Sea nations capturing the milling wheat business with Egypt and Ethiopia, and Canada selling durum to Algeria. U.S. winter wheat emergence was 87% by Nov. 20, which compared with 88% as the recent five-year average for the date. Winter wheat condition was rated 50% good to excellent, 34% fair and 16% poor to very poor compared with 50%, 36% and 14%, respectively, a week earlier. Winter wheat condition as the crop approached dormancy was better than a year earlier but nonetheless was below normal. Wheat condition was the worst in Texas, where 49% of the crop was in poor to very poor condition. Rain during the past couple of weeks boosted Kansas and Oklahoma wheat condition. One veteran crop analyst said Kansas received two “billion-dollar rains” in recent weeks. MBN

Millfeed
Mixed price changes prevailed in light pre-holiday trading last week. Additional gains surfaced in some

regions, reflecting extremely limited offers through yearend, while other markets lost ground. Local weakness mainly was the result of substitution. Recent highs in millfeed took place even as corn and other feed ingredients continued to record appreciable declines, prompting mixers to review formulations. Some users delayed or even cancelled shipments. Merchandisers and mills appeared to adopt defensive pricing strategies on shipments beyond yearend. However, forward coverage was limited at this point as buyers preferred to hold back until corn and other competitive feed items demonstrated more stability. Flour mill grind over the holiday was somewhat heavier than expected, but the extra material was quickly taken. Wheat germ advanced $10 a ton. A number of buyers sought additional coverage both for nearby and deferred positions. Mills have been reluctant sellers for some weeks. Millfeed was $195 a ton in Kansas City and $184 in Minneapolis on a rail basis compared with corn at $213.50 a ton and sorghum at $196 a ton, both K.C. Corn gluten feed was at $208 a ton, distillers’ dried grain was at $220 a ton, and dehydrated alfalfa was at $295 a ton, all K.C. MBN

Wheat futures
$ per bu; change in cents per bu Nov. 25 Kansas City December March May July Chicago December March May July Minneapolis December March May July 6.43½ 6.54 6.61¼ 6.68½ 5.74½ 5.89 6.05½ 6.17¾ 8.27¼ 8.07½ 7.88¾ 7.82½ — Change from — Nov. 18 Nov. 11 -25c -25¼c -25½c -25c -23¾c -25¾c -28c -28¼c -90c -67¾c -54¼c -42¼c -60½c -61½c -63¾c -64c -42¼c -57c -61¼c -63¼c -107c -72½c -66½c -55½c Week’s High Low 6.71 6.82¼ 6.90½ 6.98¼ 6.02 6.18¼ 6.33¼ 6.48¾ 9.16¼ 8.75½ 8.43 8.24¾ 6.39½ 6.49½ 6.57¾ 6.65 5.72¼ 5.86 6.04 6.16 8.25¼ 8.03½ 7.85 7.78 Year ago 7.20¾ 7.36¾ 7.45¾ 7.52¼ 6.48¼ 6.87¼ 7.12 7.24½ 7.34 7.51 7.60 7.64¾ High 10.34 10.14¼ 10.01½ 9.97½ 9.86¾ 9.54¾ 9.25½ 9.57½ 10.55¼ 10.55¾ 10.56 10.55 Season’s Low (02-09-11) (05-26-11) (02-09-11) (05-26-11) (02-09-11) (05-26-11) (02-09-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) 5.59½ 5.03 5.15¼ 5.90 4.72¾ 5.05 5.21 6.14 5.14 5.32¼ 5.43¼ 6.74¼ (06-11-10) (06-11-10) (06-11-10) (03-31-10) (06-08-10) (06-11-10) (06-11-10) (06-11-10) (06-10-10) (06-09-10) (06-09-10) (07-15-10)
N

Kansas City wheat futures
December contract, $ per bu
10.50 8.50 6.50 4.50 F M
Previous Year

A
Current Year

Chicago wheat futures
December contract, $ per bu
$10.25 $8.75 $7.25

Bulk middlings
$ per ton, delivered rail unless noted — Change from — Year Nov. 18 Nov. 11 ago -10 @ -18 -5@ -8 148 @ 156 — +10@ +5 167 @ 172 +5 @ +5 +5@ +10 151 @ 159 +5 @ +5 +5@ +10 147 @ 155 +5 @ +5 +5@ +10 164 @ 172 -5 @ -10 +15@ +15 152 @ 162 +7 @ +5 +37@ +40 125 @ 133 0 @ -5 +25@ +30 125 @ 135 -6 @ 0 -6@ 0 165 @ 175 -6 @ 0 -6@ 0 161 @ 171 — +10@ +5 150 @ 160
N F M
Previous Year

$5.75 $4.25 A
Current Year

Kansas City Southwest, f.o.b. truck Minneapolis Upper Midwest, f.o.b. truck Chicago West Central states, f.o.b truck Buffalo Southeast N. & S. California Los Angeles, f.o.b. truck Paciﬁc Northwest Upper Midwest, sacked Wheat germ

Spot 195 @ 202 235 @ 240 184 @ 194 180 @ 190 197 @ 207 200 @ 210 165 @ 180 175 @ 190 202 @ 224 198 @ 220 200 @ 210 310 290 @ 320

Dec. 195@ 202 235@ 240 184@ 194 180@ 190 197@ 207 190@ 200 162@ 175 175@ 190 198@ 224 194@ 220 200@ 210

Jan. Jan.-Mar. 180 @ 190 170@ 177 200 @ 210 190@ 197 174 @ 184 169@ 179 170 @ 180 165@ 175 187 @ 197 182@ 192 170 @ 180 160@ 170 145 @ 158 130@ 150 160 @ 170 145@ 155 194 @ 214 188@ 208 190 @ 210 184@ 204 200 @ 210 200@ 210

Apr.-June 125 @ 133 145 @ 153 …@ … …@ … …@ … 120 @ 130 100 @ 110 …@ … …@ … …@ … …@ …

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

A
Current Year

36 / November 29, 2011 Milling & Baking News

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Milling & Baking News - November 29, 2011

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