Milling & Baking News - May 29, 2012 - 51

Cash Wheat
HARD WINTER. Premiums on hard red winter wheat in Kansas City were 10c a bu higher to 10c lower last week. The sole loss was posted at 14% protein. It was noted the recent narrowing in the spread between Kansas City and Minneapolis wheat futures prices diminished somewhat the economic beneﬁt of substituting hard winter wheat for hard spring wheat of equivalent protein whenever practicable. That 14%-protein hard winter wheat traded lower as the rest of the K.C. basis ﬁrmed seemed to conﬁrm that trend. The basis advanced 4@10c across the bottom half of the protein scale except at 11% protein, which was unchanged. Premiums on 13.8% protein advanced 10c. Rail car loadings of old crop supply were relatively light with the harvest just under way in Kansas. Individual mills pressed for wheat to ﬁll gaps in coverage as they prepared for what may be a rapid and early transition to milling new crop supply. At the same time, most of the harvested wheat was going into storage, which made it difﬁcult for wheat buyers to accurately assess the protein distribution and what ultimately will be the average protein of the crop. Wheat buyers and sellers grappled with how to bid for and offer wheat in the wake of the expansion in electronic trading hours vis-à-vis hours for open-outcry trading in the wheat futures pits of Chicago and Kansas City. While open-outcry trading continued to end at 1:15 p.m. Central time, and the exchanges asserted the prices at 1:15 p.m. would be the “settlement prices,” electronic trading continue until 2:00 p.m. At issue was whether elevators and producers should base their transactions on the 1:15 p.m. settlement prices or on the last trades of the electronic trading sessions. Most seemed to opt for the latter as the week wore on. While the CME

Group announced May 25 it would begin open-outcry trading at 7:20 a.m. instead of 9:30 a.m. on days when critical U.S.D.A. reports are issued, beginning June 12, it indicated open-outcry trading would continue to end at 1:15 p.m. each day. In its ﬁrst Crop Progress harvest report of the season, the U.S. Department of Agriculture said the wheat harvest in Oklahoma was 14% completed by May 20 and the Texas harvest was 11% completed. Subsequent to the report, harvesting expanded rapidly across both of the states and into the southern tiers of Kansas counties. The Kansas Wheat Commission declared the Kansas harvest, which it said was one of the earliest in history, began on May 22. Relatively strong yields were indicated across much of Oklahoma. Protein average was low in much of the wheat sampled. Test weights were mostly very good. One harvest observer said the crop may average more than 60 lbs per bu. Initial reports from Kansas also point to good test weight and relatively low protein. At the same time, the Kansas crop encountered heat stress and dryness late in the growing season, particularly in the west, which may hike protein levels in the affected areas. The dryness took a toll both on condition ratings for the state’s wheat and on production forecasts. HARD SPRING. Premiums on hard red spring wheat quoted as delivered Chicago/beyond values in relation to the Minneapolis July wheat future advanced 5@55c a bu last week with the widest

gains at 15% protein. Less wheat was offered than during the previous week, which provided a boost to the basis. The U.S.D.A. indicated spring wheat planting in the six key states was 99% completed by May 20. Spring wheat emerged in the six states was 86% compared with 50% as the recent ﬁve-year average for the date. The U.S.D.A. indicated 74% of the crop in the six key states was rated good to excellent on May 20. SOFT RED. Mill bids on soft red winter wheat were mostly steady to 5c a bu higher. In Kansas City, No. 1 soft red bids were unchanged at 30c under K.C. July to 50c over. Gulf bids on soft red for nearby were 17c over Chicago July, down 23c. St. Louis mill bids were unchanged at 20c over Chicago July. Chicago mill bids held at 15c over Chicago July; new crop, 20c under July. Mill bids in Toledo for nearby were unchanged at 10c over Chicago July; new crop, 25c over July. Elevator bids were 3c under Chicago July; new crop, 5c over July. Cincinnati nearby mill bids were 15c over Chicago July for old crop and new crop, up 5c. Elevator bids for nearby were at 20c under Chicago July; new crop, 5c over July. Michigan white wheat mill bids for nearby were Chicago July price to 30c over; new crop July price to 20c over. Producers scored strong progress in the soft winter wheat harvest across the Delta states and the South. The U.S.D.A. said the harvest was 14% completed in Arkansas and 1% in Missouri on May 20. MBN

No. 1 hard spring
Basis Minneapolis July, delivered Chicago\beyond cents per bu May 25 — Change from — Year Premium May 18 May 11 ago Ordinary ... ... ... … 11% ... ... ... … 12% ... ... ... 0 @ 50 13% ... ... ... 100 @ 225 13.5% ... ... ... 275 14% 145 @ 160 +20 @ +5 -10 @ -15 375 14.5% ... ... ... 400 15% 225 @ 235 +55 @ +20 0 @ +10 525 @ 600 16% ... ... ... … 17% ... ... ... …

No. 1 hard winter premiums, 12.2%
Basis Kansas City July, cents per bu
150 130 110 90 70 50

No. 1 hard winter
Basis Kansas City July, cents per bu May 25 — Change from — Premium May 18 May 11 Ordinary 49 @ 64 +4 @ +4 +4 @ +4 11% 55 @ 70 — — 11.2% 65 @ 80 +5 @ +5 +5 @ +5 11.4% 70 @ 85 +5 @ +5 +5 @ +5 11.6% 76 @ 91 +6 @ +6 +1 @ +1 11.8% 80 @ 95 +5 @ +5 — 12% 90 @ 105 +5 @ +5 +5 @ +5 12.2% 95 @ 110 +10 @ +10 +10 @ +10 12.4% 100 @ 115 +10 @ +10 +5 @ +5 12.6% 100 @ 115 +10 @ +10 +5 @ +5 12.8% 100 @ 115 — -10 @ -10 13% 100 @ 115 — -10 @ -10 13.2% 110 @ 125 — -6 @ -6 13.4% 110 @ 125 — -6 @ -6 13.6% 110 @ 125 — -11 @ -11 13.8% 153 @ 168 +10 @ +10 +10 @ +10 14% 175 @ 190 -10 @ -10 -10 @ -10
bakingbusiness.com / world-grain.com

Year ago 0@ 15 0@ 15 5@ 20 30@ 45 51@ 66 52@ 67 60@ 75 60@ 75 68@ 83 68@ 83 68@ 83 100@ 115 100@ 115 100@ 115 135@ 150 160@ 175 285@ 300

Cash wheat
May 25 — Change from — For shipment Bid May 18 May 11 No. 1 Soft White, Track, Portland $ per bu June 7.05 +.10 +.25 July 7.05 +.15 +.30 August 7.05 +.15 +.40 No. 1 Hard 11.5%, Track, Portland Basis Kansas City future, $ per bu June 0.95 -.10 -.10 July 0.85 -.10 ... August 0.55 +.05 +.05 No. 1 Spring 14%, Track, Portland Basis Minneapolis future, $ per bu June 1.45 — — July 1.40 — — August 1.25 — — Year ago … 8.25 8.25 0.50 0.35 0.10

Exporter bids and offers
For May 25 shipment Bid Offer No. 1 Hard 12%, Track Gulf Basis Kansas City future, cents per bu May +105 July … June +105 July … July +105 July … August +95 Sep. 107 No. 2 Soft Red, c.i.f. New Orleans Basis Chicago future, cents per bu May +17 July 32 June +28 July 34 July +38 July 45 August +42 Sep. 50 Year ago bid

… +78 July +78 July +65 Sep.

+80 +80 +80 +40

July July July Sep.

Milling & Baking News May 29, 2012 / 51



Ingredient Week

… … 1.15

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - May 29, 2012

Table of Contents for the Digital Edition of Milling & Baking News - May 29, 2012