Milling & Baking News - November 27, 2012 - 44

Ingredient Week 

Wheat Futures
Wheat futures prices bounced during Thanksgiving week after setting recent lows during the previous week’s trading. Despite the gains, prices continued to trade toward the low end of the range established in mid-July. The market received conflicting signals that made it susceptible to swings. A principal support to futures prices were the abysmal winter wheat condition ratings as the winter approached. The U.S. Department of Agriculture’s Nov. 18 rating of the winter wheat crop showed continued deterioration and was at 34% good to excellent, 42% fair and 24% poor to very poor. The ratings were said to be the worst for the time of year since the U.S.D.A. began providing such data 25 years ago. The soft red winter wheat condition was good. The poor hard winter wheat crop condition ratings pulled down the average. The Kansas crop was rated 30% good to excellent, 46% fair and 24% poor to very poor. The Nebraska and South Dakota crops were rated much worse with the drought’s grip on northern areas of the hard winter wheat belt particularly strong. Veteran crop observers indicated spring weather was much more important than fall and winter weather in determining winter wheat crop yields and

quality. But the poor start of the 2013 crop will require all the more favorable conditions this spring as there will be no cushion of soil moisture in the Plains. Exports provided a mixed picture. The U.S.D.A. on Nov. 9 lowered its 2012-13 wheat export forecast to 1,100 million bus, down 50 million bus from the previous forecast but up 50 million bus from 201112. Analysts disagreed whether exports will be higher or lower than the new forecast. The U.S.D.A. indicated net export sales of U.S. wheat in the week ended Nov. 15 totaled a strong 635,400 tonnes, up 74% from the prior four-week average. Corn and soy complex futures prices advanced after tumbling the previous week, and their rebound helped pave the way higher for wheat. A dip in the dollar index last week ended the recent advance that began in mid-October. The weaker dollar gave commodity prices an extra boost in lateweek trading. MBN

Millfeed
Prices were higher early last week but softened as the pre-holiday market grew quiet. Traders said they expected prices to continue to trend lower because demand is expected to remain lackluster until winter weather sets in.

Trading was relatively featureless with participants concentrating on holiday-related logistics. Many values were unchanged and some participants were out of the office part or most of last week. Temperatures in some areas turned seasonably colder at week’s end, offering the possibility that demand from livestock producers would begin to firm prices as forward feed contracts expired. Supplies, though, varied because of the wide differences in run times related to Thanksgiving. Some larger mills took only one or 1½ days of downtime; many other mills planned to close for four days. Some locations faced fundamentals unique to their region. In the Southeast, prices fell as demand from catfish feeders grew slack because low temperatures discouraged consumption. Prices at some Central states facilities firmed on demand from Canada. Activity was minimal elsewhere, except for some buying in the Southwest. Millfeed was $180 a ton in Kansas City and $219 in Minneapolis, on a rail basis, compared with corn at $275 a ton and sorghum at $248 a ton, both K.C. Corn gluten feed held at $255 a ton, distillers’ dried grain was steady at $260 a ton, and dehydrated alfalfa was unchanged at $350 a ton, all K.C. Wheat germ held steady. MBN

Wheat futures
$ per bu; change in cents per bu Nov. 23 Kansas City December March May July Chicago December March May July Minneapolis December March May July 8.78¼ 8.95½ 9.03½ 9.00 8.47¾ 8.61½ 8.68 8.54¼ 9.13¾ 9.25 9.34 9.33½ — Change from — Nov. 16 Nov. 9 +2¼c +2¾c +3¼c +9c +9¾c +7¾c +7¾c +8½c +4c +4c +7¼c +5¾c -44c -43c -42c -27¼c -38¾c -40c -40c -34¼c -36¾c -33½c -32¼c -29¼c Week’s High Low 8.83¾ 9.01 9.07¾ 9.02½ 8.49½ 8.65 8.70¼ 8.57 9.18 9.29 9.37 9.38½ 8.72¼ 8.89 8.97 8.88¾ 8.35½ 8.51½ 8.57¾ 8.44¼ 9.06¾ 9.17¼ 9.25¾ 9.27¼ Year ago 6.43½ 6.54 6.61¼ 6.68½ 5.74½ 5.89 6.05½ 6.17¾ 8.27¼ 8.07½ 7.88¾ 7.82½ High 9.92¼ 9.86½ 9.85 9.50 9.77¼ 9.82 9.72 9.47 10.34 10.34½ 10.19¼ 10.00 Season’s Low (05-26-11) (05-25-11) (05-25-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (05-26-11) (07-23-12) (07-23-12) (07-01-12) (07-20-12) 6.50 6.64½ 6.74 6.80¼ 6.29½ 6.52 6.65 6.63 7.34 7.43 7.53½ 7.60 (05-11-12) (05-14-12) (05-11-12) (05-14-12) (05-14-12) (05-14-12) (05-14-12) (11-25-11) (05-14-12) (05-14-12) (05-11-12) (06-05-12)
N

Kansas City wheat futures
December contract, $ per bu
$10.50 $9.00 $7.50 $6.00 F M Previous Year A Current Year

Chicago wheat futures
December contract, $ per bu
$10.20 $8.60 $7.00 $5.40 N F M Previous Year A Current Year

Bulk middlings
$ per ton, delivered rail unless noted Spot 180 @ 185 212 @ 222 219 @ 229 215 @ 225 232 @ 242 212 @ 222 190 @ 200 160 @ 170 234 @ 254 230 @ 250 245 @ 265 320 290 @ 310 Nov. 180@ 190 210@ 220 219@ 229 215@ 225 232@ 242 212@ 222 190@ 200 160@ 170 234@ 254 230@ 250 255@ 275 — Change from — Year Nov. 16 Nov. 9 ago — -7@ -5 195 @ 202 +5 @ +10 -2@ +3 235 @ 240 +5 @ +5 — 184 @ 194 +5 @ +5 — 180 @ 190 +5 @ +5 — 197 @ 207 +2 @ +2 +2@ +2 190 @ 200 — -2@ -2 162 @ 175 — -15@ -15 175 @ 190 -5 @ -5 -20@ -20 198 @ 224 -5 @ -5 -20@ -20 194 @ 220 — +5@ +5 200 @ 210 Dec. Jan.-Mar. 190 @ 198 181@ 188 220 @ 225 210@ 215 214 @ 224 204@ 214 210 @ 220 200@ 210 227 @ 237 217@ 227 217 @ 225 205@ 210 190 @ 200 165@ 175 165 @ 175 160@ 170 234 @ 254 224@ 244 230 @ 250 220@ 240 250 @ 270 250@ 270

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

Minneapolis wheat futures
December contract, $ per bu
$10.50 $9.50 $8.50 $7.50 $6.50 N F M Previous Year A Current Year

44 / November 27, 2012 Milling & Baking News

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - November 27, 2012

Table of Contents for the Digital Edition of Milling & Baking News - November 27, 2012
