Milling & Baking News - July 23, 2013 - 35


Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were 20c
a bu higher to 30c lower last week. The sole
gain was posted on an ordinary wheat bid,
and the basis on 11%-protein wheat was
unchanged. The wide declines across the
rest of the protein scale reflected harvest
pressure that had been late to develop
because of the late start to the harvest. At
the same time, the cash hard red winter
wheat basis remained historically strong.
Premiums on 12%-protein hard red winter
wheat in Kansas City at 138c over K.C.
September compared with 70c a year
earlier, 75c in 2011 and -23c in mid-July
2010. Providing underlying support to the
basis that tempered the effect of harvest
pressure was feed demand for hard winter
wheat, which is heaviest in the summer,
and strong export demand for U.S. wheat.
Also, while the harvest in Kansas was
completed, farmers were unenthusiastic
sellers. Many seemed to be inclined to limit
their sales of new crop wheat until they are
able to better gauge the prospects for their
2013 fall crops.
The widest losses were posted across
the top third of the protein scale, which
resulted in an inverse in the cash hard
winter wheat basis so premiums on wheat
with protein from 13% to 14% were bid
below wheat with middle protein and
even wheat with protein as low as 11.2%.
“It’s all about spring wheat,” commented
one merchandiser, as the Minneapolis
spring wheat basis on 14%-protein wheat
tumbled. The market anticipated an
expansion in spring wheat sales in the next
several weeks ahead of the northern Plains
harvest. Additionally, western Kansas
had pockets of high protein supply. Some
veteran crop observers suggested the basis
inverse may be a feature for the season if
not the crop year.
Mill demand was not urgent given

No. 1 hard winter
Basis Kansas City July, cents per bu
July 19 — Change from —
Premium July 12 July 5
Ordinary 95 @ 110+20 @ +20+20 @ +20
11%
115 @ 130 —
+15 @ +15
11.2% 118 @ 133 -9 @ -9 -2 @ -2
11.4% 118 @ 133 -12 @ -12 -12 @ -12
11.6% 118 @ 133 -17 @ -17 -17 @ -17
11.8% 123 @ 138 -12 @ -12 -22 @ -22
12%
123 @ 138 -12 @ -12 -22 @ -22
12.2% 123 @ 138 -12 @ -12 -22 @ -22
12.4% 123 @ 138 -12 @ -12 -22 @ -22
12.6% 123 @ 138 -12 @ -12 -22 @ -22
12.8% 123 @ 138 -12 @ -12 -22 @ -22
13%
115 @ 130 -25 @ -25 -30 @ -30
13.2% 115 @ 130 -25 @ -25 -30 @ -30
13.4% 115 @ 130 -30 @ -30 -30 @ -30
13.6% 115 @ 130 -30 @ -30 -30 @ -30
13.8% 115 @ 130 -30 @ -30 -30 @ -30
14%
115 @ 130 -30 @ -30 -30 @ -30
bakingbusiness.com / world-grain.com

Year
ago
4 @ 19
32 @ 47
35 @ 50
45 @ 60
45 @ 60
50 @ 65
55 @ 70
55 @ 70
55 @ 70
60 @ 75
60 @ 75
70 @ 85
80 @ 95
85 @ 100
85 @ 100
85 @ 100
85 @ 100

ongoing deliveries of wheat for application
against July contracts.
After a late start, the Kansas harvest was
98% completed by July 14 compared with
97% as the recent five-year average for the
date, the U.S. Department of Agriculture
said in its Crop Progress report. The harvest
was 99% completed in Oklahoma (99%
as the average), 98% in Texas (98%), 29%
in Nebraska (42%), and 44% in Colorado
(52%). Harvesting was yet to begin in South
Dakota and Montana. The recent five-year
average harvest progress in South Dakota
for mid-July was 20%.
In Fort Worth, bids on hard red winter
wheat were unchanged at 45c over K.C.
September. Salina truck bids at terminal
elevators were at 15c under K.C. September.
Hutchinson elevator bids for nearby
were at 5c under K.C. September; AugustSeptember, 20c under. Gulf bids on hard
red winter wheat with 12% protein for July
were 145c over K.C. September, up 7c.
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to
the Minneapolis September wheat future
were unchanged to 20c a bu lower last
week. Mills didn’t press for offers and
seemed well provisioned with wheat being
delivered against July contracts. Duluth
stocks were about 7 million to 8 million
bus, below capacity, but export elevators
also didn’t press for supply.
Farmer selling of old crop spring
wheat remained limited with producers
perturbed at weakening prices and content

to hold back until their new crop’s prospects
become more certain. Indications were
offers of spring wheat to arrive in AugustSeptember and even October-December
have increased.
Spring wheat headed by July 14 in the six
key spring wheat states was 71% compared
with 73% as the recent five-year average for
the date. The U.S.D.A. rated spring wheat
in the six states at 70% good to excellent,
25% fair and 5% poor to very poor as of
July 14.
SOFT RED. Mill bids on soft red winter
wheat saw minor adjustments last week.
Gulf bids on soft red for July were 40c over
Chicago September, down 3c. St. Louis
nearby mill bids were 25c over Chicago
September, unchanged. Chicago nearby
mill bids were the Chicago September
price, unchanged; September, 10c over
September. Mill bids in Toledo for nearby
were the Chicago September price, up
10c. Elevator bids were 10c under Chicago
September. Cincinnati mill bids were the
Chicago September price, up 5c. Elevator
bids were 2c over Chicago September.
Michigan white wheat mill bids were
at the Chicago September price through
September.
Winter wheat harvested by July 14 was
97% in Missouri (97% as the recent fiveyear average for the date), 88% in Illinois
(92%), 68% in Indiana (89%), 28% in Ohio
(82%) and 9% in Michigan (38%). The
North Carolina harvest was 83% completed
compared with 100% as the average for the
date. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis July, delivered Chicago\beyond cents
per bu
July 19 — Change from —
Year
Premium July 12
July 5
ago
Ordinary
...
...
...
…
11%
...
...
...
…
12%
...
...
...
-15
13%
80
...
-30 @ -35 30 @ 40
13.5%
...
...
...
..
14%
80 @ 93 -20 @ -7
-55 @ -42 50 @ 65
14.5%
...
...
...
…
15%
80 @ 125 -15 @ 0
-60 @ -45 55 @ 90
16%
...
...
...
90
17%
...
...
...
…

Exporter bids and offers
For
July 19
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
July
+145 Sep.
…
August
+145 Sep.
…
September
+145 Sep.
…
October
+130 Dec.
…
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
July
+40 Sep.
48
August
+50 Sep.
58
September
+65 Sep.
75
October
+72 Dec.
…

Ingredient Week

Year ago
bid

…
+105 Sep.
+105 Sep.
+110 Dec.

+15
+20
+45
+55

Sep.
Sep.
Sep.
Dec.

Basis Kansas City, cents per bu

Cash wheat
July 19 — Change from — Year
For shipment
Bid July 12
July 5
ago
No. 1 Soft White, Track, Portland
$ per bu
July
...
. . . . . . 9.1
August
7.45
+.15 +.25 9.1
September
7.45
+.15 +.25 9.10
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
July
1.00
—
-.45 0.45
August
1.00
—
+.15 0.45
September
1.05
—
+.15 0.55
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
July
1.10
—
— 0.75
August
1.05
-.05 -.05 0.75
September
1.00
-.10 -.10 0.80
Milling & Baking News July 23, 2013 / 35
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Milling & Baking News - July 23, 2013

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