Milling & Baking News - August 6, 2013 - 39


Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City tumbled
8@25c a bu last week. The basis traded
sideways through most of the week
before buckling toward the week’s end
with the widest losses posted across
the top third of the protein scale and on
ordinary and 11%-protein wheat and the
narrowest across the middle third of the
scale, where the crop average protein
was expected to fall.
Reseller demand associated with
commitments that had to be filled
before end of July waned, and less
pressing demand from West coast
mills contributed to the softer tone.
Mills also anticipated initial shipments
against August wheat contracts. Export
elevators at the Gulf initially raised their
bids but then pulled back to end so they
unchanged from the previous week.
The inverse in the cash market
continued with high-protein wheat
quoted at the same levels as wheat with
11% and 11.2% protein. Weighing on the
top third of the protein scale was current
and prospective availability of spring
wheat amid favorable conditions for
good yields in the Upper Midwest.
Even with last week’s declines, the
cash hard winter wheat basis remained
historically strong.
Farmer selling expanded during the
past several days, and while this has not
led to marked increase in rail car loading,
the effect of increased availability was
evident in the cash market. Farmers
perceived improvement in the outlook
for their fall crops because of recent rain,
and this helped loosen their grip on their
new crop wheat.
Wheat buyers inquired for offers
on wheat to arrive in September and
October, but no significant new business
was said to have resulted.

No. 1 hard winter
Basis Kansas City Sept., cents per bu
Aug. 2 — Change from —
Premium July 26 July 19
Ordinary 70 @ 85 -25@ -25 -25 @ -25
11%
95 @ 110 -20@ -20 -20 @ -20
11.2% 105 @ 120 -13@ -13 -13 @ -13
11.4% 115 @ 130 -10@ -10 -3 @ -3
11.6% 120 @ 135 -10@ -10 +2 @ +2
11.8% 120 @ 135 -10@ -10 -3 @ -3
12%
120 @ 135 -10@ -10 -3 @ -3
12.2% 120 @ 135 -10@ -10 -3 @ -3
12.4% 120 @ 135 -10@ -10 -3 @ -3
12.6% 120 @ 135 -14@ -14 -3 @ -3
12.8% 115 @ 130 -8@ -8
-8 @ -8
13%
95 @ 110 -20@ -20 -20 @ -20
13.2%
95 @ 110 -20@ -20 -20 @ -20
13.4%
95 @ 110 -20@ -20 -20 @ -20
13.6% 100 @ 115 -15@ -15 -15 @ -15
13.8% 100 @ 115 -15@ -15 -15 @ -15
14%
105 @ 120 -17@ -17 -10 @ -10
bakingbusiness.com / world-grain.com

Year
ago
15 @ 30
33 @ 48
35 @ 50
45 @ 60
47 @ 62
48 @ 63
48 @ 63
48 @ 63
48 @ 63
48 @ 63
65 @ 80
70 @ 85
80 @ 95
85 @ 100
85 @ 100
85 @ 100
85 @ 100

Ingredient Week

The hard winter wheat harvest by July
28 was 94% completed in Colorado (89%
as recent five-year average for date), 75%
in Nebraska (89%), 21% in South Dakota
(60%), and 9% in Montana (8%), according
to the U.S. Department of Agriculture.

still three weeks or so away.
Duluth-Superior grain export elevators
recently added to wheat stocks, which
were estimated at around 8.1 million bus
on July 26 compared with 7.7 million bus
a week earlier.

HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to
the Minneapolis September wheat future
dropped 5@25c a bu lower last week. The
spring wheat harvest was under way.
Harvesting was 3% completed in South
Dakota by July 28 compared with 78%
last year (2012 saw an unusually early
and rapid harvest) and 22% as the recent
five-year average for the date. Twentyone per cent of the state’s crop was ripe
compared with 99% a year ago and 46%
as the average. Colorado spring wheat
was 10% harvested compared with 11%
a year ago and 6% as the average for the
date. Colorado spring wheat was 61%
turning color compared with 65% last
year and 56% as the average.
Spring wheat headed in the six key
states by July 28 was 94% compared with
95% as recent five-year average for the
date. Spring wheat condition in the six
states was rated 68% good to excellent,
the same as a week earlier and compared
with 63% last year.
Farmer selling of spring wheat
remained limited. Storage on farms was
viewed as ample, and producers may
not feel pressed to clear much additional
space, at least with harvest in key areas

SOFT RED. Mill bids on soft red winter wheat advanced at most locations. St.
Louis nearby mill bids on No. 1 soft red
winter wheat were 40c over Chicago Sept.,
up 15c. Chicago mill bids for August were
20c over Chicago Sept., up 10c. Mill bids in
Toledo for August and September were 15c
over Chicago Sept., up 5c; November-December, 15c over Dec. Elevator bids were 8c
under Chicago Sept. Cincinnati mill bids
were 5c over Chicago Sept., up 5c. Elevator
bids were Chicago Sept. price; September,
10c under. Michigan white wheat mill bids
were the Chicago September price to 30c
over for August-September. Gulf bids on
soft red winter wheat for August were 58c
over Chicago September, up 4c.
As the harvest across the Central states
was drawing to an end, analyses of new
crop samples pointed to issues relating to
sprouting in wheat across parts of the eastern Corn Belt and along the East coast. This
included lower test weights and thousand
kernel counts as well as higher incidence of
damaged kernels and in some areas vomitoxin. The quality problems in certain areas
may keep cash bids on soft red winter wheat
stronger longer than they otherwise might
have been as mills look to origins beyond
their traditional territories from which to
draw supply with requisite quality. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Sept., delivered Chicago\beyond cents
per bu
Aug. 2
— Change from —
Year
Premium July 26
July 19
ago
Ordinary
...
...
...
…
11%
...
...
...
…
12%
...
...
...
…
13%
...
...
...
15 @ 20
13.5%
...
...
...
…
14%
75
-5 @ -25
-5 @ -18 15 @ 20
14.5%
...
...
...
…
15%
...
...
...
30 @ 50
16%
105
...
...
…
17%
...
...
...
…

Exporter bids and offers
For
Aug. 2
shipment
Bid
Offer
No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
August
+145 Sep.
…
September
+145 Sep.
…
October
+135 Dec.
…
November
+135 Dec.
…
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
August
+58 Sep.
65
September
+75 Sep.
85
October
+80 Dec.
…
November
+80 Dec.
…

Year ago
bid

…
+100 Sep.
+103 Dec.
+103 Dec.

+12
+40
+50
+50

Sep.
Sep.
Dec.
Dec.

Basis Kansas City, cents per bu
170
130
90
50
A

N

F

M

Cash wheat
Aug. 2 — Change from —
For shipment
Bid July 26 July 19
No. 1 Soft White, Track, Portland
$ per bu
July
7.30
...
...
September
7.30
+.05
-.15
October
7.35
+.05
-.15
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
July
1.08
...
+.08
September
1.13
+.08
+.08
October
0.98
-.02
+.03
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
July
1.00
—
-.10
September
1.00
—
—
October
1.00
—
—

Year
ago
8.80
8.80
8.80
…
0.58
0.45

…
0.60
0.70

Milling & Baking News August 6, 2013 / 39
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Milling & Baking News - August 6, 2013

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