Milling & Baking News - May 12, 2015 - 36

Ingredient Week

Wheat Futures
New contract lows were set in wheat
futures last week, but a late bounce
pulled prices up higher for the week.
A Kansas wheat tour production forecast for the state that fell shy of pre-tour
trade projections provided late support
to a market seeking some reason to move
higher. Still, ample U.S. and world wheat
supplies, poor foreign demand for U.S.
wheat during the final weeks of the crop
year and improving weather conditions
for a hard red winter wheat crop that has
been struggling exerted weight.
The Wheat Quality Council Kansas
wheat tour concluded last Thursday.
Ninety-two crop scouts forecast an average wheat yield for the state at 35.9 bus
per acre, which compared with a tour
forecast for the 2014 crop at 33.2 bus per
acre and a final official U.S. Department
of Agriculture 2014 average yield at 28
bus per acre. The average of participants' production forecasts for the state
was 288.5 million bus, which, if realized,
would be up 17% from the 2014 outturn
of 246.4 million bus. While the forecast
was higher than last year's, its projection fell short of pre-tour projections that
ranged from 295 million to 305 million
bus. Crop scouts expected the Kansas
harvest to begin in four to six weeks.

Egypt bought 120,000 tonnes of wheat
from Russia and Romania. Foreign demand for U.S. wheat was routine at
best. The U.S.D.A.'s export transactions
report for the week ended April 30 was
dismal with a net sales reduction for export wheat for 2014-15 of 148,200 tonnes.
While many of the canceled sales were
switched to 2015-16 delivery, two consecutive weeks of significant sales reductions for the current year couldn't help
but to pressure wheat futures.
Russia, which was viewing improving
conditions for its winter wheat crop, was
widely expected to lift its export tax on
wheat by May 15.
A wet weather pattern persisted
across much of the hard winter wheat
states, which was expected to help give
a boost to yield prospects.
The U.S.D.A. rated the nation's winter
wheat crop's condition as of May 3 at
43% good to excellent, 37% fair and 20%
poor to very poor, a minor improvement
from the previous week and compared
with 31% good to excellent, 31% fair and
38% poor to very poor a year earlier. MBN

Millfeed
Nearby quotes were mostly steady
to lower last week, but some deferred
values and spot quotes showed gains.

Lightly tested California and Pacific
Northwest values remained steady.
The irregular price direction indicated
some markets may have put in a temporary bottom after about six weeks of
relentless declines to levels generally not
seen since the summer of 2010.
More vigorous flour grind averaging
six days following the Easter holiday,
coupled with a fall-off in demand as pastures greened, were viewed as key factors pressuring prices in recent weeks.
Those fundamentals remained in place
last week, and, in certain cases, lackluster
demand continued to exert downward
pressure. Spot values in the Southwest
rail market fell $4 last week to finish at
about $55@65 a ton, a level not seen since
2014 and, before that, in July of 2010.
But the low relative prices appeared
to be attracting some buying interest.
Northeast values, for instance, advanced
$4@17 a ton last week, with the widest
gains in the deferred positions.
Millfeed was $55 a ton in Kansas City
and $71 in Minneapolis, on a rail basis,
compared with corn at $124 a ton and
sorghum at $130 a ton, both K.C. Corn
gluten feed was unchanged at $145 a
ton, distillers' dried grain was steady at
$180 a ton, and dehydrated alfalfa was
unchanged at $260 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
May contract, $ per bu

$ per bu; change in cents per bu
May 8
Kansas City
May
July
September
December
Chicago
May
July
September
December
Minneapolis
May
July
September
December

- Change from -
May 1 Apr. 24

5.10½ +17¼c
5.08½
+8c
5.18
+7½c
5.34½ +4½c

$9.00

Season's
Low

Week's
High
Low

Year
ago

High

+8¼c
+1c
-
-2¾c

5.08
5.10
5.18¾
5.37½

4.85¼
4.85½
4.95½
5.15

8.19
8.28¾
8.34
8.43¾

8.50
8.20
8.15
8.24¼

(05-06-14)
(05-09-14)
(05-09-14)
(05-09-14)

4.83¾
4.85½
4.95½
5.15

(04-28-15)
(05-05-15)
(05-05-15)
(05-05-15)

$8.00
$7.00
$6.00
$5.00
$4.00

4.76½
4.81½
4.89¼
5.06¼

+6½c
+7½c
+6½c
+5½c

-9½c
-7c
-8¾c
-8¾c

4.78¼
4.84
4.91¾
5.09

4.60
4.60¾
4.69¼
4.85¾

7.14
7.22½
7.31
7.45¼

7.94¾
7.79¾
7.63
7.72

(05-09-13)
(06-03-13)
(05-07-14)
(05-09-14)

4.60
4.60¾
4.69¼
4.85¾

(04-28-15)
(05-05-15)
(05-05-15)
(05-05-15)

5.28½
5.41
5.52¾
5.67½

+8¼c
+6½c
+7¾c
+9¾c

-6½c
-4¼c
-1¼c
+3c

5.28½
5.43¾
5.54¾
5.68

5.13¼
5.21½
5.33½
5.47¼

7.94¾
7.95¼
8.01½
8.11¼

8.34½
8.30
7.90
7.99

(05-06-14)
(05-06-14)
(05-13-14)
(05-09-14)

5.13¼
5.21½
5.33½
5.42½

(05-05-15)
(05-05-15)
(05-05-15)
(05-05-15)

M

A

N
Previous Year

F
Current Year

Chicago wheat futures
May contract, $ per bu

$8.00
$7.00
$6.00

Bulk middlings

$5.00

$ per ton, delivered rail unless noted
Spot
Kansas City
55 @ 65
Southwest, f.o.b. truck
76 @ 85
Minneapolis
71 @ 81
Upper Midwest, f.o.b. truck 67 @ 77
Chicago West
84 @ 94
Central states, f.o.b truck 75 @ 85
Buﬀalo
77 @ 87
Southeast
55 @ 65
N. & S. California
135 @ 150
Los Angeles, f.o.b. truck 131 @ 146
Paciﬁc Northwest
130 @ 145
Upper Midwest, sacked
325
Wheat germ
250 @ 280
36 / May 12, 2015

- Change from -
May
May 1 Apr. 24
55 @ 65
-4@ -4
-3@ -3
76 @ 85 +9@ +6 -4@ -5
72 @ 82
-5@ -5
-9@ -9
68 @ 78
-5@ -5
-9@ -9
85 @ 95
-5@ -5
-9@ -9
75 @ 85
-1@ 0
-5@ -5
77 @ 87 +4@ +4 +2@ +2
60 @ 70
-
-10@ -10
135@ 150 -2@ -2
-4@ -4
131@ 146 -2@ -2
-4@ -4
130@ 145
-
-

Milling & Baking News

Year
ago
131@ 141
150@ 160
126@ 136
122@ 132
139@ 149
148@ 158
130@ 140
140@ 150
189@ 204
185@ 200
140@ 155

$4.00

June
62@ 72
83@ 93
75@ 85
71@ 81
88@ 98
76@ 85
79@ 89
65@ 75
135@ 150
131@ 146
130@ 145

July-Sept. Oct.-Dec.
71@ 81 98@ 108
92@ 102 119@ 129
88@ 98 104@ 114
84@ 94 100@ 110
101@ 111 114@ 124
80@ 90 90@ 100
79@ 89 95@ 105
70@ 80 80@ 90
137@ 152 154@ 169
133@ 148 150@ 165
130@ 145 130@ 145

M

A

N
Previous Year

F
Current Year

Minneapolis wheat futures
May contract, $ per bu
$9.00
$8.00
$7.00
$6.00
$5.00
M

A

N
Previous Year

F
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - May 12, 2015

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