Milling & Baking News - January 5, 2016 - 37

X
Cash Wheat
HARD WINTER. Premiums on hard red
winter wheat in Kansas City were unchanged last week, reflecting predictably
slow wheat movement during the week
between Christmas and New Year's. Receipts were light.
The market was in full holiday mode.
Elevators closed at midday Thursday
and were closed New Year's day as
well. Producer sales were slow following an increase earlier in December. Toarrive business was lacking. The basis
on 12%-protein wheat for delivery in
January-March remained at about even
money with the spot basis.
A grain merchandiser summing up
2015 said the hard red winter wheat crop
was "decent" and of good milling quality. He said the spot basis was down to
five-year lows, and wheat futures were at
multi-year lows as well, offering bakers
pricing they were "pretty happy about."
Rail movement faced its first significant weather challenges of the season
last week. A wave of wintry precipitation in the southern Plains led to a surge
in rail cancellations at scattered locations
from Kansas City south to Houston.
Heavy rainfall, flooding and high winds
afflicted southwestern areas, and heavy
snow fell across western Texas and into
central Oklahoma. Some interior mills in
Kansas were temporarily closed because
of weather conditions, but wherever
there was protective snow cover, it was
welcome
In Fort Worth, posted elevator bids on
hard red winter wheat for nearby were
40c under K.C. March. Posted Salina
truck bids at terminal elevators for nearby were 40c under K.C. March. Hutchinson nearby elevator bids were at 35c
under K.C. March. The highest posted
Wichita elevator bid was 35c under K.C.
March. Gulf bids on hard red winter

No. 1 hard winter
Basis Kansas City Mar., cents per bu
Dec. 31 - Change from -
Premium Dec. 24 Dec. 18
Ordinary 70@ 80
-
-
11%
82@ 92
-
-
11.2% 82@ 92
-
-
11.4% 82@ 92
-
-
11.6% 84@ 94
-
-
11.8% 85@ 95
-
-
12%
86@ 96
-
-
12.2% 86@ 96
-
-
12.4% 90@ 100
-
-4 @ -4
12.6% 90@ 100
-
-4 @ -4
12.8% 90@ 100
-
-4 @ -4
13%
94@ 104
-
-
13.2% 94@ 104
-
-
13.4% 95@ 105
-
-
13.6% 95@ 105
-
-
13.8% 95@ 105
-
-
14%
110@ 120
-
-
bakingbusiness.com / world-grain.com

Year
ago
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100
90 @ 100

with 12% protein for January were 102c
over K.C. March, up 4c.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were unchanged to 10c a bu lower last week with
values unquoted below 13.5% protein.
Farmers refrained from any significant
year-end selling for tax or cash-flow purposes. For the holiday-shortened week,
wheat movement was limited, closing out
the year with a day of no cars to be offered
on the floor of the Minneapolis Grain Exchange. Mills seemed comfortable with
pipelines. The closing of the Great Lakes
shipping season narrowed outlets.
SOFT RED. The cash soft red winter
market exhibited wide regional variations. This translated to strong regional
bids not necessarily reflected in posted
bids quoted below.
Some St. Louis-area mill bids for nearby were withdrawn temporarily because
of Mississippi flood waters, but the most
recent quotes were 20@50c over Chicago
March. Chicago mill bids for nearby were
40c over March. Toledo mill bids for December were 25c over Chicago March;
January-March, 25c over March; AprilMay, 25c over May. Elevator bids were 20c
over March. Cincinnati elevator bids were
30c under the Chicago March. Michigan
white wheat mill bids varied widely. The
highest nearby bid was about 200c over
Chicago March, but some bids were indicated as low as about 114c over. Gulf bids
on soft red winter wheat for December

were 44c over Chicago March, up 2c.
Soft red wheat growing states such as
Missouri, Illinois, Ohio and Kentucky
experienced heavy rainfall during the
previous weekend, followed by a wintry
mix from western Missouri through the
northwest Corn Belt. Some grain-loading
terminals on the Mississippi river closed
early last week because of high water.
Localized flooding, severe in east Texas and Arkansas, raised concerns of crop
damage. Much of the wheat as far south
as Tennessee was dormant and thus not
seen at much risk from limited periods
of standing water. But flour mills near St.
Louis were closed because of flooding,
and the Army Corps of Engineers closed
Mississippi river at St. Louis to all traffic
at least through last weekend.
As Mississippi flood waters began to
recede at the week's end, mills affected
by flooding were determining when to
reopen. Facilities not flooded themselves
were expected to resume production
once they could again receive wheat and
ship flour and byproducts.
Floods from the Mississippi and its
tributaries were said to be worse than
in 1993 in certain areas, the bar against
which all subsequent flood events have
been measured. Damage to wheat fields
covered by high water may be extensive
or in instances even total. Elsewhere,
ponded water began to evaporate, and
crop damage was viewed as minimal.
Concerns turned to the lack of snow cover to protect wheat from any sustained
sharp drop in temperatures. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Mar., delivered Chicago\beyond cents
per bu
Dec. 31
- Change from -
Year
Premium
Dec. 24
Dec. 18
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12%
...
...
...
46
13%
...
...
...
30 @ 60
13.5%
70 @ 100 -10 @ -10 -10 @ +10 100 @ 135
14%
110 @ 115 -10 @ -5
+5 @ 0 100 @ 120
14.5% 130 @ 140
...
+20 @ +30 175 @ 180
15%
...
...
...
325 @ 400
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Dec. 31
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
December
...
...
January
+102 March 113
February
+102 March 113
March
+102 March 113
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
December
+44 March 55
January
+48 March 58
February
+50 March 58
March
+50 March 58

Year ago
bid

...
+108 March
+108 March
+110 March

...
+85 March
+85 March
+85 March

Basis Kansas City, cents per bu
150
130
110
90
70
50
D

Cash wheat
Dec. 31 - Change from -
For shipment
Bid Dec. 24 Dec. 18
No. 1 Soft White, Track, Portland
$ per bu
December
5.26
...
...
January
5.26
-.04
-.24
February
5.26
-.04
-.24
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
December
0.90
-
-
January
0.90
-
-
February
0.93
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
December
1.40
-
-
January
1.40
-
-
February
1.40
-
-

Year
ago
6.65
6.65
6.68
0.90
0.90
0.95
1.40
1.40
1.50

Milling & Baking News XJanuary 5, 2016 / 37

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

Milling & Baking News - January 5, 2016

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