Milling & Baking News - January 3, 2017 - 33

X
Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were 5c
a bu higher to 8c a bu lower last week.
Downward adjustments were posted on
wheat with protein from 12% through
12.4% based on trades late the previous
week. The basis at 11.6% was raised 5c
during the last session on reseller bids.
Premiums otherwise were unchanged
and only lightly tested.
Railroad performance has been slipping for the past couple of weeks with
the Union Pacific and the B.N.S.F. running late in placing and transporting
rail cars. For several months, even at the
height of fall harvest, there had been few
complaints about rail service, but there
has been a noticeable decline recently,
according to shippers and receivers.
While a blizzard raged across the northern Plains during Christmas weekend, rain
was the rule in central and eastern portions
of the hard red winter wheat belt. Moisture
in any form was welcome. Western reaches
of the belt received little precipitation. The
U.S. Department of Agriculture indicated
36% of Kansas wheat was growing in
drought areas (22% in moderate drought
and 13% in severe drought). Additionally, drought or abnormally dry conditions
now embraced most of the state, with only
the northeast quadrant mostly unaffected.
Oklahoma was faring worse with 62% of its
wheat crop growing in areas of moderate to
severe drought. That percentage was 58%
for Colorado, 42% for Nebraska and 20%
for Texas.
A surge in Kansas City wheat futures
at the week's outset may have resulted
in some farmer wheat sales to elevators.
Farmers of the Southwest - Kansas,
Oklahoma, Texas, Colorado and Nebraska
- collected $1,241,078 in loan deficiency payments on 3,791,237 bus of wheat
during the week ended Dec. 26, which

No. 1 hard winter
Basis Kansas City March, cents per bu
Dec. 30 - Change from - Year
Premium Dec. 23 Dec. 16
ago
Ordinary 2@ 12
-
-
70 @ 80
11%
24@ 34
-
-
82 @ 92
11.2% 50@ 60
-
-
82 @ 92
11.4% 70@ 80
-
-10 @ -10 82 @ 92
11.6% 75@ 85 +5 @ +5 -5 @ -5 84 @ 94
11.8% 80@ 90
-
-
85 @ 95
12%
95@ 105 -8 @ -8
-
86 @ 96
12.2% 100@ 110 -5 @ -5
-5 @ -5 86 @ 96
12.4% 100@ 110 -5 @ -5
-5 @ -5 90 @ 100
12.6% 120@ 130
-
+10 @ +10 90 @ 100
12.8% 127@ 137
-
-
90 @ 100
13%
160@ 170
-
-
94 @ 104
13.2% 160@ 170
-
-
94 @ 104
13.4% 160@ 170
-
-
95 @ 105
13.6% 160@ 170
-
-
95 @ 105
13.8% 160@ 170
-
-
95 @ 105
14%
225@ 235
-
-
110 @ 120
bakingbusiness.com / world-grain.com

equated to an average L.D.P. of about 32¾c
a bu. To date this crop year, Southwestern
growers have collected $93,157,778 in
L.D.P.s on 451,791,778 bus of wheat.
As the yearend approached, the effect
of a crop with low average protein was
evident in the cash wheat basis where
13%-protein wheat premiums were
quoted 70c higher than 12%, $1.36 above
11% and $1.58 a bu above ordinary
wheat. The basis at 14% protein was
higher still, being quoted 65c a bu higher
than 13.8%-protein supply. Even at 235c
over the K.C. March, the cash price of
14%-protein hard red winter wheat still
was below that of spring wheat with
equivalent protein. The cash price of
14%-protein hard red winter wheat in
Kansas City on Dec. 28 was $6.44½ a
bu compared with a Chicago price for
14%-protein hard red spring wheat at
$6.75¾.
In Fort Worth, bids on hard red winter wheat were 65c under K.C. March.
Posted Salina truck bids at terminal elevators for nearby were 100c under K.C.
March. Hutchinson wheat bids were
95c under March for nearby. The highest posted Wichita elevator bid was 92c
under K.C. March. Gulf bids on hard red
winter wheat with 12% protein for January were at 118c over K.C. March.
HARD SPRING. Premiums on hard red
spring wheat in Minneapolis were 20c a
bu higher to 20c lower last week. Losses
were posted at 13% and 14.5% protein. Strength at the other protein levels

reflected limited offers during the holiday-shortened week.
A strong winter storm brought heavy
snow and blizzard conditions to the
northern Plains during Christmas weekend. On Christmas day, North Dakota
closed 240 miles of Interstate 94 and
South Dakota closed more than 200 miles
of Interstate 90 because of the blizzard.
Elevators were going to be closed on
Christmas at any rate, but the storm aggravated already deteriorating rail logistics. Rail shuttle freight rates continued to
rise in the case of the B.N.S.F. Escalating
rates were attributed partly to weather
and partly to demand for cars and power
from a strong export program for soybeans for shipment off the West coast.
SOFT RED. Wheat movement across
the Central states was light in the period
between the holidays. Soft red winter
wheat producers may elect to liquidate
additional wheat around the turn of the
year, before or after Jan. 1, for tax reasons, but most of the crop already was in
commercial hands.
St. Louis-area mill bids for nearby were
10@35c over Chicago March. Chicago mill
bids for nearby were at the Chicago March
price. Toledo mill bids were at the Chicago
March price. Elevator bids were 25c under
Chicago March. Cincinnati elevator bids
were 20c under Chicago March. Michigan
white wheat mill bids were 10c under Chicago March to the March price. Gulf bids
on soft red winter wheat were 40c over
Chicago March, up 5c. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis March, delivered Chicago\beyond cents
per bu
Dec. 30
- Change from -
Year
Premium
Dec. 23
Dec. 16
ago
Ordinary
...
...
...
...
11%
...
...
...
...
12%
...
...
...
...
13%
90
-20
+20 @ +5
...
13.5%
110
+20 @ +15 +15 @ -15 70 @ 100
14%
120 @ 145 +5 @ +10 -25 @ -5 110 @ 115
14.5%
130
-20
-20
130 @ 140
15%
160 @ 170 +10 @ +20 +160 @ +170
...
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Dec. 30
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
December
...
...
January
+118 March 123
February
+115 March 120
March
+113 March 118
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
December
+40 March 44
January
+43 March 47
February
+43 March 48
March
+44 March 48

Year ago
bid

...
+102 March
+102 March
+102 March

+44 March
+48 March
+50 March
+50 March

Basis Kansas City, cents per bu
130
110
90
70
50
30
J

Cash wheat
Dec. 30 - Change from -
For shipment
Bid Dec. 23 Dec. 16
No. 1 Soft White, Track, Portland
$ per bu
December
...
...
...
January
4.58
+.03
-.02
February
4.58
+.03
-.02
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
December
0.90
-.05
-
January
0.95
-
-
February
0.95
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
December
1.25
-
-
January
1.25
-
-
February
1.25
-
-

Year
ago
5.26
5.26
5.26
0.90
0.90
0.93
1.40
1.40
1.40

Milling & Baking News XJanuary 3, 2017 / 33

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Milling & Baking News - January 3, 2017

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