Milling & Baking News - January 17, 2017 - 42

Ingredient Week X

Wheat Futures
Wheat futures advanced last week,
building on the gains of the previous
couple of weeks as traders increasingly
looked beyond the current marketing
year to consider the outlook for 2017-18.
That outlook was affected by declining
winter wheat condition ratings at the
end of December as reported by the U.S.
Department of Agriculture the previous
week and a U.S.D.A. estimate of winter
wheat plantings that fell below pre-report trade expectations last week.
The U.S.D.A. on Jan. 12 estimated the
area planted to winter wheat for harvest
this year at 32.4 million acres, down 10%
from a year ago. It would be the smallest
winter wheat area since 1909. The average of trade estimates before the U.S.D.A.
issued its estimate was about 34 million
acres. The widest drop in plantings from
a year ago was in hard red winter wheat
with planted area down about 12%. The
Kansas winter wheat planted area at 7.4
million acres was the state's smallest
since 1957. The U.S.D.A. indicated winter wheat plantings for Nebraska and
Ohio were record low.
While the Southwest has begun to
see some precipitation, the most recent
drought monitor for the state of Kansas
indicated an expansion in drought and

abnormally dry conditions in the state
during the week ended Jan. 10 with moderate drought encroaching on southeast
Kansas. Moderate to severe drought was
the rule across much of the western third
of the state. Most of Oklahoma was in
moderate to severe to extreme drought.
Because of lower-than-expected feed
use of wheat in June-November, the
U.S.D.A. raised its forecast for the 2017
wheat carryover by 43 million bus, to
1,186 million bus. The U.S.D.A. estimated Dec. 1, 2016, wheat stocks at 2,073
million bus, up 19% from a year earlier.
It was the largest Dec. 1 wheat inventory
since 1988.
The U.S.D.A. raised its forecast for
2016-17 world wheat ending stocks to
a record 253.29 million tonnes, up 1.15
million tonnes from the December projection and up 12.8 million tonnes from
240.49 million tonnes in 2015-16.
The U.S.D.A. indicated net export sales
of wheat during the week ended Jan. 5 totaled 391,000 tonnes for 2016-17, up noticeably from the previous week but down 1%
from the prior four-week average. MBN

Millfeed
Prices were mostly steady to lower
last week although some values firmed.
It was the first full week of trading and

flour grind after the Christmas and New
Year's holidays. On the horizon last week
was the Martin Luther King Day federal
holiday on Jan. 16. Few mills seemed to
have plans to be closed for a three-day
weekend, but many facilities were expected to be shut for one extra day, which
kept some millfeed values firm.
While mill grind was somewhat stronger than in the previous two weeks,
nearby supplies remained tight in some
areas. In markets where material was
more abundant, finding trucks to move
extra millfeed was challenging.
An additional problem in the key
Southwest market was the prospect for
an ice storm over the weekend that was
expected to make truck travel difficult.
"They're in a tizzy," a reseller said about
his Southwest customers. Some buyers requested their orders be filled last
Thursday, but suppliers said it wasn't
possible to book transportation on such
short notice.
Millfeed was $105 a ton in Kansas City
and $88 in Minneapolis, on a rail basis,
compared with corn at $121 a ton and
sorghum at $104 a ton, both K.C. Corn
gluten feed was up $5 at $130 a ton, distillers' dried grain was steady at $100 a
ton, and dehydrated alfalfa was down
$10 at $200 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu

Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

- Change from -
Jan. 6 Dec. 30

$6.70

Season's
Low

Week's
High
Low

Year
ago

High

4.49
+15½c +30½c
4.61
+16c
+31c
4.72¾ +16¼c +31½c
4.85¾ +15½c +30½c

4.49½
4.61¼
4.73
4.85¾

4.22½
4.34¼
4.45½
4.60¼

4.74
4.84
4.93½
5.06½

6.85½
6.85½
6.51½
6.03¾

(12-17-14)
(12-17-14)
(06-30-15)
(12-17-14)

3.99½
4.11½
4.23½
4.38¾

(12-07-16)
(12-07-16)
(12-07-16)
(12-07-16)

4.26
4.39¾
4.54¾
4.69½

+2¾c
+18c
+5c +19¼c
+6½c +20½c
+9c +21¾c

4.30
4.45
4.56½
4.69½

4.12
4.25¼
4.39¾
4.52¾

4.73¾
4.78½
4.84½
4.93

6.54½
6.48
6.27¼
5.90

(12-17-14)
(06-30-15)
(12-17-14)
(06-08-16)

3.92¾
4.06
4.20
4.34½

(12-23-16)
(12-23-16)
(12-23-16)
(12-23-16)

+30c +44¾c
5.82¾
5.65¾ +18¾c +31¾c
5.59¼
+13c +21¼c
5.61½ +11¼c +17½c

5.83¾
5.67½
5.60
5.62¼

5.51
5.46¼
5.42½
5.44¾

4.97¼
5.03½
5.10½
5.20¾

6.68
6.03
6.07½
6.09¾

(06-30-15)
(08-20-15)
(06-08-16)
(06-09-16)

4.90
4.99¾
5.09¾
5.20

(08-31-16)
(08-31-16)
(08-31-16)
(08-31-16)

Jan. 13

$5.70
$4.70
$3.70
J

A

J

O

Previous Year

Current Year

Chicago wheat futures
March contract, $ per bu

$6.50
$5.75
$5.00

Bulk middlings

$4.25

$ per ton, delivered rail unless noted
Spot
Kansas City
105 @ 115
Southwest, f.o.b. truck
130 @ 140
Minneapolis
88 @ 98
Upper Midwest, f.o.b. truck 84 @ 94
Chicago West
101 @ 111
Central states, f.o.b truck 105 @ 115
Buﬀalo
99 @ 109
Southeast
107 @ 117
N. & S. California
119 @ 134
Los Angeles, f.o.b. truck 115 @ 130
Paciﬁc Northwest
85 @ 95
Upper Midwest, sacked
327
Wheat germ
220 @ 240

Jan.
105@
130@
84 @
80 @
97 @
102@
93 @
110@
119@
115@
85 @

42 / January 17, 2017 XMilling & Baking News

115
140
94
90
107
112
103
120
134
130
95

- Change from -
Jan. 6 Dec. 30
+3@ +3 +3@ +3
-2@ -12 +2@ -8
+2@ +2 +3@ +3
+2@ +2 +3@ +3
+2@ +2 +3@ +3
-5@ -5 -10@ -10
-4@ -4
-9@ -9
-
-
-2@ -2
-2@ -2
-2@ -2
-2@ -2
-
-

Year
ago
95@ 105
127@ 137
87@ 97
83@ 93
100@ 110
82@ 92
77@ 87
85@ 95
114@ 129
110@ 125
110@ 125

$3.50

Feb.-Mar. Apr.-June July-Sept.
93@ 103 61@ 71 61@ 71
118@ 128 86@ 96 86@ 96
76@ 86
62@ 72 67@ 77
72@ 82
58@ 68 63@ 73
89@ 99
75@ 85 80@ 90
95@ 105 75@ 85 75@ 85
74@ 84
64@ 74 64@ 74
100@ 110 85@ 95 85@ 95
117@ 132 112@ 127 112@ 127
113@ 128 108@ 123 108@ 123
85@ 95
85@ 95 85@ 95

J

A

J
Previous Year

O
Current Year

Minneapolis wheat futures
March contract, $ per bu
$6.70
$6.20
$5.70
$5.20
$4.70
J

A

J
Previous Year

O
Current Year

bakingbusiness.com / world-grain.com
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - January 17, 2017

Table of Contents for the Digital Edition of Milling & Baking News - January 17, 2017
