Milling & Baking News - October 15, 2013 - 35


Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were 1c
a bu higher to 4c lower last week. Onecent gains were the rule across the middle
third of the protein scale except at 12.4%
protein, where the basis was lowered 4c
to bring it in line with the basis on other
middle-protein wheat. The basis on lowprotein wheat and high-protein wheat
was untested and unchanged. Demand
for hard winter wheat from West coast
mills and export elevators helped
underpin the basis. Export bids from
elevators along the Gulf remained firm.
Wheat movement was limited with
most producers and country elevators
engaged in harvesting, storing and
transporting fall crops. Mills and other
wheat buyers had prepared for what
they expected would be reduced wheat
movement in October, so while the basis
remained firm, indeed, historically strong
for the time of year, demand was not so
urgent as to push premiums significantly
higher. This may change in the next
couple of weeks. The fall crop harvest
was proceeding behind the average pace
for the date, and some mills may begin
to see wheat inventories reduced to
uncomfortably low levels.
There was good inquiry about wheat
transactions for November-December,
but little new business resulted. Bids and
offers were about 10c to 15c apart.
The partial shutdown of the federal
government meant no weekly Crop
Progress report was available to measure
advances in wheat seeding or the fall crop
harvest. Some private sources indicated
that all winter wheat planting was 55% to
60% completed by the beginning of last
week compared with about 55% a year
earlier. The hard winter wheat crop was
being planted under moisture conditions
that, while not ideal, were dramatically

No. 1 hard winter
Basis Kansas City Dec., cents per bu
Oct. 11 — Change from —
Premium Oct. 4 Sept. 27
Ordinary 86@ 96
—
—
11%
95@ 105
—
—
11.2% 95@ 105
—
—
11.4% 98@ 108
—
+3 @ +3
11.6% 98@ 108
—
+3 @ +3
11.8% 106@ 116 +1 @ +1 +11 @ +11
12%
106@ 116 +1 @ +1
—
12.2% 106@ 116 +1 @ +1
—
12.4% 106@ 116 -4 @ -4
—
12.6% 106@ 116 +1 @ +1
—
12.8% 106@ 116 +1 @ +1
—
13%
106@ 116 +1 @ +1 -4 @ -4
13.2% 106@ 116 +1 @ +1 -4 @ -4
13.4% 115@ 125
—
—
13.6% 115@ 125
—
—
13.8% 115@ 125
—
—
14%
115@ 125
—
—
bakingbusiness.com / world-grain.com

Year
ago
35 @ 50
45 @ 60
50 @ 65
60 @ 75
75 @ 90
82 @ 97
88 @ 103
88 @ 103
88 @ 103
91 @ 106
91 @ 106
93 @ 108
93 @ 108
93 @ 108
93 @ 108
93 @ 108
95 @ 110

improved from a year ago, when drought
gripped much of the nation.
HARD SPRING. Premiums on hard
red spring wheat quoted as delivered
Chicago/beyond values in relation to the
Minneapolis December wheat future were
25c a bu higher to 50c lower last week.
There were wide swings in basis levels
from day to day. Premiums advanced early
in the week as individual mills pressed
for offers in a thin market. But once that
demand was satisfied, the basis buckled.
Offers increased toward the week’s end
but were expected to be crimped soon
as producers, country elevators and rail
and truck transport become increasingly
engaged in the fall crop harvest.
Because of the partial shutdown of
the federal government, the Agricultural
Marketing Service in Minneapolis was
closed and could provide neither basis
quotes nor daily rail car tallies. Private
sources provided basis levels used on
this page.
Recent rain slowed the soybean
harvest. This allowed time for elevators
with freight ordered time to load
wheat while awaiting resumption of
harvesting. More rain was in forecasts.
The Canadian Grain Commission
indicated in its weekly crop harvest report
issued Oct. 8 that based on 1,028 samples,
western Canada No. 1 Canadian western
red spring wheat was averaging 12.8% in
protein compared with 13.6% as the average
in 2012, 13% as the 2011 average and 13.6%
as the 2002-2011 average. Strong yields

and minimal stress to the crop seemed to
account for relatively low protein.
Stocks of wheat in the northern port
cities of Duluth and Superior totaled
18,395,000 bus, down 455,000 bus from
a week earlier and compared with
22,612,000 bus a year ago. It was the first
weekly decline in wheat stocks in the
port cities since mid-August.
SOFT RED. Mill bids on soft red winter
wheat were mostly steady. St. Louis
mill bids on No. 1 soft red winter wheat
for October were 20c a bu over Chicago
December, unchanged. Chicago mill bids
for October, November and December
were the Chicago December price,
unchanged. Mill bids in Toledo for October
were 10c under Chicago December,
unchanged; November-December, 10c
over; new crop, 20c over July. Elevator bids
were at 18c under Chicago December; new
crop, 10c under July. Cincinnati mill bids
were 35c under Chicago December, down
5c. Elevator bids were 50c under Chicago
December; new crop, 36c under July. Mill
bids in the eastern Corn Belt, Southeast
and East coast were much stronger as
subpar wheat quality in the areas forced
wheat buyers to reach out to the west to
draw in supply. Michigan white wheat
mill bids were 5c under Chicago December
to 50c over, unchanged. Gulf bids on soft
red winter wheat for October were 85c
over Chicago December, up 15c.
Progress in winter wheat planting
and harvesting fall crops was slowed
because of recent wet weather. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Oct. 11 — Change from — Year
Premium Oct. 4 Sept. 27
ago
Ordinary . . .
...
...
…
11%
...
...
...
…
12%
75
...
...
…
13%
80 @ 85 +25 @ +10+10@ -5
…
13.5%
...
...
...
…
14%
85 @ 110 -5 @ -10 -20 @ -5
80
14.5%
...
...
...
…
15%
95 @ 130 -50 @ -60 -40 @ -35 75 @ 85
16%
...
...
...
95
17%
...
...
...
…

Exporter bids and offers
For
shipment

Oct. 11
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
October
+145 Dec.
…
November
+140 Dec.
…
December
+130 Dec.
…
January
+135 March
…
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
October
+85 Dec.
…
November
+90 Dec.
100
December
+77 Dec.
95
January
+72 March 80

Year ago
bid

+115 Dec.
+115 Dec.
+115 Dec.
+115 March

+60 Dec.
+60 Dec.
+63 Dec.
+55 March

Basis Kansas City, cents per bu
170
130
90
50

Cash wheat
Oct. 11 — Change from —
For shipment
Bid Oct. 4
Sept. 27
No. 1 Soft White, Track, Portland
$ per bu
October
...
...
...
November
...
...
...
December
...
...
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
October
...
...
...
November
1.00
—
-.10
December
1.00
—
-.10
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
October
...
...
...
November
1.15
—
-.05
December
1.20
—
-.05

Year
ago
…
…
8.90
0.65
0.70
0.75
0.80
0.85
0.90

Milling & Baking News October 15, 2013 / 35
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Milling & Baking News - October 15, 2013

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