Milling & Baking News - January 7, 2014 - 33


Cash Wheat
HARD WINTER. Premiums on hard
red winter wheat in Kansas City were
unchanged to 45c a bu higher last week.
The basis was unchanged only in the
case of wheat with protein below 11.4%.
The widest gains were posted across the
top third of the protein scale.
A surging cash spring wheat market
prodded mills to raise bids to attract
high-protein hard winter wheat offers.
Substitution of spring wheat for highprotein hard red winter wheat at many
locations has been a market feature thus
far this crop year. But with cash spring
wheat premiums on an upward tear
and with Kansas City and Minneapolis
wheat futures trading near the same
levels, substitution was less attractive.
The week's adjustments narrowed the
inverse in the cash hard winter wheat
market with high-protein wheat quoted
only 5c below middle-protein supply.
The hard red winter wheat basis
remained historically high, underpinned
by poor railroad performance that
resulted in delays in shipping wheat for
application against contracts. High rail
freight costs discouraged elevators from
loading wheat unless the basis was high
enough to justify the effort.
A New Year's snowstorm laid a fresh
blanket of snow across Kansas and the
states to its north. Northeastern Colorado
also was snow covered. Bitterly cold
temperatures gripped the region into the
weekend with more snow in forecasts.
Farmer selling of hard red winter
wheat remained light as wheat futures
prices continued to give ground.
A number of hard red winter wheat
states issued end-of-December updates
on wheat and field conditions. The U.S.
Department of Agriculture field office
in Kansas said, "Snow fell in the eastern
part of the state with totals up to 12

No. 1 hard winter
Basis Kansas City Mar., cents per bu
Jan. 3 - Change from -
Premium Dec. 27 Dec. 20
Ordinary 105@ 115
-
-
11%
120@ 130
-
-
11.2% 120@ 130
-
-
11.4% 130@ 140 +10 @ +10 +10@ +10
11.6% 140@ 150 +20 @ +20 +20@ +20
11.8% 155@ 165 +15 @ +15 +20@ +20
12%
155@ 165 +15 @ +15 +20@ +20
12.2% 155@ 165 +15 @ +15 +20@ +20
12.4% 155@ 165 +15 @ +15 +20@ +20
12.6% 155@ 165 +15 @ +15 +20@ +20
12.8% 155@ 165 +15 @ +15 +45@ +45
13%
150@ 160 +40 @ +40 +40@ +40
13.2% 150@ 160 +40 @ +40 +40@ +40
13.4% 150@ 160 +40 @ +40 +40@ +40
13.6% 150@ 160 +40 @ +40 +40@ +40
13.8% 150@ 160 +40 @ +40 +40@ +40
14%
155@ 165 +45 @ +45 +45@ +45
bakingbusiness.com / world-grain.com

Year
ago
60@ 75
70@ 85
80@ 95
85@ 100
94@ 109
97@ 112
100@ 115
100@ 115
100@ 115
100@ 115
100@ 115
105@ 120
105@ 120
105@ 120
105@ 120
105@ 120
105@ 120

inches (in the week ended Dec. 29). The
western part of the states did not receive
snow to protect the wheat from the cold
temperatures." Kansas topsoil moisture
was rated 71% adequate to surplus and
29% short to very short. Subsoil moisture
was 61% adequate to surplus with 39%
short to very short. Rated good to excellent
was 58% of crop compared with 63% at the
end of November. Oklahoma had multiple
storms in December. Topsoil moisture at
the end of December was 50% adequate
to surplus; subsoil moisture was 57%
adequate to surplus. Wheat condition was
rated 63% good to excellent compared
with 77% a month earlier. Wheat rated
good to excellent was 65% in Nebraska
(71% a month earlier), 70% in South
Dakota (79%) and 60% in Montana (56%).
In Fort Worth, bids on hard red winter
wheat were at 40c over K.C. March.
Salina truck bids at terminal elevators
for nearby were at 15c under K.C. March.
Hutchinson elevator bids for nearby
were at 10c under K.C. March. Wichita
elevator bids were 18@10c under K.C.
March. The Gulf market for hard red
winter wheat with 12% protein for
January was 150@158c over K.C. March.
HARD SPRING. Premiums on hard red
spring wheat quoted as delivered Chicago/
beyond values in relation to the Minneapolis
March wheat future were 33c a bu higher to
70c lower last week. Price adjustments were
erratic amid limited wheat offers during
the holiday-shortened workweek. Notable
was 14%-protein wheat quoted at 275c over

the Minneapolis March wheat future. The
cash spring wheat basis (14% protein) was
highest since mid-July 2011.
Poor railroad performance remained
the principal prop to basis. Snow, bitterly
cold temperatures that limited elevators'
ability to load rail cars if they had them,
and an oil train derailment and fire in
North Dakota aggravated the already
difficult rail logistical situation.
Farmer selling at the start of the new
year was light to lacking.
SOFT RED. Mill bids on soft red winter
wheat remained firm during the holidayshortened week. St. Louis mill bids on No.
1 soft red winter wheat for December were
50c over March, unchanged. Chicago mill
bids for January-February were 20c over
Chicago March, unchanged. Mill bids in
Toledo for nearby were Chicago March
price, up 10c; February-March, March
price; new crop, 10c over July. Elevator
bids were at 10c under Chicago March, up
10c; new crop, 10c under July. Cincinnati
mill bids were 25c under Chicago March,
unchanged; new crop, 30c under July.
Elevator bids were 10c under Chicago
March; new crop, 16c under July. Mill
bids in eastern Corn Belt, Southeast and
East coast were much stronger as subpar
wheat quality in these areas forced wheat
buyers to reach out to the west to draw
supply. Michigan white wheat mill bids
were 30c to 50c over Chicago March,
unchanged; new crop, Chicago July price
to 25c over. Gulf bids for January were
105c over Chicago March, unchanged. MBN

No. 1 hard spring

No. 1 hard winter premiums, 12.2%

Basis Minneapolis Dec., delivered Chicago\beyond cents
per bu
Jan. 3
- Change from -
Year
Premium Dec. 27
Dec. 20
ago
Ordinary . . .
...
...
...
11%
...
...
...
...
12% 110@ 158 +20 @ +33 +10@ +58 ...
13% 190@ 205 +30 @ -35 +30@ +30
80
13.5%
...
...
...
...
14% 180@ 275 -70 @ +25
0@ +75 85 @ 90
14.5%
...
...
...
...
15%
...
...
. . . 90 @ 120
16%
...
...
...
...
17%
...
...
...
...

Exporter bids and offers
For
shipment

Jan. 3
Bid

Ingredient Week

Offer

No. 1 Hard 12%, Track Gulf
Basis Kansas City future, cents per bu
January
150 March 158
February
+145 March
...
March
+145 March
...
April
+143 May
...
No. 2 Soft Red, c.i.f. New Orleans
Basis Chicago future, cents per bu
January
+105 March
...
February
+105 March
...
March
+100 March
...
April
+65 May
95

Year ago
bid

+117 March
+120 March
+122 March
+118 May

+80 March
+83 March
+80 March
+50 May

Basis Kansas City, cents per bu
170
130
90
50

Cash wheat
Jan. 3 - Change from -
For shipment
Bid Dec. 27 Dec. 20
No. 1 Soft White, Track, Portland
$ per bu
December
...
...
...
February
...
...
...
March
7.08
-.04
...
No. 1 Hard 11.5%, Track, Portland
Basis Kansas City future, $ per bu
December
1.05
+.15
+.15
February
1.10
-
-
March
1.15
-
-
No. 1 Spring 14%, Track, Portland
Basis Minneapolis future, $ per bu
December
1.65
-
+.15
February
1.65
+.05
+.20
March
1.60
+.10
+.20

Year
ago
...
8.40
8.42
0.95
1.00
1.03
0.95
0.95
0.95

Milling & Baking News January 7, 2014 / 33
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Milling & Baking News - January 7, 2014

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