Milling & Baking News - January 7, 2014 - 34

Ingredient Week 

Wheat Futures
Prices of wheat futures continued to
decline last week, although losses were
trimmed by a bounce at the week's end.
New season's lows were set yet again,
and the Chicago March wheat future
traded below $6 a bu for the first time
since December 2011.
Wheat futures last rallied in mid-October. Since then, the Kansas City March
wheat future (through Jan. 2) dropped
$1.35 a bu. March futures dropped $1.17½
a bu in Chicago and $1.44¾ in Minneapolis. While some analysts said the wheat
futures market was oversold, there was
no bullish news to trigger a rebound.
World wheat production was record
high in 2013-14, and production was expected to be similar in the coming year,
so current and prospective supplies were
viewed as ample. The winter wheat crop
in the United States entered dormancy in
the best condition in years, and the winter
wheat crop across most of the rest of the
Northern Hemisphere was said to be in
good shape.
A number of hard red winter wheat
states issued end-of-December updates
to their winter wheat condition ratings,
and while declines were indicated, the
ratings were lowered from historically
favorable levels. While bitterly cold

temperatures gripped most of the nation, much of the winter wheat crop
was covered by a blanket of snow, so the
frigid air didn't result in many market
jitters. Any damage to the crop won't be
evident until the spring at any rate.
Even with recent wide price declines,
U.S. wheat faced stiff competition from
other exporters, including Canada,
which harvested a record crop in 2013.
The U.S. Department of Agriculture indicated net export sales of U.S. wheat
during the week ended Dec. 26 totaled
248,500 tonnes, down 58% from the previous week and down 46% from the prior four-week average. Even allowing for
reduced activity during Christmas week,
export sales were weak. Notably, Brazil
was not among the buyers of U.S. wheat
during the week. Demand from that nation has sustained foreign demand for
U.S. hard red winter wheat far deeper
into the marketing year than otherwise
would have been the case. MBN

Millfeed
Typically, spot millfeed values fall in
late December/early January as the holiday premium evaporates, which was
the case last week with spot values tumbling $10@40 a ton with the exception
of the lightly-tested West coast. Flour

grind, though lighter than expected in
the Northeast, increased in other regions
and was expected to fully rebound this
week, which should ease the nearby
supply shortage. Winter weather complicated logistics in many areas.
The market was unsettled, which is
typical as supplies and prices adjust after the holidays. Demand was the main
question. Millfeed was removed from
most formulations as prices ran up above
corn values in some areas in December.
Further complicating the feed picture
were large supplies and plunging prices
of distillers' dried grains after China refused to accept some shipments because
the product came from an unapproved
bioengineered strain of corn. While feed
rations are limited in the amount of
DDGs they can contain, the issue cast a
bearish tone over the feed market. At the
same time, cold weather across the country was expected to boost demand.
Millfeed was $165 a ton in Kansas City
and $149 in Minneapolis, on a rail basis,
compared with corn at $150 a ton and
sorghum at $137 a ton, both K.C. Corn
gluten feed fell $35 to $200 a ton, distillers'
dried grain plunged $50 to around $170 a
ton, although there were no bids in some
markets, and dehydrated alfalfa was
down $15 at $320 a ton, all K.C. MBN

Wheat futures

Kansas City wheat futures
March contract, $ per bu

$ per bu; change in cents per bu
Jan. 3
Kansas City
March
May
July
September
Chicago
March
May
July
September
Minneapolis
March
May
July
September

- Change from -
Dec. 27 Dec. 20

Week's
High
Low

Year
ago

$10.00

Season's
Low

High

$8.50

6.42½
6.44¼
6.44
6.56¾

-1¾c
-2¼c
-4½c
-3½c

-14¾c
-13½c
-11¾c
-10c

6.44¼
6.46
6.48
6.58¼

6.30¼
6.32¾
6.33¼
6.46

8.04½
8.13¼
8.17¾
8.28

9.50¾
9.85
9.50
9.46¾

(11-28-12)
(05-25-11)
(05-26-11)
(11-29-12)

6.30¼
6.32¾
6.33¼
6.46

(01-02-14)
(01-02-14)
(01-03-14)
(01-03-14)

6.05¾
6.11¼
6.14½
6.24¼

-3¼c
-5c
-6¾c
-6¾c

-7¾c
-9½c
-10¼c
-10c

6.09¼
6.15¾
6.20½
6.30

5.95½
6.02¼
6.06¼
6.16½

7.47¼
7.56¾
7.63¼
7.74¾

9.12¼
9.72
9.47
9.05¾

(11-09-12)
(05-26-11)
(05-26-11)
(11-08-12)

5.95½
6.02¼
6.06¼
6.16½

(01-02-14)
(01-02-14)
(01-02-14)
(01-02-14)

6.30½
6.40
6.05¾
6.60

-4¼c
-4¾c
-49¾c
-5¼c

-20c
-20c
-64c
-17½c

6.36½
6.46¼
6.57
6.66¼

6.24
6.34¾
6.45½
6.55

8.41
8.50¼
8.59¼
8.58

9.58 (11-29-12)
10.19¼ (07-01-12)
10.00 (07-20-12)
9.70 (09-14-12)

6.24
6.34¾
6.45½
6.55

(01-03-14)
(01-03-14)
(01-03-14)
(01-03-14)

$7.00
$5.50
J

A

J
Previous Year

O
Current Year

Chicago wheat futures
March contract, $ per bu

$10.20
$8.60

Bulk middlings

$7.00

$ per ton, delivered rail unless noted
Spot
Kansas City
165 @ 180
Southwest, f.o.b. truck
190 @ 200
Minneapolis
149 @ 159
Upper Midwest, f.o.b. truck 145 @ 155
Chicago West
162 @ 172
Central states, f.o.b truck 155 @ 170
Buﬀalo
140 @ 155
Southeast
145 @ 155
N. & S. California
184 @ 199
Los Angeles, f.o.b. truck 180 @ 195
Paciﬁc Northwest
140 @ 155
Upper Midwest, sacked
350
Wheat germ
300 @ 320
34 / January 7, 2014 Milling & Baking News

Jan.
160@ 175
190@ 200
139@ 149
135@ 145
152@ 162
140@ 155
125@ 140
140@ 150
184@ 199
180@ 195
135@ 145

- Change from -
Dec. 27
Dec. 20
-20 @ -15 -15@ -10
...
...
-15 @ -15 -20@ -25
-15 @ -15 -20@ -25
-15 @ -15 -20@ -25
-30 @ -25 -30@ -20
-15 @ -10 -25@ -20
-5 @ -5
-10@ -10
-
-
-
-
+5 @ 0
+5@ 0

Year
ago
182@ 192
225@ 235
204@ 214
200@ 210
217@ 227
195@ 200
185@ 195
175@ 185
214@ 234
210@ 230
240@ 260

$5.40

Feb.-Mar.
140 @ 155
180 @ 190
134 @ 144
130 @ 140
147 @ 157
125 @ 140
110 @ 125
125 @ 135
179 @ 194
175 @ 190
130 @ 145

Apr.-June
95 @ 110
135 @ 145
114 @ 124
110 @ 120
127 @ 137
100 @ 115
90 @ 105
100 @ 110
154 @ 169
150 @ 165
130 @ 145

J

A

J
Previous Year

O
Current Year

Minneapolis wheat futures
March contract, $ per bu
$10.50
$9.50
$8.50
$7.50
$6.50
$5.50
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 7, 2014

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